Tag Archive | "Galapagos"

Why Worry the Dollar Part II

Yesterday’s message Why Worry the Dollar looked at how innovation can enhance the greenback’s value and why investors might want to borrow yen instead of the greenback at this time.

America has serious debt and deficit problems.  The solutions are either increased tax, reduced lifestyle or greater productivity.

Innovation is an important fundamental to track because it is the root of productivity.

Increased productivity combined with high employment generates more wealth for all.

History suggests that the best social economic model to create productivity is a capitalistic democracy.

Democracy in its own right does not stimulate innovation and productivity.  Democracy provides the field  where desire to work and save can grow.  These desires in a population lead to a political, educational legal and physical infrastructure where enough people can enjoy capitalism and strive for innovation and improved  productivity.

Despite its growing debt deficits and political problems… the United States is still a leader in innovation and productivity.

This is why the US dollar cannot simply be borrowed or shorted without great risk.

An excerpt from a recent Economist article entitled “Slash and Earn” looks at American productivity in more detail:

Productivity has surged in America and slumped in Europe. Neither trend can last.

Like physical fitness or a healthy diet, productivity is a worthy goal that can require an unappetising change in habits. Producing more by working less is the key to rising living standards, but in the short term there is a tension between efficiency and jobs. America and Europe have managed this trade-off rather differently. America has gone on a diet: it has squeezed extra output from a smaller workforce and suffered a big rise in unemployment as a consequence. Europe, meanwhile, is hoping to burn off the calories in the future. It has opted to contain job losses at the cost of lower productivity. That probably means America’s recovery will be swifter. Further out, productivity trends in both continents are likely to be uniformly sluggish.

Analysis by the Conference Board, a research firm, shows just how different the recession was on either side of the Atlantic. America’s economy shrank by around 2.5% last year but hours worked fell at twice that rate, so productivity (GDP per hour) rose by 2.5%. The average drop in GDP in the 15 countries that made up the European Union before its expansion in 2004 was larger, at 4.2%. But hours worked fell less sharply than in America and, as a result, EU productivity fell by 1.1% (see table). Workers that held on to jobs in America and Europe had their hours cut by similar amounts. The reason total hours worked fell by more in America was that there were more job losses there: employment fell by 3.6% last year, compared with a 1.9% fall in the EU.
What accounts for this stark contrast? One theory is that the GDP figures in America are overstated. Fresh revisions will take in information from small firms, which may have been forced to cut back by more than big firms because of scarce credit. So GDP could be revised down, narrowing the gap with Europe. Another view is that American firms were panicked into shedding jobs too quickly (though brutal cuts in capital spending suggest that Europeans were scarcely calmer).


In fact, much of the productivity-growth gap is explained by different labour regulations. America’s more flexible jobs market makes it far easier and cheaper to lay off workers. In many parts of Europe, by contrast, firing workers is costly and unemployment benefits are generous. Firms think twice about firing, and governments are keener to provide in-work subsidies if it means avoiding payouts to the newly jobless. Unemployment has risen most where workers are easiest to offload, as in Ireland or Spain.

The drive for more output from fewer workers seems a threat when jobs are scarce. But over time productivity is essential to improving living standards. Indeed, as the share of working-age adults in the population shrinks, there will be a greater reliance on productivity to drive GDP growth.

The chart (above) in the article shows that the US has been and is expected to remain a leader in productivity.  The vast size of its very homogenous market, all using one currency, and with great labor flexibility gives the US a great productive edge.  Add this to Yankee ingenuity and a social approval of new ideas  and acceptance of failure… means that America innovates a lot.

America has serious debt and deficit problems.  These problems have been growing for 4o years and slowly undermining the dollar.   The solutions are either increased tax, reduced lifestyle for many Americas or greater national productivity or a combination of all three.

History supports added US productivity… so do not write the dollar off completely.  This is why I have been writing about borrowing yen instead of dollars to invest in euro now.


The yen loan position looks so strong to me now that I am updating my report “Borrow Low – Deposit High”.  Our emailed Borrow Low-Deposit High report can help you learn how to expand your profits with up to 400% loans just as our reports have helped thousands of readers do over the past twenty years.

You can learn why this profit is available in my new updated “Borrow Low-Deposit High–How to Use the Multi Currency Investment Sandwich” emailed report. This email report explains everything you need to know about how to create and invest in the Multi Currency Investment Sandwich.  (See details below.)

Tens of thousands of readers have purchased this report, and several updates, since it was first published in the 1980s. You however can have the most up to date edition at a $30 savings.

I am updating Borrow Low-Deposit High now. When the new update is complete it will be offered at $79.

This report will include ideas on were to invest in China and Russia (both neighbors of Japan)  now.

You do not have to wait and miss this yen opportunity, buy our report “Borrow Low-Deposit High” for $49.  I will email it to you immediately… plus when the new update is complete, I’ll email that to you also… FREE.

The report helps you see why and where to invest and learn why and how currencies and interest rates rise and or fall.

Finally, as always you are protected by our 30 day completely satisfied or your money back guarantee.

Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich… click here to get this emailed report for only $49.

This is also why we maintain close contact with Jyske Bank, Denmark’s second largest bank. Denmark is rated by Standard & Poor’s as the safest country in the world to bank in. Jyske Bank is the only bank we know that specializes in the Borrow Low Deposit High strategy. Jyske Bank is also one of the leading currency traders in the world. Unlike most banks (that trade only eight hours a day) Jyske maintains a 24 hour trading service. They have been our bank for over twenty years and help us stay informed about global equity markets, plus global currency parity and interest rate trends so we can learn from portfolios that are real time. What you learn from is actually happening as our service unfolds.

More importantly Jyske Bank  has created an entire subsidiary that provides a stable and safe institution for US investors  who wish to invest globally including a Borrow Low-Deposit High strategy.


See a totally new way to see the Galapagos below.


Save $100 more. There is another important benefit you gain when you order my emailed report “Borrow Low-Deposit High”.  You can save $100 at the next Jyske seminar where I review the new H.I.R.E. overseas banking regulations.

Share strategies with me in California and Save.

I speak at the Jyske Global Asset Management’s April 30 – May 2 Foreign Exchange Investment Seminar in Laguna Beach, California.

The normal seminar fee is$499 or $750 for two.

However Jyske is providing the same discount to our premium subscribers (including those who order Borrow Low – Deposit High) as to their clients… $399 single and $599 for a couple.  You save $100…even though the emailed report “Borrow Low Deposit High” is only $49.

Order “Borrow Low-Deposit High – How to Use the Multi Currency Investment Sandwich”… click here to get this emailed report for only $49. Save $100 on JGAM’s California seminar.

See more on the JGAM California seminar here.

If you have questions about Jyske’s seminars contact Thomas Fischer of JGAM at fischer@jgam.com

Join us in North Carolina this June to learn more about how to bank abroad. June 24-27 International Investing and Business North Carolina

Learn how to gain earning freedom with Ecuador exports at our Ecuador Export Expedition Tour ($499 or couple $749)

Apr. 17-18   Imbabura Real Estate Tour ($499 or couple $749)
Apr. 20-21  Coastal Mid Coast Real Estate Tour ($499 or couple $749)
Apr. 23-24  Quito & Mindo Real Estate Tour ($499 or couple $749)

April 26-27 Cuenca Real Estate Tour

May 9-12       Super Thinking + Spanish Course, Cotacachi Ecuador

May  13-14    Ecuador Shamanic Minga

May  16-17    Imbabura Real Estate Tour

May  19-20    Coastal Real Estate Tour

May  22-23    Quito Real Estate Tour

May  25-26    Cuenca Real Estate Tour

You enjoy discounts by attending multiple seminars and tours.

Here are our multi tour adventure discounts.

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

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

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

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

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

Here is the balance of our 2010 schedule.

June 24-27 International Investing and Business North Carolina

June 28-29    Ecuador Travel & Andes

June 30-Jul 1 Imbabura Real Estate Tour


There is a Galapagos camp with nine luxury safari tents perched on a hill, providing comfort and privacy in the wilderness.  All tents have a balcony with views of this park and the ocean.


The tents are spacious, attractively decorated, and each has a private bathroom, with hot shower and toilet.


Learn more about this totally new way to see the Galapagos.

2010 Summer Schedule

July 3-4      Coastal Real Estate Tour
July 6-7      Quito Real Estate Tour
July 9-10     Cuenca Real Estate Tour

Sept.   3-6   Ecuador Export Tour
Sept.   8-9   Imbabura Real Estate Tour
Sept. 11-12   Coastal Real Estate Tour
Sept. 14-15   Cuenca Real Estate Tour
Sept. 17-18   Ecuador Shamanic Mingo

Oct.    7     Quantum Wealth North Carolina
Oct.   8-10   International Investing & Business North Carolina
Oct.   11-12  Travel to Quito and Andean Tour
Oct.  13-14   Imbabura Real Estate Tour
Oct.  16-17   Coastal Real Estate Tour
Oct.  19-20   Quito Real Estate Tour
Oct. 22-23    Cuenca Real Estate Tour

Nov.    4-7   Super Thinking + Spanish Course Florida
Nov.    8-9   Travel to Quito and Andean Tour
Nov. 10-11    Imbabura Real Estate Tour
Nov. 13-14    Coastal Real Estate Tour
Nov. 16-17    Quito Real Estate
Nov. 19-20    Cuenca Real Estate Tour

Dec.   3-5    Ecuador Shamanic Mingo
Dec.   7-8    Imbabura Real Estate Tour
Dec.  10-11   Coastal Real Estate Tour
Dec. 13-14    Quito Real Estate Tour
Dec. 16-17    Cuenca Real Estate Tour

Read  the full Economist Slash and earn here

Multi Currency Trust

Multi currency trust is really important now. A huge multi currency stock market and property correction could be just ahead.

This correction can bring unprecedented value opportunity. But how do we know who to trust?

If our multi currency investments are in what we know and with those we trust…our investing is always one step ahead.

For example, below you will see a breakdown of my total multi currency position and why I have made money this last year when so many have lost.

One important point to note is that the largest increase in my multi currency portfolio is in Ecuador real estate. This is because I am involved in Ecuador every day and have a feel for what is going on. Plus I know people in Ecuador that I trust.

Take for example the Vitazul Ecuador beach condos built by Kjetil Haugan.

One reason I made an investment there is because I have worked with Kjetil for more than a decade and I trust him. I first met Kjetil when he had just moved to Ecuador and was beginning to develop business there. Now, just over a decade later he has one of the largest Spanish schools in Ecuador, one of the largest travel agencies in Ecuador, two boats that tour the Galapagos, a hotel and he is building 63 condos. Here is Kjetil at the condo construction.


Over the decade Kjetil has surprised me with what he gets done again and again. So when he contacted me last November and told me about the condos and the clubhouse-hotel he was building, I immediately became interested.

Last November when he contacted me the condo clubhouse looked like this.


and the clubhouse swimming pool was…


Yet he told me that he would be operational for the new year.

He was.

I drove down from our home in the Andes shortly (January 20 to be exact) after and was the first condo investor because of trust AND WHAT I KNOW ABOUT ECUADOR. This is on the record. See what I wrote in January 2008 about this project at Ecuador Beaches.

Here is the club house now…less than a year later.


and the pool.


When I arrived nine months ago, the land where the condos were to be built looked like this.


…just nine months ago. Here it is now.


In nine months…in Ecuador…on the coast…amazing!

Yet I was able to invest at the beginning before inflation started to really bite. Investing in what you know and in those you trust pays.

Prices have risen on these condos, but still offer an incredible value, plus until October 1, Kjetil is offering the original price (a $10,000 savings) to Ecuador Living subscribers.

For details on the units below contact Thor Anderson at thor@sanclementeecuador.com

Before you invest anywhere, however, let me please exclaim loudly…proceed with care.

We may be seeing a systemic cleansing similar to the 20s. Even if we are not, this is a time when investors can do everything, that in the past, was right and still lose. This is one reason why I like investing in real estate (US and Ecuador) now. I know and trust real estate. Real estate is a multi currency inflation hedge. Real estate is a hedge aganst a falling US dollar. Government bail outs create inflation. Real estate is an inflation hedge.

You can see the increase of real estate in the breakdown of my own portfolio this year

Many indicators suggest that this is a time when most investors believe the market will be down, but it actually will rise…perhaps a lot. So looking for value in equities and real estate make sense now.

Invest now? Does this sound crazy? Probably no crazier than in August 2007 when everything looked so fantastic and I warned readers to reduce debt and I unloaded most of my equities, moving into cash, Ecuador real estate and bonds instead.

As you can imagine I am pretty happy about this right now. I am reviewing my exact portfolio with my multi currency course subscribers at this time. Here is a portion of what they are reviewing, the breakdown of my personal portfolio a year ago and where it is right now. The percentages are rounded.

October 2007 Total Cash 9.7%

October 2008 Cash 10%

October 2008 Foreclosure Cash 3%

October 2008 Total Cash 13%

October 2007 Equities 6%

October 2007 Emerging Equities 1.5%

October 2008 Equities 5%

October 2008 Emerging Equities 1%

October 2008 Total Equities 6%

October 2007 Bonds 31.7%

October 2007 Emerging Bonds 8.5%

October 2008 Bonds 24%

October 2008 Emerging Bonds 10%

October 2008 Total Bonds 34%

October 2007 US Farmland 21%

October 2008 US Farmland 31%

October 2007 US Commercial Property 19%

October 2008 US Commercial Property 6%

October 2007 Ecuador Property 3%

October 2008 Ecuador Property 10%

First, let me clarify that this portfolio is not totally accurate. All the property is shown at cost. Much of this was purchased as long as a decade ago and could be sold for much more than shown. Both US and Ecuador property.

Second, even without trying to estimate a real estate value the portfolio rose…just a bit…about 5%. That is less then half the performance in 2007, but for this last year I am pleased. Not losing in 2008 is good! In addition to maintaining the portfolio’s capital, I feel especially well positioned to capitalize on current events. My cash position has grown and and many of the existing bonds mature this next year. This gives me plenty of liquidity to pick up bargains created by the market correction.

Third, I did little buying or selling of equities this year. The reduction of equities in the portfolio is entirely due to drops in price of the equities held.

I mostly looked for bargains in real estate…mainly in Ecuador and picked up several.

The same is true for bonds. The reduction in bonds in the portfolio is due to
maturities and the increase in emerging markets is due to currency strengthening of the bonds held.

Last year I felt a bit like a spider sitting in its web watching the fly come closer.

Now I am ready to bite! I have committed 3% of my portfolio to buying US real estate foreclosures.

Plus I am watching equities. The time to buy may be near. You can learn why as a multi currency course subscriber

Until next message may everything you believe in be worthy of your trust.


I’ll review my entire portfolio and all this thinking next weekend. October 3-5 in North Carolina at our International Investing and Business Course. Why don’t you join me.

The course was fully booked but we had many late applications and have have moved to a larger meeting room so still have space.

Join me with Thomas Fischer of Denmark’s Jyske Global Asset Management, who was a currency trader for years to review our multi currency portfolio thinking for the year ahead.

To help our subscribers meet and learn, we are giving all delegates at the North Carolina course a FREE year’s subscription to our online multi currency course. This is a $249 value.

This will not be all work-no play. We selected this particular weekend as the most likely to be beautiful with the autumnal leaf change. The colors are glorious.


Here delegates at a previous course chat during a coffee break.



Join us in North Carolina next week end October 3-5 and save $249. Enroll here.

Or join us in November to inspect Ecuador property for sale


Our September 17-20 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour was sold out as was our September 28-29 Imbabura Real Estate Tour was sold out.

Our Oct 14-18 Ecuador Import Export Course only has a couple of spaces open.

We still have space in November

Join us in Cotacachi at El Meson de las Flores.


Nov 7-9 International Investing and Business Made EZ Ecuador

See these condos at $46,000 in Cotacachi.

Nov 10-11 Imbabura Real Estate tour

Dine with delegates at the Vistazul clubhouse.


November 12-15, 2008 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour