Tag Archive | "economist"

Retire in Ecuador – Beat Inflation


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

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

See below three ways to beat inflation.

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

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

retire in ecuador

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

retire in ecuador

a huge yard filled with mature fruit trees and…

retire in ecuador

this view.

Second, invest in land or commodities.

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

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

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

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

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

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

The answer is yes, absolutely!

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

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

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

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

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

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

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

With best wishes, Steve Rosberg  www.ushay.com

Third, invest in commodity based equities.

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

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

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

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

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

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

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

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

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

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

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

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

Asia Troubled As Well

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

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

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

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

Huge Economic Problems

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

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

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

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

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

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

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

Michael Keppler recent sent me this note:

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

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

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

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

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

Gary

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

July 24-26 IBEZ North Carolina

Oct. 9-11 IBEZ North Carolina

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

July 24-26 IBEZ North Carolina

Oct. 9-11 IBEZ North Carolina

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

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

Oct. 21-24 Ecuador Import Export Tour

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

Clean Green Income


Here is a way to earn income, that is clean and green.

This is the sixth message in this series on Ecuador and business opportunity. See the first message at Ecuador organic cheese and wine. The second article in the series is at Ecuador organic wine and cheese II and Ecuador wine & Cheese III and Ecuador and Green Business and Internet business ideas and Multi Currency Debt.

Clean up your wealth with disinfectants.

Previous messages looked at a wonderful organic cleaner that I have used for more than a decade and how to earn income world wide as a distributor of this product.

You can see what I wrote about this organic cleaner below.

First let me introduce you to a new idea.

Recently I co hosted a great financial seminar with Jyske Global Asset Management in Naples Florida.

The delegates at this seminar…

multi-currency-debt

had a great time and talked among themselves about many investing and business ideas.

One idea presented to me by a delegate was a business opportunity as a distributor for a new organic disinfectant based on silver.

I learned a life saving lesson about the disinfecting power of silver  from a great teacher decades ago.   Silver is a germ killing element so powerful that the establishment has been trying to stop us from getting in on the act. Perhaps there is too much money at stake in antibiotics and other such expensive medicine to allow this simple, inexpensive germ killer to remain in the market.

But in this era of strange diseases in which we now live, it is imperative that we learn how to protect ourselves naturally from infection and disease.

Let me explain how I first learn about this powerful natural antibiotic from a grade school teacher!

Al Hoffman was his name. He was great. Mr. Hoffman taught music at Rockwood grade school in the 50s and 60s.  He was almost a myth, sending so many talented musicians on to the local high school.

How would I have guessed that a lesson he taught me then, might save lives now.

You know me as an economist, writer, adventurer, wacky philosopher, can’t-help-it traveler and two bit farmer.  But I bet you did not know that I am also a musician.

But I am (or rather was).  I started with the trumpet, but being a fat kid moved onto the tuba (fat boys always played the tuba for some reason) and I wasn’t bad. I made the metro league honor band and loved playing symphonies and musicals, plus marching was great, except the Portland Rose Parade, mile upon mile on a hot day with a heavy Sousaphone.  That was a bit too much.

Then when I moved to Hong Kong and switched to the baritone and played with a Dixiland band in a Kowloon jazz club (just for fun).

My traveling days made hauling the brass hard, so I switched to the flute.

I took lessons from the principal flutist of the Hong Kong philharmonic, but now haven’t played for years. This is a great regret from working too much, but I promise myself I’ll get back to it.

One thing I have not lost though is a lesson taught to me by Al Hoffman my first music teacher. He taught me about the cleansing power of silver the first day we met.

We were trying out for various instruments and he gave us each a trombone to blow. After I blew on it my neighbor (who eventually went for the clarinet) Tommy Barrett was handed the same trombone and was asked to blow as well. He looked at the mouth piece where my lips had just rested and said yuck, “dog lips have touched this” or something like that.

Funny how some pictures stick in your mind for over fifty years.

I see Tommy looking at that tainted mouth piece as plain as if it were yesterday. He asked what he was supposed to do to clean off that mouth piece.

Then Mr Hoffman gave Tommy the word and me a lesson that stuck for life.

“Germs can’t live on silver. It kills them the second they touch it. Just blow. Don’t worry about the germs.”

Later in life I remembered this message when I first learned about colloidal silver.

Colloidal silver is made up of tiny microscopic particles of pure silver in water that when taken kills germs safely and rapidly.

With colloidal silver you reduce the chances of catching bugs, viruses, bacteria and the lot.

Good bye colds, flu and the rest.

The stuff is so darn potent that drug manufacturers are scared to death. They have even worked on the government to try and shut the stuff down. But they have not totally succeeded because you can easily make the stuff yourself and many people swear by it.

Now it appears that there is a new disinfectant based around silver.

The delegates in Naples who introduced this idea to me is Mark Lord and Mark just sent me this note.

Gary, It was a pleasure seeing you and Merri again and hearing about some of the current topics of global importance at the Jyske conference. The conference was great, including the speakers, the facility, and the food. Mary and I made several new, like minded, friends and many thanks for inviting your MCI subscribers to attend at such a great rate.

On Sunday,  just before Mary and I had to dash off to the airport, I briefly introduced you to our exciting new hard surface disinfectant Allclear. This product has proven and documented efficacy (achieving difficult and expensive EPA registration) with a wide range of range of viruses, bacteria and fungus and in most cases kills quicker and more effectively than commonly accepted disinfectants. Allclear has the lowest toxicity rating possible to achieve from EPA (level IV) and is safe for children’s toys and sensitive areas without requiring a wipe up or rinse. It also has 24 hour residual kill, which is a truly needed and unique attribute. Allclear recently has gotten clearance from EPA to claim that it is in compliance with CDC guidelines for control of Swine Flu.

The above is just a quick outline of the many unique and needed attributes about Allclear and, although it uses silver ions as its main active ingredient , it is different from other silver products some of which have been used for centuries. For more information I directed you to our web site www.allcleartoday.com

I have included above some background information on the product and if you have any questions or would like a sample please let me know.  Best regards,

Mark Lord

This is the type of new product that can offer great green opportunity in the US, Ecuador or abroad.

You can get more information from Mark Lord by emailing him at archer59@msn.com

I have not used this product nor do I have any additional information about it. I am not involved in any financial way and you should use all normal business precautions and make sure you do your due diligence.

You may gain some ideas on how to sell products like this via the internet from our course on how to create an internet business.

Learn how to enroll in our emailed internet business course here.

Anther green product that has great international distribution potential is the organic cleaner Ted’s Stuff.

We take this organic cleaner to our Cotacachi hotel every time we visit because Our staff work to keep our hotel Meson de las Flores spick & span.

Cotacachi Organic Cleaner

This is one reason why the 180 year old colonial building looks so great.

Merri and I also give credit to the entire staff.  Most have worked here for decades and they love the hotel. They honor its history and work hard to keep it looking first class.  Especially our maids, Rosita De las Torres and ….

Cotacachi-Organic-Cleaner

Rosita Molena

Cotacachi-Organic-Cleaner

not only clean, but put great love, care and attention into making Meson look like a home that our guests will return to again and again.

We do all we can to help Cotacachi be organic because organic cleaners are important to the environment and our bodies.

The cleaner I use on myself, in our house, pur garden and take to our Cotacachi hotel… I call Ted’s Stuff.

Since we are lured into having many poisons in our homes and establishments, I look at everything.   I am always suspicious of cleaners..

For example, “Softsoap Antibacterial Soap” a brand of liquid hand soap manufactured by Colgate Palmolive. Check the label of this soap and you will read the words. “Proven to eliminate the dirt and germs your family encounters. Contains light moisturizer to leave your hands feeling soft. GENTLE ENOUGH FOR THE WHOLE FAMILY. As with any soap avoid contact with eyes.”

What does this really mean. How can we find out what this stuff is really like?

There is a way.

Every product shipped in the USA has to have an OSHA regulated form called a “Materials Safety Data Sheet”. This form is meant to protect workers shipping and handling products. You can find the real story behind a products toxicity by looking up the “MSDS.”    Take for example the Softsoap MSDS.

Get ready to cringe. The “MSDS” on this chemical based formula that is “gentle enough for the whole family” states under the general controls section “Avoid contact with skin and eyes.” It warns workers to wear rubber gloves while using this and such. How this warning is mysteriously converted into gentleness on the store shelves is beyond me, but you can see the “MSDS” for yourself.

Though it is doubtful that Softsoap alone will be really harmful to our health, we must wonder how many other things that are pushed on us as safe and gentle when they really are not. How many of these light toxins does our body have to deal with every day? How many of our allergies, diseases and imbalances are created by this continual bombardment of chemicals that do not kill, but each take their little tolls.

We have all heard of “death by a thousand cuts”.   Is our society suffering “sickness by a thousand minimal exposures”?

Merri and I have been away from the farm, its pure spring water and the fresh clean air and we feel the difference.

We must all be aware of our surroundings and take care. There is a saying that “Man can accomplish the impossible, but cannot overcome the inconvenient”. We have walked the moon and sent humanity’s imprint to Mars and beyond. Yet we cannot overcome the multitude of tiny toxicities that bombard us each and every day. This a true challenge. Everywhere we are, everywhere we go, poisons have been made easy to consume.

This is why I sent the reply below to a reader who wrote:

“Gary, organic biodegradable cleaner is nothing new…Watkins has been selling for years. You should be above shilling for these types! Anyone on the Internet can go to Google and debunk the hustlers…”

I agree with this reader that there are many scams in the name of organic, pure, all natural, and such stuff. In fact this why I have been recommending Ted’s stuff and my reply to this reader says it all.

“Ted’s Stuff is a product I have been using myself for many years and the difference is that it works so well. I feel it an obligation to let people know about the enormous danger that we all face and how our environment is being damaged.

Merri and I both feel that perhaps just to stop pollution at the lowest level may help people gain added years and added vitality to their lives.

You can learn more about distributing or using this leaner from the producer Ted Tidwell at tedtid7@yahoo.com

Until next message may your wealth get others to be green with envy!

Gary

Join us at an upcoming July and October North Carolina seminars. We have invited our  web master to speak on the future of  internet business and will have extended sessions on how to develop an internet business.

Learn more about these July 24-26  and Oct. 9-11 courses at IBEZ North Carolina