Tag Archive | "Scotland"

Multi Currency Ideas


Multi currency solutions to inflation are needed.

Inflation will certainly come from the current global economic bailout.

Every multi currency investor needs to mold a personal multi currency solution to meet their specific needs. Whatever individual tactic is used, it will normally work better if it includes multi currency diversification based on a search for multi currency value.

Yesterday’s message Multi Currency Warning looked at seven economic fundamentals that we can relay on during this downwards correction and stated:

The current rush to the US dollar and yen create a monumental opportunity! There will be a time to invest in the very currencies that are tumbling now.

Why am I sure of inflation?

One of the seven multi currency fundamentals (#2) is that: Government involvement in global economics and business may dampen the sharper acceleration of the natural financial rhythm but eventually makes the corrections worse.

A recent article in USA Today covering Alan Greenspan’s testimony to the US Congress said: that the “Former Federal Reserve chairman Alan Greenspan told angry lawmakers” about his shock.

I wonder? We these angry OR frightened lawmakers? I suspect that a few weeks from election day the better word would have been SCARED.

Fear destroys reason if one is not trained to deal with it. Most of Western society is not trained to deal with fear. William James aptly put it this way.

“In civilized life it has at last become possible for large numbers of people to pass from the cradle to the grave without ever having had a pang of genuine fear. Many of us need an attack of mental disease to teach us the meaning of the word.”

Since politicians are also human beings they too lose reason when they give way to fear. They seem to definitely get a mental disease!

For example what is the cause of today’s economic crisis? Too much debt.

Yet yesterday’s BBC article entitled “Brown defending higher borrowing” says:

“Gordon Brown is defending his plans to increase government borrowing in order to tackle the economic downturn in a speech in London.

The prime minister is telling business leaders it is the right time to boost demand with government spending.

Opposition parties have attacked the current levels of debt, saying Britain is inadequately prepared for recession.

Leading economists have also criticised the government over its spending plans and called for tax cuts instead.

In a letter to a Sunday newspaper, a number of economists warned against an expansion of government spending as a way of stimulating the economy.

They described a focus on public works projects and higher spending as “misguided and discredited”.

The latest quarterly public debt figures hit a record £37.6 billion – higher than the whole of the previous year. Yet Brown said: The responsible course is to borrow now to maintain growth and output.”

I have little doubt that England’s debt will grow…as will America’s, and Europe’s and Japan’s because of…fear.

The borrowed money will be spent by government’s to, as Brown says, “kick start the economy”. The economy will recover but if the fundamental about government inefficiency remans true, it will not recover as it could and should.

The price of this borrowing will be inflation…the loss of purchasing power.

Now here is where frightened politics and politicians get involved.

The same BBC article also said:

“Over the weekend, Mr Brown paid a brief visit to Glenrothes in Scotland as part of a by-election campaign and made predictions food and fuel bills would begin to come down next year.

He also hinted falling oil prices could lead to further co-ordinated interest rate cuts.

“Now inflation is actually coming down over the next few months and that will mean that it gives scope to all the monetary authorities, including the Bank of England, round the world to make a decision about interest rates,” he told the BBC.”

Brown is probably wrong. Inflation will not come down…which is okay for those who know what to do.

Do not be misled. Chances are that Western governments will borrow more than they should. Inflation will follow.

If this belief is correct then the best investments will be shares, commodities and real estate in a diversified basket of strong currencies.

What will make a currency strong?

Fundamentals of currency value (purchasing power potential) include:

A: Interest rate.
B: Inflation rate a three levels – labor – wholesale and consumer prices.
C: Trade balance.
D: Current account.
E: Debt as % of GDP.
F: Debt as % of government income and spending.
G: Amount and velocity of direction in government deficit.

Ideally we want to invest in currencies of countries that offer an interest rate above the local inflation rate, that have a positive trade balance, current account, falling government debt and deficit versus government income.

This combination of qualities in a currency are as rare as hen’s teeth and will become even harder to find during and after this downturn.

As the Western economies stall, their imports will slow. This will slow growth in emerging economies. Governments everywhere will be pressed. Fear will grow. Reason will diminish and government borrowing will increase everywhere.

Inflation will grow. Multi currency investing will become increasingly a relative process….looking for the currencies that are least bad.

I hope to help you fight this inflation with multi currency investing!

Gary

We are studying three multi currency solutions to inflation in our multi currency course. You can subscribe to gain access to these ideas here.

Join us at one of our next to International investing courses in Cotacachi Ecuador this winter.

Learn more about economic safety this November. Join Merri, me, Steve, Kjetil Haugan or Thor Anderson of Vistazul and Peter Conradsen of Jyske Global Asset Management in Cotacachi Ecuador. We’ll review economic conditions, Ecuador real estate, my entire portfolio and investing and business ideas for the months ahead.

Nov 7-9 2008 International Investing and Business Made EZ Ecuador
https://www.garyascott.com/catalog/international-business-made-ez-ecuador

Feb. 13-15 International Business & Investing Made EZ

See the wonderful balconies in the Primavera condos at for sale at $46,000 in Cotacachi.

multi-currency-Ecuador-condo-interior

Nov 10-11 Imbabura Real Estate tour
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Feb. 16-17 Imbabura Real Estate Tour

Then travel to the coast. Enjoy the Vistazul swimming pool on Ecuador’s Pacific.

Picture 9

November 12-15, 2008 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour
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See discounts for two or more of these courses and tours

Enjoy Ecuador’s music.

Ecuador-music

Enjoy flowers and beauty.

Ecuador-flowers

Enjoy the friendly staff at our hotel.

international-club

Better still join us all year in Ecuador! See our schedule of 26 courses, tours, mingos and expeditions we’ll conduct in 2009.

Ecuador Real Estate is a Start


Ecuador real estate savings are only a start to the benefits there.

Our Ecuador real estate tours help you see a maximum amount of Ecuador real estate for sale in the least time and most efficient way. Our staff makes these tours fun, exciting and special.

Let me introduce the men who guide you on your Ecuador real estate tours, Steve and John Papski. The fact that both are multi national is important. Steve is English, John Polish, but both lived many years in London and both have lived all over the world. Steve lived for years in the US.

Both are utterly committed to Ecuador. They have lived in Ecuador for years and have Ecuadorian families. Both are totally fluent in English and Spanish. Here you can see why in a message from Steve sent while he is in England. Steve writes:

I’m missing my Ecuador as I view it from afar and here I try to understand why.

If I havn’t posted as regularly as usual it’s because I seem to be very busy on vacation in England. In Cotacachi I’m looked after like a king by the wonderful staff at Meson de las Flores. They cook for me, wash my clothes, clean my room and generally try to take care of any and every need they can envisage I might need.

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Here is Rosita Elena looking after my son – she just does it because she likes to!

I would consider myself very special; except I know they treat every guest like this, and if there is the very occasional slip-up, as there is in any hotel, it’s not for want of effort nor desire on their part.

Ecuador-Friends
Humble and helpful – and much missed and appreciated from afar!

Here in England, even if there were such wonderfully caring and service orientated people to help with daytime chores, it really is only the Royalty who could afford to employ them anyway.

So consequently it’s come as a shock to the system to cook for three, wash, clean, and tidy the house on vacation. I love to see my family but next time I’m going on vacation in Ecuador!

England is looking gloomy this summer. Apart from the continuous grey skies, 10 sunny warm days so far this year according to my brother-in-law, all the talk is of the downturn in the economy. Nobody can bring themselves to mention “recession” but what is affecting everyone is having less disposable income. Meals out are once again becoming a treat. Foreign holidays to the Mediterranean are being ditched because of high costs and shops are suffering as people spend on only the essentials.

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This was how the weather was last summer in Ecuador. While you can find similar scenery in Scotland you won’t often find similar weather!

Every day the British are being buffeted by bad news. Headlines such as “Armed Forces face training cuts as fuel bill rockets”, “Millions face $200 a month fuel bills” “We’ll have to work until we’re 70 – just as it was in Lloyd George’s day”, and “Private schools fall victim to credit crunch” leave no doubt that if the economy is not in recession it’s not very far away.

Walking around the mall in my hometown of Fareham, a prosperous town compared to many, I can’t really see much evidence of the down-turn, although I do see that retired people are not dressed as well as younger folks. I’m impressed by the ever increasing range of stores and products for sale. The choice is phenomenal.

But then I also notice something less tangible. I ask myself why if there is more choice here, more wealth than in Ecuador, why do so many people look miserable and down-beat in England. I think I notice it more in those who are over 40. But I’m not sure.

In the mall there are several cafes in the aisles and I notice several older folks sat by themselves drinking cups of tea. As I walk down to another café to get internet access I notice an older man hunched over on a bench, his cane resting over his legs. Ninety minutes later I return the same way and there he is – hardly moved.

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An older gentleman, still looking dapper, enjoying time with friends in the sun in Cotacachi’s main square

Perhaps it’s this. In the Times of London a recent article about the National pension quoted the 73 year old Rita Young who is struggling to live off $1,200 a month. ‘… She is angry that elderly people in one of the world’s richest countries are not treated better.

“Things are better than a hundred years ago, when only the righteous were entitled to their shilling a week. But it is a disgrace that we have got to go and beg for the pension credit to bring us up to a level still below the poverty line. Our pension does not even bring us up to the level of the lowest paid in the economy.” Mrs Young, asked what she considers to be a luxury replied “a bar of chocolate”.

Break from the Easter parade
When an ice-cream still brings a smile

Two weeks to go until I return to home in Ecuador. I’m looking forward to life in the slow lane again and now understand and empathize better when I receive emails from our guests saying “I’m missing Ecuador so much, I can’t wait to return”. Steve.

If you are in England and would like to consult with Steve send me a note at gary@garyascott.com and I’ll help yu arramge a personal or telephone consultation.

You can read the second half of Steve’s note as an Ecuador Living subscriber.

Gary

Join us in Ecuador and see for yoursel

September 17-20 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour
https://www.garyascott.com/catalog/ecuador-coastal-real-estate-tour

Sept 23-27 Ecuador Spanish Course
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Sept 28-29 Imbabura Real Estate Tour
https://www.garyascott.com/catalog/ecuador-real-estate

See discounts for attending more than one Sept. course
https://www.garyascott.com/catalog/ecuador-tours-savings

Oct 14-18 Ecuador Import Export Course
https://www.garyascott.com/catalog/ecuador-import-and-export-tour

Nov 7-9 International Investing and Business Made EZ Ecuador
https://www.garyascott.com/catalog/international-business-made-ez-ecuador

Nov 10-11 Imbabura Real Estate tour
https://www.garyascott.com/catalog/ecuador-real-estate

November 12-15, 2008 Ecuador Coastal Real Estate Tour; Quito Real Estate Tour
https://www.garyascott.com/catalog/ecuador-coastal-real-estate-tour