Tag Archive | "sucre;"

Earn with Ecuador’s Sucre


The demise of Ecuador’s sucre in 2000 can give us several valuable lessons.   This currency’s demise shows that economies rise and fall, but do not go away.

ecuador sucre

I saw the truth of this in action over decades ago in Ecuador, when the Ecuadorian economy stopped.  The country ran out of gas.  All the banks were closed and accounts frozen.

When Merri and I arrived in Ecuador in the mid 1990s, a dollar would buy about 2,500 sucres.

The rate fell to a dollar for 3,189.50 (1996).
3,988.30 (1997)
5,446.60 (1998)
11,786.80 (1999)
24,860.70 (January 2000)
25,000.00 (at dollarization time)

The currency collapsed in 2000.  The monetary system was almost totally frozen.  Yet everyone… (almost all)… came to work…even though there was no money, no transportation to work and they knew they would not get paid right away.

Hotel workers showed up for work… even though there was no salary check.

Fisherman kept right on catching fish even though their buyers had no money and ability to be paid was gone.

The sight was unbelievable on the Pan American Highway (there was no gas/fuel so no buses, no cars, no trucks, no traffic) but was filled with hundreds and hundreds of people walking to work.

This is when realization hit me.  People want to work.  We need to serve.  This is half of our natural existence… to give-along with the need to take.  This is the universal principle give…take…give…take.

Give and take, are each parts of the whole. They go together and when either is lost or missing, a great imbalance begins.  Labor is the lack of slavery and dependence.

It’s as bad to just receive without giving as it is to work without receiving.

This is how it is with investing and business…a give and take wholeness.

During the 49 years I have been writing and speaking about global business and investing, I have watched some investors make fortunes while many people lost.

The difference was that the losers just keep asking, “What’s in this for me?”

The winners though asked “What will this labor provide and how much will it receive for the giving?” instead.

The winners had the profit motive for sure…but through giving. Their successful outlook was full and complete.

The typical losing mentality just looks at the receiving without seeing the whole. The losers forget to ask, “What does this give?”

Next time you look at an investing or business idea, think about the problem it solves first. What labor does the business or capital provide?  Then ask about the profit.

Good investment and business opportunities contain both seeds…for giving to the market and for receiving from the giving.

Finally, if you focus on opportunities in areas you love, you get a bonus. You become involved in whole ideas that are good for others, profitable and satisfying to you AND fun! Then work is not really labor but love.

I have a plaque above my desk that I read every day… “Action is thy Duty.  Reward Not thy Concern”.

Next time someone explains that the US dollar is going to collapse, it probably is, but the economy will continue and those who recognize that the best values are found during the down times are those who will profit most.

Gary

Gain From Election Volatility

Here we are again… another election on its way… all the robo calls from politicians… the dirty tricks and the innumerable amounts of nonsense this vital process brings.

However America’s politics turn out, one thing is sure.  There will be volatility in stock markets during the election process.

The first reason markets will bounce has nothing to do with politics or policies.   A market correction is due regardless of the party or the person in office.

Second the new politics has created an uncertain era.  Everyone has been shaken over the past three years whether they are pleased with the government or not.

Nothing frightens markets like uncertainty.

Third if we see rising interest rates, this will push markets down.

Despite these pitfalls, there is a way to profit using the strong US dollar and undervalue non dollar stock markets to pick up good value shares.

During nearly five decades of global investing I have noticed found that good value strategies are the best way to profit long term, through good politics and bad.  The steps to take are simple.

The first tactic is to seek safety before profit.

We can look at Warren Buffett’s investing strategy as an example.  Buffett success is talked about a lot, but rarely does anyone explain how he make so much money.  That was the fact until some researchers really stripped his operation bare.  They looked at everything and learned the deepest of Buffett’s wealth management secrets.  Fortunately they published all in a research paper at Yale University’s website. that reveals important truths about extending wealth.

This research shows that the stocks Buffett chooses are safe (with low beta and low volatility), cheap (value stocks with low price – to – book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios).

The second tactic is to maintain staying power.  At times Buffet’s portfolio has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

A 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of outperformance to 70%.

However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio the better the odds of outstanding success.

The Buffett strategy integrates time and value for safety and profit.

A third tactic is using limited leveraging, tactic in the strategy boosts profit.  Buffett leverages his portfolio at a ratio of approximately 1.6 to 1.   The Yale published research paper shows the leveraging methods used by Warren Buffett to amass his $50 billion fortune.  The researchers found that the returns from Buffett’s investment company, Berkshire Hathaway, far outweighed those achieved by any rival that has operated for 30 years or more.  The research shows that neither luck nor magic are involved.  Instead, the paper shows that Buffet’s success hinges on using leverage at the rate of 1.6.

To sum up the strategy, Buffet uses limited leverage to invest in large purchases of “cheap, safe, quality stocks”.  He limits leverage so he can hold on for very long periods of time, surviving rough periods where others might have been forced into a fire sale or a career shift.

Stated in another way buffet uses logic (buy good value) to have the conviction, wherewithal, and skill to invest with leverage over many decades.

What do we do when we are not Warren Buffett?

May I introduce the Purposeful Investing Course (Pi) for those who want to invest like Warren Buffet, but know they are not.  This course is based on my 50 plus years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

Enjoy Extending Wealth

Pi’s mission is to make it easy for anyone to create a three point strategy, like Buffett’s even though they do not have a lot of time for or knowledge about investing.

Pi reveals investing secrets and the sciences that make investing easy, safer, less time consuming and increases the chances of profit.

One secret is to invest with a purpose beyond the cash.  One tactic as mentioned is staying power.  This means not being caught short and having to sell during a period of loss.  This also means having enough faith in a strategy that we stick to the plan.  When we invest with purpose, doing what we love, we enjoy the process more and are more likely to hold on during down times, when most poor investors panic and sell.

Slow, Worry Free, Good Value Investing

Stress, worry and fear are three of an investor’s worst enemies.  They create the Behavior Gap, a trait exhibited by most investors, that causes them to underperform any market sector they choose.  The behavior gap is created by natural human responses to fear.   Pi helps create profitable strategies that avoid losses from this gap.

Spanning the Behavior Gap

Behavior gaps are among the biggest reasons why so many investors fail.  Human evolution makes fear the second most powerful motivator.  (Greed is the third.)  Fear creates investment losses due to behavior gaps.  Fear motivates us more strongly than desire.  By nature investors are risk adverse.

Winning investors though embrace risk because they have a plan based on good value.

Purpose is the most powerful motivator,  stronger than fear and greed, so a strategy with purpose is the most powerful of all.

Combine your needs and capabilities with good value secrets and the math to back up your value selections through the Pifolio – The Pi Model Portfolio

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories (often created by someone with vested interests) and is based entirely on good math.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my (almost) 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2: Cash flow to price

#3: Earnings to price

#4: Average dividend yield

#5: Return on equity

#6: Cash flow return.

#7: Market history

We follow this research of a brilliant mathematician and have tracked this analysis for over 20 years.    This is a complete and continual study of international major and emerging stock markets.

This analysis forms the basis of a Good Value Stock Market Strategy.   The analysis is rational, mathematical and does not worry about short term ups and downs.   This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

A country ETF provides diversification and cost efficiency by spreading one simple, even small investment into a basket of equities in a good value stock market.  The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.

Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi matches this mathematical certainty with my fifty years of experience. This opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

For example in the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

I did well then, but always thought, “I should have invested more!”  Now those circumstances have come together and I am investing in them again.

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.

The two conditions are in place again!  There are currently ten good value (non US) developed markets,  plus 10 good value emerging markets.

Pi shows how to easily create a diversified, worry free portfolio in some of these good value markets using Country Index ETFs.

The current strength of the US dollar is a second remarkable similarity to 30 years ago.   The dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  There is so much more to write and the trends are so clear that I have created a short, but powerful report “Three Currency Patterns For 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but you’ll receive the report “Three Currency Patterns For 50% Profits or More” FREE when you subscribe to Pi.

Leverage

Pi also explains when leverage provides extra potential without undo risk.  For example in 1986 I issued a report called “The Silver Dip” that showed how to borrow 12,000 British pounds (at almost 1.6 to 1 dollars per pound the loan created US$18,600) and use the loan to buy 3835 ounces of silver at around US$4.85 an ounce.

Silver had crashed, I mean really crashed from $48 per ounce.  As prices decreased from early 1983 into 1986, total supply had fallen to 449.7 million ounces in 1986.  Mine production was restricted by the low prices at this time, with silver reaching a low for this period of $4.85 in May 1986.  Secondary recovery also was constricted by these low prices.

Then silver’s price skyrocketed to over $11 an ounce within a year.  The $18,600 loan was now worth $42,185.

The loan was in pounds and in May 1986 the dollar pound rate was 1.55 dollars per pound.  So the 12,000 pound loan purchased $18,600 of silver.  The pound then crashed to 1.40 dollars per silver.  The loan could be paid off for $13,285 immediately creating an extra $5,314 profit.  The profit grew to $47,499 in just a year.

Conditions for the silver dip have returned.  The availability of low cost loans and silver are at an all time low.  The price of silver has crashed from nearly $50 an ounce to below $14 as did shares of the iShares Silver ETF (SLV).

finance.yahoo.com chart SLV

iShares Silver Trust (symbol SLV) from www.finance.yahoo.com

Imagine investing in a spike like this… with leverage!

At the same time the silver gold ratio hit 80, a strong sign to invest in precious metals.

I have updated a special report “Silver Dip 2019” about a leveraged silver speculation that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons gained through 30 years of speculating and investing in precious metals.  While working on the report, when the gold silver ratio slipped to 80 and the price of silver dropped below $14 an ounce, I knew I needed to share this immediately.

I released a new report “Silver Dip 2015” so readers were able to take advantage of these conditions and leverage 1.6 times as a speculation.  That report generated profits as high as 212% and a revised 2019 issue has been produced.

“The Silver Dip 2109”  sells for $39.95 but  you receive  “Silver Dip 2019” FREE when you subscribe to Pi.

Save

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive the $29.95 report “Three Currency Patterns For 50% Profits or More” and the $39.95 report “The Silver Dip 2019” free.

Triple Guarantee

Enroll in Pi.   Get the first monthly issue of Pi, and the report “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2019” right away.

#1:  I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free purposeful investing.

If you are not totally happy, simply let me know.

#2:  I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.

#3:  I guarantee you can keep “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2109” report as my thanks for trying.

You have nothing to lose except the fear.   You have the ultimate form of financial security to gain.

Subscribe to the Pi for $197.   You Save $158.95.

Gary

 

 

 

Ecuador Currency


Ecuador’s currency is the US dollar.

When Merri and I first arrived in Ecuador the currency was the sucre and it took 3,000 sucre to buy one dollar.  About five years after we arrived the sucre had dropped to about 8,000 sucres to buy a US dollar.  Then a decade ago the Ecuadorian economy went into self destruct and the sucre collapsed all the way to 25,000 sucres per dollar.

ecuador-real-estate-for-sale

The dollar still goes a long way in Ecuador. You can still buy beach condos like this for under $24,000.

This created incredible real estate bargains.  I began buying Ecuador real estate which is one reason I can sell Ecuador real estate now at below the market and still make a decent profit.

ecuador-real-estate

Large fixer upper houses like this in the Andes can still sell for less than $29,000.

However getting out of the sucre into the greenback was in a way like jumping out of the frying pan into the fire…. because since then the US dollar has dropped a lot in value compared to other currencies such as the euro.  Excerpts from our latest Multi Currency portfolio report show this fact.  Here is what that message said:

Since we are beginning a new decade it makes sense to look back a decade at the past multi currency action.

A reader just sent this note:  Dear Gary, I am worried by the breaking news that the “Bolivarian Alliance” is creating its own currency.

The news says:   “Countries of the Bolivarian Alliance for the Peoples of Our America (ALBA) agreed to introduce regional common currency, the SUCRE…”During the ALBA summit on Dec. 13 (In Cuba), nine member countries including Antigua and Barbuda, Bolivia, Cuba, Dominica, Ecuador, Honduras, Nicaragua, Saint Vincent and the Grenadines, and Venezuela announced the introduction of new virtual currency in January 2010.”  Thanks.

These countries have been announcing this type of stuff for quite some time.

You can see a 2007 article I wrote about this at Ecuador Currency Opportunity.

Announcements by governments are easy.  Actions not so much so.  Getting all these countries to actually do something together is not such an easy task.  Not much has happened from the 2007 announcement and I do not expect much to happen from the 2009 announcement.

Most of the countries above face enormous social and economic challenges in the decade ahead.  Keeping their own currency stable will be hard enough.  Creating a new one easy… but maintaining it hard.  Getting all these nations to work together to create one currency seems pretty unlikely.

The European Union and euro whose nations enjoyed  much greater economic success and stronger political stability, than the nations above took decades to create. The euro was driven by a real fear… a repeat of WW I and WWII.   Yet the euro has taken many decades to form.

Should we expect quick action for a union by Antigua and Barbuda, Bolivia, Cuba, Dominica, Ecuador, Honduras, Nicaragua, Saint Vincent and the Grenadines, and Venezuela? Remain watchful but do not expect anything too soon.

A better way to answer the US dollar dilemma  is to invest in the best value BRIC countries (Brazil, Russia, India and China) and speculate on the ups and downs of their value.

Here are excerpts from a recent Multi Currency Update I sent to our multi currency portfolio subscribers.

BRIC currencies make sense because these countries are still viewed as emerging markets… but they now are major economies.

Together, these four countries generate approximately 27% of the world´s Gross Domestic Product (GDP).

The BRIC economies are also growing faster than in the Western world.  The average annual GDP growth of a BRIC nation was greater than 7% before the recession, as compared to approximately 2% for a G-7 nation.

The future growth of the global economy depends largely on the BRIC economies continuing growth.

The simplest way to invest in BRIC economies is with a BRIC ETF like iShares MSCI BRIC Index Fund. This ETF tracks the MSCI BRIC Index and invests in about 260 different companies in these four countries.  Invest and leave the investment alone for long term growth.

Jyske Global Asset Management recommends BRIC allocation as below :

If you have a Low Risk profile                  : up to 5%
If you have a Medium Risk profile          : up to 10%
If you have a High Risk profile                : up to 15%

A more complicated but potentially more profitable approach is to weight your investments more heavily in the good value BRIC countries and sell shares in the BRICS with poor value.

Heavier speculation  could buy the good value BRICS and short the low value BRICS.

For example you can see below why right now may be a good time to sell investments in India and invest in China.

Learn how to read this entire update on why to sell these BRICS now as a Multi Currency subscriber.

A March 2009 report entitled “Ecuador Economic Worries” shows why the dollar’s fate is not so important to Ecuador when it says:

A number of readers have sent questions about Ecuador economic worries. One regular Ecuador economic worry I receive is that Ecuador will stop using the US dollar as its currency.

There is little doubt that Ecuador’s economy is in a mess.

Which economy is not?

We’ll look at this Ecuador economic worry in a moment, but to put this worry into perspective, may I share some other economic worries at the same time… plus post some photos from our friend, Dennis Goff… such as this shot from a boutique hotel in Manta, Ecuador where you can stay for $52 a night.

ecuador-economic-ideas

Ecuador has economic worries, yes, but are they worse than the economic worries in Europe or the US?   The photos show that while we worry we can be in paradise on a shoestring budget.

Read the entire article Ecuador Economic Worries here.

Learn more about BRICS. Join Merri and me along with Thomas Fischer and my portfolio manager, Anders Nielsen, at our February 11-14 IBEZ seminar.

Learn more at  Quantum Wealth Florida -International Investing & Internet Business, Mt. Dora, Fl.

Gary

If you plan to join us at six or more seminars and tours in Ecuador, Florida or  North Carolina in 2010 you can save as an International Club member.

See details about each of our seminar and tours below… then see our December special that allows you to attend as many of these courses you like at a huge savings.

For International Investing and Business.

For Super Thinking + Spanish

For Ecuador Shamanic Tour

For Ecuador Export

For North Andes, Imbabura & Cotacachi

For Manta & Mid Coast

For Quito & Mindo

For Salinas & South Coast

For Cuenca

You gain 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

But our 2009 International Club membership which allows you and a guest to attend as many of the 56 courses and tours we’ll sponsor and conduct in 2010  (fees would be $40,947 for all these courses individually) is only $2,999.

The International club fee rises to $3,500 in January 2010. Enroll in the International Club now at the original fee of $2,999. Save $501.

International Club 2010

Attend our 56 investment, business, Spanish, real estate and export, courses and tours in 2010 with one small enrollment fee.

International Club 2010 Membership Enroll here

Here are the 56 courses and tours you can attend free. Plus there is even one more savings you will see below.

Jan.   8-11     Ecuador Export Tour
Jan. 13-14     Imbabura Real Estate Tour
Jan. 15-18     Coastal Real Estate Tour
Jan. 19-20    Quito-Mindo Real Estate Tour
Jan. 21-23    Cuenca Real Estate Tour

Join us in February or March.

Feb. 11-14   Quantum Wealth Florida -International Investing & Internet Business, Mt. Dora, Fl.

Feb. 15-16   Travel to and visit Quito
Feb  17         Travel to Manta
Feb. 18-19   Coastal Real Estate Tour
Feb. 20        Travel to Cotacachi
Feb. 21-22   Imbabura Real Estate Tour
Feb. 23-24  Quito-Mindo Real Estate Tour
Feb. 26-27  Cuenca Real Estate Tour

Mar. 11-14     Super Thinking + Spanish Course, Mt. Dora, Fl.
Mar. 15-16    Travel to Quito and Andes
Mar. 17-18     Imbabura Real Estate Tour
Mar. 19-20    Cotacachi Shamanic tour
Mar. 22-23    Coastal Real Estate Tour
Mar. 25-26    Cuenca Real Estate Tour
Mar. 28-29   South Coast Real Estate Tour

Apr. 12-15   Ecuador Export Tour ($499 or couple $749)
Apr. 17-18   Imbabura Real Estate Tour ($499 or couple $749)
Apr. 20-21  Coastal Real Estate Tour ($499 or couple $749)
Apr. 23-24  Quito-Mindo Real Estate Tour ($499 or couple $749)
Apr. 26-27  Cuenca Real Estate Tour ($499 or couple $749)

May  13-14     Ecuador Shamanic Minga  ($499 or couple $749)
May  16-17    Imbabura Real Estate Tour  ($499 or couple $749)
May  19-20    Coastal Real Estate Tour ($499 or couple $749)
May  22-23    Quito-Mindo Real Estate Tour  ($499 or couple $749)
May  25-26    Cuenca Real Estate Tour  ($499 or couple $749)
May  28-29    South Coast real Estate Tour ($499 or couple $749)

June 24         Quantum Wealth North Carolina
June 25-27    International Investing and Business North Carolina  ( $749 or couple $999)
June 28-29   Travel to Ecuador and Andes
June 30-Jy 1 Imbabura Real Estate Tour  ($499 or couple $749)
July 3-4          Coastal Real Estate Tour   ($499 or couple $749)
July 6-7          Quito-Mindo Real Estate Tour    ($499 or couple $749)
July 9-10        Cuenca Real Estate Tour   ($499 or couple $749)

Sept.   3-6      Ecuador Export Tour  ($499 or couple $749)
Sept.   8-9      Imbabura Real Estate Tour  ($499 or couple $749)
Sept. 11-12     Coastal Real Estate Tour   ($499 or couple $749)
Sept. 14-15     Cuenca Real Estate Tour    ($499 or couple $749)
Sept. 17-18     Ecuador Shamanic Minga  ($499 or couple $749)
Sept 20-21      South Coast Real Estate tour ($499 or couple $749)

Oct.    7          Quantum Wealth North Carolina
Oct.   8-10     International Investing & Business North Carolina ($749 or couple $999)
Oct.   11-12    Travel to Quito and Andes
Oct.  13-14     Imbabura Real Estate Tour ($499 or couple $749)
Oct.  16-17     Coastal Real Estate Tour ($499 or couple $749)
Oct.  19-20    Quito-Mindo Real Estate Tour ($499 or couple $749)
Oct. 22-23     Cuenca Real Estate Tour ($499 or couple $749)

Nov.    4-7        Super Thinking + Spanish Course Florida ($749 or couple $999)
Nov.    8-9       Travel to Quito and Andes
Nov. 10-11       Imbabura Real Estate Tour ($499 or couple $749)
Nov. 13-14      Coastal Real Estate Tour ($499 or couple $749)
Nov. 16-17      Quito-Mindo Real Estate  ($499 or couple $749)
Nov. 19-20     Cuenca Real Estate Tour ($499 or couple $749)
Nov  22-23      South Coast Real Estate Tour (($499 or couple $749)

Dec.   3-5       Ecuador Shamanic Mingo  ($499 or couple $749)
Dec.   7-8       Imbabura Real Estate Tour ($499 or couple $749)
Dec.  10-11    Coastal Real Estate Tour ($499 or couple $749)
Dec. 13-14     Quito-Mindo Real Estate Tour ($499 or couple $749)
Dec. 16-17      Cuenca Real Estate Tour ($499 or couple $749)

If you join the International Club, the entrance fee for 2010 is $2,999 (until January 2010).  Your attendance fees at all courses will be waived. You and your guest can attend courses worth $40,947.

You can calculate the savings as our schedule of all 2010 courses is shown below.

Arrival dates are always one or two days earlier. Please double check with us before booking flights.

I invite you to be a member of the International Club which allows you and your guest of your choice to attend all of these courses which are valued at $40,947!

International Club 2010 Membership Enroll here

You may well wonder why I would make such an offer and ask why the cost is so low? Let me answer this question frankly and from the heart.

First, it helps us do a better job for you. We feel greatly enriched when we can really help our clients improve their lives. We have learned through years of experience the best way to do this is to meet with you regularly. We can best help you learn how to improve your health and wealth through continual expansion of knowledge.

Second, we gain enormous fulfillment from the many friendships we form through the years. Our friends have enriched our lives tremendously. Let me explain this in more detail.

As a member, you will be part of our international family that meets intensively over the next year to examine ways we can make our lives better. Our goal is beyond just having money. Our goal is to have quantum wealth… good health… wealth and fulfillment through service.

Though I give all course delegates my very best, I cannot help but to do a better job for those who come again and again. As we meet often; your particular wants, needs and desires become clear, and it is easier for me to point you in the right direction.

Another phenomenon is that repeat delegates help each other! They get to know one another, help each other learn, share their insights, make contacts and gain more wealth.

Out associates in Ecuador, are experienced business people who live or work and conduct our real estate and export courses.  They can also act as your local backup for the business.

Lifestyle for Two. There is more! I have learned at my courses that many repeat delegates were couples.

We want couples! As a member of the program, you are entitled to bring another person to every single course or tour. The cost for that extra person will be ZERO!  You can bring whomever you wish. Bring your spouse, a friend, son or daughter, partner, accountant, adviser. You can bring the same person each time or a different person, whomever you choose to accompany you. (Accommodations and air fares relating to the courses are not included for members, delegates or their guests.)

Won’t you join us in this exciting club and share Merri’s and my lifestyle for the next year? We look forward to seeing you at as many courses as possible and sharing this wonderful world of abundance and well being with you!

Gary

International Club 2010 Membership  Enroll here

Ecuador Thanksgiving Trek


Ecuador Thanksgiving Christmas Trek Free

ecuador-Thanksgiving

Today is Thanksgiving in the USA and we give special thanks to all of you who help support this site.  To show our appreciation we have organized a free Ecuador holiday trek for early December.   The savings on Christmas shopping are so great you can almost have a trip to Ecuador free. You can read everything about this free Ecuador Thanksgiving trip in a moment.

ecuador-Thanksgiving

First may I share why Merri and  are so thankful.

A couple days ago, a reader sent this note:

As stated earlier, travel restrictions based on immunization status may be in the cards. This video indicates Ecuador will impose mandatory vaccinations in the near future:  http://www.youtube.com/watch?v=H-xwzUZPxXA. What are we going to do now?

I clicked on this link and saw that the video had been removed so I sent this reply:  This video has been removed so I cannot comment… but I suspect that the data was inaccurate hence the removal.  There are always some things we do not know… but I have heard this rumor for over a year and have seen nothing to support the claim or add any validity to it.

These may seem like times of diminished liberties and they are in many ways. I never underestimate the stupidity that governments will display in times of panic.   There are ways though to mitigate these dangers.  I invite you to read my article “Ecuador Diversified.”

Diversification is one important step in a freedom lifestyle, but the real freedoms come from changes within… not without.   We need to live in ways that protect our health, clear thinking and spirit so we have the best ability to embrace change.  When we are diversified and in top condition physically, mentally and spiritually, we can put ourselves in the hands of God and adapt gracefully.

This is a better way to live than always worrying about the sky falling.  This is our 41st year of business and we have seen so many panics… the Nuclear Halocaust… The US Bankruptcy of 1995.  Y2K…  the SARS Epidemic and many more.

Yet here we are!  The sky is still up there and looks pretty darn good to me and for this we give thanks every day.

The best way to adapt to any changes in your economy or society is to hone our abilities to serve.

Ecuador Thanksgiving Trek Free

On Thanksgiving Merri and I give special thanks to all of you who help support this site.  To show our appreciation we have organized a free Ecuador Thanksgiving  trek for early December.

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There are innumerable types of textiles in Otavalo.  Cotton… wool.

Any delegate to any of our seminars, tours or paid subscribers to Ecuador Living, Tangled Web or our Multi Currency Course are invited to attend.

Christmas shopping savings for authentic Ecuadorian crafts can dramatically reduce the cost of your Ecuador visit.

This Ecuador Christmas Trek is especially suited for those who attending Blaine Watson’s December course on astrology.

Thanksgiving is a day of great power.  There is enormous strength derived from  family and friends uniting together everywhere in prayer and celebration to give thanks to the Divine for the gifts and good fortune in their lives.

There is an astrological aspect to Thanksgiving as it always falls on the last Thursday of November.  Astrologically Thursday is ruled by Jupiter, the planet called “the Great Benefic”.  Jupiter’s energies can actually increase the blessings and good deeds of this day. Jupiter also magnifies whatever is held in your prayers and good wishes.  Let us harness Jupiter’s intensified energy together to increase the power of gratitude to some important people in our lives; our parents and family   friends, or anyone who has done a good deed.

Express your gratitude to them through Secret Acts of Kindness. Whether you tell them about your gift to them or not, the weight of your good will make the world a more positive place.

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Ponchos

Bonnie Keogh who will lead the Ecuador Christmas Trek sent the note below outlining what you can enjoy and how you can save on your Christmas shopping.

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Shirts and pants in all colors and sizes.

Here is what Bonnie wrote:  CONFERENCE:  Ecuador Christmas Trek

DATES:   December 5,  2009 
        
ARRIVAL:  If you are not in Ecuador, pan to arrive in Quito by Friday, December 4, 2009.

You will be met and escorted to your hotel in Quito.  If you were to have problems or are late or change planes, we will probably find you.  If not, remember, it is OK to jump in a cab.  We can also send a driver for you to meet your plane and bring you directly to Cotacachi.

Please send all your flight data to Bonnie at bonnie@garyascott.com  If you arrive on the 4th of December,  our ground crew will be there to meet you at the Quito Airport.  Sign says “Gary Scott Conference” or just your name.
 
We  depart from Quito at 9:30 a.m. Saturday, December 5 for our bonus day of holiday shopping.  We will arrive at the Otavalo market in approximately 2 hours.  This is the largest indigenous market in South America and  Saturday is the biggest market day.  Be sure to bring your gift list because you’ll find unique gifts at bargain prices for everyone on your list.  Enjoy lunch at one of the many restaurants surrounding the market plaza.  Plan to be back at the bus by  4pm so we can continue to Cotacachi, only about a 20 minute drive from Otavalo, and El Meson,  which will be our base for the next few  days.

DEPARTURE:  For those staying on for the shamanic course, the bus will return to Quito in the early evening of December 8.  You could be ready to depart back to the states on the early a.m. flights December 9. (If you are staying for the following courses, this does not apply.)

HOTEL DATA IN QUITO:  At the 5 star Radisson Hotel, you will enjoy a very high standard in a good area surrounded by charming restaurants.  We have an ideal price at $65 (online and elsewhere $120) plus tax.  We are happy to book this for you, just let us know
your dates.  Radisson Royal Quito Hotel, 12 de Octubre and Cordero 444, Quito.   593-2-2233-333

HOTEL DATA FOR THE BEYOND LOGIC COURSE:  Meson las Flores is on the plaza, Cotacachi, Imbabura. At El Meson, enjoy our country inn filled with flowers and sunshine and roaring fires at night.  It’s a 180+ year old hacienda converted into a small hotel.  The conference will be held here, and this will be your home while traveling around. Meson de las Flores belongs to the Land of the Sun Foundation.  It is the seat of our foundation. which supports education and employment among the local indigenous.   Rates are $59 per room plus 12% Ecuadorian tax and 10% gratuity , a sumptuous breakfast at El Meson is included in the rate.

We have wireless Internet here so feel free to bring your own laptop.  The wireless works in the courtyard, rooms, balconies, all over.  We also have a complimentary phone to call back to the US, Canada and all of Europe at no charge…so everyone should feel free to utilize these no fee services to stay in touch.  We have a safe in every room and the water is good…although we furnish (free of charge) bottled water.
Meson was purchased by our foundation over three years ago.  We are making progress throughout.  It is clean, comfortable, charming and full of character…but is certainly not pretentious or grand!  We are grateful for your attendance and for your support in our projects and appreciate your being there with us in this delightful garden inn situated in the high Andes.

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There are bags of all types.

You’ll need a sweater for the evenings (sitting around a roaring fire and sleeping under alpaca blankets) but khakis, safari clothes, cotton pants, (shorts are really not appropriate) golf shirts for daytime.  (Buy a real Panama hat in the market for a few bucks!)  Comfortable walking shoes and sunscreen are also good to bring.

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All Panama hats are made in Ecuador and are sold in the market for as little as $6.

El Meson de las Flores, Sucre & Garcia Moreno, Cotacachi, Ecuador.  Telephone from the US 011 593 6 291 6009.  Meson cannot take reservations by phone or confirm reservations by phone…so please correspond with me.

You can call or have your loved ones back home call Meson through a NC number 1-336-792-4767.  (Give them the number!)

The staff at El Meson is awaiting your arrival, they delight in taking care of our guests and enjoy having the Inn full of people and buzzing with activity.

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Ceramic Inca Conquistador…

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chess sets.

Please do not hesitate to contact Bonnie Keough with questions or concerns: bonnie@garyascott.com

Please enroll for the free Christmas Trek as soon as possible at Christmas Trek

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There are many types of jewelry… silver…

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gems and…

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precious stones at…

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low prices.

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earrings

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pottery

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beads

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of

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all

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sorts.

Finally a Thanksgiving Inspiration and Business Idea

Todd Smith attended our self publishing course several years ago and has developed an excellent web business turning his passion for photography into a profit.

He recently sent this Thanksgiving note:

A Big Thank You.  I’ve had a lot to be thankful for around here lately.  Over the last month, thirteen people have helped upload new unframed prints to my website.  We now have 294 unframed prints, and a total of 479 products on the entire site.

There is no way I could have done it myself.  This Thanksgiving I’m grateful for these generous and hard workers:

Alice Warren, Debbie Bruce, Deb Chessell, Wendee Lee, Gail Cammerata, Joy Bolster, Shelley Spruit, Karen Kelly, Heather Farha, Sarah Miller, Inge van Rosmalen, Joy Bolster, and Heather Farha.

A Special Offer for You at Thanksgiving

I’m also grateful as always to you, my readers.  You make sharing photography a joy for me.  Your feedback always inspires me to keep on looking for another subject for these newsletters.

As a thank you, I’m offering you a special deal on my calendar this week only:  Until Sunday, November 29 you can Buy 3 Get 1 Free!

Shhhh… it’s a secret.  You won’t see this offer advertised on my site.  But now you know. Just between you and me, you can buy 6 and get 2 free, buy 9 and get 3 free.  The sky’s the limit.  :) But don’t delay.  This deal won’t last.

The calendars make perfect stocking stuffers or inexpensive gifts for your child’s piano teacher, dance teacher, or art teacher… or for your favorite health food store checker, postman or computer repairman.

Give something people will remember you for all year long.

An Easy Opportunity to Earn

Would you like to earn a few extra dollars for the holiday season?  Do you need a little extra cash to spend on gifts this year?

Why not become a rep for Todd Smith Photography?

If you have a few hundred friends on Facebook, you can earn money promoting my calendar.  If you can show my calendars or cards to your friends in person, you could make some extra money.

If you have a blog, you could earn some money pointing people to my site.  If you have a newsletter, you could do the same.  If you use Twitter or any social media, you could easily earn some money promoting my calendar.

If you belong to a club or sports team or choir, why not bring some calendars to show around?  You might be surprised by how well they sell.

If your kid’s school, or band is looking for a fundraiser, we can help.  If your kid likes selling door to door, here’s the perfect product.

I’m willing to pay you handsomely for your work getting the word out.

Sell 100 calendars and you’ll earn over $600.  Sell 10 calendars and earn over $60.  It’s that easy.

Please reply to this email if you’re interested.

Happy Thanksgiving!

See you with the next photo newsletter in a couple of weeks.  Todd

This is good marketing. You can see how Todd has developed his ability to serve at his Todd Smith Photography website.

Whether you are in the USA today or elsewhere… gratitude is one of the most powerful positive thought processes because it leads to joy.

Fear leads to anger which is more expressive than all emotions except joy.  Most people use anger as their main emotion because when it is such an expressive emotion, it helps them engage in expression and allows them to discuss their feelings and activate events.

Joy however is even more powerful and much healthier and effective.  Gratitude can get you to joy!

Thanks.

Gary

Join us in Ecuador or Florida or Both. See the best Ecuador property for you.  Find the best real estate offers.  Know more of Ecuador. To help you experience a bigger adventure in this wonderful nation, to broaden your horizons, to expand your awareness of all Ecuador offers, we are providing deep discounts in 2010 for those who sign up for multiple tours.

Join us at our upcoming courses and tours.

December 6-8 Blaine Watson’s  Beyond Logic & Shamanic Tour

December 9-10 Imbabura Real Estate Tour

December 11-13 Ecuador Coastal Real Estate Tour

Join us in 2010. See our winter Ecuador real estate tours below.

Jan.   8-11     Ecuador Export Tour $499 Couple  $749

Jan. 13-14     Imbabura Real Estate Tour   $499 Couple $749
Jan. 21-22     Coastal Real Estate Tour $499 Couple $749
Jan. 23-24    Quito-Mindo Real Estate Tour  $499 Couple $749
Jan. 22-23    Cuenca Real Estate Tour  $499 Couple $749

Enjoy extra savings with our special early bird fees (if you enroll in November 2009)

Join us in February or March.

Feb. 11-14   Quantum Wealth Florida -International Investing & Internet Business, Mt. Dora, Florida ($749) Couple $999

Feb. 15-16   Travel to and visit Quito
Feb  17         Travel to Manta
Feb. 18-19   Coastal Real Estate Tour   $499 Couple $749 or discounted fee for multiple tours below.
Feb. 20        Travel to Cotacachi
Feb. 21-22   Imbabura Real Estate Tour  $499 Couple $749 or discounted fee for multiple tours below.
Feb. 23-24  Quito-Mindo Real Estate Tour $499 Couple $749 or discounted fee for multiple tours below.
Feb. 26-27  Cuenca Real Estate Tour  $499 Couple $749 or discounted fee for multiple tours below.

Mar. 11-14     Super Thinking + Spanish Course, Mt. Dora, Florida $749 Couple $999

Mar. 15-16    Travel to Quito and Andes
Mar. 17-18     Imbabura Real Estate Tour   $499 Couple $749 or discounted fee for multiple tours below.
Mar. 19-20    Cotacachi Shamanic Tour      $499 Couple $749 or discounted fee for multiple tours below.
Mar. 22-23    Coastal Real Estate Tour        $499 Couple $749 or discounted fee for multiple tours below.
Mar. 25-26    Cuenca Real Estate Tour        $499 Couple $749 or discounted fee for multiple tours below.

Enjoy extra savings with our special early bird fees (if you enroll in November 2009)

2 seminar courses & tours $949 Couple  $1,399

3 seminar courses & tours   $1199 Couple  $1,749

4 seminar courses & tours   $1,399 Couple $2,149

5 seminar courses & tours  $1,599 Couple $2,499

6 seminars courses & tours  $1,999 Couple $2,999

(Be sure to show in the comments section which courses and tours you are attending)

International Club attend up to 52 courses and tours in 2010 free.

See our entire 2010 seminar and tour schedule here

Ecuador Preconstruction Property


Here is an Ecuador beach preconstruction property.

ecuador-beach-property

We do not normally write about or allow advertising of Ecuador preconstruction property but Dr. Andres Cordova, our friend and attorney, has helped so many of our readers over the past decade that we skipped this rule and posted a message about his special Ecuador preconstruction property.

Andres is the grandson of one of Ecuador’s more famous presidents. He is a senior partner in a law firm that represents Ecuador’s treasury.

Yet to me he is an example of how Ecuadorians are willing to help others in so many ways.

For example, we warn our delegates and readers to stay away from the Mariscal Sucre area in Quito. This is a very touristy area that many of the tour agents promote. This area is loaded with very clever pickpocket type thieves.

Regretfully some delegates do not mind our warnings, as was the case when a delegate from our course, on his way back to the US, visited this area. His carry on bag was stolen (in a tricky but non aggressive way). He lost everything, passport, wallet, car keys, credit card, driver’s license, computer. He was stranded with $3 left in his pocket.

Fortunately he called us in Cotacachi. I called Andres who immediately left his Sunday afternoon lunch and within the hour had picked up our delegate, given him $200 cash and sent him back to us in Cotacachi. (The US Embassy would not help the delegate until Monday.)

This is not the first time Andres has gone out of his way to pull a delegate’s irons out of a fire. A few years ago, a delegate arrived for our Import-Export Expedition. The delegate had journeyed to Peru first and purchased many huge bags of goods to take back to the US . Naturally Ecuadorian customs wanted to tax them. Though it was nearly midnight, one call to Andres got him working and he immediately sorted the problem out.

Now Andres has done it again. A reader just sent me this note.

Wanted you to know that Andres handled the closing on my place and would not charge anything…Nada, 0..Maybe that was his way to make up for his sometimes slow response time…..In any event that is impressive..Hope you are well. We will be in Argentina most of November, then to Nicaragua and Panama in January…One of my sons in selling property in Panama ..Cheers,.Ed

Andres continuing help and goodwill to our readers is one reason I have posted details of his Ecuador beach preconstruction property offer (get a $135,000 condo for $35,000) here.

We are not involved in this project financially or in any way.  Preconstruction property deals involve high risk and anyone who considers this Ecuador beach preconstruction property deal should use all normal due diligence.

Gary

Learn about an Ecuador Southern Coastal Real Estate tour here.

Cotacachi Sidewalks


Cotacachi sidewalks tell a tale about this town.

cotacachi-sidewalks

When a town is in trouble its sidewalks crumble.   Cotacachi sidewalks in reverse are getting better… much better… each and every day

This is a sign.    The book, “Tipping Point”, by Malcolm Gladwell looks at how simple signs like this can help us predict markets and can show us that there is opportunity in Cotacachi.

One of the points in Gladwell’s  book is that it is little things that causes a social-economic events to tip.  For example the book explains the “Broken Window Theory ” that says that if a window is broken and left un repaired, people walking by will conclude that no one cares and no one is in charge. Soon more windows will be broken and the sense of anarchy will spread from the building on the street on which it faces, sending a signal that anything goes. In short crime is contagious. As are bull and bear markets, stock values, etc.

The police in New York used this theory in reverse. By aggressively attacking simple crimes such as vandalism and putting graffiti on trains, and subway fare-beating, major crime fell dramatically. The point is epidemics can be started or stopped by tinkering with the smallest details of the environment. Throw two or three small changes into any environment, be it economic, social or biological and you move towards a tipping point… good or bad.

We can use this knowledge to spot small things now that will make big differences in economics later… like Cotacachi sidewalks that are getting better all around the town.

We can see that these sidewalks are a harbor of safety for small children early morn or at night.

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We see that they are clean… and cleaned every day.

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They are improving all the time.  There is a continual prgram to upgrade the sidewalks…

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and streets.

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Cotacachi sidewalks reflect the native culture here. These ae not ordinary sidewalks. These ancinets symbols put in the sidewalks reflect the history of the indigenous community.

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These patterns are symbols of the sun…

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and the concepts of universal existence.

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These are sacred sysmbols… speaking to us everywhere in town… to…

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of who and what we really are.

This is the Mayor’s house and his sidewalk.

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This is the Cotacachi sidewalk ancient in its moss and green that…

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Leads to the wonderful La Mirage Spa where…

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The sidewalks house frescos.

These are the Cotacachi sidewalks out sdie our hotel Meson de las Flores and they have…

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a most interesting tale to tell about Cotacachi.

Meson, (here is the hotel and Cotacachi Museum next door) is on…

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Calle Sucre… one of the…

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main Cotacachi streets hosting the Cathedral…

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and a popular tourist restaurant.

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This street is prospering… we are continually full… the restaurat and shops there booming.

The Mayor has declared this a no bus… no truck… small car only street.

He is putting new sidewalks in to attract foot traffic and…

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flower planters… plus

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plus round sidewalk extension to…

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limit traffic.   There is opposition and people have been destroying some of the flower planters…

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hoping to impeded this progess.

I doubt that they will.

The towns vision stated at www.cotacachi.gov.ec is to transform Cotacachi into a Canton Model characterized by the democratic and active participation of the different organized social sectors, whose planned work and intelligence allow to set the bases to reach the social, economic, cultural, and environmental development, consolidating the feelings of the “cotacacheñidad” and their identity of a multiethnic and pluricultural town.

The sites says: We want to share with all the citizens of Ecuador, multiethnical, and pluricultural world our important experience of participative democracy. The same one that the mestizo, black, and indigenous towns of the Cotacachi canton are building. Since August 10, 1996, it has marked in the country a great difference between the representative democracy and the participative democracy.

The road traveled in the organizational, legal, and political environment has allowed us to advance in the social, cultural, economic and environmental aspect. We have advanced significantly in the human and spiritual environment.
We are facing with responsibility and future vision the problems historically manipulated by the traditional politicians. This process has the recognition of the cotacacheans and the national and international community.

The ideas, dreams, proposals, and projects unite us to the true cotacacheans. They allow us to walk, to fight for the new participative democracy, to build the peace, and to obtain the development with dignity. Making Cotacachi participative, productive, decentralized, and a solidary canton.

Your visit to this Web Site and especially to our Multiethnical and Pluricultural Municipality will remain in our memory forever.

How nice… ideas, dreams, proposals, and projects that unite allow the people to us to walk, and fight for the new participative democracy, that builds  peace, and and development with dignity.

I am all for this and one thing I know as the people of Cotacachi walk and fight for this they’ll be walking on wonderful Cotacachi sidewalks.

They are pretty low tech… but how important… these sidewalks… our pathways of going to and fro.  We do not give them much attention… until they crumble or are not there. Then we’ll miss them. So take heed… Cotacachi sidewalks are good and getting better all the time!    That makes this a nice place to be.

Gary

Join us at a course our tour in 2009 in Ecuador, North Carolina or Florida.

Merri, our webmaster and I have created a new course on how to build a web business with a webmaster.  Here is a special offer on this new course.

You can enroll in this special course for $299. However if you sign up for three courses in any one month.

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 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

Ecuador and the Dollar


Since 2000, the US dollar has been Ecuador’s currency. Could it be that now Ecuador and the dollar might part ways?

Many readers have written and voiced concern that Ecuador might stop using the US dollars as its currency and return to a new sucre.

This may or may not happen. I previously did not think it would, until recently President Correa vowed that Ecuador would continue to use  the US dollar.

Lesson one of our Multi Currency Investing course points out that a general rule of currency investing is to expect a currency to devalue (or in this case change) soon after the responsible government swears that it will not.   See more about our Multi Currency Investing Course

Perhaps.

The current strength of the greenback alters the fundamentals.  If the dollar remains strong it is more likely that Ecuador will go off the dollar in  2009.

A continued low oil price could also have an impact on a decoupling decision for two reasons.  First, Ecuador’s President Correa will be under extreme pressure to deliver local promises he has made to the public.  Without high oil prices he has no money to deliver the goods.  His public excuse could be to blame America and the US dollar.  A return to the sucre would allow Correa to print money he needs for local promises right now.  This would only give him a short term boost but if he is desperate this might happen to make him look better.

Secondly, low oil  prices will diminish Ecuador’s foreign exchange reserves and the nation’s ability to pay foreign obligations and debt.  Correa has proven he is willing to jilt long term obligations.  A bond default slams the door in the face of someone who gave you something in the past.  However it is a bit easier to beat up on creditors of the past than those you need to deliver goods now or in the future.  If you do not pay them, they stop sending the goods!

Correa will not want the country running short of the supplies it needs to run on a day to day basis.

Let’s watch for Ecuador’s  reserves versus its short term obligations as an indicator of when Correa might pull the dollar plug.

If Ecuador and the US dollar do part, we must ask, so what? For many, this switch back to the sucre would be good.

When Ecuador originally Dollarized those who suffered most were the urban poor and citified middle class.  When the sucre was Ecuador’s currency and it devalued… wages were always raised at the same time. This meant that basics like food, clothing and subsistence shelter did not really cost more. Inflation at the base level was not real.  Certainly Western imported goods cost more…like TVs, cars and computers.  This mattered little to the urban poor because they never had a chance for this stuff anyway.  The middle class emigrated in droves to Spain and Italy.

Dollarization made inflation real!  Politicians could print more sucres to raise wages with inflation…but they could not print more dollars.  The poor in the city reeled.

The poor in the country who worked in agriculture did well though.  The price of crops rose.

Then the US dollar began to collapse versus other currencies.

The falling dollar helped create business opportunity.  One friend who owns a flower exporting business told me that the flower business in Ecuador was good due to the dollar fall versus other Latin America currencies, especially the Colombian peso. Colombia is one of Ecuador’s largest competitors in roses and bananas, two of Ecuador’s largest exports.

The cost of Ecuadorian products became lower even in the U.S. when compared to products from countries (such a Colombia) where the currency had strengthened against the dollar.

As the dollar falls versus other Latin America currencies, Ecuadorian products become less and less expensive in global terms.

Now of course the dollar has gained strength and this hurts Ecuador’s export potential.  The strong dollar is the rock…the low oil prices…a hard spot.  Correa and Ecuador’s economy are caught between them.

Also a new sucre, though less convenient,  would probably be good for expats.

A full report sent to our Ecuador Living subscribers explains what this would mean to expats and the Ecuador real estate market. You can subscribe here

Gary

Join us at a course in Cotacachi or on Ecuador’s coast this winter.

Jyske Gobal Asset Management will join us Feb. 13-15 for our course International Business & Investing Made EZ

Join us and then stay on for a real estate tour Here is our latest group inspecting the hotel,which is one block from the Ecuador’s Pacific.

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We’ll view this hotel. It has a huge front porch.

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Large second floor veranda with ocean views.

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Beautiful flowered front yard.

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The building is really rough and needs work…but over 8,000 square feet of building. The asking price is $60,000.

We have sent our Ecuador Living paid subscribers more details on this building on this Ecuador hotel for sale. Subscribe to get this report. See how to subscribe to Ecuador Living here.

Join us for our next Spanish course ad real estate tours.

Join us at a course in Cotacachi to learn more about multi currency investing.or on Ecuador’s coast this winter.

Jan. 16-21 Ecuador Spanish Course
Jan. 22-23 Imbabura Real Estate Tour
Jan. 24-27 Coastal Real Estate Tour

Feb. 13-15 International Business & Investing Made EZ
Feb. 16-17 Imbabura Real Estate Tour

March 8-9 Imbabura Real Estate Tour
March 10-15 Ecuador Export Expedition
March 16-19 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

Better still join us all year in Ecuador! See our entire schedule of 27 courses, tours, mingos and expeditions we’ll conduct in 2009 and how to attend as many of them as you like FREE.

The course fee includes meeting at Quito airport (day before the
course)…transportation (by group bus) to Cotacachi and back to Quito.
Course fee does not include air are. accommodations, food or individual transportation.