Tag Archive | "Infrastructure"

How Infrastructure Flub Ruins Pensions


Expect the world to get richer.   Supply, demand and resources are what wealth is all about.  We live in a world with a growing population (increased demand) and technology that increases productivity (increased supply).   Overall the wealth, more supply and more demand) grows.

gary scott

I use this saw to beat inflation.

However don’t expect that wealth to be equally or fairly distributed.  There are plenty of reasons why those on fixed incomes can become poorer.

Take for example, the US infrastructure spending over the next four years.   This can be a bad deal for those on a fixed income.

Current predictions are that this building, accompanied by tax reductions at the upper end, will add 6 trillion dollars of US debt.  Adding debt financed infrastructure is good only if the improvements adds enough productivity to pay off the debt.   If not, the spending creates inflation.  Rising costs are bad for those who depend on pensions.

The world is in a technology transition.  The demand that is growing fastest is virtual.  Spending is likely to be on bricks and mortar.  This is compared to developing more WalMarts when all the shopping growth is at Amazon.com or building new post offices just before the internet came into use.

Here is a real example.  When we first moved to Naples, Florida in the 1970s Merri and I had a powerful computer.  This was a big deal back then and it allowed us to become an official post office internet center.  The idea was that if someone wanted to send an email to someone without a computer, they would send it to us.  We would print it and the recipient would pick it up from us physically.  That system really missed the mark!

We do not know what new productivity innovations lay ahead and creating six trillion in debt on infrastructure of the past will not create more real wealth.   There will be some jobs created but the added income will be offset by higher costs because the incomes created will be paid for from debt.   This debt is ours, the public’s, as in you and me.   In the bigger picture, this spending is akin to borrowing money from the bank and treating the loans as if they are earnings.

Those who will prosper most are the wealthy, the owners of the big construction businesses who enjoy added tax breaks while the middle class, especially those on fixed income, pick up a greater share of the tax burden and higher cost of living for essential goods.

How do we gain protection?

We can have multiple ways to create extra income.  Try new things that you enjoy doing that can work in good times and bad.

Don’t worry about making huge profits.  Keep trying things that you want to do.  For example at our farm in NC, we added three sources of extra income Airbnb rentals, raising trout and creating wood products (using hand tools like the saw above).   Some will take off, others probably won’t but each contributes to the battle against inflation and most important, we enjoy the process.  Some of the skills developed would be really valuable if there is a big economic meltdown.  We hope that meltdown will never come, but because there are scenarios where the global economy could go south,  we sleep better having these enjoyable skills.

This is a way to become a Pruppie and turn passions into profit.

Gary

See more on Pruppieism below.

Live Anywhere – Earn Everywhere

A huge economic struggle is taking place.

If that struggle is lost what’s left of our privacy, the safety of our food supply, the control over our health, the safety of our money and even the sanctity of our opinions and thoughts could be lost.

Almost half of America’s voters rejected the postwar global economic order.  England’s voters did this too.  This has left a cloud of uncertainty over the U.S. and world economies.

Markets and social order can collapse at any time.

Schools are not safe from shooters on the rampage.

Streets are in danger of terrorists ramming their cars into riders on bikes.

We are no longer safe… in shopping centers, at festivals, even in the church.

Yet the bigger danger grows.   This struggle is taking place, right now.

You can read about tiny parts of this conflict daily in the news.   Most of the clash however is hidden from view.  There are horrible consequences hidden beneath the visible spin.

There is an association forming that can ruin our health care, nutrition and the environment.  A group that can control what you read on the internet, see over cell phones, watch on TV and what trends in social media.

Everything you write or say can recorded and be used  to control what you hear and read.

The warning shot, above the surface, is the merger between Bayer and Monsanto.  This union is horrible enough, yet it’s only the tip of the iceberg.

Seven companies are involved in a more sinister plot.

The momentum of this dangerous alliance has picked up faster than anticipated.

I began researching and preparing a report “Learn Anywhere, Earn Everywhere” when the Bayer-Monsanto merger was the big deal.   They are two of the seven firms involved in this almost invisible take-over of our food and medical services as well as the internet, cell phones and TV.

I started researching when I saw the hidden depths of this Bayer-Monsanto merger.  I was truly concerned and shocked because my research discovered that the consolidation of Bayer and Monsanto is not the biggest merger nor the most dangerous by far.

I miscalculated how much time we have.  I went to work on the report right away, taking my time to delve deeply, but even before I have finished the report, events have begun to heat up.   The pace of this hidden unification has increased.  Now another merger is taking place, far more destructive and the alliance has an incredible lobby program working to make sure that the deal goes through.

A triad of three huge concerns and four smaller ones with hundreds of billions of dollars have built one of the most formidable lobbying operations in Washington.  Nearly 100 registered lobbyists are already on retainer and they include former members of Congress.   One company in this heptagon is also the largest donor to federal lawmakers.

The donations we know of equal more than $11 million paid to 374 of the House’s 435 members and 85 of the Senate’s 100 members in this election cycle.

This deadly seven point affiliation is likely to snake into almost every part of our livelihood.

One part of the cartel will increase our dependence on modified food that can purposely increase our needs for pharmaceuticals manufactured and sold at outrageous prices by another arm of the group.

The organizations will know more about us than any other group in existence.  They will (in fact they already are) act as spies for the government.  This amalgamation will control what ads we see, the products we buy, listen into our phone calls and even monitor and influence what we see on TV.

Sadly most of the public will not even know that this fusion has taken place.  Life will appear to go on as normal.  They won’t even see the change as what’s left of their good life which could be drained away by corporate malfeasance.

This is why I am rushing a report to you so you can be one of the few who avoid the ruin of this alliance and gain rather than lose from the shift.

The report “Live Anywhere – Earn Everywhere” contains seven steps we can take to gain benefits and protection from this cartel.

Here is some background.  At the beginning of the 20th century, Carl Duisberg, the head of Bayer, created a profit sharing cartel from three firms BASF, Bayer and Agfa, called the Dreibund (Triple Alliance) or little IG.

This German chemical association dominated commerce everywhere under the name of IG Farben, the largest company in Europe, the 4th largest anywhere and the largest chemical company in the world.

Because “Power Corrupts” this company morphed into something truly evil before and during the Second World War.

After WWII IG Farben was considered so morally corrupt it could not be allowed to continue to exist and was split into its original constituent companies.  Today Agfa, BASF, Sanofi and Bayer remain.

This is where facts become truly scary.  Some of these very same companies have merged with other mega concerns to create a new American Dreibund (a Triple Alliance dominating the USA).   This new cartel has such power it can take control of your food, your medicine and even influence, if not control, what you read and the information you access for health and wealth.  Even worse, they can monitor everything you do and give it to others in government and business as well.

From a political point of view we cannot do much about this alliance.   The cartel has hundreds of billions of dollars and hundreds of lobbyists.  They are making their big move right now, to take advantage of the current political distraction.  They know that after an election politicians are willing to accept bad news because it will be forgotten in four years.

In addition their greatest enemy in the government has only a couple of months left as the head of the Federal agency that will fight this cartel.

Only a few people will know how to take advantage of the shifts created from the results of this alliance.

The sooner we act, the greater the benefits.   This is why I want to rush my newest report “Live Anywhere-Earn Everywhere” to you.  This report shares how to protect what you have from this coalition that is taking over mainstream media, our food supply as well as our medical history, health care and communications.

Fortunately a loophole can set you free.  You can protect what you have and actually improve your situation, a lot.  Merri and I have already jumped though the loophole and want to share why and how you should too.

How to Gain Extra Freedom – While Almost Everyone Loses Theirs.  Become a Pruppie!

May I coin a new word, Pruppie?

We all know about preppers.  They believe that the world, as we know it, is about to end.  And we also know about Uppies, upward professionals as in Yuppies, young upward professionals.  Uppies expect their world to get better.

The reality is that our worlds have changed and for most of us, there is still great opportunity for a better lifestyle, yet the preppies could be right.

I invite you to join Merri and me as Pruppies, those who expect the world to get better and live and earn based on that expectation but enjoy a progressive lifestyle of freedom that also happens to prepare us for bad times as well as good.

Just in case… the world goes sideways… we will still survive and prosper anyway.  We do not give up anything much.  We can enjoy the good parts of the new economy, as we protect ourselves from what can be bad.

For example in this report, you’ll see how to make your dining room table bring you more control, more time, more income and more freedom.  After all, what can be more accessible than a dining room table?

ecuador-banks

You’ll even learn how to turn dining room tables into income and tax deductions as we have with these dining room tables we build out of local wood.

Let me be clear.  I expect that the world will get better, at least for the few who adapt and avoid the dangers the American Dreibund has planned for the public.  The wealth of the world, albeit with inequality, has continued to grow.  There is an incredible new economy that’s opening for those who know what to do.  There are great new opportunities and many of them offer enormous income potential and they even work well in disaster scenarios.

Let me provide one simple, concrete example.  Ginseng.

This is a great health root.  The demand is growing especially in China.  At times good dried Ginseng sells for $1,000 a pound!  This is an incredible and easy crop to grow.   The less care you give it, the more valuable it can become.  Yet if everything goes south, the health qualities will be good to have and make it an excellent barter item.  Once you know what to do with ginseng, it’s easy to grow in your back yard.

Even better one of the best kept secrets is that ginseng and 125 other medicinal crops that are currently unsustainable but can be grown on land  that is extraordinarily cheap.

goldenseal ginseng

Ginseng growing in our back yard.  I know about growing ginseng through experience and explain why and how in the report.

There are are specific places that reduce your living expenses, easily increase your income, make you smarter, healthier and provide tax benefits as well. 

Learn about these specific places.  More important learn what makes these places special and seven freedom producing steps that you can use to find other similar spots of opportunity.

Here are some of the experiences this report shares:

The report includes a tax and career plan broken into four age groups, before you finish school, from age 25 to 50 – age 50-to 65 and what to do when you reach the age where tradition wants you to re-tire.  (Another clue-you do not need to retire and probably should not).

The report is very specific because it is about what Merri and I, our children and even my sister and thousands of our readers have done and are doing.

Live Anywhere – Earn Everywhere focuses on a system that takes advantage of living in Smalltown USA, but earning globally.

  • Learn about the magic of the north facing slope.   This is where Merri and I live almost half of our time.  North facing mountain land is some of the least expensive in the world but has hidden values that the report reveals.  There is a lot of this land and a lot of hidden value that you can tap.   When we bought our Blue Ridge farm (252 acres) I mentioned this to my Swiss banking friend.  “That’s bigger than the entire village where I live!” was his response.  Smalltown USA offers a last chance at having a lot of space.  By living in two Smalltown places there are enormous tax advantages as well.  One step in the system saves Merri and me over $28,345 in taxes a year.

The report shows how to buy cheap north facing slopes and create an income producing tiny home for $29,000 or less.

If you lack the $29,000 to invest, a start up using tents is even less.  These are tipis we put up at our farm before we built our first tiny home.  Learn how they can create tens of thousands of dollars in income for you.

Fwd: gary-scott-tipis

  • See ways that small businesses like Tipi rentals can create BIG tax savings as well as extra income.  For more than 30 years Merri and I have enjoyed a strong six figure income, some years more, in the millions.  Yet there have been very few years when we had to pay federal income tax.  The report lays out a three structure program and how it is used when you are in school (up to age 30), then from 25 to 50, 50 to 70  and beyond 70.   Learn why Chapter C corporations and pensions can be better than the normally recommended Chapter S.  See how new mileage log rules gives you a possible opportunity to increase your tax deductions using IRS Form 4562.  Using a two-vehicle strategy you can gain $12,976 in new deductions even if you do not have to drive one mile further or spend one additional penny on your car.
  • See how a greenhouse can help you eat better and be healthier, plus provide income and a tax deduction and be funded by a government grant.

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Our North Carolina greenhouse.

gary scott greenhouse

Our Florida greenhouse.

  • There are similar benefits from having a second home office defined in IRS publication 463 and IRS publication 587, even if your desk is a dining room table.  The report also shows how your dining room table can become an actual income producer as its creates a huge tax deduction at the same time, not to mention a great place to eat, work and lay out plans for a brighter, safer more lucrative and enjoyable future.
  • Living in this environment is also healthier, economically as well as physically.  You’ll see in the report how researchers at Harvard found an amazing correlation between living in conditions found on north facing slopes, longevity and mental health.  The researchers were quite surprised by this strong correlation that also extended into mental health.  In addition to feeling better, reducing stress and having more Joie de Vivre the places outlined in “Live Anywhere-Earn Everywhere” can help you avoid hospitals, high cost disease management (aka health care) and BIG pharma while providing an investment opportunity in three plants that have some of the fastest growing demand in natural health care.  These three plants are just one of seven business opportunities that can create multiple streams of income.
  • How changes in cell phone and internet technology eliminated the need to be in one place.   An old law that creates new opportunity for small business in small towns is available to everyone.
  • Use the specific search and purchase guide.  Construction plans are included that show how to generate first tier income that leads to five, second tier avenues of earnings.
  • How to pay off old debt and avoid new debt by avoiding spurts and embracing value. 
  • Learn seven skills that will always have value.  See how to turn First Aid, medicinal plants, hospitality, food, trees, alternate energy and writing to sell into everlasting, low stress wealth.

merrily farms

This pond at our farm is a pleasure but also helps create a safe, healthy food supply and creates a tax deduction as well.

My Guarantee

This may be the most important report I have written in 50 years.  The information is certainly the most urgent.  Do not delay.  The risks are upon us right now and you’ll understand how the final steps of the alliance are taking place as you read the current news.

To take any risk out of gaining this urgent information with my full satisfaction or money back guarantee.  If you are not totally happy, simply let me know.  I guarantee you can ask for a full refund any time within 60 days and I’ll refund your payment in full, no questions asked.

You can keep the reports as my thanks for ordering it.

Buy Live Anywhere, Earn Everywhere Report  $39.99

Gary

 

 

 

Ecuador Income Potential


One of the most common queries sent to me is about Ecuador income potential. Readers want to know how they can earn income in Ecuador.

ecuador-earning-potential

A job as an Ecuadorian policeman looks good… but not the pay.

One wonderful  part of living in Ecuador is the low cost of living.   However, this also means that Ecuador wage levels are low.   Most Americans and Canadians I know, who have moved to Ecuador, have a higher standard of living than most Ecuadorians.

In short… most North Americans probably will not want to be an employee in Ecuador…also the government tends to like Ecuadorians rather than other nationalities to be employed.

ecuador-earning-potential

Ecuador is a land of small businesses.

This is especially true of those collecting Social Security. Employment abroad can reduce the income a US recipient is entitled to.  If you plan to work or have a business abroad… consult with a tax US attorney. See more about this at Ecuador & Social Security.

ecuador-earning-potential

You do not want to depend on Ecuador Social Security.

This leaves North Americans with three ways to expand income potential in Ecuador… or actually anywhere they live.

The first way to have more income in Ecuador or anywhere is to earn more from your investments.

The world is currently in the grasp of a major global bear stock market.

During bull markets and recoveries, stock markets almost everywhere can provide incredible returns. For example I work with Denmark ’s second largest bank. They are global equity experts and one of the portfolios (the Green Environment Portfolio) we created together rose 266.3% in one year. Another (The Emerging Market Portfolio) rose 114.2% in 2006 and 122.6% in 2007.

Yet in each case these portfolios also encountered gut wretching drops during the 2008 bear market. That Green Portfolio for example dropped 103.22% in one month.

Markets everywhere are depressed and are likely to see another big and sudden drop in the next few months.  Since March, stock markets have been rising without reason.

This is good to know because if a recovery comes, history suggests it will be sudden and dramatic and strong.

The next stock market dive will create opportunity for  some investors to make fortunes.

Here is a simple idea that can help you become a good global investor, a whiz at international investing. The idea is that these three simple facts can help you spot distortions in equity markets.

The first fact was confirmed by Alan Greenspan in his excellent book, “Age of Turbulence”.

“A major aspect of human nature-the level of human intelligence-has a great deal to do with how successful we are in gaining the sustenance for survival. As I point out at the end of this book, in economies with cutting-edge technologies, people, on average, seem unable to increase their output per hour at better than 3% percent a year over a protracted period. That is apparently the maximum rate at which human innovation can move standards of living forward. We are apparently not smarter to do better.”

That’s a huge fact. Overall we should expect the global economy to grow at about 3%.

This gives us a baseline for how much an investment should grow.

If an economy rises faster than 3%, it is distorted. During early stages of excessive growth, investors will be attracted. Shares will rise faster.

If the economy remains robust, shares become overbought. Then watch out! A correction will come.

This leads us to the next fact which is “all investments have risk”.

Rather than wasting time trying to avoid risk…which cannot be done, investors should look at three risk elements instead.

#1: How much risk is there in any particular investment?

#2: What perceptions doe the market have of the risk?

#3: What risk premium is due?

Bank accounts and government bonds, for example, are perceived as the safest investments (especially if government guaranteed). A look at their long term history shows that they pay about 3%. So if a bank account or government bond pays less…in the long term it’s bad. If it pays more…that’s better. Yet the idea is that bank accounts will not really make money. They will just keep up with growth…at 3%.

To get real growth requires taking risk. If an investment appears to be less safe it will pay more than 3%. This is called a risk premium.

Bonds pay more than bank accounts because they are perceived to be less safe. Stocks pay more than bonds because they are perceived even riskier. Emerging market stocks pay more than major market stocks. Emerging market bonds pay more than major markets bonds.

Over the long run, bonds issued in countries and currencies perceived to be stable pay 5% to 7%.

Stocks in major countries should pay 7% to 10% annual return in the stock market as a function of global growth, long term earnings growth plus risk premium (above bank accounts and bonds).

To attain higher growth than 7 to 10% investors must either increase risk, trust luck or spot distortions.

This is good because the market is almost always wrong. Most investors always try to avoid risk. Most investors dump their wealth into investments that are perceived to be safe. This creates excessive demand and lowers value and actually makes the perception wrong.

Knowing this helps wise investors spot trends created by distortions.

Finally we come to the third fact. Periods of high performance are followed by times of poor performance… and vice versa.

In times of global panic as we have recently seen, all markets tend to drop.

Understanding these three facts leads us to know that a portfolio of global shares.

Understanding the 3% solution and what markets have done shows a distortion. Blue chips may be a good way to invest now for higher than normal returns… in the long term.

Global investing has proven itself to be more profitable. Why not? Modern communications and transport coupled with a vast pool of low cost labor almost guarantees this fact. Knowing three more facts based on the 3% solution can give you an edge when it comes to taking advantage of the ups and downs in this global trend.

Equities now provide potential for decent prospective returns from current
levels over the next 5 or 10 years.

Many investors are now putting risk back on the table.

In the US Money Market Funds now have more cash than all the equities in equity funds.  This is something that markets  have never seen before!

The current bear market bull was created when billions of dollars of this liquidity began flowing back into stock markets.

The pent-up liquidity is earning really low returns and as inflation increases its bite, this cash has to go somewhere.   Equities are one of the logical choices.

For protection against future inflation, real estate and shares are the norm, plus
index-linked and gold royalty investments make sense.

Franco Nevada for example has 1% dividend yield plus growth from the reinvestment of the cash flows. FrancoNevada Corporation (TSX:FNV) is a gold focused royalty company with additional interests in platinum metals, oil & gas and other assets.

My portfolio adviser recently sent me this note:

Gary,  I have been keen on thematic investing globally.

The sectors/themes that I favor for the continued recovery in markets
are Food, Telecoms, Power Generation, New Energy, Healthcare, Gold &
Silver, Water and Infrastructure.  A sample of some of the
companies/Funds that might be used to put into place such a strategy
are:-

Unilever
Cadbury
Vodafone
Nokia
Iberdrola
AstraZeneca
Novo Nordisk
India Pharma Fund
Franco Nevada
GoldCorp
Centamin Egypt
Yamana
Silver Wheaton
First Solar
Vestas Wind
Kurita Water
Water ETF
Black Rock New Energy Trust
Geiger Counter Fund
Kotak Indian Infrastructure Fund

Building this type of global, diversified portfolio makes sense when the market stumbles again… as it is likely to do soon.

Buying into this proposition increases risk… that history suggests will be well rewarded.

We’ll share the next two ways to increase income potential in Ecuador or anywhere in our next two messages.

ecuador-earning-potential

One way to earn in Ecuador is to export its…

Ecuador-earning-potential

many colorful crafts, textiles and products.

Gary

Join Merri, me, Thomas Fischer of Jyske Global Asset Management and our webmaster for our July 24 to 26, North Carolina International Business & Investing Made Easy seminar.   Save up to $299 by enrolling now.

Half the curse looks at global investing and half how to have an international  internet business.

Enroll in the July seminar now and get one of our two internet courses on how to invest globally or have an international internet business. Save up to $299.

See more details on the North Carolina seminar here.