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.
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.
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 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.
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 Ecuador Export
For Quito & Mindo
You gain discounts by attending multiple seminars and tours.
Here are our multi tour adventure discounts.
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.
Join us in February or March.
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!
International Club 2010 Membership Enroll here