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Iran & Ecuador

Iran in Ecuador

latimes-obit

Let this man explain why we should not worry too much about an Ecuador Iran connection.

Recently a reader sent this note:  I was shocked to see news that Amadinajad will soon visit Venezuela, Cuba, Nicaraugua and Ecuador. I have to cross Ecuador off my list of countries of interest after learning that.

Hopefully my reply puts some perspective on this.

There are many many reasons why someone might choose not to go to Ecuador.

The visit of two politicians trying to get the attention of the US government should not be one of them.

Because only you can determine if any one place is right for you, we always recommend that you visit first, rent second and finally after you really feel settled in… if you still love being there, buy and become a resident.

I first warned readers about the Iran Ecuador connection almost two years ago.  See my June 26 2009 article on Ecuador and Iran below.

Please note that the the focus of our articles… is to help readers have alternatives… because no one knows how the world is going to unfold.

One seminar delegate recently told me how he searched the world for a perfect pristine isolated place in North America away from dangers and pollution.  After years of effort he found what he felt was perfect and settled there… only to be directly in the path of radiation and one first to see Japanese flotsam from the Tsunami wash up on its shores.   

No one knows how the world is going to unfold.

Ecuador is only a part of our business.  We were there most of the time for 15 years and have not been regular lately  but not because it is a bad place.  Nor did we go to Ecuador originally because we thought America and Europe, where we lived then, were bad places.

If you choose to avoid Ecuador by all means do so.  But do it for the right reasons.

The establishment always uses local press to create enemies to shift the national focus away from their own problems. This I think we can all agree is a time honored political tradition.

We do not care where anyone goes… our mission is to help our readers think for themselves beyond the daily press and to embrace change and make decisions that are best for them based around their own personal circumstances.

If one followed the press in the 1950s they feared Russia (and Cuba).  Then China was the bad guy (now the good guys despite continued human abuse) and then Vietnam… then Iraq…  then Afghanistan.  Now it looks like Iran is bad while China, Russia and Vietnam are great places to invest. Cuba will be the next good guy!

So over the past decades if you lived by the press and cut yourself off of every country that was visited by leaders of China, Russia, Vietnam and Cuba, you missed some great opportunities.  I know because I was among the first Americans in China. This is another reason why we have helped organize the first Super Thinking + Spanish course to be conducted in Cuba for Canadians and Europeans.

Am I correct?  The New York Times has just announced that National Geographic is hosting tours for Americans to Cuba.

So don’t people who did not come to Ecuador because Fidel Castro was there a few years ago feel silly?

Imagine how we would have been the bad guys if we did this a few years ago!  Now some Americans are making fortunes taking Americans on tours to Cuba because the State Department gives them permission.  The government in Iran may be hostile to the US… but for all we know those Latin visits could be engineered by the CIA to get the Latins to tell Iran to back off.  I do not know that this is the case but this is the point… we do not know, do we?

What I do know is that when I was in China in the 60s the people there were great and they hated their politicians. When I was in VietNam (not as a solder but in business) in the 60s the Vietnamese people were great.  They hated their politicians.  The Ecuadorian people are great and they hate their politicians.  I love Americans and most of them hate most of their politicians as well.

So most of the people in the world seem to have three important things in common.  #1: We are all great and wonderful.  #2: Mankind being what it is power corrupts so we are all caught in a terrible system.  #3: We are all pretty disgusted with politicians.

Generic Hate

The problem is the daily press stimulate generic hate to such a degree that we miss so many wonderful things and people.  We hate Chinese. We hate Russians. We hate Cubans. We hate Iranians.  But really we are all the same… great people caught in the grindstones of a nasty system that we can do little about.

If one lets the daily press choose your friends and enemies and guide your life…  one will always be caught in the messes of the masses and miss so much opportunity, great people and wonderful stuff.

 Let your inner wisdom and the personal details of your life and your innate intelligence lead you instead.  Follow the feelings of what you love. Go to your desires rather than away from your hates and fears.  You’ll find more satisfaction, fulfillment and success!

Regards and good luck wherever you go.

Gary

Are you leaving North America because you feel civil rights are going to be thrown out the window.  Forget about it. They have been gone for decades.

Here are two examples.

latimes-obit

This photo of from a January 5, 2012 LA Times obituary by Elaine Woo entitled “Gordon Hirabayashi dies at 93; opposed internment of Japanese Americans”.

The obit said:

Gordon Hirabayashi, who was convicted for defying the evacuation and internment of Japanese Americans on the West Coast during World War II and, four decades later, not only cleared his name but helped prove that the government had falsified the reasons for the mass incarceration, has died. He was 93.

Civil rights often get thrown out the window.  This does not necessarily make a place or the people bad.

For example no one has recently written to me about my residence in North Carolina and explained that they’ll never go to that state and that North Carolinians are bad. 

Yet a January 10, 2012 CNN article by Debra Goldschmidt entitled “North Carolina task force recommends $50,000 for sterilization victims” shows what North Carolina did.

Here is an excerpt (bolds and underlines are mine).  Living people who were forcibly sterilized as part of a decades-long eugenics program in North Carolina should receive a one-time payment of $50,000, a state task force recommended on Tuesday.

North Carolina sterilized an estimated 7,600 people between 1929 and 1974, many of them against their will.

The state apologized for the sterilizations in 2002, and Gov. Bev Perdue created the compensation task force last year. Many states once had eugenics programs, and seven have apologized, but North Carolina is the first to consider paying victims.

The five-member task force – including a doctor, lawyer, historian, retired judge and retired journalist – met for 10 months and has a February 1 deadline to send a report, including recommendations for compensation, to the governor.

Even deciding how to make up for the eugenics program is no easy task. Historians and experts on compensation say there are no comparable examples to model monetary reparations after. This is a far different situation than better-known reparations debates, such as slavery, for which no compensation has been awarded, or the Nazi Holocaust, which is tied to individual awards allotted after an extensive documentation process. The closest example, experts say, is the 1988 decision by the U.S. Senate to pay $20,000 to Japanese-Americans who were held in internment camps during World War II. Surviving victims were paid the flat fee for the suffering caused by displacement.

Steven Selden, a University of Maryland professor and author of the book “Inheriting Shame: The Story of Eugenics and Racism in America,” said the national eugenics movement was about altering the gene pool and eliminating people who spoke, looked, or behaved differently. What set North Carolina apart was how recently it occurred: Most states stopped after World War II, but North Carolina continued sterilizing people into the 1970s.

ap photo

Photo from ABC website.

Caption: In this June 22, 2011 photo, Elaine Riddick and her son Tony Riddick embrace as they pose for a photo before testifying before the Justice for Sterilization Victims Foundation task force compensation hearing in Raleigh, N.C. Riddick is fighting for compensation from her native state of North Carolina over her sterilization as a young girl.

This seems unimaginable.  Yet an August 15, 2011 ABC article by Allen Breed entitled “Eugenics Victim, Son Fighting Together for Justice” says:  Elaine Riddick’s small frame heaves, her rapid, shallow breaths whistling in her throat as she forces the words out between her sobs.

“So what am I worth?” she asks the five people seated at the long table before her.  “The kids that I did not have, COULD not have. What are THEY worth?”
“Priceless,” Tony Riddick whispers as he gently rubs his mother’s back.

Elaine Riddick has been asking these same questions, in one forum or another, for the past 40 years. This most recent appearance in late June was before the Governor’s Task Force to Determine the Method of Compensation for Victims of North Carolina’s Eugenics Board.

As far as Riddick is concerned, she tells the panel, she was raped twice. Once by the man who fathered her son, and again by the Eugenics Board of the State of North Carolina, which deemed her, at age 14, unfit to procreate.

“I am NOT feebleminded,” she shouts, turning to face the packed hearing room. “I’ve never BEEN feebleminded.”
“No,” says her son, standing beside her behind the podium.

Tears streaming down her face, she says, “They cut me open like I was a HOG.”

I do not worry too much about what politicians say.  Their words and actions are victims of the fears and worries of the total population… at times.

At times politicians take advantage and stir up fears and worries.   Such stirring can lead to a suspension of American rights that seems quite unbelievable… such as in North Carolina.

Yet I can assure you the people of North Carolina nor the state itself are bad.  The state is wonderful… the people fantastic!  Nor are the Ecuadorian people or the country of Ecuador a bad place because a leader from Iran visits there.

A visit by a politician from a country that US politicians say is bad is not a good reasons to dislike or avoid another country.

Our site is about how to have alternatives.  Ecuador is one of many. So is North Carolina and Florida and I predict so too will Cuba be… soon.

Choose or reject any of them by all means.   Just make the decision for the right reasons.

Politicians will use external events to collect the votes and/or support of their public. Expect USA – Iran tensions to grow as the November elections approach.  Don’t let this distort your view of what is really important for you.

Gary

A concept I outlined in my first 1970s book, Passport to International Profit  remains my mantra called the  “Six Point Command Posture” which is to:

Live in one country
Bank in a second country
Invest in many countries
Earn in two or more countries
Use a company incorporated in a fifth country
Take a second residence

Learn how to develop this tactic so you can choose to live, earn and invest where it is best for you at our February 8-11, 2012 Super Thinking + Business and Investing seminar in Mt. Dora, Florida.

Super Thinking + Business, Investing Ecuador & Beyond Seminar

Learn more about Ecuador:

#1:  How to buy Ecuador real estate like the beach view Ecuador home below for $16,000.

#1: How to earn in or before Ecuador and turn $499 into $142,020… per year.

#3: How to bank beyond Ecuador and borrow yen at 2.5% and gain a 5% profit in three weeks.

Review these ideas in warm and sunny Lake County, Florida, with over 1,000 named lakes and the charm of historic Mt. Dora. This a special place especially at the this time of year.

Lake county

(Click on photo to enlarge).

These are balmy winter days I shot of the Florida winter from…

Lake county

my canoe.

Lake county

Forces have come together for the biggest economic expansion in history.   Huge profits are waiting in business and investing… whether you are just starting… in the middle… are ready to retire or want to start an entirely new career.

One reason for this timing is cyclical.  Equity markets are selling at some of their best valuations in years.

This optimistic outlook is based on the development of earnings, cash flows, dividends and book values.

When you look at the big picture… from the turn of the century until now the entire global economic history has been a series of slow downs and catch ups,  but over the long run  values in the stock market have risen about 9.1 percent, respectively, compounded annually.

There are always emotional reasons for slow downs…  as we have seen in the past five years…  the worries of double dip recessions… high unemployment… concerns about fiscal cliffs. Such fears hold investors back.  Yet  global population growth and advances in production and prosperity are relentless.   Values increase as prices stagnate. Then markets break free and rocket upwards creating wealth, prosperity and growth.

Economic breakouts create fortunes.  This February we get to share with you three… enormous profit possibilities…. one in business…. one in investing and one in Ecuador.

All the facts have come together.   The next boom is about to begin.

We can see the power of breakouts from the last BIG ONE in 1979.   Warren Buffett saw it coming. He mentioned it in a famous 1979 Forbes article “You Pay a Very High Price in the Stock Market for a Cheery Consensus”.

Everything looked bleak.

The 1980s recession, the worst since the Great Depression, was about to begin.   Yet in 1979 Buffett said…. BUY NOW.    On August 13, 1982 the biggest global bull stock market in history began.

The Dow’s 1982 to 1999, relentless 17 year climb is just one breakout we can see.

dow-stock-chart

Click to enlarge.

1979 was the darkest hour.  The herd was thinking negatively.   The reality?  A boom was on!   Then in 1999 another economic contraction began and has been with us till now… 14 years.   The cycle is repeating.  This is the beginning of an even bigger boom.

“It’s not what’s happening that counts. It’s what you do with it.”

Make no mistake… Merri and I have been able to help readers have better lives, less stress and to make fortunes during these last 17 economically depressed years.  Yet the simple fact is that the really big profits come at the start of a boom.  This is why I want to kick off 2013 with you and share more than my usual confidence and enthusiasm. 

The upcoming February seminar is divided into three main sessions.

Each session helps you learn how to gain freedom, remove stress, earn more and do more good in and for the world.

Session One:  International Micro Business – “How to Have a Positive Global Income”.   You can turn $499 in $142,020 a year, even in small towns.

Session Two: Ecuador Living and Real Estate.

Sessions Three:  International & Value Investing Outside the Box.

Here is a partial syllabus of the seminar:

SESSION ONE:  How to Turn Your Passion into a Profitable Microbusiness.   A micro business can be the best investment you can make. Start small and magnify your investment with your effort, enthusiasm and energy.

* Turn $499 into $142,020 through writing and publishing… without risk.  In just one year.  Cash in on the blowback from the global community.  The global economy is good but big business… big government…. big medicine and global everything is also impersonal, often harsh and inhumane.  This expansionary process leaves us believing in nothing.  We are cynical of the global banks… the aggressive police… the intrusive government… the big church… the monetized medicine… the negative media… the unfair laws…. the failing currencies… all the broken promises.

This is driving more and more people to Ecuador.

Yet as humans, we have to believe in something and our last bastion… the one we can see, hear, taste, smell and feel is our local community… either as a  place or as a collection of like-minded souls.  Plus not everyone can get to Ecuador right now.

This is also where we can actually accomplish something at home or in Ecuador and actually have an impact at doing some good.

On January 1st, 2013, Merri and I launched a new business “Positive Community Magazines” (PCM) with David Cross our webmaster and Dave & Sherry Johnson. This opportunity is for anyone young or old.  PCM offers excellent income… less stress, fulfillment and positive service to the community.  This business helps publish positive community magazines in small towns or to small communities of highly focused, like-minded souls.

Warren Buffett believes so much in this potential that he is buying newspapers in small towns all over America.

In 2012 Berkshire Hathaway purchased 63 small and mid-sized daily and weekly newspapers throughout the United States.

He plans to buy more and says: “I like buying individual papers at the right prices.” 

Buffett stated that Berkshire is not buying big newspapers or more newspaper shares because he believes in the value of local communities.

In February, you’ll meet Dave & Sherry Johnson who had a good life until times turned sour during the 2007 recession.  They lost everything so they moved to Asheboro, North Carolina which Forbes magazine highlighted as “One of America’s Ten Fastest-Dying Towns in the USA”.  They started a community magazine and from the ashes it has risen from success to success.   They now earn over $17,000 a month.  They came to our Writer’s Camp.  We saw their amazing business model and let no moss grow under our feet before asking them if they would help us spread this incredible concept around the world.

We know trends when we see them and this is even more exciting than the trend we saw in Ecuador’s expansion 17 years ago.

As an Independent Community Publisher of Positive Community Magazines, you will publish positive, upbeat community publications dedicated to representing, encouraging and celebrating the community you serve by focusing on the lifestyles, talents, gifts and contributions of the people who live and work there.  Plus you’ll earn as much as $17,635 a month.

Learn how to gain a proven business model with training – archive of articles – design templates – access to low-cost printing – marketing materials – and a very, very low investment (as little as $499) to start.

The Money – Here is the Proforma Income for a 64-page Magazine

In the model magazines the ad revenues run around $13,000 (40% ads/$500 per ad page) and editorial revenues of $4,635 or a gross income of  $17,635 a month.

Printing  and operational expenses are in the $5,800 range leaving  profits of $11,835.  You increase the bottom line if you do more of the design and distribution work yourself.

Other advantages of magazine publishing include the freedom to set your own schedule,  PRESS credentials, prestige, service to the community, philanthropy, being in the know and having a well respected profession.

Saves Lives.  Here is just one example of the good you can do. Sherry Johnson shared this story.

She wrote: Gary,  we even save lives.  In one issue of their magazine they told the story of a little boy who was struggling with a rare disease that caused life-threatening seizures.  One day, while his mom was out shopping, the little boy had a seizure so she rushed him to the hospital.

She called ahead and the nurse met her at the emergency room.  As it happens, the nurse had read the article in the magazine (which someone had brought to the nurse’s lounge) and she recognized the little boy from the article.  Since she knew immediately what was wrong with him, no time was wasted and he was treated quickly.  They were told that this particular seizure was especially bad and that the article probably saved his life.  This doesn’t happen every day but once in a lifetime is good enough!

mt dora

Downtown Mt. Dora, Florida

Another session in the seminar shows “How to have an international micro business.”  These sessions are highly practical and usable. They focus on how to use modern technology to start global micro businesses based around a website, with minimal investments of time and capital.

By starting small and building with stepping stones and a harmonious focus, Merri and I have learned how to own profit generating phrases at Google.  We, along with our webmaster, David Cross, share the secrets of how you can use words to create your own global income.

The seminar shares how we us “Seven Ps”  (Person, Problem and Promise, Product) to zero in on key word phrases.  The Fifth P (Promise) develops new customers. The Sixth P is the Prospecting Path and Seventh P is the Presentation that creates income.

Learn about other microbusiness possibilities…

In the global micro business sessions we’ll see ideas on how to:

* Create Ecuador Export Businesses

* Earn in Ecuador from Self Publishing and Writing

* Develop Internet Sales from Ecuador

* Cash in on Ecuador Business Ideas

* Find Organic Agricultural Business Ideas

* Profit With Health Business Ideas

* Turn Ideas for Tours and Seminar Businesses into Profitable Lifestyles

* Create a Multi Dimension extra income lifestyle.

Multi dimensional living can create a lifestyle that brings better health and lasting “real” wealth.  Many readers  are choosing a multi dimensional lifestyle, living on a farm and earning in other ways such as writing.

gary scott farm

Activity on the farm in North Carolina. It’s tax deductible and profitable but…

gary scott farm

I cannot call it work.

Merri and I have been fortunate. The self publishing business has treated us well.  However a great deal of our financial stability also comes from being multi dimensional.  We have lived on our own farm and seminar camp and orange grove and in our own Ecuador hotel and hacienda.  We are always fixing things up…. buying broken places or taking broken ideas and making them whole.

For decades we have been buying houses and fixing them… painting, restructuring and such.  This is our hobby… that happens to be profitable… or maybe that’s our business and writing is the hobby that also happens to be profitable?

The point is what we do is not work.   We just regularly do what we love and figure out how to earn income in the process.  The adage framed on my desk given to me by a beloved Indian Pundit is “Action is Thy Duty… Reward Not Thy Concern“. With this motto and a bit of common sense living joyfully and earning merge.

Our daughter, Cinda, and David Cross, our son-in-law webmaster and granddaughters, Sequoia and Teeka, have taken this lifestyle route as well.   Cinda loves animals so is a veterinarian and specializes in animal acupuncture which she can do at their farm.

David has his website and voice-over business he can run from their farm and the girls love working in the gardens.

webmaster's garden

webmaster's garden

David and Cinda’s multi dimensional farm. They now produce 60% of their food and earn extra income selling their excess organic crops.

gary-scott-farming

Using the Bio Degradable “Bio Wash” to gain added value we have been able to double our production and quadruple the profits in our orange grove.

In the multi dimension segment of the seminar we review how to spot “live on agri and B&B opportunity” in small towns and Ecuador.  We’ll also look at Bio Wash, that we have supported now for nearly 20 years. We’ll show the environmental as well as health and business benefits it brings.

Join Merri and me at our Super Thinking + Investing and Business Seminar – February 1-2-3 , 2013, Mt. Dora, Florida.

Enroll here $799.   Couple $999

See  How to Attend this Seminar for $177 instead

SESSION TWO: Ecuador Living.  Talk about catching an early wave… Merri and I caught the Ecuador expat trend right at its beginning 17 years ago.   We brought readers who joined us in Ecuador then… some amazing opportunities.  This cycle has matured but there are still great bargains if you know what to do.  No one has as much experience and as many contacts in this field. This experience is also dependable.  We do not sell Ecuador real estate so you won’t be hearing any hidden agendas.

A beach house for $16,000?  Is that bargain enough?  You cannot beat experience when it comes to learning all the ins and outs and buying real estate in a country like Ecuador.

For example after more than a dozen years of traveling… working… buying and selling real estate and running businesses in Ecuador… we led Jean Marie Butterlin from France to the coast and he began scouring the beaches from Manta, north to Pedernales… finding the bargains…. meeting the landowners…  understanding the rules, regulations and customs.

That experience made him the expert of Ecuador beach real estate so that bargains could be found and so his clients could overcome the biggest problems and intelligently buy real estate on the coast.

We’ll share how to  buy beach property intelligently.

Here is Jean Marie’s second beach home…. secluded overlooking this…

ecuador-beach-images

isolated beach home for just…

ecuador-beach-images

$16,000.

You’ll learn how to overcome one of the biggest mistakes most real estate buyers make on the beach.

Dr. Andres Cordova will speak and join me in updating Ecuador real estate and residency rules.

Dr. Andres Cordova speaking at our seminars.

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

We’ll also review how to create an Ecuador export business as Merri and I have for many years.

ecuador-exports

Roberto Ribadeneira speaking at our seminar about how he can shop, ship and charge for Ecuador export businesses.

We’ll review the Ecuadorshop Logistics service that provides all these services for exporters in importers into the USA.

We’ll share how Roberto provides an exclusive service that helps readers who export from Ecuador monitor production and quality and assure timely delivery.

This is a great service that provides every detail for importing products into the USA.   We have used this logistics service ourselves for years and became the largest shipper of Ecuador roses last Christmas.  One big benefit is that the service can send each product direct to the buyer in the USA.  The Ecuadorshop Logistics service makes small and medium scale Ecuador exporting possible.

Join Merri and me at our Super Thinking + Investing and Business Seminar – February 1-2-3 , 2013, Mt. Dora, Florida.

Enroll here $799.   Couple $999

See  How to Attend this Seminar for $177 instead

Session THREE  – International & Value Investing Outside the Box.  This session shows how to protect your investments and savings, plus what to do with extra profits you’ll earn.

* Borrow Low Deposit High & Multi currency investing.  Few decisions will be as important to your wealth as WHICH CURRENCIES to held your wealth.  This has been our area of expertise since the 1970s… plus we have worked with Jyske Bank…. one of the largest currency traders in the world  for decades.

Learn how to gain currency diversification and how to leverage high returns with low cost multi currency loans.   We are currently leveraging via the overvalued Japanese yen.   Jyske recomemnds a split dollar/euro leverage.  We’ll share both strategies and how and why this investing tactic has remained a wonderful overall long term strategy we have tracked and recommended from time to time for more than 20 years. We gave a borrow yen signal on December 12, 2012.  Since then the US dollar has risen 6.26% against the Japanese yen.  Readers picked up 5% profit in the less than three weeks.http://www.flickr.com/photos/garyascott/8346308150/in/photostreamDollar yen chart at www.finance.yahoo.com January 4, 2013. Click on photo to enlarge.

On December 12, 2012 one USA dollar would buy 82.44 yen.  January 4, 2013 that same dollar would buy 88.23 yen.

Yet this is not a fast trading for forex profits strategy.  The Multi Currency Sandwich is based on long term, extra earnings from positive carry.

Let’s review a simple Multi Currency Sandwich example.

Here are the current invest loan interest rates from Jyske Bank.

JGAM Loan Rates

(Click on photo to enlarge).

In this example we invest $350,000 (we’ll see how to invest smaller amounts in a moment).   We borrow $520,000 in US dollars at 2.62% and $130,000 in euro at 2.5%.  This is the loan ratio used by JGAM at this time and gives us $1 million to invest.

We invest in two bonds. $200,000 is in a bond issued by Santos denominated in euro with a coupon of 8.25%.   The bond comes due 22-09-2070. This is a medium risk bond and yields of about 6.9%.

The second investment is $800,000 in the US dollar denominated bond offered by Danske Bank with a 7.125% coupon due 21-09-2037. This is a medium risk bond yielding about 5.9%.

The return on the Santos bond is appx: $13,800

The return on the Danske bond is appx: $47,200

The total return is  $61,000.

The loan cost in euro is $3,250 (2.5% on $130,000).

The loan cost  in dollars is $13,780 (2.6% on $520,000).

The total loan cost of $17,030 leaves a positive carry (extra profit).  The total return after the loan cost $43,970 or about 12.5% return on the $350,000 invested.   That return is diminished by one time, upfront loan costs on the first year of $1,300.  Then there are no added loan costs for the five year term of the loan.

The figures above are used for illustration purposes only. These are not recommendations as a portfolio would be far more diversified.

The risk in in the bonds… not currency parities.  Euros and dollars were borrowed. Equal amounts of Euros and dollars were invested.

Now let’s look at the same example but with borrowed yen.  The yen loan creates potential forex profit… or loss.

In this example one dollar equals about 82 yen.

Assume the same multi currency sandwich was created… but with $650,000 worth of borrowed yen instead of loans in dollars and euro.

The interest rate for yen is lower… only 2.5% versus 3.125% for the US dollar.   This bumps the return up to almost 12.8%.

However the forex potential is what becomes interesting. At 82 yen per dollar this requires a 53.3 million yen.

Assume that the yen returns to the purchasing power trend of 117 as shown in the chart below.

yen chart

Chart from Bloomberg.com shows the yen at 117

(Click on chart to enlarge)

A shift from 82 yen per dollar to 117 yen per dollar is a 35% drop.   If those dollars and euros bought back yen at the 117 parity it requires only $455,555 to repay that had been worth $650,000.  The forex profit is $194,445 or an extra 29% beyond the positive carry.  If that drop took three years to happen and one held the bonds (and their value did not change)…. the total return over three years would be 67.4%.

That is the upside.  For a loss of the same magnitude the yen would have to rise from 82 yen per dollar to 53 yen per dollar… a highly unlikely event.

Thomas Fischer Sr. VP and forex advisor for Jyske Global Asset Management  will update leverage strategies.  Two other  investment advisers and brokers will review how to diversify in bonds and shares and review the forex risks to make sure that such a speculation can work for you.

Thomas Fischer will review the portfolios they manage.  This year they easily beat their benchmarks. We have no exposure to the euro and in our leveraged portfolios we use a 100% euro funding. As you can see this has also led to a return of 18.4% in a speculative performance (medium risk with 2X).

Here is JGAM’s record.

jyske-multi-currency-investments

Click on this photo to enlarge.

Betting Against the Yen for Even Smaller Amounts.Lou Shinamin at Ruggie Wealth will outline opportunities using ETFs.

Lou recently wrote:  I am watching a very nice cup and handle pattern forming on the Japanese Yen.  Aside from Forex, the easiest way to take advantage of the dollar strengthening against the Yen would be to look at  the ETF :  YCS .  Ultra short Japanese yen.

Lou will update the market and positions that make current sense in February.

Multi currency investing offers five enhanced benefits… asset protection…. greater privacy… broader diversification… forex potential and positive carry potential.   The seminars teaches how to gain these benefits.*  Stocks that rise from the cycle of war, productivity and demographics.  Cycles create recurring profits.  Economies and stock markets cycle up and down around every 15 years as shown in this graph.

Dow Charts

These stock market bull and bear cycles are based on cycles of human interaction, war, technology and productivity.

Economic downturns create war.  Military struggle (like the Civil War, WWI, WWII and the Cold War (WWIII), super charge inventiveness that creates new forms of productivity…the steam engine, the internal combustion engine,  production line processes, jet engines, TV, farming techniques, plastics, telephone, computer and lastly during the Cold War, the internet.  The military technology shifts to domestic use.  A boom is created that leads to excess.   Excess leads to correction.  Correction creates an economic downturn and again to war.

Investments in the winner of WWIV.   The war quietly took place… and the US won.  This has created special opportunity for many shares.

Here are just three specific examples we’ll review:

United States Steel Corp. (NYSE: X).  The American steel industry recently received the economic equivalent of a gift from the heavens: natural gas. Industrial firms in Pittsburgh are sitting on top of an oil-rich formation that stretches from New York to Ohio… with modest estimates suggest of at least 100 trillion cubic feet of gas.

The switch from coal to cheaper natural gas will save U.S. Steel hundreds of millions of dollars a year.  Foreign competitors in Europe and Asia will need to pay much more.  Many economists say that this new gas reserve will fundamentally shift global economic logic to uniquely benefit the United States. Yet prices of US Steel shares have remained stagnant.

Alliant Techsystems (NYSE: ATK).  The Department of Homeland Security is planning to buy a further 750 million rounds of ammo in addition to the 450 million rounds purchased earlier this year.

ATK Delivers 2 Billion 7.62mm Rounds to the U.S. Army from the Lake City Army Ammunition Plant (LCAAP) and 350 Million 5.56mm Enhanced Performance Rounds Using Modernized Production Line Equipment
 in a $131 Million in Small-Caliber Ammunition Order.Since assumption of LCAAP manufacturing operations in 2000, ATK has increased the production rate for 7.62mm ammunition five-fold in direct support of U.S. Army requirements.  Alliant Techsystems manufactures everything from rockets for NASA to big weapons,  space rockets, launch vehicles, missiles, missile-defense interceptors, satellites and bullets. In fact it is the world’s largest manufacturer of bullets.   Over the past 10 years, the company produced an average return on equity of 31.51% but the share price is in the dumps.  Defense sector shares have been selling at historically cheap valuations and   ATK shares have been selling at ratios even below the industry average.  The 10 year average P/E ratio for its shares has been 18% but is currently below 10%  about half  the ten year average.

Aegion/Insituform (NASDAQ: AEGN).  Aegion is a water investment that makes sense because “Where there is muck, there is brass”.   The world’s water supply has too much muck!   Investing in water simply makes sense in every way.  IN the last equity boom, $1,000 invested in water utility stocks at the end of 1981 grew $39,980 at the end of 2001, more than double the growth of S&P 500. The fundamentals for the future are even better.

Decentralized, or distributed, water treatment will make up a huge part of the future water business.  If you can use water over and over again at its point of use, that’s beats any other technology because you don’t have to transport the water.    Aegion is a leader in trench less water line replacement.  Their process is the most widely used trench less method for restoring structural integrity to and removing infiltration from sewers so worn out water treatment systems can continue to be used rather than replaced.

* More Water.  Other water investment we review include Water Asset Management, Allianz RCM Global Water Fund, PFW Water Fund, Kinetics Water Infrastructure Fund, the Geneva-based Pictet Global Water Fund, SAM Sustainable Water Fund based in Zurich the Irish Calvert Global Water Fund.

* My Portfolio Review. I am always looking for value so my portfolio changes as events unfold.

Here is a typical portfolio I hold at JYSKE and update the changes I have made and why.

    Type          Int.    Rate    % of portfolio

Savings US  $  0.125%    5%    Currency
Savings EUR    0.125%    1%     Euro
Savings Pounds          2%     GBP

Equities

Jyske Invest Turkey     2%     Lira
JI European Equity    5%     Euro
Suntec Reit           2%     SGD
Hyflux Water            2%     SGD
Jyske Bank shares       4%     DKK
KGHM Polska Miedz (Copper Silver) 5%   PLN
Brookfield Renewable Power  5% CAD
Unicredit Itakian Bank  3%     Euro
Axel Springer AG German Publisher  Euro 2%
Sky Deutschland AG German TV   Euro 2%
Silver Wheaton Corporation Silver  5% US$

Bonds
Ishares Maci Latin Amer 5%     Mixed Latin
JI Emerging Local Bonds 4%     Mixed
JI Emergin Market Bonds    3%     Mixed
Mexican Bonos    MxnGvt  2%     MXN    Rate 8.000%   Mature 19.12.2013
Bond    Bombardier Inc.    2%     Can$        7.250%      15.11.2016
Bond    Rabobank, Nederland 4% NOK         4.000%      29.05.2013
Bond European Investment 5%    AUD         6.000%          14.08.2013
Bond Kreditanstalt Für     5%    CAD         4.950%      14.10.2014
Bond European Ivtment BK 5%    NZD         6.500%          10.09.2014
Euro Invment BK Turkey   3%    TRY        10.000%      28.01.2011
Euro Investment BK Brazil3%    BRL        11.125%          14.02.2013
Bond Brazil GVT            3%    BRL        12.500%      05.01.2016
Bond Brazil GVT            3%    BRL        12.500%      05.01.2016
Bond Euro Invment BK    3%    AUD         6.000%      14.08.2013
Bond Kreditanstalt Für   2%    NZD         6.250%      15.04.2013
Bond Euro Invment BK    3%    PLN         6.500%      12.08.2014
Bond Mexican Fixed Rate    3%    MXN         8.000%      17.12.2015

Loan                    -3%    USD     Interest rate 2.5%

You’ll gain details on how to actually buy such shares and bonds from Mike McDonald at Aegis Capital Corporation.

* Lake County Real Estate. Shirley Peacock our broker in Lake County will share why the value is special here and our search for good value real estate in this area.

* British Skipton Building Society 10% Variable Bond due 12/12/18  paying 10.1%.  See why Britain put an American in charge of the Pound and how this makes England an even more attractive currency to hold now.

Established in 1853, Skipton was among the first building societies and is Britain’s fourth largest building society with £13.9bn of assets and over 100 branches across the UK.  They just reported a £22.3m pre-tax profit for the six months ending June 30, 2012, an increase of 253 per cent on the £6.3m profit it made in the first six months of last year.

* Position Update on British Bond ETFs.  For investors who want broader diversification into higher yield British bonds the “iShares Markit iBoxx GBP Corporate Bond 1-5 ETF” is open to almost all investors.

* Three high yielding shares to consider: HSBC (symbol HBC) (Finance, 6.36% Depositary Shares, Non-Cumulative Preferred Stock, Series B) -Royal Bank of Scotland (Symbol RBS) 7.25% Noncumulative Dollar Preference Shares Series H ADR and the ETF  “iShares S&P U.S Preferred Stock Index Fund” (Symbol PFF).   This etf has over 200 holdings and almost one fourth are in the financial sector.  All ten of the largest positions as shown below are in the financial sector.

* What’s Up With Gold and Silver?  One session looks at my current position on gold and silver and asset protection specialist Rich Checkan will review the state of the precious metal markets and potential problems ahead for US dollars.   He’ll outline how interest rates at zero eliminate  opportunity costs of diversification in precious metals and foreign currencies.  He’ll review the firm commitment by the US government to winning the battle of the printing presses and what impact this could have in U.S. dollars.

Another reason to join us in February is the pension protection session.

The power of pensions invested globally to preserve wealth can be seen by Mitt Romney’s individual retirement account.   The news reported during this run for President that Romney’s IRA holds more than $20.7 million.

Pension and IRA expert Larry Grossman will review how to maximize IRA investment gains so they can accumulate tax-free in an IRA with overseas investments.  The method used by tax lawyers is to have the IRA invest through an offshore affiliate of the private-equity firm, known as an offshore blocker corporation.   Any special tax is avoided because the IRA is investing in the offshore corporation, not in a private-equity partnership.

Finally and perhaps most important… you learn how to use Super Thinking.

The BIG ONE is coming but its not what’s happening that counts. It’s what you do with it.

This is why the seminar overlays all the other data with Super Thinking Through Frequency Modulation – Tapping our inner resources for outer expansion.  As change comes faster we must become smarter… more flexible and enhance our ability to embrace and profits from the never ending shifts we face.

The educational program Merri and I have developed uses a different form of frequency modulation that opens enormous opportunity for expansion, understanding, peacefulness as well as greater wealth.

FM teaching uses frequency (in music and with each sense… sight…. smell, tactile and even smell) to integrate brain waves so the process of absorbing, processing and recalling information is vastly accelerated.  This brings forth the three C’s:  Calm, Clarity and Coherence.

FM creates relaxed concentration… a key to happiness, health and success.

You learn whole brain thinking that can help improve your freedom, satisfaction and income through business.

This part of the seminar helps us integrate their brain waves so they are more intelligent, intuitive and relaxed.

The Super Thinking sessions show three ways (baroque music, relaxation and nutrition) to get into and stay in a state of relaxed concentration… a mental state shown to enhance almost every human capability… especially writing.

Merri and I are explorers so we have used this techniques for decades. We  are always looking for what’s next… trying to stay on or ahead of the leading edge and need ways to think outside he box.

The Super Thinking sessions share how we do this to live better…. using frequency modulation to be smarter… stronger…. more energetic… more aware, friendlier, compassionate, happier and healthier.

We are in our 45th year of business and we share what we have learned and where this is leading our activities in our upcoming seminar. Join us.

Spotting new trends and applying them to our micro business has brought us a strong and continual flow of income through good times and bad.  More importantly the process has been fulfilling…. beneficial to society and healthy.    Now you can benefit from the latest… and perhaps strongest… of all the trends we have stumbled upon.

Applying the concepts of super thinking to spotting trends over the past 45 years has helped thousands of our readers make and save millions.   The success of our readers has been a driving force in our lives yet we have always wanted to do more so continued looking deeper at ways we can share how to have income, stability, good health and contentment.

Join us to learn our most recent experiences and most advanced concepts and ideas.

Join Merri and me at our Super Thinking + Investing and Business Seminar – February 1-2-3 , 2013, Mt. Dora, Florida.

Enroll here $799.   Couple $999

There are two more Reasons to be in Mt. Dora February 1-2-3.   One is old time values.

lakeside inn

The Lakeside Inn seen from Lake Dora.

130 years ago three local, and reasonably successful individuals, sitting around around one afternoon when one of them says “hey… lets build a hotel”.  The three agreed, plans were drawn up, materials were ordered and work began.  The year was 1883, Mount Dora was still called Royellou, Chester Arthur was President, and it would still be several years before the railroad would make its way in to town.   This leaves the Lakeside Inn as the oldest, continuously operated hotel in the State of Florida.   The Inn is just across the street from our meeting place and is celebrating its 130th Anniversary throughout 2013 with a number of special events and celebrations.

art festival

Mt. Dora Arts Festival.  This is is ranked in the top hundred art shows in the US. It’s a juried fine arts festival, for art lovers, casual festival-goers and families.

Downtown Mount Dora, with its New England architecture and breathtaking views of Lake Dora is the backdrop for this event. In addition to the endless rows of fine art, including oil paintings, watercolors, acrylics, clay, sculpture and photography, the festival features local and regional musical entertainment at a main stage in Donnelly Park.

mt dora ats festival

The event draws over 300,000 visitors and features more than 285 artists from all over the world.Super Thinking + Investing and Business Seminar –

Join Merri and me at our Super Thinking + Investing and Business Seminar – February 1-2-3 , 2013, Mt. Dora, Florida.

Enroll here $799.   Couple $999

See  How to Attend this Seminar for $177 instead

Join Merri, me and the following speakers:

* Thomas Fischer of Jyske Bank, who will talk about International investing, forex, plus borrowing low to invest high.

* Rich Checkan of Asset Strategy who will update the state of the precious metals markets.

* Dr. Andres Cordova updating Ecuador real estate and monetary, residency and tax regulations.

* Dave and Sherry Johnson. How to turn $499 into 142,035 with Positive Community magazines in small towns.

* Shirley Peacock.  Lake County real estate.

* Mike McDonald. Aegis Capital Corp.

* Lou Shinamin. Ruggie Wealth

* Larry Grossman. Sovereign Pension Management.

Join Merri and me at our Super Thinking + Investing and Business Seminar – February 1-2-3 , 2013, Mt. Dora, Florida.

Enroll here $799.   Couple $999

See  How to Attend this Seminar for $177 instead

I first warned readers about the Iran Ecuador connection almost two years ago.  Please see my June 26 2009 article on Ecuador and Iran.