Tag Archive | "Social Issues"

Ecuador Police Unrest


Ecuador police unrest creates a hard spot that rocks with turmoil.

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Ecuador’s police and part of the military are on strike. The Ecuadorian President is speaking to the nation as I write… so let’s take a moment to understand the problem and project what might happen.

Ecuador’s president is between a rock and a hard spot as he has been trying to enhance Ecuador’s infrastructure and help the poor all at the same time.

Unlike the US and some other governments, Ecuador does not have unlimited credit. This creates a problem as explained in a recent article at Bloomberg.com entitled “Ecuador will probably tap China pensions to finance deficit Fitch says”  The article says:

Ecuador will probably tap the nation’s pension fund and seek a loan from China to help finance its $2.7 billion budget deficit, according to Erich Arispe, an analyst at Fitch Ratings.

South America’s seventh-biggest economy may need as much as 4.3 percent of gross domestic product to fund the “relatively large” deficit, Arispe, a New York-based analyst at Fitch, said yesterday in a telephone interview.

Ecuador is using debt to increase spending on infrastructure projects and social programs in a bid to lower unemployment and boost economic growth, President Rafael Correa said in a June 5 statement. The nation’s default on $3.2 billion in bonds since 2008, declining oil production and a slump in private investment has crimped funding sources, Arispe said.

Correa “has to find a way to finance his ambitious investment projects,” Arispe said. “Given the limited potential of increased oil-derived revenue” and declining investment, “increasing debt is the option they have at this point.”

The extra yield investors demand to hold Ecuadorean dollar bonds instead of U.S. Treasuries narrowed 6 basis points, or 0.06 percentage point, to 10.36 percent at 9:09 a.m. New York time, according to JPMorgan Chase & Co.’s EMBI+ index. Ecuador’s spread has widened 23 basis points in the third quarter, compared with a 58 basis-point drop for the index.

Ecuadorean sovereign debt is the second-riskiest after Venezuela’s among 15 emerging markets tracked by JPMorgan, according to the bank’s EMBI+ indexes.

The government next year will also begin offering treasury notes with a term of less than one year to boost liquidity, Rivera said Sept. 24. Ecuador has proposed legal changes to allow the country’s banks to use short-term government bonds for as much as 75 percent of their reserves and let the government boost public debt to 50 percent of GDP from the current limit of 40 percent, Rivera said.

The article was correct in a number of respects… the first being that the government is trying to finance part of its debt with Ecuador pension funds.

Yesterday the government altered retirement and military regulations and at least three changes have led to a strike.

Change #1:  All government workers must retire at 65. In Europe people are striking because they want to retire early. In Ecuador people wish to continue to work.  However it is the second change that really creates the rub.

Change #2: Retirement pension buyouts will be paid one half in money and one half in government bonds. In other words, if no one else will buy Ecuador bonds let’s force them on retired government workers.  Americans should remember this ploy.  The US government has floated similar trial balloons about protecting pensions from stock market fluctuations with government bonds.

Change #3: The police and military are being affected. The police and military have many special benefits… military hospitals… bonuses for promotions… for moving, etc. The government has stripped all these away.  In retaliation the police are currently on strike.

As I wrote these details, President Correa was speaking to the public and one of our A TeamEcuador just sent me this note:

Gary President Correa told the people he doesn’t care.  He said he won’t back down on his decision and he said if  the policeman desire,  they can kill him.  That’s not good negotiation in my opinion.

There are several protests going on today.  Since the police are on “strike” no one will make sure that the protesters behave.

This is happening all over the country.   We do not know what will happen but the president went to talk to the police headquarters.  They refused to hear him.

The Asamblea (Congress) has no police protection at this time.  All public employees are going to march to the Carondelet (Presidential Palace) this afternoon, with no police protection to stop them.

I’ll keep you posted.

And we will keep you posted.

Gary

Join us at our October seminar to learn how to earn and diversify globally.

Read Ecuador will probably tap China pensions to finance deficit Fitch says

Ecuador Spanish


Our Ecuador Spanish course offers a secret that can help keep up  in a fast changing world.

See thirteen important demographic facts below that apply to everyone who has an interest in business and investing.  These facts also reinforce the importance of Spanish as a second language.

Most of the western world is multi lingual… except North America.

Ideally everyone that moved to North America would learn English…. just as North Americans moving to  South America should learn Spanish.

This does not happen in the real world.  Canadians do better if they have some French and Americans… Spanish.

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Enjoy the beauty of Ecuador as you learn.

Whether we like it or not… knowing some Spanish makes us more competitive in our day to day multi lingual world. Technology and the earth’s growing population makes the global economy of increasing importance to mankind’s evolution.   This will increase, not decrease the clash of  languages.

Spanish is the second most spoken language and its importance is growing in the USA.

Here are 13 of 23 facts presented by the Spanish Translation Service that shows why we dare not be a one language person in a multi lingual world.

1.   According to the 2000 Census, for the first time, non-Hispanic whites are the minority population in the 100 largest U.S. cities.

2.    The US Census Bureau predicts that ethnic minorities, encompassing African Americans, Hispanics, and Asian Americans, will represent more than half of the US population by 2040.

3.    Latinos (35 million strong) have increased their presence in the U.S. population by 58% over the last 10 years, and recently surpassed African Americans as the largest ethnic minority (2000 U.S. Census,).  While non-white Hispanic population grew by 3%.

4.    Hispanics are the fastest growing minority group in the U.S. and are projected to contribute two-thirds to the growth in the size of the high-school-age population over the next decade (U.S. Dept. of Education).

5.    In 2000, one of every five new entrants into the workforce was Hispanic (Census).

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Enjoy great food during meals and coffee breaks like this fresh mango and raspberry juice.

6.    In California, the Hispanic/Latino minority population has now become the majority (huge language implications).

7.    Gregory Spencer of the Census Bureau was quoted in newspapers citing changes in the workplace and marketplace and said “if you want to sell things and go where the growth is, about half of your market will be people in their 50’s, and the other half will be the Hispanic and Asian populations.”  According to the Census in 1996 Latinos and Asians will represent more than half of the U.S. population growth every year for the next 50 years.  Source:  Census Bureau, 1996.

8.    The Latino population alone is now 35 million strong in the U.S. with over $45 billion in buying power (2000 Howell).

9.    By 2050, the Census Bureau projects, Hispanics will be about a quarter of the U.S. population and blacks less than a sixth.

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Our Spanish course is conducted at the Cotacachi Museum which is…

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next door to Meson de las Flores.

10.    Hispanic American purchasing power is growing at two times the rate of general public.

11.    Latinos grew at four times the rate as the national population between 2000 and 2002, according to information released this week by the U.S. Census Bureau (2003 DiversityInc.com).

12.    “The official population estimates now indicate that the Hispanic community is the nation’s largest minority community,” said Census Bureau Director Louis Kincannon in a statement (2003 DiversityInc.com).

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We travel to markets each day and on our real estate tours by luxury coach.

13.    While the U.S. population as a whole is getting older because of the aging Baby-Boomer population, the Latino population is getting younger. More than one-in-three (34.4 percent) of the Latino population in the United States is under the age of 18. This ranges from 37.1 percent of Mexican Americans below the age of 18 to 19.6 percent for Cuban Americans below that age.

Spanish is the second most important language in the world. Yet our educational system did not teach us how to communicate with or understand this culture. Learning Spanish is valuable, important and can be fun!

You can attend our last 2009 Super Thinking + Spanish course (that helps you learn Spanish in less than a week)  this September 17 to 22, 2009. (Arrive Quito Sept. 16. Depart Sept.  22 or 23, 2009).

Even better we have created a special program so you can also attend our September real estate tours, that take place right after the Spanish course, (September 23 – 24 Ibarra real estate tour and  September 25-28 Ecuador coastal real estate tour) at a substantial discount.

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See real estate for sale ranging from small houses like this, to…

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gated communities to this hotel to…

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organic farms, to…

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property on this beach and…

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property in Manta.

Enjoy up to 11 days of great Ecuador weather, solve one of the biggest communications problems that face a great deal of the English speaking civilization, plus learn the Ecuador real estate markets.

This is way to enjoy the cool mountains, bask in the warm Andean sun and learn Spanish and Ecuador real estate.

This allows you to really zero in and refine Spanish with the Spanish course first. Then you put what they have learned into practice the remaining days they are in Ecuador.  To attend all three courses would normally cost $1,797 for one person or $2,497 for a couple. 

This price compared to many seminars is already low and represents a considerable savings. Under our special multi course adventure you can save up to $648.

This makes it entirely possible to spend time in Ecuador, gain valuable knowledge about health and wealth, plus perfect your Spanish.

We hope you will join us in Ecuador.

Gary

Super Thinking + Spanish: Sept. 17 to 22, 2009. (Arrive Quito Sept. 16. Depart Sept.  22 or 23 2009). Enroll here

September 23 – 24 Ibarra real estate tour $499 or $749 for two  Ibarra real estate tour

September 25-28 Ecuador coastal real estate tour  $499 or $749 couple. Enroll here.

Here are your multi tour savings.

Attend any two Ecuador courses or tours…$999 for one.  (save $299).

$1,399 for two (save $349).

Attend any three Ecuador courses or tours…$1,199 for one.  (save $598.)

$1,749 for two (save $648).

Read all 23 facts presented by the Spanish Translation Service that shows why we dare not be a one language person in a multi lingual world.