International Investments – Dust to Dust and Dollar to Dollar

by | Jun 1, 2006 | Archives

* International Investments In The Other Dollars

* Ecuador Real Estate – A Healthy Choice

* Natural Health Tip – Eat Quinoa

Our International Investment & Business Course last weekend looked at many reasons why the US dollar could fall.

One reason is the talk that Russia will make the ruble “internationally convertible” so that it could be used in oil and natural gas transactions. Presently, oil is denominated exclusively in dollars and sold through the New York Mercantile Exchange (NYMX) or the London Petroleum Exchange (LPE) both owned by American investors. If Russia proceeds with this plan, it will add to the many streams that are eroding the greenback.

More importantly the course reviewed options of where to invest for protection against a dollar collapse.

One positive alternative are the “other” dollars: Canadian, New Zealand and Australian.

The Canadian dollar (CAD) is very strong. We looked at why in a recent message. To see an update.

Jyske Bank just wrote: “CAD – hard to live without. At the moment, the appreciation of CAD, especially against USD, appears to be never ending. In addition to the already mentioned positive factors such as excellent economic indicators, the string of interest-rate hikes, Canada’s attractive status as a commodities nation, there is another new dimension, namely a general dollar aversion. An aversion which is threatening to turn into an actual dollar phobia. If that happens, CAD will be even more attractive for international investors who have initiated a hectic search for currencies which offer an economic scenario completely opposite of that of the US at the moment.

“And consequently, the love affair between the market participants and the Canadian dollar looks set to continue unabatedly. However, it is worth keeping an eye on the Canadian central bank with David Dodge at the helm. Recently, he has cautiously aired his concern about a speculative demand for CAD. Although in our view, the danger of a true dollar collapse is higher than the danger of intervention from the Canadian central bank.”

The downside in the Canadian dollar is that you have to pay a percent or so to hold Canadian bonds at this time due to the lowered interest rates. (See the bond list below.)

The New Zealand dollar has been through a crash. Now may be good to buy and hold the Kiwi.

There are still problems with the Kiwi currency – no doubt. The country has a huge current account imbalance, almost 9% of GDP. Traders are shy because they have been burned since the beginning of the year, and the economy is weak.

However because New Zealand has a small population and economy, deficits can easily reverse with only a small amount of international interest. The US on the other hand has a huge deficit that is not as easy to reverse. More and more readers tell me they moving to New Zealand. This interest in moving there by Americans and British, fed up with their own nations, could have a huge impact in reducing the current account deficit.

In addition New Zealand’s economy has slowed, almost to recession. In currency terms, right now this is good. The sluggish economy will slow inflation and reduce imports that feed NZ’s trade deficit.

Mainly the Kiwi is looking ready for a recovery because it has fallen so much.

These dollars are connected. History shows that when the US dollar falls so too do the Canadian, Australian and NZ dollar. The NZ dollar has taken its hit, perhaps too much and may turn around. Though it may still sag a little in the short term, this currency has potential to rise long term versus the greenback.

Jyske Bank agrees and says “In 2006, the NZD/USD ride has been a doubtful pleasure. First like a tornado, then a direct spin towards the ground. Nevertheless, we recommend investors to get in again or hold on to existing long positions and stay belted up.”

Finally, the Australian dollar is advancing against the U.S. dollar as well.

The Aussie’s rise has coincided with a recovery in commodities and a decline in risk aversion. Recent reports show that the Australian trade deficit narrowed more than expected to A$1.09 billion in April.

Also inflation is near the top end of the 2-3 percent target band. This increases the odds of higher AUD interest rate which would protect the Aussie’s yield advantage over other major currencies. Currently investors gain a slight interest lift in the Australian dollar versus the greenback. Here are some current yields on bonds denominated in the various dollars.

USD20-05-2009 Ericsson LM Tel5.58%
USD13-02-2013 Hutch Wham Intl6.16%
USD22-07-2008 Deutsche Tel5.50%
AUD16-07-2010 BK Ned Gemeeten6.05%
AUD25-01-2011 CIE Fin Foncier5.75%
AUD01-03-2008 NSWTC-Intl-Regd5.77%
CAD18-07-2012 Eurofima4.64%
CAD22-05-2008 Gen Elec Cap Crp4.19%
CAD05-01-2009 Rabobank4.46%
NZD08-02-2008 ABN Amro Bnk7.18%
NZD15-07-2009 Europe Invt Bank6.77%
NZD20-07-2015 Instit Credt Ofcl6.84%

Deciding to get out of the US dollar is quite easy compared to knowing where to go! Some emerging market investments make a great deal of sense.. European currencies offer some stability but pay much lower fixed returns right now. The other dollars (AUD, CAD and NZD) are in the middle…a bit riskier than Europe, but less volatile than emerging. They pay more than Europe but less than emerging. These dollars make sense be added to a diversification blend.

Enhance your profit potential with a diversified portfolio of emerging currencies through a MultiCurrency Sandwich. LEARN HOW

Learn about investing in emerging currencies, gold, silver, Ecuador, import-export, overseas markets and more. Join Merri and me at our September 15-16-17, 2006 International Business and Investing Made EZ course in North Carolina. Review where to invest and do business now and learn which markets and currencies may be strong in the year ahead. Our May course was overbooked and the September session is already filling up fast. Our free accommodations are reserved on a first come first served basis so do not delay! DETAILS

Ecuador Real Estate – A Healthy Option

There was a big fuss a few weeks ago when research showed that the British are much healthier than Americans. Now the Canadians are at it. USA Today just featured an article showing that Canadian people are in much better physical shape than people in the US.

It is hard to live in the US and be healthy. There is an entire system of businesses ranging from fast food to insurance to pharmaceuticals to health systems that make huge profits by keeping Americans sick!

This is one reason why Merri and I love the freedom of being able to live anywhere. We gain health options. Ecuador for example offers many health benefits. First, costs are really low.

Second, there are many scientific health alternatives not available in the US. If you choose to use pharmaceuticals, they cost much less. One reader on his last trip to Ecuador bought three months of the prescriptions he needed. They would have cost him over $3,000 in the U.S. They cost under $500 in Ecuador.

Ecuadorian hospitals specialize in stem cells transplants. They are the first in the world to do it in the heart and have been very successful.

Merri and I prefer the natural approach to health and of course Ecuador excels in this! The nutritional habits there are wonderful as you can see below.

Natural Health Tip – Eat Quinoa

Ecuadorians are noted as the longest lived people on earth. This in part is from Andean foods and nutritional habits that began long ago.

Since ancient times Andean Yatchaks, Shamans and Curanderos have taught healthy living supported by good nutrition. They based these healthy lifestyles on three ideals; clean food, good food combinations and a correct fat, carbohydrate and protein balance.

At El Meson de las Flores in Cotacachi, The Quinoa Café, celebrates the wisdom of the past and combines it with the unity of mankind. We serve special Andean meals flavored by famous foods of the world.

The Cafe’s core bill of fare is Quinoa, often referred to as the Andean grain, a wonderful food, native to the Andes. Quinoa sustained the ancient Incas and has been grown continuously for over 5,000 years. The plant thrives in the high mountain terrain of South America’s Andes.

Quinoa has been described as the supergrain. Actually it is the SEED of a leafy plant that’s related to spinach. What makes quinoa special is that it has a very high protein content, more than any single grain. Plus unlike grain, Quinoa has the amino acid lysine, so the protein is complete. The World Health Organization ranks quinoa protein equivalent to milk. Quinoa offers more iron than grains and contains magnesium, zinc, copper, manganese, potassium, riboflavin, thiamin, B vitamins: B6, niacin, magnesium, zinc, copper. It is also a good source of folate (folic acid).

Quinoa is delicious and can be substituted for almost any other grain so we can serve up delicious meals that are well known in the world and are naturally filled with protein, vitamins and high energy from the Andes. For example there is Quinoa Amazonia (Quinoa, Coco, Tropical fruit & Macadamian Nuts), Quinoa Paella Espanol (Shrimp, Corvina, Saffron, Chives, Bell Peppers and Onions), Quinoa Italiana (Organic Ground Beef and Marinara sauce), Quinoa Tabuli Middle Eastern (Feta Cheese, Olives, Tomatoes and Mint Drizzled in Olive Oil) , Quinoa North Americana (Chili, Ground beef, Tomatoes and Peppers), Quinoa Asian (Chinese Vegetables, Egg, Spring Onion and Chicken), Quinoa Andean (Yapangachos, Choclo and Cheese and Egg) and Quinoa Curry India (Cumin, Spices, Vegetables). (See our chef below.)

A lot of stress comes from poor nutrition. Eating Quinoa offers an optional, delicious food that can enhance your rest and boost your energy and heath as well as reduce your weight without any feelings of giving up or not enjoying your food.

The most important investment we can make is in sound minds and good health! Merri and I spend weeks every year in cleansing routines and at Ayurvedic Clinics to keep our vitality high and thinking clear. We gain better health and reduce stress. Now we are bringing this opportunity to you. Vaidya K.S. Mishra is a special ayurvedic healer who comes from a long heritage of healers. He is a master healer in the eight avenues of healing.

Join us and learn from Dr. Mishra. Relax at the same time. Enjoy our cedar Japanese Ofuru soaking tub (filled with the historic mineral sacred waters). Eat Merri’s simple, healthy, home cooking. Stroll in our mountain meadows, loll by the creek. Smell the wildflowers! To enroll or for more details

Until next message, good health and wealth to you!


Here is our Chef Santiago and server Consuelo with quinoa soup and a quinoa curry. Santiago has also been making a wonderful soup with quinoa balls. Each ball has meat or cheese inside. He also makes excellent quinoa empanadas with meat and cheese fillings.

P.S. The ultimate freedom comes from the ability to earn anywhere in the world. Join us in Ecuador July 7-15 for our next Super Thinking – Super Spanish course. Learn how to learn better. Speak Spanish. Eat Quinoa. FOR MORE DETAILS