Tag Archive | "extraterritorial jurisdiction"

How Far Can Rule 41 Go?


“Be a citizen of the world!”

That’s a quote from “Passport to International Profit”, the first book I wrote in the 1970s.

passport

“Be global” was the theme.  Technology was advancing to the point that we could live in one country, bank in a second country, earn in a third with a corporation set up in a fourth country… all directed from an office in a fifth country.  I called it the five point command posture.

Technology made this path of freedom easier and easier… then.

See why this is not the case today.

Since the 1970s, governments, almost everywhere,  have been using technology to systematically strip away global freedoms and tag their citizens with extraterritorial jurisdiction.

Extraterritorial jurisdiction is when a government exercises its authority beyond its normal boundary.

This means that a government’s hold, its control, its force pressed upon you, does not have to stop at any border.

Examples of this beyond-the-border, action has ranged from Russian killings of its citizens living abroad to America’s taxation of expats.

The Chinese government exercises its extraterritorial jurisdiction with forced renditions (aka kidnapping).  They forcibly repatriate people that they consider Chinese nationals — even when some are also citizens of other countries.  The Communist Party is serious. Its assertion is that anyone it regards as a national — no matter where they live, work, or study — is subject to its authority.

The US  claims authority over its citizen’s bank accounts wherever they may be.   The US taxes earnings on its citizens wherever they may work, live or earn.

Then Came Rule 41

In 2016, the US government decided to claim authority over your computer as well.  Rule 41 of the Federal Rules of Criminal Procedure, which was proposed by the US Department of Justice, was approved by the US Supreme Court.

This rule allows federal investigators to seek permission from a magistrate judge, in any state, to plant hacking software on a computer that’s… anywhere.

The Justice Department does not even need an elected judge to be this forceful.  Magistrates are not elected judges, but are judges appointed to assist district court judges in the performance of their duties (1).  They are “Justices of the Peace” who administer criminal or civil justice in minor cases, can act as a notary, administer oaths and perform marriages.  In some cases magistrates are not even required to have a law degree.

You can’t hide from US government hacking as US law enforcement has this easy legal path to hack into any computer, anywhere in the world.

This is a Rule… not a Law!

This enormous intrusion into our privacy is not even a law created in Congress.  This is a rule simply proposed by the Department of Justice, which the courts have gone along with.

How can it get worse?

If  Yuval Noah Harari, author of “Homo Deus: A Brief History of Tomorrow” is correct, the problem is about to get much, much worse.

Governments don’t want to just control our money and body, they want to take over our will.

Harari says: Governments and corporations will soon know you better than you know yourself.  Belief in the idea of ‘free will’ has become dangerous.

Harari argues that free will isn’t free.  We can make independent choices, but these choices depend biological, social and personal conditions that we do not control. We had nothing to do with our gender, family background, national culture, genes or the family we have.

He asks: Just observe the next thought that pops up in your mind. Where did it come from? Did you freely choose to think it? Obviously not. If you carefully observe your own mind, you come to realise that you have little control of what’s going on there, and you are not choosing freely what to think, what to feel, and what to want.

Harari thinks that the belief in “free will” is dangerous because governments and corporations have learned to manipulate our thoughts.

He believes that governments and big business can hack humans.

He says: It starts with simple things. As you surf the internet, a headline catches your eye: “Immigrant gang rapes local women”. You click on it. At exactly the same moment, your neighbour is surfing the internet too, and a different headline catches her eye: “Trump prepares nuclear strike on Iran”. She clicks on it. Both headlines are fake news stories, generated perhaps by Russian trolls, or by a website keen on increasing traffic to boost its ad revenues. Both you and your neighbour feel that you clicked on these headlines out of your free will. But in fact you have been hacked.

The scary aspect of Harari’s predictions are that governments can tailor their message to the unique weaknesses of each individual brain.   Algorithms can be used to spot and reinforce bias.

In recent years some of the smartest people in the world have worked on hacking the human brain in order to make you click on ads and sell you stuff. Now these methods are being used to sell you politicians and ideologies, too.

The really thought provoking point is that this is just the beginning.

Right now hackers rely on data based on what we buy, where we visit, the words we use on our phones, email and search for online.  Once biometric sensors are improved government hackers will have direct access to our facial expressions, our heart beat, blood pressure and brain activity.

Then they can correlate our physical rhythms with our credit card data and search history.   The hackers will know us and how to direct our thinking, better than ourselves.

His suggestion for combating this horrible intrusion is “come to terms with what humans really are: hackable animals. We need to know ourselves better”.

“Know thyself”.  We have all heard this before, but it’s valuable advice.  Modern technology allows too many people to sell us anything they want – be it a product or a politician.

If we get to know ourselves better and accept our vulnerabilities, we can start to build protection from that.

It is particularly important to get to know our weaknesses. These are the key features that hackers look for when they  hack you.  Algorithms reinforce pre-existing fears, hatreds, biases and cravings.

Hackers cannot create fear or hatred out of nothing. But when they discover what people already fear and hate it is easy to push the relevant emotional buttons and provoke even greater fury.

If we look within and accept that our thoughts and desires are not just ours, we become less attached to them.  When we understood that our desires are not just free choice, we’ll be better able to be flexible in our thinking.

Once we realize that we are a product of a history and surroundings we did not create and can do little about, we become more connected with reality and can see and hear other people better.

Curiosity can bring us back.

Thinking this way can expand curiosity.  When we accept that our thoughts and feelings are not all “us” we can begin to question and see through the attempts at control more clearly. .

Question everything and you’ll start being smarter.  We do not know all the things that governments might do to kill freedom, but if we can stimulate our curiosity we’ll be better positioned to bring our self control back.

Gary

Become Smarter

 

Join the top 3 percent of intelligent people in the world.

Become more independent and relaxed by becoming smarter.

A study of 10,000 British people studied the pure relationship between intelligence and happiness stability.

IQ can predict the emotional ups and downs of life.   The research found that the lower the IQ,  the more stress and higher the ups and downs in life satisfaction.  The differences were not due to education, income, or jobs either, but simply IQ.

gary-scott-seminar

Delegates at a Super Thinking course relaxing in their secret rose garden.

Free yourself by becoming smarter, healthier, happier… in just weeks… hearing  a relaxation session that takes you into your secret rose garden.

Merri, David and I originally developed this session for our Super Thinking courses and have set it into an online workshop for you.

Listen… just 18 minutes day.  We guarantee your life will be better.

Inflate Your IQ.

When it comes to money… inflation is cheating.

That’s bad for you.

When it comes to intelligence… inflating is smart… fair… good for you and it’s good for the rest of the world.

Monetary inflation is a sneaky government and business trick.

What cost a dollar in 1965 can easily cost $15 now.

They promise you more.

Liars?

They devalue the currency so you get more dollars that buy less.  They can rip off your salary,  your pension…raise insurance, almost everything.

And they make you work harder… longer… for less.

Whittle, whittle, whittle.  Push, push, push.  That’s what monetary inflation does to you.

Fight back… overcome the inflation trick.  Inflate your IQ as you relax.

Gain more than IQ.

Be smarter… more energetic…. healthier… more relaxed.

That’s the way to get ahead!

Create more income opportunity.  Reduce stress.  Improve your health.  Be naturally smarter… use Super Thinking.

You can improve your IQ in just weeks.

You might well ask… How is this possible?

Here’s how the scientists say it is possible.

A Wall Street Journal article entitled “Ways to Inflate Your IQ”(1)  show how you can be smarter and actually add matter to your brainThe article says:

           Many people think of IQ as a genetic trait, like brown eyes or short legs: You’re born with it and you’re stuck with it.

Now, a growing body of research is showing that a person’s IQ can rise—and even fall—over the years.

Scores can change gradually or quickly, after as little as a few weeks of cognitive training, research shows.

British students were given IQ tests and brain scans at ages 12 to 16 and again about four years later.  9% of the students showed a significant change of 15 points or more in IQ scores.

The study published in Nature said that on a scale where 90 to 110 is considered average, one student’s IQ rose 21 points to 128 from 107, lifting the student from the 68th percentile to the 97th compared with others the same age. 

MRIs in this study showed changes in gray matter in areas corresponding to fluctuations in the kid’s skills.

There are practical steps people can take to see longer-term IQ changes.  New tasks stimulate the brain most.  Young adults given just one month of intense training in juggling, found an increase in the corresponding gray matter in the brain as early as seven days after the training began.

Fluctuations in IQ scores over time underscore the brain-boosting benefits of musical training and new experiences throughout a lifetime.

Music lessons are linked to higher IQ throughout life.  Six years’ lessons lifted children’s IQ scores an average 7.5 points.

 Improve the brain through music… without lessons.

Here’s the Super Thinking story…

The educational program Merri and I developed uses a form of brain wave integration that increases IQ.

Super Thinking uses frequency (in music and a number of other ways) to integrate brain waves so the process of absorbing, processing and recalling information is vastly accelerated.  The music creates the three C’s:  Calm, Clarity and Coherence.

This Super Thinking program is not a gimmick or trick… just advanced education.

Certain types of Baroque music are the base, and they make you smarter!

Proof?

At least four best selling books, “Psychic Discoveries Behind the Iron Curtain”,  “Superlearning”, the “Mozart Effect” and “Superlearning 2000″ showed how to learn and think more powerfully based on systems drawn from the Bulgarian educational master, Dr. Georgi Lozanov.

This Baroque music tactic alone is so powerful that Small Business Innovation Research… an official site of the US government granted over $100,000 for the specific purpose they said was: to provide a method to remove barriers which hinder or prevent the employment of blind persons.  An innovative method, the Lozanov Learning System, is proposed to help train blind persons to become computer programmers and operators of automated equipment.

Merri was among just a few who learned this technique directly from Dr. Lozanov the time he visited the USA.

Our Super Thinking workshop enhanced this system with numerous other tactics.

We added slight alterations in nutrition that create a higher IQ.   Altered nutritional tips in Super Thinking can make anyone 25% smarter!

Baroque Music and nutrition are just part of seven, easy to use, learning techniques that make you smarter.

Gain any skill, from computers to athletics to conversational languages…in less time…two-to-five times faster.

Here’s a huge bonus.  Super Thinking also relieves stress.  Super Thinking is fun.

You can use a Super Thinking focus in everything:  health… earning… education… investing.

Super Thinking works on the learner first…the data second.  This system “grows the learner” rather than the information.

If you have 4.5 inches of information flowing through a 4 inch learning pipe, the solution is not to add another inch of information.  The answer is create a six inch IQ pipe!

Share our years of experience.

For nearly 50 years, Merri and I have conducted hundreds of courses and tours for tens of thousands, in dozens of countries (even behind the Iron Curtain).  Our Super Thinking Workshop has been one of the most profound.  Now the workshop is even better online because it condenses Super Thinking so you can increase your IQ, at home… right away.

The workshop shows how these mind expanding tactics can be applied to starting and running a business for extra income, to forex trading and investing.  Athletes of all types… golfing being one common sport benefit.  Our Super Thinking plan goes far beyond Lozanov and allows you to rapidly get smarter in every part of your life.

For example, real estate broker, Suzy Kurinsky took the workshop to help her learn Spanish.

She wrote: “You are the BEST!!! Your Seminar was fantastic! I am so excited. I had procrastinated fulfilling my continuing education for my Broker’s License and then just before my surgeries, I realized by expiration date isn’t Nov. 12th – it is Sept 12th. Prior to taking your course I had only completed 3 units of the required 45 units. I thought I would take your course and then complete my remaining 42 units over the next 2 weeks. However, I took one class exam on Saturday night, August 27th. I didn’t even take the cellophane off the required Course manuals until after I saw the two of you today less than 5 hours ago! I used your techniques and completed 39 units of continuing education today. I have now completed all 45 units. All of my test scores were in the 90.6-96% range.  My course exam information is listed below. I just wanted to let you know how valuable your course was to me. Thanks again!”

Super thinking can improve almost anything you do… faster, better, more fun and with less stress.

Another attendee to the Super Thinking Workshop sent this note.

 Thank you for the wonderful workshop on Super Learning + Spanish!  I really enjoyed the workshop and getting to know you.   I can see several ways to apply what I learned in the classes I teach.

Since I returned home, I have purchased some of the CDs of Baroque music and thought about which specific pieces will work best in different parts of my classes.  I am also reading Perfect Health by Deepak Chopra.  I found your discussion of this book to be very helpful in showing how to balance one’s life.  I have adjusted my daily schedule, and I can already notice a difference in my productivity.

Super Thinking can help improve your health. Super Thinking can make you rich and add richness to your life.

However the time, travel expense and workshop cost (delegates have paid up to $999) have prohibited many from getting this benefit.

That’s why we have created the workshop in electronic form.  Get Super Thinking online for less than fifty bucks.

You can order the online Super Thinking Workshop here ($49.95)

Relax in the Secret Rose Garden.

The workshop is divided into two parts.  Part one is the application… the sessions that tell you exactly what to do, what music to use and even includes two recorded sessions based around a secret rose garden that you can use.  We have kept this portion short and simple so you can easily start immediately.

Part two is a longer portion on theory.

Part one is enough.

Super Thinking is like jogging… giving results if you simply do it!

You do not have to know why Super Thinking works to increase your IQ.   But Part Two explains why you are getting the good results from Part One, if you want to know.

You might ask…”Will it work for me”?

The Super Thinking Workshop will help increase your IQ.

Our guarantee.

I guarantee it.  Order the Super Thinking Workshop.  Use it for two months.  If you are not totally satisfied… in any way, during that time, simply let me know and I’ll send a full refund… immediately… no questions asked.

Order the online Super Thinking Workshop here ($49.95)

Another Super Thinking workshop attendee wrote: Listening to the two of you during our time together has suddenly got me to thinking, and although some of the ideas still seem foreign to me,  I am at a point in my life now where I can say, “anything is possible”.   I am now willing to embrace and allow myself to experience the world of possibility and let it take me in directions I may have in the past resisted.  I really don’t know where all this is going to lead me but I am now willing to explore, develop and grow.   Thank you again for a wonderful four days!!

Inflation is a cheat… a crime when it comes to money.  Inflating your IQ to beat inflation is simple good sense.  Learn Super Thinking now with no risk.  Begin to increase your intelligence today.

Order the online Super Thinking Workshop  $49.95.

Gary

(1) Read Wall Street Journal article Ways to Inflate Your IQ

(2) See government grant records on teaching blind persons with the Lozanov method

 

(1) en.wikipedia.org/wiki/United_States_magistrate_judge

(2) access.tarrantcounty.com/content/dam/main/justices-of-the-peace/Documents/jplocalrules_jan2012_comb.pdf

(3) www.theguardian.com/books/2018/sep/14/yuval-noah-harari-the-new-threat-to-liberal-democracy

 

Technology and Dickens


Like something out of a Dickens novel, technology brings the best of times and the worst of times.   For example, America has been the breeding ground, growth place and exporter of some really great innovations such as the internet.   Ironically this really valuable export is threatened by America’s worst export… “extra territorial jurisdiction over financial affairs”.

Those who learn how to spot and embrace change have the best change of gain with extra profit.

internet

The Internet, a great American export threatened by the worst export in the world.

Extraterritorial jurisdiction (ETJ) is defined at Wikipedia (1) as “the legal ability of a government to exercise authority beyond its normal boundaries”.

The definition also says: “for the claim to be effective in the external territory (except by the exercise of force), it must be agreed either with the legal authority in the external territory, or with a legal authority which covers both territories”.

This is a complicated issue because concepts of jurisdiction have not kept pace with technology.  Political borders are often very ancient. Take France as an example. Much of the territory that encompasses today’s France was known to the Romans as Gaul.  Barbarian raids by the Germanic Franks led to Frankish kingdoms for hundreds of years till Charlemagne.  Medieval kingdoms of France emerged after Charlemagne and remained for many centuries until the French Revolution. Then there were republics, empires, the Vichey rule and finally France (the 5th republic) as we know it today.   Wave after wave of technology from Roman roads to German tanks and airplanes challenged France’s jurisdiction.

This is true everywhere and increasing amounts of new technology have increased this type of jurisdictional challenge.  Governments everywhere try to keep pace.  Canada, for example, exercises extra territorial jurisdiction on the International Space Station or when crimes involve nuclear material.  Many governments claim extra territorial jurisdiction relating to terrorism financing.

Some extra territorial jurisdiction can threaten the entire world. 

In France, the Code pénal asserts general jurisdiction over crimes by, or against, the country’s citizens, no matter where they may have occurred.  This is good in many ways. Murder a Frenchman in Australia and the French can charge you.  Australia would probably cooperate because murder is a crime in Australia as well as France.

The potential for complication is shown in a Wall Street Journal article “Internet Censorship à la Mode” (2) that tells how France is trying to block Web searches on computers around the world.

The article says: France’s privacy regulator, known as CNIL, last week fined Google €100,000 ($112,000) for not applying Europe’s “right to be forgotten” across the search engine’s global network of sites.

A European ruling allows people to force search engines and social media sites to remove links to sites that “appear to be inadequate, irrelevant or no longer relevant or excessive”.  Based on this regulation, Google delisted over half a million links from the European versions of its search platform and filters location search results so searches in Europe can’t find delisted links at the American google.com, etc.

However the link would be accessible to someone in the U.S. and France wants a world-wide delisting. The French are trying to compel Google to remove links globally.

The article points out some flaws in this application of the law.  “Not only does this erode freedom of speech in principle, it limits the ability of non-Europeans to vet French prospective business associates or German job applicants.  It also sets a precedent for other regimes to attempt the same censorship.  China could block search results relating to the Tiananmen Square massacre globally.”

This is how a good, old, concept-protection against murder-threatens another good, old, concept- freedom of speech-when applied to new technology.

Regretfully the United States applies extraterritorial jurisdiction to U.S. personal tax laws and this may be America’s worst export.

The beginning of America’s application of  control over financial information is hard to determine.  Perhaps Al Capone’s conviction for tax fraud turned American law enforcement onto following the money.  Another important evolution was one I have been able to follow for over 40 years.  In the 1970s The American Institute for Economic Research (AIER) and American Institute Counselors voluntarily consented to an injunction that stopped them from offering an inflation fighting  program that had been created to take advantage of US tax law.  There was no admission of wrong doing.  AIER and AIC were (and still are) Massachusetts based, non-profit corporations. The consent was made to avoid the tremendous cost of extended litigation.

The injunction stopped an investment program that consisted of charitable donations to AIER and the sale of contracts recommended for purchase by AIC.  This was a complicated investment.  Contracts for gold  related  assets held at Swiss Credit Bank in Zurich were sold by a Liechtenstein corporation and a Swiss corporation that were both wholly owned by a Swiss  charitable  foundation.

The injunction required an audit of financial statements for AIC and AIER and the various European corporations, foundations and trusts.  This is where a problem began as the SEC tried to follow the money.  Swiss law then made it illegal for the bank to release the client information.  The SEC used force rather than agreement to apply extra territorial jurisdiction.  The SEC threatened to confiscate the assets of the Swiss bank in New York if the requested information was not surrendered.

I was around to see this loss of Swiss protection and have watched a continual erosion of privacy since.

Technology continually changes how we work, bank and invest.

New technology, as well as the use of extra territorial jurisdiction, has eroded privacy.  In the 2000s both the largest and second largest Liechtenstein banks had employees who took client data electronically and sold it.  The buyers included foreign tax authorities.  Employees of Swiss banks did likewise copying thousands of files of wealthy clients.  Some simply gave the data away.  Others sold the information.  The end result was private information being in the hands of many tax authorities including German, French, British and the US.

More recently a leak of over 11 million documents at the Panama law firm of Mossack Fonseca exposed hidden financial dealings of hundreds of politicians, public officials, fraudsters, drug traffickers as well as billionaires, celebrities and sports stars around the world.

Since I began traveling, investing, working and living globally in 1968, technology has continually improved productivity, increased freedom and made life easier in many ways.  Today it is easier to invest, do business and live anywhere you choose.   A great deal of this ease is due to US exports of technology.  Microsoft, Apple, Google, Amazon.com all grew from the USA.  The downside is that these valuable resources also reduce our privacy dramatically.

Look for and think about ways new technology can change the world.  Embracing and investing in such change is a great path to profit.

Gary

(1) https://en.wikipedia.org/wiki/Extraterritorial_jurisdiction

(2)  wsj.com Internet censorship a la mode

Look at economic news to spot change.  Look to financial news to invest.

Investing Beyond the Boom

Warren Buffet once warned against the Cinderella effect.

He said “Don’t be fooled by that Cinderella feeling you get from great returns.  Nothing sedates rationality like large doses of effortless money.  After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball.  They know the party must end but nevertheless hate to miss a single minute of what is one helluva party.  Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”

Cinderella may have lost a shoe when she fled the party to meet a midnight curfew.  We can lose much more when we rush from a crashing stock market.

Most investors face emotional dangers that build in rising markets.

Almost everyone feels good.

But the he clock of economic reckoning is ticking.

No wants to see it.  Nothing rises forever and especially… not everything at the same time.

Yet no one wants to leave the party until the end.

But many edge closer to the door.

When the clock chimes there could be a stampede even though leaving in a hurry may be the worst way to go.

Here are seven steps that can help avoid this risk.

  • Choose investments based on markets instead of shares.
  • Diversify based on value.
  • Rely on financial information rather than economic news.
  • Keep investing simple.
  • Keep investing costs low.
  • Trade as little as possible.
  • Make the decision process during panics automatic.

One strategy is to invest in country ETFs that easily provide diversified, risk-controlled investments in countries with stock markets of good value.  These ETFs provide an easy, simple and effective approach to zeroing in on value.  Little management and less guesswork is required.  The expense ratios for most ETFs are lower than those of the average mutual funds.  Plus a single country ETF provides diversification equal to investing in dozens, even hundreds of shares.

A minimum of knowledge, time, management or guesswork are required.

The importance of…

easy…

transparent…

and inexpensive. 

Keeping investing simple is one of the most valuable, but least looked at, ways to avoid disaster.  Simple and easy investing saves time.  How much is your time worth?  Simple investing costs less and avoids fast decisions during stressful times in complex situations where we are most likely to get it wrong.

Fear, regret and greed are an investor’s chief problem.  Human nature causes  investors to sell winners too soon, and hold losers too long.

Easy to use, low cost, mathematically based habits and routines help protect against negative emotions and impulse investing.

Take control of your investing.  Make decisions based on data and discipline, not gut feelings.  The Purposeful investing Course (Pi) teaches math based, low cost ways to diversify in good value markets and in ETFs  that cover these markets.  This course is based on my 50 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

Enjoy Repeated Wealth With Pi

Pi’s mission is to make it easy for anyone to have a strategy and tactics that continually maintain safety and turn market turmoil into extra profit.

One secret is to invest with a purpose beyond the immediate returns.  This helps create faith in a strategy that adds stickiness to the plan.

Another tactic is to invest with enough staying power so you’re never caught short.

Never have to sell depressed assets during periods of loss.

Lessons from Pi are based on the creation and management of Model Portfolios, called Pifolios.

The success of Pifolios is based on ignoring economic news (often created by someone with vested interests) and using financial math that reveals deeper economic truths.

One Pifolio covers all the good value developed markets.  Another covers the emerging good value markets.

The Pifolio analysis begins with a continual research of 46 major stock markets that compares their value based on:

#1:  Current book to price

#2:  Cash flow to price

#3:  Earnings to price

#4:  Average dividend yield

#5:  Return on equity

#6:  Cash flow return.

#7:  Market history

This is a complete and continual study of almost all the developed major and emerging stock markets.

This mathematical analysis forms the basis of a Good Value Stock Market Strategy.   The analysis is rational, mathematical and does not worry about short term ups and downs.

This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

The course examines and regularly reports on the hows and whys of seven professionally managed portfolios so we can learn how managers find and invest in good value.  The Pifolios are:

  • Keppler Good Value Developed and Emerging Market Pifolios
  • State Street Global Advantage Emerging & Developed Market Pifolios
  • Gold & Silver Dip Pifolio
  • ENR Advisory Extra Pifolio
  • Tradestops.com Trailing Stops Pifiolio

tradestops

As you can see in this image (click to enlarge) the top performing Pifolio we are tracking is the State Street Global Advantage Pifolio was up 43.15%.  Here is the breakdown of that current Pifolio.

pifolio

Learn how to invest like a pro from the inside out.

State Street is one of the largest fund managers in the world and their Global Advantage funds invest in good value shares in good value markets.

In the updates we review each portfolio, what has been purchased and sold, why, the ramifications for high risk, medium risk and low risk investors.

At the beginning of 2018 my personal Pifolio is based on select ETFs in the Keppler Developed and Emerging markets.  My Pifolio is invested in Country ETFs that cover seven developed and three emerging markets:

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

Don’t give up profit to gain ease and safety!

This portfolio has outperformed the US market (S&P 500) in 2017 as the chart below shows.

My portfolio blue.  S&P 500… green.

Screen Shot 2018-06-04 at 7.39.15 AM

Regardless of economic news, these markets represent good value and have been chosen based on four pillars of valuation.

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

When you subscribe to Pi, you immediately receive a 120 page basic training course that teaches the Pi Strategy.   You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.

You also begin receiving regular emailed Pifiolio updates and online access to all the Pifolio updates of the last two years.  Each update examines the current activity in a Pifolio, how it is changing, why and how the changes might help your investing or not.

Included in the basic training is an additional 120 page PDF value analysis of 46 stock markets (23 developed markets and 23 emerging stock markets).  This analysis looks at the price to book, price to earnings, average yield and much more.

You also receive two special reports.

In the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

I did well then, but always thought, “I should have invested more!”  Now those circumstances have come together and I am investing in them again.

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.  The two conditions are in place again!

30 years ago, the US dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

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 have 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.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but in this special offer, you receive the report, “Three Currency Patterns for 50% Profits or More” FREE when you subscribe to Pi.

Plus get the $39.95 report “The Silver Dip 2018” free.

With investors watching global stock markets bounce up and down, many missed two really important profit generating events over the last two years.  The price of silver dipped below $14 an ounce as did shares of the iShares Silver ETF (SLV).   The second event is that the silver gold ratio hit 80, compared to a ratio of 230 only two years before.

In September 2015, I prepared a special report “Silver Dip 2015” about a silver speculation, leveraged with a British pound loan, that could increase the returns in a safe portfolio by as much as eight times.  The tactics described in that report generated 62.48% profit in just nine months.

I have updated this report and added how to use the Silver Dip Strategy with platinum.   The “Silver Dip 2017” report shares the latest in a series of long term lessons gained through 40 years of speculating and investing in precious metals.  I released the 2015 report, when the gold silver ratio slipped to 80.  The ratio has corrected and that profit has been taken and now a new precious metals dip has emerged.

I have prepared a new special report “Silver Dip 2018” about a leveraged speculation that can increase the returns in a safe portfolio by as much as eight times.

You also learn from the Value Investing Seminar, our premier course, that we have been conducting for over 30 years.  Tens of thousands of delegates have paid up to $999 to attend.  Now you can join the seminar online FREE in this special offer.

This three day course is available in sessions that are 10 to 20 minutes long for easy, convenient learning.   You can listen to each session any time and as often as you desire.

The sooner you hear what I have to say about current markets, the better you’ll be able to cash in on perhaps the best investing opportunity since 1982.

seminars

Tens of thousands have paid up to $999 to attend.

This year I celebrated my 50th anniversary of writing about global investing.  Our reports and seminars have helped readers have better lives, with less stress yet make fortunes during up and down markets for decades.  This information is invaluable to investors large and small because even small amounts can easily be invested in the good value shares we cover in our seminar.

Stock and currency markets are cyclical.  These cycles create extra profit for value investors who invest when everyone else has the markets wrong.  One special seminar session looks at how to spot value from cycles.  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 to 20 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 can create war.

The chart above shows the war – stock market cycle.  Military struggles (like the Civil War, WWI, WWII and the Cold War: WW III) 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.

Details in the online seminar include:

* 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). 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 out performance 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.  The best ratio is normally 1.6 to 1.  We’ll sum up the strategy; how to leverage cheap, safe, quality stocks and for what period of time based on the times and each individual’s 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 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

The online seminar also reveals  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 this test.

I have good news about the cost of the seminar as well.   For almost three decades the seminar fee has been $799 for one or $999 for a couple. Tens of thousands paid this price, but online the seminar is $297.

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 2018” 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 2018” 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

 

 

 

 

 

Growing Loss of Freedom


Here are three ways to overcome an insidious trick and growing loss of freedom.

The trick is called extraterritorial jurisdiction.

This approach law enforcement first came into my awareness in the 1970s.  They started using  extraterritorial jurisdiction to turn global financial institutions into unwilling government agents.  The initial case I observed was an attack on a Swiss Franc based mutual fund run by a conservative businessman (I recall his name was Harwood).   Harwood had created a Swiss mutual fund denominated in Swiss francs.  The fund was a good idea.  The only problem was that the SEC objected to Americans investing in the fund.  They told Harwood to cease and desist and turn over the funds to them.  He declined so the SEC told the Swiss Bank to turn over the funds in the fund.  The Swiss explained they had no legal authority to do so.

The SEC’s response was to get a US court order and seize funds held by the Swiss Bank in America.  They used the US legal system to exert control in other territory outside the US.  The idea has expanded since and to such a degree that now most banks outside the USA won’t accept (or even retain)  US customers.

The fact that overseas banks are shedding US customers caused a friend to send this note after reading the message Bad Banking News.

Hi Gary, after reading about bad banks and how good Jyske Bank is, it ironic that I have been told that Jyske bank does not want my business any longer because of I presume FATCA regulations.

Here is my reply and a list of ways to grapple with the problems created by extraterritorial jurisdiction.

I wrote:  It is shameful that we, the public, have let our leaders do this to us.  I have had two 25 year + banking relationships Jyske and my London stock broker both closed my account in the last year.

The problem is worse.  My children who were born in England, live in England (one is in Africa) have had many of their accounts closed… just because they inherited a US citizenship from me.  My youngest daughter never lived, never schooled and has never worked in the US… yet she has to pay US tax.   Many English banks will not allow her to have an account, even though she is also English.

This is because the US says that if an overseas bank accepts a client who is a US person, the bank must comply with various US laws, FACTA being one of them. 

There are even more problems that this law enforcement tactic creates. 

Many banks and brokers now restrict US non residents (such as Americans living in Ecuador) from having accounts or from buying certain types of securities such as mutual funds in the US.  For example Wall Street Journal reported that “Fidelity Investments and other asset managers are telling U.S. clients who live outside the country that they can no longer buy or trade mutual funds in their brokerage accounts”.  (1)

The big firms find the compliance too expensive and the number of overseas US clients too small. For example Fidelity’s change will affect about 50,000 accounts, or less than 0.3% of Fidelity’s 20 million accounts.

Americans abroad are being informed by many U.S. banks and brokerage firms that their accounts have been restricted or even closed simply because they live outside the U.S.  Banks and brokers include Morgan Stanley, Fidelity, Merrill Lynch and Wells Fargo.

This can put Americans abroad between a rock and a hard spot.   US banks won’t open accounts for them but neither will banks in the country where they live.

To make matters even worse, many US banks even restrict US customers with many types of transactions due to excessive federal regulations.  This fear extends even to escrow agents who process real estate sales.  The federal government has made so many financial transactions felonies that everyone is afraid to act except exactly by the book even if an action makes sense and the regulations do not.

This slow loss of our financial freedom has been taking place at least since the 1970s and is not likely to end soon due to the Pareto Principle, or 20/80 rule.  20% of the population have 80% of the money.  These restrictions do not apply to the bulk of voters so no one in Congress will pay attention to a resolution, leaving Americans who live abroad having taxation without representation.

Here are a few steps you can take.

#1: Keep a US address and a US phone.  Even though you may be resident elsewhere a US address and utility bill will help you open or keep numerous accounts.  Have your mail forwarded.

#2: Use an overseas bank and broker who are willing to deal with all the compliance difficulties.  ENR Asset Management in Canada  who helps resident and non Americans bank in the US, Switzerland and Austria as well as buy and sell securities through these banks and brokers.

See details about ENR Asset Management here

or contact Thomas Fischer at  Thomas@enrasset.com

#3: If you have substantial assets (well into seven figures), many overseas banks and brokers that will not accept non resident Americans will open accounts for overseas companies and trusts owned by Americans.  The reason for the substantial assets is that the cost of setting up and maintaining such structures is prohibitive for smaller amounts.

The use of extraterritorial jurisdiction is restricting the freedom of all Americans who live and/or bank and invest aboard.  The trend is not likely to change soon so become aware of your options if you plan to fall into this category.

Gary

(1) www.wsj.com Fidelity bans overseas US investors

The Ultimate Investing Secret

The ultimate investing secret is the simple fact that investment opportunities come and go in cycles.  

Because we have been watching the trends for decades, we spot many distortions  we saw decades ago as they create repeat opportunities.  For example, our 1986 report “The Silver Dip” showed readers how to turn $250 into over $45,000 in a year.   When we spotted the same repeat distortion in silver’s price in 2015, we issued our report “Silver Dip 2015”.   Those who acted on the report made as much as 200% in 2016.

There is another phenomenal distortion that has been building for a number of years.   Here is how I (and you can as well) am cashing in on this trend.

“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.

Then the cycle ended.  Warren Buffet explained the importance of this ending in a 1999 Fortune magazine interview.  He said: Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

Now I see those circumstances headed our way again.

The Dow Jones Industrial recently soared past 20,000 and reached an all time high.   So why aren’t average investors all rich?   There are several answers.  First, even though the Dow has peaked, for the last 17 years the US stock market has been in a bear trend.  You’ll see why in a moment.  Another reason why the investors have not done so well is because of currency loss.

One final reason why profits have not been so good.  Someone, probably someone you trust, has been stealing from you.

One of the biggest obstacles in profiting from the upcoming circumstances has been and remains the financial system.  The reality is that banks and brokers have been structuring investments that are sure to lose.  They sell you on these investments and then another division of the very same bank (or broker) that recommended the investment, bets against you.   The bank knows that the investment is toxic.  To add insult to injury, many of these same institutions cheat you on the way in and the way out (when you buy and sell a share) of the bad investment.  Most brokers and bankers are interested in your money making them rich, not in helping increase your wealth.

Three Patterns Create 50% profits.

Despite the predators on Wall Street who are waiting to take big gouges out of your savings and wealth, equities are still the best place to invest for the long term.  This chart from the 24 page Keppler Asset Management Asset Allocation Review shows that over the past 80+ years equities have dramatically outperformed other types of investments.

keppler

Click on image to enlarge.

Good investments require a relentless search for value.   Your investments have to be good enough to reap an outstanding profit even after the parasites siphon off their part.

To take advantage of the once every 17 year circumstances, I chose to track Keppler Asset Management who continually researches developed and emerging markets globally.  Keppler is one of the best market statisticians in the world and numerous very large fund managers use his analysis to manage funds such as State Street Global Advisors.  Keppler compares the value of each share in each market based on current book to price, cash flow to price, earnings to price, average dividend yield, return on equity and cash flow return.  From this study of monumental amounts of data Keppler develops a Good Value Stock Market Strategies.  The analysis is based on long term, rational, mathematical facts and does not worry about short term ups and downs.

From Keppler I learned that market timing is not the way to get these high profits.  Another graphic from the Keppler Asset Allocation Review explains why.

keppler

Click on image to enlarge.

A dollar invested 88 years ago in Treasury bills rose to $20.58.  The same dollar invested in U.S. stocks over the 88 years grew to be was worth $4,677, UNLESS you missed the best 43 months.  Literally all of the the Dow’s growth in 1,056 months came in 43 of those months.   Your odds have been one in 24, better than roulette perhaps, but not good enough.  Plus even after these odds, the predators are going to take their cut.  You have to ask, “Am I that good at timing?”

The better alternative to timing is to invest in long term indexing based on value.  Long term strategic investing in market indices reduces the amount of trading.  Low trading activity is important because trades are where investors are most vulnerable to predatory tactics.

A part of the long term strategic trading is to invest in low fee diversified Country Index ETFs.  This simplifies the search for value because it focuses research into lumps.

A comparison of US versus German stock market indexes gives an example of lump research and you can create good value, low cost, diversified portfolios that offer maximum potential for profit as they reduce risk.

Keppler’s research shows that Germany’s stock market is a good value market.  Keppler lumps all the shares (or at least 85% of the shares) into the calculations.  There is no attempt to select any one specific share.  Keppler’s research shows that the US stock market index (a lump of about 85% of all the US shares) is now a poor value.

Germany has the world’s fourth largest economy.  The country is the third largest exporter in the world and has recorded some of the highest trade surplus in the world making it the biggest capital exporter globally.  Yet German shares have been overlooked.  German share prices are good value.

For example, recently the German Stock Market had a relative price to book value ratio of  .78,  a relative price earnings ratio of  0.87 and a relative dividend yield of 1.12.  The US Stock Market has a much higher relative price to book value ratio of 1.29, a relative price earnings ratio of 1.07 and a relative dividend yield of 0.81.  German shares cost much less, compared to the values and earnings.  German shares pay much higher dividends as well.

Keppler predicts that the US Stock Market (which is ranked as a sell market by Keppler) will have an annual index gain for the next five years of  3.1% and a total return (with dividends) or a total five year return of 21.7%.  The same calculations for the German Market predicts an average annual index gain over the next five years of 7.5% and a total return (with dividends) or a total five year return of 47.3%.

Which would you rather buy,  a 47.3% return sold for 78 cents on the dollar or a 21.7% return sold for $1.29 on the dollar?

You can forget about any specific share in the US or Germany and invest into an index (in this case the Morgan Stanley Capital Index) which represents about 85% of all the shares traded on the exchange.

You can invest in ETFs that passively invest in all the shares of the index in stock markets that offer good value.  iShares investment company for example has  an ETF that invests in 85% of the shares traded on Wall Street.

ishres

This ETF is called the iShares USA (symbol EUSA) and in this example rose from $22.91 to $43.40 or 89% in the past five years.

iShares also offers an ETF that invests in about 85% of the stocks listed on the German Stock Exchange (Symbol EWG).  EWG rose  from $19.70 to $28.13  or 42% in the past five years.

ishares

Keppler’s lump research shows that Germany is a good value market.   One simple (even very small) investment in iShares Germany MSCI Index ETF gives you a portfolio  of almost all the shares traded on Germany’s largest stock exchange in Frankfurt.  This ETF is a share traded on the New York Stock Exchange.  The ETF invests in 85% of the shares in Germany.  This ETF is a passive fund that does not try to outperform the growth of the German Stock Market.  The managers simply track the investment results of the MSCI Germany Index.  The MSCI Germany Index is designed to measure the performance of the large and mid cap segments of the German Index which is composed of the stocks of 54 different German companies and covers about 85% of all the German equities.  Germany’s ten largest companies compose about 60% of the index.  These ten companies are:  BAYER (Health Care) composes 9.91% of the index – SIEMENS (Industrials) 7.89% – DAIMLER (Consumer Discretionary) 7.04% – BASF (Materials)  6.81% – ALLIANZ (Financials) 6.65% – SAP STAMM (Info Tech) 5.69% – DEUTSCHE TELEKOM (Telecom Srvcs) 4.46% – DEUTSCHE BANK NAMEN  (Financials) 3.66%  – VOLKSWAGEN VORZUG (Consumer Discretionary) 3.18% – BMW STAM (Consumer Discretionary)  3.15%.

You lump your research.  You lump your investment.  This makes it easy to capture the powerful economic circumstances that are unfolding now.

Just investing in Germany is not enough.  There are currently ten good value developed markets, Australia, Austria, France, Germany, Hong Kong, Italy, Japan, Norway, Singapore and the United Kingdom.   Plus there are 11 good value emerging markets.  With even a couple of thousand dollars you can easily create a diversified portfolio in each or all of these countries with Country Index ETFs.

Investing in many stock markets through ETFs gives you opportunity in the second pattern of the falling US dollar.  Preserving the purchasing power of your savings and wealth requires currency diversification.

The strength of the US dollar over recent years is a second remarkable similarity to 30 years ago.   In 1980, the dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern has been growing, is seriously overdue and could create up to 50% extra profit if you start using strong dollars to accumulate good value stock market ETFs in other currencies.

For example because of fears about the euro, EWG, the German ETF dropped 9 percent in 12 months.  These declines are created by currency concerns.  When the euro regains strength, the shares have the potential to appreciate even more.

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.  I kept the report short and simple, but includes links to 153 pages of Keppler Asset 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 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 hot 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 “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

I look forward to the next 17 years and sharing how to have more than enough money for the rest of your life.

Gary