Tag Archive | "insurance giant;"

Cotacachi Spa & Ecuador Web Business


Cotacachi’s (perhaps Ecuador’s)  most famous spa is La Mirage and seeing it could help you own your own Ecuador business.

cotacachi-spa

In a moment, there is a link to some great shots of La Mirage by Todd Smith.

However it is Todd’s success with his web business after attending our course that I want to share.

The global economy is going though a much needed cleanse.    A recent USA Today article reports that census numbers show that a record one in nine U.S. housing units are vacant, including about 3% of owned homes. The Mortgage Bankers Association says more than 2 million homeowners faced foreclosure last year. The median sales price dropped 12%, according to the National Association of Realtors — far more in parts of Arizona, California, Florida and Michigan.

This inventory is delaying any kind of housing recovery and will dampen the job market for some time.  This is especially true because of the lack of demand.

One in nine means that 14 million housing units are vacant. USA Today says: That number does not include an estimated 4.8 million seasonal or vacation homes, most of which are occupied part of the year. The combined vacancy rate of almost 15% is higher than during previous recessions: 11% in 1991 and 9.4% in 1984.

• About 3% of owned homes are vacant. In normal times, “maybe 1% should be vacant.”

This means we should not expect to see any economic recovery soon.

A recent New York Times article entitled “U.S. Is Pressed to Add Billions to Bailouts”  by Edmund L. Andrews, Andrew Ross Sorkin  and Mary Williams Walsh says:  The government faced mounting pressure on Monday to put billions more in some of the nation’s biggest banks, two of the biggest automakers and the biggest insurance company, despite the billions it has already committed to rescuing them.

The government’s boldest rescue to date, its $150 billion commitment for the insurance giant American International Group, is foundering. A.I.G. indicated on Monday it was now negotiating for tens of billions of dollars in additional assistance as losses have mounted.

Separately, the Obama administration confirmed it was in discussions to aid Citigroup, the recipient of $45 billion so far, that could raise the government’s stake in the banking company to as much as 40 percent.

The Treasury Department named a special adviser to work with General Motors and Chrysler, two of Detroit’s biggest automakers, which are seeking $22 billion on top of the $17 billion already granted to them.

All these companies’ mushrooming needs reflect just how hard it is to stanch the flow of losses as the economy deteriorates. Even though the government’s finances are being stretched — and still more aid might be needed in the future — it is being forced to fill the growing holes in the finances of these companies out of fear that the demise of an important company could set off a chain reaction.

This means the government is creatng more money then it has and we are likely to see inflation.

So what can we do?

One is buy real estate in California, Florida and some of the other hard hit states. There will be real bargains.  Merri are headed to Florida as fast as soon as we wrap up our March tours in Ecuador.

Start our own business. No other time offers such great opportunity. The old boys network is slashed. Big business cannot compete and labor has not been so abundant in decades.

This is why Todd Smith sets such a great example.

Todd attended one of our courses on how to self publish and has developed a growing, thriving internet business.

See Todd’s latest emailed message about La Mirage here.

Here are two important points about Todd’ success.

First he already had a successful wedding photography business. However hat type of business did not have the upside potential nor offer the freedom he desired.

Second he was not enjoying the business. The hours and the types of photography did not fit Todd’s desires.  He had a passion to earn in a different type of  photography.

So he turned his passion into profit!

Due to numerous successes like Todd’s and because of  the ideal business conditions created by the economic correction, I have developed a new course... The Tangled Webs We Weave…A Web Based  Business Course

Enroll here $299

You own web business provides enormous freedom.  You can like anywhere you desire…  a Cotacachi business is great. This is a quiet peaceful place without much crime, noise or pollution.    Merri and I  have have a web business that works in Cotacachi, the Blue Ridge of North Carolina or anywhere we choose in the world?

The reason we can have this freedom in business is passion.

I am one of the luckiest guys in the world because my children are continually doing things that I learn from.  This allows me to be a bragging dad and actually share a worthwhile point in the process.

For example Merri and I recently were reminded of the most important secret of business success from our youngest daughter, Eleanor.   Here is a shot of Merri and me riding the Virgina Creeper Trail last summer with Ele.

Cotacachi-business

Eleanor is just 27 but has already built a very successful London based business that not only provides her a six figure income, but gives her the freedom to travel the world.  This last year, she visited us twice in the US plus spent time in China  enjoying the Olympics and made numerous other trips.  She has over four months of each year to travel wherever she desires…and earn as she goes.

While she was last with us, we had a great deal of time to talk and she surprised me by sharing a valuable lessons about business.

The first lesson came when she was telling me about her latest efforts at getting some of her students auditions and roles in London West End shows.  Ele started as an entrepreneur early. She owns a performing arts school in London that teaches dancing,  drama and singing.  Here are some of her students in the production of Aladdin they are currently performing.

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Ele’s school is a franchised operation…one of about 600.  She is one of the youngest owners yet has one of the top ten busiest schools.

One reason for her success is the enormous energy and passion she puts into her business.  Another reason for  her success is she has a growing reputation for getting her students professional roles in the London theater.

She currently has eight of her students working in London’s West End.

Two are in the Sound of Music at the London Palladium on Argyll Street.

Two are in Rodger and Hammerstein’s Carousel at the Savoy on the Strand.

One is  in Disney’s  Lion King, at the Lyceum Theatre on Wellington Street.

One is in Les Miserables at the Queen’s Theatre on Shaftesbury Avenue.

I was a bit surprised at this success and asked her “what is your trick”.  She replied:

“This is very simple.  I give the children who have extra talent free lessons. I bring them to my home and work with them there.”

When I questioned the wisdom of giving away her services as being part of a good business model, she replied:

“This is not about the money, Dad. The thrill of hearing those kids when they call me and tell  they were selected is worth every minute I put into this. I love those calls so much,  I am happy to devote my time and effort.”

This is the secret. Do what you love and figure out how to make money in the process.

In Ele’s case, she has profited indirectly…but the profit is not the purpose.  This is a matter of fulfillment and of the heart.

This has always been an important idea, but grows in importance now.  Our message about the upcoming 2011 disaster showed an economic distortion that is so grave it will force many of us to continue working… or  to work more then expected or… to start working for oneself when an existing job is eliminated.

This problem is so acute and the importance of having more people do what they love is so vital that we have decided to write a new course…on how to develop your own international internet business.

I have now started this course and before I launch it to the public want to make a special offer…that gives you this course free…or more.

Years ago, Merri and I  had 23,000 print readers…micro sized in publishing terms….but very, very profitable for us.  We made millions from this business.  We believe that in this rapidly changing world…small is beautiful.

When money stopped mattering as much, our children were grown, finished with university, we sold our print business and took a year off…lived with a shaman high in the Andes.

Then we morphed into an internet only business.  Our readership began small, with  about 1,600 email readers.  We expected to slow down and smell the roses more.  We even bought an isolated hacienda high in the Andes called Rosaspamba (Place of roses).

As crazy as it seems, we could actually run a business with this small readership and make a profit because our readers are so wonderfully responsive.

Why?  How?

This is what the new course I am creating will teach you….how to have a small, safe, profitable global internet business by creating wonderfully response, fun to be with, like-minded customers.

How small?

Today, our business remains micro sized but we have grown from 1,600 readers to four  main subscription lists consisting of 16,782 subscribers.

How safe?

The downturn of 2008 has not slowed us a bit.   In fact we  are growing faster, in number of subscribers and income, than ever.   December 2008 was our busiest month on the internet ever…by about 50%! January and February 2009 were up 226% over January and February of 2008.  This March we have almost surpassed March 2008 sales in the first ten days.

This is all at  a time when many say the world is economically depressed. Yet our sales are way up and growing almost every month.

How profitable?

Our list and sales are still tiny compared to many of our competitors and associates who make millions a month.   We make tens of thousands…sometimes hundreds.

Yet we have been able to add this extra income with a surprisingly small amount of added overheads.  This number works perfectly for Merri and me…a fun sized readership. In our opinion, this should be the key in business… satisfaction… fulfillment and fun…through service along with the profit.

Yet, profits do matter. Almost every month our internet sales have been rising. In 2008 they rose nearly every month and created a new record for web based sales for us.

These internet sales alone have given us the freedom to live in an isolated Blue Ridge farm during summers and in Ecuador the rest of the year…yet still earn many tens of thousands of extra dollars a month.

Now you can learn everything I do to create this extra income and have fun and fulfillment in a micro publishing business.

The syllabus of this course will help you learn how to find something that is fun, fulfilling and profitable for you to do.

Our growing income is one reason I have decided to create this course.

Second, the economic downturn of 2008 means that more of my readers will need a new way to earn in the years ahead.

Yet the third reason was the straw that made me decide to do this….my webmaster who helped me start this site agreed to co-write the course with me. Merri and I explain what we do in the business.  The writing…the marketing…the product planning and such.   Our webmaster outlines the technical part. How to chose a server…set up a shopping cart…create pay per click systems…send thousands of emails a day.

Though we like to remain small, this does not mean all of our students will.  Our webmaster started with us first but since has grown to be the chief internet consultant for several much larger internet marketing companies that send over a billion emails a year!

We are explaining in the course in detail as we develop it over this year…what I will share and what my webmaster will share as well…how the course will help you.  We are at chapter eight now and I honestly do not know everything what will be in the course.

Previous courses have always evolved as they are written because of the questions that are asked as the lessons are sent.

This is why I want to offer this emailed course (which has not yet be written) now so you can grow with the course as it evolves.

Here is a  special offer.

This new course entitled “Tangled Webs We Weave – How to Have Your Own Internet Business” is available at $299.

This is a bargain. Merri and I have been traveling and doing international business for 41 years. We have had a web based business for over ten years. You can share everything we have learned for just $299.

Plus we provide our standard full guarantee. Enroll.  Try the course for 30 days. If not satisfied we’ll give you an immediate, full… no fuss refund.

However if you sign up for any three of our in person courses below, you can have The Tangled Web course free.

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two.

Future 2009 courses

May 29-31  JGAM Multi Currency investment Seminar Naples Florida

June 12-14 Shamanic Mingo Tour
June 16-17 Imbabura Real Estate Tour
June 18-21 Ecuador Coastal Real Estate Tour

July 3-6 Ecuador Import Export Expedition
July 8-9 Imbabura Real Estate Tour
July 10-13 Ecuador Coastal Real Estate Tour

July 24-26 IBEZ North Carolina

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

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

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

Enroll in Tangled Web here $299

To enroll in three courses click here.   I will automatically send you the free Tangled Web course when you enroll. You save $299 more.

The American Dream Goes South at Florida Investment Seminar


I’ll focus on how the American dream is heading south at JGAM’s multi currency seminar in Florida this May.

If looked at one way… the American dream is dead. Let’s ramble through economic history for a moment to see why.

In the early 1980s the US had a challenge… a severe recession from July 1981 to November 1982.  Inflation was high so the Fed  slowed the rate of growth of the money supply and raised interest rates. The federal funds rate rose to 20% by June 1981. The prime interest rate, at the time a highly important economic measure, eventually reached 21.5% in June 1982. Businesses went broke by the drove… 50 percent over the previous year.  Especially hard hit were farmers and real estate developers.

The recession was the most serious recession since the Great Depression.

This was tough but inflation eased and the economy rebounded.  Growth took off again… real growth without bad inflation because the real estate overhang and subsequent bankruptcy of the Savings & Loan industry was dealt with by the Resolution Trust Corporation.

RTC liquidated via auction and a massive sell off to private business, the real estate that had been assets of savings and loan associations that were insolvent.

The US government had the sense then not to try and control these assets.  Entrepreneurs bought the assets for pennies on the dollar and turned the property into viable deals in ways that no government agency ever could.

Japan then had a serious recession and the same opportunity.  There was a real estate and stock bubble in Japan in the 1980s.   Then in 1989 there was a massive withdrawal of confidence. Investment collapsed, causing the Nikkei index to fall more than 60 percent.

The Japanese government however decided that it could provide a fix. the Japanese felt they could not let big Japanese businesses go broke.  Between 1992 and 1995, Japan tried six spending programs totaling 65.5 trillion yen. They cut  taxes in 1994. In 1998 they cut taxes again and launched stimulus packages worth more than 40 trillion yen.,  A year later… another stimulus program. In 2000 11 trillion yen more was spent to stimulate the economy.

Over a decade the Japanese government provided 10 stimulus packages worth more than a 100 trillion yen.   The main result was to ruin the Japanese government’s credit with public debt that exceeds 100 percent of GDP. This is the highest percent of debt of all major nations.

Any other results?  Here is evidence… the main Japanese stock index the Nikkei 225 from 1989 till 2009.  Japanese society is indebted for life and the stock exchange has fallen from over 35,000 to  7,600 in 20 years.

Wow that really worked well… so

power-investing

now the US government has decided to do the same thing.

Last week the government  offered another $30 billion in funds to A.I.G. insurance.  This is the fourth round of aid to the American International Group. The government already owns nearly 80 percent of the insurer’s holding company. How much more can they buy?

This sounds like a good investment since the insurance giant was about to report a $62 billion loss after the government has already given a $60 billion loan, a $40 billion purchase of preferred shares and purchased $50 billion of the company’s toxic assets.

Behind this, the government has invested $50 billion in Citigroup… $45 billion in Bank of America.  The Us auto bailout could cost another 100 billion. More on that in a later message.

This is all taking place as the US economy spirals down at an accelerated pace.

Yet the current administration is basing its spending on calculations that suggest vigorous rates of economic growth in years to come.

They have suggested this economic growth will come in 2010.

I wonder?

There seems to  a disconnect between the Federal projections and fiscal reality.   Current conditions are not yet at the level of the 1980s, when unemployment exceeded 10 percent, but they could be soon.

Moody’s chief economist now places the odds of “a mild depression” at 25 percent. In that view, the unemployment rate would reach 10.5 percent by the end of 2011 — up from 7.6 percent at the end of January — average home prices would fall 20 percent on top of the 27 percent they have plunged already, and losses in the financial system would more than triple, to $3.7 trillion.

Yet President Obama calls this a “once in a generation” opportunity and proposed a 10-year budget that overhauls health care, arrests global warming and expands the federal role in education.

How to pay for it?   Tax more corporations and the wealthiest taxpayers.

Wrong!  Higher tax will simply kill business or drive it abroad.  What a  good idea to chase away the last of the success.

The President said  he would shrink annual deficits.  His explanation is that he will increase revenue from rich individuals and polluting industries, reduce war costs and assume a good rate of economic growth by 2010.

The rich will stop working or leave the US.  The polluters will move to Mexico or China or wherever.   The high rate of economic growth will not appear.  Stopping the war will help… but not enough.

Technology means that politicians can no longer ignore the global market and tax its citizens to death.

Take for example what is happening in Ecuador.  Remittances sent by  Ecuadorians who work abroad fell 22 percent in the last quarter of 2008.

$643.9 million was sent from October to December 2008. This is $181.7 million less than in Oct.to Dec.2007.

A similar drop was experienced in the third quarter of 2008 and is caused by the global financial crisis and especially the economic slowdown in the United States, where it is estimated 1.5 million Ecuadorians live and work.

The U.S. employment rate has crashed especially in manufacturing and construction which employ a large number of Ecuadorians.

The same is true in  Spain – where 600,000 Ecuadorians live. this is the second-leading destination for Ecuadorians.

This means that there are more Ecuadorians to serve for less in Ecuador.  This forces the Ecuador cost of living down down.

So if you are an American who is about to be super taxed… where would you choose to live?  Our farm manager sent us this note recently, “We had 4 inches of snow in China Grove.”

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Would you rather live there and pay more tax or…

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enjoy open air dining as Merri and are doing here in our Cotacachi hotel courtyard with Dan Prescher and Suzan Haskins or…

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would you rather enjoy a mountain train ride as these…

multi-currency-investing-florida-course new Cotacachi residents are doing…  passing through green mountains  and blue skies.  Getting a sun burn.

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The is the train from Ibarra to Salinas Ecuador.  Would you rather be taxed extra to be in this pool or…

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be here on Ecuador’s coast with tax advantages?

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Which view will the rich prefer?  This in the US or…

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this… especially if this San Clemente Ecuador ocean view costs much, much less?

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Where would I prefer to walk with my hound?  Here in sub zero temperatures or

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here in Cotacachi Ecuador…especially if I am taxed less and the cost of living is much lower and government interference in my life is less?

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Technology and the global market gives us as individuals enormous power to live where and as we choose that politicians can no longer ignore.

The government’s attitude to increase taxes on those who work hard could turn the existing brain drain from the US into a brain torrent.

In short there are many reasons I see that suggest the economic mess will  last for years in the US,  just as it has in Japan.

Recently, Warren Buffett wrote in his company’s annual report that “the economy will be in shambles, throughout 2009, and, for that matter, probably well beyond.”

This is not the picture we expect of the American dream.  However the picture is not bad for all.  Not all Italians became poor when Rome fell.  Italy is still a great place to live.  There are still millions of Japanese who have thrived over the past 15 years of Japanese recession.  The end of the America dream does not have to be the end of your dream.

In the US we can expect the rich to get richer… the poor poorer.   We can see why from our study of Power Distance Index.  We looked at PDI, and what it is, in a recent message about JGAM’s multi currency seminar.

There is more about Power Distance Index at http://www.clearlycultural.com which says:

Hofstede’s Power Distance Index measures the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above. It suggests that a society’s level of inequality is endorsed by the followers as much as by the leaders.

For example, Germany has a 35 on the cultural scale of Hofstede’s analysis. Compared to Arab countries where the power distance is very high (80) and Austria where it very low (11), Germany is somewhat in the middle. Germany does not have a large gap between the wealthy and the poor, but have a strong belief in equality for each citizen. Germans have the opportunity to rise in society.

On the other hand, the power distance in the United States scores a 40 on the cultural scale. The United States exhibits a more unequal distribution of wealth compared to German society. As the years go by it seems that the distance between the ‘have’ and ‘have-nots’ grows larger and larger.

The trick then is to not accept the PDI from the lower end. Let me explain.

Excerpts from 2007 article by a Stefan Bach , Giacomo Corneo  and Viktor Steiner at www.voxeu.org entitled German income inequality outlines an idea.  The article says:

Paul Krugman frequently mentions that America’s super rich make the 19th Century wealthy look poor. “We know what John D. Rockefeller, the richest man in Gilded Age America, made in 1894 … $1.25 million, almost 7,000 times the average per capita income in the United States at the time.” Krugman wrote. ”But that makes him a mere piker by modern standards … James Simons, a hedge fund manager, took home $1.7 billion, more than 38,000 times the average income.”

Surely such extremes cannot happen on Continental Europe with its social market economics and social solidarity. The authors of Policy Insight No. 4 shows that although income inequality in Germany is a long way from reaching US proportions, the trend is in that direction. Germany rich are getting richer, and its super-rich are getting super-richer.

In other words as a society progresses, those with power get richer while the majority of  the population become poorer.

Note above that power is determined  from below, not from above. It suggests that a society’s level of inequality is endorsed by the followers as much as by the leaders.”

Power is an illusion that keeps most investors and business people depressed while a few gain from this social falsification.

The internet destroys this illusion. The web gives us all power!  Today we have as much opportunity as the rich to gain from the changes that this economic correction will bring.

This is why Merri, our webmaster and I have created a new course on how to build a web business with a webmaster.  More on this in a moment.

First what you can do as an investor or with your own business.

One answer we saw above is to live in a better lower cost environment like Ecuador.

Another answer is to be a multi currency investor. Despite America’s government spending , the dollar has been gaining, particularly against European currencies. The euro slipped to under $1.26, nearing a two-year low and down from a high of almost $1.60. This is caused as fearful investors jump into 10-year Treasury bonds… which have been shown to be terrible long term investments.   All the US government spending means that the US dollar will fall. But against what?

The euro is not a trustworthy currency now. A March 1, 2009 New York Times article by Steven Erlanger and Stephen Castle entitled “Growing Economic Crisis Threatens the Idea of One Europe” explains why.  Here is an excerpt from that article:

The leaders of the European Union gathered Sunday in Brussels in an emergency summit meeting that seemed to highlight the very worries it was designed to calm: that the world economic crisis has unleashed forces threatening to split Europe into rival camps.

With uncertain leadership and few powerful collective institutions, the European Union is struggling with the strains this crisis has inevitably produced among 27 countries with uneven levels of development.

Whether Europe can reach across constituencies to create consensus, however, has been an open, and suddenly pressing, question.

“The European Union will now have to prove whether it is just a fair-weather union or has a real joint political destiny,” said Stefan Kornelius, the foreign editor of the German newspaper Süddeutsche Zeitung. “We always said you can’t really have a currency union without a political union, and we don’t have one. There is no joint fiscal policy, no joint tax policy, no joint policy on which industries to subsidize or not. And none of the leaders is strong enough to pull the others out of the mud.”

Thomas Klau, Paris director of the European Council on Foreign Relations, an independent research and advocacy group, said, “This crisis affects the political union that backs the euro and of course the E.U. as a whole, and solidarity is at the heart of the debate.”

“All of that is in doubt if the cornerstone of the E.U. — its internal market, economic union and solidarity — is in question,” said Ronald D. Asmus, a former State Department official who runs the Brussels office of the German Marshall Fund.

If the the euro is a good currency for diversification, which currencies are?

Our multi currency course helps you learn how to diversify into safe currencies.  Our studies currently suggest that the Danish, Swedish, Norwegian kroner and Canadian dollar make sense. For example beginning in March the Swedish kroner hit a new record low. The Eastern European problems are having an adverse impact on the Swedish banks.   Also the Norwegian currency is a good technical buy.

You can join us to understand why these currencies make sense by subscribing to our on line multi currency course.

You can also join us for a currency review at JGAM’s Naples Florida investment course May 29 to 31, 2009.  This course is $499 ($750 for two) but free to those who have subscribed to our on line multi currency course.

Another way you can attend JGAM Florida seminar free is to subscribe to our course on how to have a web based business.   You can enroll in this special course for $299 and attend the JGAM course in Naples free.

Here is a special offer on this course “Tangled Web – How to Have a Web Business“.

Or join us for an upcoming course in North Carolina or Ecuador.

Gary

Future 2009 courses

May 29-31  JGAM Multi Currency investment Seminar Naples Florida

June 12-14 Shamanic Mingo Tour
June 16-17 Imbabura Real Estate Tour
June 18-21 Ecuador Coastal Real Estate Tour

July 3-6 Ecuador Import Export Expedition
July 8-9 Imbabura Real Estate Tour
July 10-13 Ecuador Coastal Real Estate Tour

July 24-26 IBEZ North Carolina

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

Oct. 9-11 IBEZ North Carolina

Oct. 21-24 Ecuador Import Export Expedition

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

Attend any two Ecuador courses or tours in a calendar month…$949 for one.  $1,349 for two.

Attend any three Ecuador courses or tours in a calendar month…$1,199 for one.  $1,799 for two