Beating the Multi Currency Debt

by | Jun 15, 2009 | Archives

Beating the multi currency debt in the era ahead will be one of the most important financial tasks you have.

This is the fifth message in this series on Ecuador and business opportunity.See the first message at Ecuador organic cheese and wine. The second article in the series is at Ecuador organic wine and cheese II and Ecuador wine & Cheese III and Internet business ideas.

We are in Cotacachi conducting our Shamanic Mingo tour.  Here is the group visiting the Shamana of Zuleta.


The shamana.


These shamanic tours are important because they look at how to alter one’s lifestyle… eat and exercise better… reduce stress and have better health naturally. This is important as I explain in this serious… though I hope light hearted warning.

This series began with this point:

We are enjoying a quantum shift and the way we work, live, invest and do business will never be as before.

Governments globally are trying to slow this needed economic transition and their stimulation efforts will most likely cause the loss of purchasing power in most currencies… global inflation.

The best ways to gain opportunity in this scenario is to own real estate, commodities, stocks and your own business.

The greatest asset we can have in the economic era ahead is an ability to serve… to produce a product or service that adapts to the new ways.

As this series was being written a USA Today article by Dennis Cauchon entitled “Leap in U.S. debt hits taxpayers with 12% more red ink” appeared that underscored perfectly what this series is about.

The old order is done.  Here is an excerpt from this article that explains why:

Taxpayers are on the hook for an extra $55,000 a household to cover rising federal commitments made just in the past year for retirement benefits, the national debt and other government promises, a USA TODAY analysis shows.

I showed these charts in yesterday’s message but am repeating them because they are of such importance.


The 12% rise in red ink in 2008 stems from an explosion of federal borrowing during the recession, plus an aging population driving up the costs of Medicare and Social Security.

That’s the biggest leap in the long-term burden on taxpayers since a Medicare prescription drug benefit was added in 2003.

USA TODAY used federal data to compute all government liabilities, from Treasury bonds to Medicare to military pensions.

Bottom line: The government took on $6.8 trillion in new obligations in 2008, pushing the total owed to a record $63.8 trillion.

Here is the crunch… in the past it was easy to profit from the overspending by Uncle Sam.  All one had to do was invest in ther currencies for the long term. The chart from come shows how in the 41 years I have been working and investing abroad, the US dollar has fallen versus the Japanese yen, Swiss franc and other major currencies.


The problem is that about 20 years ago other governments caught on!  Now Japan, Germany, England and many other matured countries have huge amounts of debt and large deficits and aging populations as well.

This means that many currencies will lose purchasing power and create rising, global inflation.

One way to combat this is to move to countries with lower costs, younger populations and less social obligation. 

This is why living in Ecuador makes sense.

However the move to a lower cost base country alone may not be enough.

I reiterate.

The greatest asset we can have in the economic era ahead is an ability to serve… to produce a product or service that adapts to the new ways.

Merri and I look forward to sharing how we do this in the years ahead with you.


Here is a shot taken by a delegates of Merri and me at one of our International business and Investing courses as we headed to our seminar center in the Blue Ridge.


Learn how to enroll in our emailed internet business course here.

Join us at an upcoming July and October North Carolina seminars. We have invited our  web master to speak on the future of  internet business and will have extended sessions on how to develop an internet business.

Learn more about these July 24-26  and Oct. 9-11 courses at IBEZ North Carolina

You can read the entire article “Leap in U.S. debt hits taxpayers with 12% more red ink” at