Tag Archive | "currency devaluation"

A Centenarian Financial Lesson

Here is an important lesson about finance from a century ago.  In 1916, a terrible war was being waged.  The Germans realizing that they had made a huge error began a peace initiative.  The British refused, and this led to an even bigger German error, open submarine warfare that brought the Americans into the war.

Another huge error was that Germany’s government had made a decision to finance that war with loans. The strategy was to pay off the loans with the repatriations and spoils of war.  That plan backfired when Germany lost the war and the new Weimar Republic was now saddled with a massive war debt that it could not afford.  The government decided to payoff the debt by printing money without the economic resources to back it up.

In 1916 five German marks were worth a US dollar.  After the Treaty of Versailles 48 paper marks  were required to buy one US dollar.  Yet Germany continued to print paper money to pay its debt.  By November 1923, one American dollar was worth 4,210,500,000,000 German marks  (that’s 4.2 trillion marks per dollar).

The lesson is when governments print too much paper money, without the economic resources to back it up, that paper loses purchasing power.  Yet the lesson has not stuck.  Governments everywhere are growing deeper and deeper in debt.

One way to overcome the consequences of this devaluation is to combine multi-dimensional businesses with writing to sell.

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

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


(Our Florida home and grove with its heart shape.)

In North Carolina we bought a house… then added a seminar center and rental units.


Our mountain creek seminar center in North Carolina.

We have made each of our homes multi dimensional… a home AND a source of income.  This is important because multi dimensional homes help us escape governments that cannot keep their economic promises.  History is littered with stories of serious national debt and economic problems that ruined pensions and retirees.  The burdens of debt and fiscal imprudence cause governments and societies to lose their ability to keep their promises.  Multi dimensional earnings can help overcome the risks these conditions create.

A look at government, social and currency breakdowns at their worst can help us see ways to earn and invest in turbulent times.

We do not have to look back 100 years to see what excessive debt and printing of paper currency can do.  In 1992, after Ukraine declared independence from the Soviet Union, its budget deficit reached 12.2% of GDP and inflation reached 2000%.  In 1993 price growth was 10,000%.  By the time a new currency was introduced (the hryvnia) in 1996 cumulative price increases reached 100,000 times!

Inflation slowed for awhile but has skyrocketed again and Ukraine’s hryvnia lost 70 percent of its value against other currencies in just the last year.

No matter how much one earns and saves, if prices rise 100,000 times, a lifetime of thrift might not be enough for a loaf of bread.

Any fixed income, pension, Social Security or savings can become worthless.

This is why multi-dimensional micro business opportunities make sense.

One way to be multi-dimensional is by learning how to write to sell.

Writing has always been the starting point in Merri’s and my multi dimensional activity.  Whether we have been creating a seminar, a course, finding or selling real estate, or an investment or business opportunity, we have reached our clients with the written word.

When you know how to write to sell, you can live anywhere you choose and still earn.  You can choose where the sun shines best for you and still have a pinnacle career.

Many countries require work permits for certain jobs, but usually these are not required for businesses like restaurants, shops, real estate agencies, art galleries, bed-and-breakfasts and small hotels.

Self Publishing has helped Merri and me create exactly the lifestyle we desire.

Self Publishing has entered a new era as a new business art form and we want to share with you how to start your own self publishing business now at our upcoming International Club retreat.

Learn how to develop your publishing skills to turn your passion into profit!  Even if you aren’t excited about writing… you can publish.

Whatever your passion, you can immerse yourself in it AND even create a six-and even seven figure income. This could be your direct ticket to the kind of fulfillment you’ve always wanted in life.  Whether you want to travel the world or live as a recluse, work 12 hours a day or not work at all, learn more about golf or feeding the hungry… it can be yours!

Here are  three basics of success in self publishing… passion… purpose… and profit.

Passion. You have to love to write to succeed in writing. This may seem a simple point but you either need to enjoy writing or love what you are writing about.

Purpose. To remain a writer for the long haul requires more than just fun.  Writers are missionaries. Your mission may be to tell a truth… reveal a secret or simply to entertain.  You’ll know what that mission is or at least feel it.  This is the driving force of writing.  If you do not understand it to begin… after you write enough that purpose will reveal itself.

Profit.  Follow your passions yes… but also stay tuned with what the majority of buyers want. Your desires may be the bull’s eye, but the entire target is THE market.

Plus the target is always moving so you should keep testing the winds of change. If the mood of your market changes and you do not keep up, your product or marketing can become out of style.

Fortunately there is a really simple way to stay tuned to your market that I learned years ago by surprise.

A friend inadvertently taught me this trick years ago when he recommended a book entitled “How to Survive the Upcoming Crash of 1995”. That book was on the NY Times best seller list and it sacred me to death as it told about how the U.S. economy would melt down in 1995 because U.S. government debt was out of control.

The book offered no solution to this dilemma.

I wrote a marketing piece with a headline “Are we 23 Months to Disaster?” that mentioned the book, outlined this problem and gave readers a way to find solutions by ordering my course on international investing.

Over the next two years this marketing piece worked unbelievably well creating millions in sales and profits.

Yet the premise was totally wrong! There was no bankruptcy of the US economy in 1995.  Instead the greatest economic boom in the history of mankind began.

This taught a valuable and simple lesson on how to see the buying public as a whole…perhaps understanding the public persona better than the public understands itself. The trick is simply to look at the best selling book lists…especially those of large newspapers… New York Times, USA Today and the Kindle Top 100.

The profits and sales from my 23 Months to Disaster piece did not arise because the product or marketing were in tune with economic markets. The disaster marketing piece was a success because it was tuned to how investors felt!   In addition the piece was fortified because it related to a book that millions of investors had read.

That book had scared millions of investors and created a problem for them, just as it had me.  My disaster marketing piece came along at just the right time…with a solution!

We can get clues about business trends by watching what everyone reads.

Best selling book lists are windows into a nation’s or the world’s soul and studying them can help you create a profitable multi dimensional business.

Merri, David and I are always testing new ways of communicating with our readers.  We know the value of embracing change.  The evolution in our business has taught us to integrate what we learn and feel with what others say.  We want to share this continuing process with you at our upcoming retreat. Details are below.


“If I Live Long Enough, I’ll Really Cash In Next Time”

Periods of good investing performance are always followed by periods that are bad.

Think about this…

The US dollar has risen over 50% above its lows of 2011.   The greenback is at its highest level versus the Chinese yuan since 2008.  India’s rupee is at an all-time low against the buck.  Other Asian currencies, the Singapore dollar and Malaysian ringgit have plunged to depths not seen since the financial crisis of 1997-98.  The euro, Mexican peso and Canadian dollar have crashed.  In other words, the US dollar is in a period of high performance.

What happens is the greenback is in a free fall.  Smart investors can cash in huge profits.

Yet there is a bigger economic problem that can ruin the purchasing power of your cash faster than you can imagine.

While the dollar was rising non US governments and businesses accumulated almost ten trillion dollars of debt denominated in US dollars.

The terror in this debt is that it acts as a destructive and very rapid financial amplifier.  Dollar debt is like a short position.  When the dollar rises, borrowers scramble to short-cover their position by selling their own currency.  This defeats the purpose of their hedging as it increases the strength of the dollar.  So they short even more.  Those short sales create an upward dollar spiral.  The buck rises higher and higher, based entirely on fear and speculation.

When that leverage energy is spent the currency stalls and plummets out of control… like now.

The last time we saw such a upwards spiral was from 1980 to 1985.  The dollar rose 50% in those five years.

Guess what?

Then it collapsed 50% in just two years.

The US dollar is in a similar position as at the beginning of Ronald Reagan’s first term in the 1970s.  This was a time of widening budget deficits, rising interest rates and a US dollar surge.  This created a problem then, as it does now, and creates huge opportunity for those in the know.

The rise of the dollar, the debt and the US stock market creates an especially dangerous conflict because Donald Trump wants to balance America’s trade.  A stronger dollar makes this impossible because it pushes up the cost of US material, US labor and US exports.

The overpriced dollar, the poor value of the US stock market (compared to other markets) create a dollar crisis and a special opportunity for you and me as investors.

“If I Live Long Enough, I’ll really cash in next time”.    I made this promise to myself in the 1980s.   A remarkable set of economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  I invested as much as I could handle then as the profits rolled in for about 17 years.  I had wished I could have invested more.

Now those circumstances are here again.

And I have…

invested more… a lot more… betting again the dollar.

The swollen stock market prices, huge dollar denominated debt and weakening dollar are three patterns that can create a fast 50% profit.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  The trends are so clear that I created a short, but powerful report “Three Currency Patterns For 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.

There is a way to accumulate good value equities denominated in the following currencies of special strength, including the Euro, Canadian dollar, Singapore dollar, British pound, New Taiwan dollar and Chinese yuan.

The report reveals 21 special non dollar equities that have the greatest opportunity for safety and appreciation.

I kept the report short and simple, but include links to 153 pages of global stock market and asset allocation analysis so you can keep this as simple or as complex as you desire.

The report shows 22 good value investments and a really powerful tactic to use that allows you to inexpensively accumulate these bargains now even in very small amounts (even $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

Research shows that most people worry about having enough money if they live long enough.   I never thought of that.   I just wanted to live long enough to see the remarkable economic opportunity that started in 1980 come again so I could hit the jackpot.  This powerful profit wave has begun.  I have made the investment myself  suggest you investigate this in my report “Three Currency Patterns For 50% Profits or More.”

Order the report here $29.95

My Guarantee

Order now and I’ll email the online report “Three Currency Patterns For 50% Profits or More” in a .pdf  file right away. 

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 purposeful investing.  If you are not totally happy, simply let me know within 60 days and I’ll refund your subscription fee in full, no questions asked.

You can keep the report “Three Currency Patterns for 50% Profits or More”  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.

Order the report here $29.95

Or get this report free.  Subscribe to the Purposeful Investing Course (Pi) described below.