International Investments – Eating Inflation

by | Jun 11, 2006 | Archives

* International Investments – If the Dollar Falls
* Natural Health Tip – Eating Inflation
* Ecuador Real Estate – Your own Business Fights Inflation

A reader recently sent this note about the falling US dollar.

“Dear Gary, PIMCO, the largest bond fund, believes the magnitude of the U.S. currency’s downtrend is “as great as 20-25 percent, and perhaps greater than that” and is starting to adjust its portfolios accordingly. Warm regards, Craig”

I took a look at the article and it says: “NEW YORK (Reuters) – PIMCO, the world’s leading bond management fund, said it has raised currency exposure in its bond portfolio amid expectations that the dollar is about to embark on a large-scale downtrend. In a report released Thursday, William Powers, managing director of PIMCO’s portfolio management and investment strategy groups, said the bond management firm has increased its currency exposure to 5 percent from 3 percent.

”The fund was constrained to limit its currency exposure to 3 percent in the past because of volatility in the currency market. Today with the likelihood that the dollar is about to embark on its next downward leg, PIMCO’s Investment Committee has increased the tolerance for currency exposures,” said Powers.

PIMCO will also maintain a diversified portfolio to include the yen, euro, and emerging market currencies. Overall, Powers has a bearish outlook on the dollar, saying the magnitude of the U.S. currency’s downtrend is ‘as great as 20-25 percent’, and perhaps greater than that.”

Read the entire article at

This is the second credible source (an OECD report suggests that the dollar could fall even 50%) that believes a catastrophic loss of the dollar’s parity could occur. Recent messages have been looking at other currencies so we can know where to go. But we have not answered the question, what does the dollar’s loss really mean?

First, it means that goods from overseas will cost more. I recall clearly my college days (about 1965) when my friend Randy got married and sold his sporty Jag XK-150 to buy a Toyota sedan. He paid something like $1,200 (perhaps $1,800) for this brand new car. We laughed at him because Japanese cars were considered junk then. Now Toyota and Hondas cost so much to produce in Japan that US plants have been built for their manufacture.

Cars are very different now, but, had nothing changed that car that was $1,200 then would be $4,800 now..just because of currency depreciation of the dollar to the yen that created inflation in the US. The yen was over 400 yen per dollar then (in the 60s) and is about 110 yen per dollar now.

Second, it means that trips abroad will cost a lot more. If the dollar drops 25% to the euro, a hotel in Paris that costs $199 a night now, the price will be about $299 a night, if nothing else changes. Oil prices are likely to keep climbing so this also means that the air fare to get to Paris will be 10 to 15% higher as well.

Third, prices for everything will soar. The rising costs of imports (upon which we so greatly depend) will rise. This will filter through the entire US economic system. Take Walmart as just one example. Business Week’s Oct. 6 cover story outlined how Walmart’s $12 billion in imports from China last year accounted for a tenth of total U.S. Chinese imports. If the dollar drops 25% against the Chinese yuan, the cost of all those imports will rise about 25%. US workers will need higher wages to compensate for this. Businesses will need to charge more for their products to pay for the higher labor costs, etc.

Finally, one thing we can be sure of: some people will become richer in relative terms (because they jumped into inflation fighting investments). Tomorrow we will see what some of these inflation fighting investments are.

Learn more about fighting inflation by investing in emerging currencies, gold, silver, Ecuador, import-export, overseas markets and more. Join Merri, Thomas Fischer from Copenhagen and Steve from Ecuador and me at our next 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. Learn more about Ecuador import and export from Steve. Our May course was overbooked and the September up date is coming along. Our free accommodations are reserved on a first come first served basis so do not delay! Go to

Natural Health Tip – Eating Inflation

One way to fight inflation by the way is also good for your health. This is to simply eat more simply and eat less.

Good nutrition is a vital part of good health. But what nutritionally is right?

Having lived around the globe, I have learned so many schools of thought on nutrition (starting with McDonald’s my primary food provider when in high school and I’m still paying for that bad habit) to shamanic Andean nutritional routines., that my head spins when I think about it. Plus Merri and I are enrolled in a doctorate degree program (not for the degree but the knowledge) on holistic nutrition.

Program for Health

The problem is, the more one reads, the more the experts seem to contradict themselves! Some say eat raw, others only cooked. Some say something is good others bad and the list of conflicts goes on and on.

Many of them are right, but the crunch is they are only right part of the time, or in some instances or only if an entire program is followed. And of course, most of them don’t take into account body types, which for us is of utmost importance.

Merri’s and my program for health falls into three categories-nutrition, exercise, consciousness and purification. The three parts are so intertwined that one cannot look at any one of them totally alone.

These categories wrap around themselves in every material and consciousness aspect of health. For example, what we watch on TV is a consciousness aspect of nutrition. Our entire being has to digest what we watch, see and hear. So what we see is a type of nutrition. What we see, hear, smell, feel and taste as we eat (and even before a meal) also impacts the digestion of food. Digestion works with every sense and affects the nutrition we receive.

So let’s look today at one of the simple rules of nutrition that almost all the systems I have blundered across agree on.

Rule #1 is the Secret of Aging. Do not eat too much!

This sounds so simple but the fact is almost every diet book in the world tiptoes around this simple fact. Many claim you can eat as much as you want on a diet. Rubbish. The only way that scientific research has ever shown to live a longer life is by cutting back calories.

Biologist Siegfried Hekimi learned how to lengthen the average lifespan of tiny transparent worms from 15 to 20 days (the equivalent of increasing a human lifespan from 75 to 100) and confirmed what many scientific studies have found. There is a link between metabolism and lifespan. Eating less can slow the metabolism down.

Our Andean shaman stressed this fact in many ways. I once asked him his most important rule for nutrition. “Eat only on an empty stomach,” was his reply.

This is hard to do if you eat too much. Your blood sugar rockets (from all the food). This causes your adrenalin to kick in to keep the blood sugar in balance. This causes the blood sugar to plummet. This makes you hungry way before the body has had a chance to digest its meal.

There are more reasons. The body is very adept at confirming to our circumstances by creating habits. We eat a lot and the stomach is stretched. The body worries about this and grows the stomach. The bigger stomach instills the habit for more food to fill it. Habits are hard to break except because we are subject to the law of diminishing returns, we want to eat more and more and more.

That’s a universal rule. Let’s look at some specifics. The Andean nutritional system keeps a good fat, protein carbohydrate balance. The Andeans

also do not mix sweet with salt. They avoid fermented foods and divide foods into three group: sweet, savory and neutral. You can mix sweet and neutral or salt and neutral but not sweet and savory.

Melon and pineapple are only eaten alone. The Shamanic way is to have light sweet meals morning and evening and full savory meal at noon.

Since we are about to have our ayurvedic cleansing course here this weekend, let’s look at some specific nutritional rules from ayurved.

Onions and garlic are avoided. Ayurved avoids the nightshade family (potato, tomato, eggplant, bell pepper). Ayurved does not allow soy products or derivatives or soy anything.

The big ayurvedic meal of the day is also at noon.

Good foods eaten often include small green Thai chilis, and ginger, lots of it. Mangos and asparagus are very popular. The food is rich with flavors.

They cook with masala, (other words know as curry powder) but not the stuff you buy in the store. A ayurvedic masala would included real organic turmeric and various other spices.

Ayurved uses lots of raw milk (boiled) and ghee (clarified butter) plus berries of all types: blackberries, blueberries, raspberries, strawberries.

Join us for our summer health special. A clean body and clear mind are the most valuable inflation fighters we can enjoy. You do not want to be caught with growing medical costs during times of inflation. These costs can ruin your financial affairs. This is why Merri and I spend weeks in health routines. They dramatically improve our health and increase our energy.

We had such success with Dr. Mishra’s weekend health course that we asked Dr. Terry Hambrick to condense his one week August course to a long weekend instead. Terry’s course promises to be special because it will focus on balancing your pH balance while you are here and then show you how to keep it balanced! Balancing pH on a regular basis is vital because it is a really easy way to monitor our health and to optimize our health on a daily basis. Your pH balance is an index of the total health of the body. When the pH is too high or too low, it can lead to disease. At the course, you’ll learn about the life force energy that is the ultimate “balancing factor” of the body and how a balanced pH has far-reaching consequences on mental, emotional and spiritual health. To enroll or for more details contact Merri at

Join us and enjoy the summer flowers. Here I am on Little Horse Creek picking Bee Balm (Bergemot, the red flower on the lower right of the picture). This makes a wonderful and healthy tea you will experience with us in the summer!

You can enjoy country comfortable clothes and old comfortable shoes…jackets, sweaters and jeans, on cool, nights and brisk mornings in the Blue Ridge Mountains. We have clear blue skies and starry, starry nights! If you would like to enjoy our cedar Japanese Ofuru soaking tub (filled with the historic mineral sacred waters), you can bring a bathing suit. We mainly serve simple, healthy, home cooking. To enroll or for more details about Little Horse Creek contact

Ecuador Real Estate – Your own Business Fights Inflation

One reason Merri and I have a business in Ecuador is to fight inflation. There are three fundamentals that help a lot.

First, Ecuador is inexpensive to begin and is situated to benefit from rising US prices. A falling US dollar will make Ecuador’s products more competitive because Ecuador uses the dollar as its currency. Rising oil prices will help Ecuador because it is oil rich. Rising food prices will help this agriculturally rich country as well.

Second, technology makes Ecuador so much more accessible and makes our business so much easier and less expensive to start.

A reader recently told me that they asked the question, “How many volcanoes does Ecuador have” at Google and the website ( was ranked number 2! The internet makes iit easy and inexpensoive to run a business from Ecuador!

This also allows us to turn our passion into profit. We love the people and their sweet and caring nature. Our readers who go there often agree. One reader who lived the last month at El Meson de las Flores just wrote this to our man in Ecuador, Steve.

“I miss you all and I must say, I have never met a more friendly and kind staff in any hotel around the world during all my travels. What a superb group of people! I LOVE EVERYONE OF THEM! And you have been so kind also. You are such a gentleman and you made me feel recognized.”

There is also exquisite beauty and real estate prices are still low also. There are some bargains located along San Pablo Lake just a few miles from El Meson de las Flores. Here is another picture of the lake below taken by Steve.

Join us for our Super Thinking – Super Spanish course. Enjoy Ecuador and the sun! See real estate for sale. Inspect the great markets as you learn how to learn better and also speak Spanish. For details go to

Until next message good natural health, wealth and international investments!


P.S. We’ll look at real estate for sale one day during the Spanish course as you learn the ins and outs of “Se Vende.”