A Yen for Innovation

by | Apr 10, 2010 | Archives

Recent messages have looked at the idea of borrowing Japanese yen to invest in Euro and or Chinese yuan or other currencies that pay a higher return than the yen loan.

There is a link below about important Ecuador tax information and the IRS, but first… see a Borrow Low breakthrough.


I hung this Japanese art in our bedroom to continually remind me that there is always a currency wave breaking somewhere. See why there may be a currency tsunami in China and Japan now.

The recent messages about borrowing Japanese yen to invest in Euro and or Chinese yuan focus on the importance of long term planning when you make investments of this type, but sometimes we  get a break… or are lucky…. as now may be the case.  An except from yesterday’s New York Times article “China Seems Set to Loosen Hold on Its Currency” by Keith Bradsher explains why:   HONG KONG — The Chinese government is preparing to announce in the coming days that it will allow its currency to strengthen slightly and vary more from day to day, people with knowledge of the emerging consensus in Beijing said on Thursday. The move would help ease tension with the Obama administration about the United States’ huge trade deficit with China.

The move is being made for domestic policy reasons in China, primarily as an inflation-fighting tool, people with knowledge of the emerging consensus in Beijing said on Thursday. While any announcement could still be delayed, China’s central bank appears to have prevailed with its arguments within the Chinese leadership for a stronger but more flexible currency, these people said.

A stronger renminbi could prove to be a mixed blessing for the United States. If China cuts back sharply on purchases of Treasuries, then the Obama administration could find it harder to finance American budget deficits.

But with the Chinese economy booming, a small move in the renminbi may still leave the central bank struggling with trade surpluses and a tide of speculative investment into China. That could force it to continue buying Treasuries with the extra dollars.

In 2005, China allowed the renminbi to jump 2 percent overnight against the dollar and then trade in a wider daily range, with a trend toward further strengthening against the dollar. For its coming policy shift, China may follow a similar pattern, but officials may emphasize much more in public remarks that the value of the renminbi can fall as well as rise on any given day. That would help discourage a flood of speculative money into China from investors betting on rapid further appreciation in the currency, said people with knowledge of the emerging consensus in Beijing.“Whether to let the yuan slowly appreciate or let it rise to a tolerable range after careful calculation, I think it is better to have that quick, prompt appreciation,” he said, according to news service reports.  Mr. Xia later added that, “At a certain point, when necessary, it is better to have a quick, prompt appreciation in a bid to fend off speculative capital.”

A quick prompt appreciation versus the US dollar is likely to lead to two currency events.

First the yuan (renminbi) will also rise versus the Japanese yen.

Second the yuan appreciation will create a positive spin for the US dollar because it  suggest this will help American exports… so the US dollar may rtise versus the yen.

In both cases… if they come to fruition… anyone with borrowed yen invested in yuan or US dollars will enjoy a quick forex profit.

However do not forget… the borrow low deposit high strategy can dramatically increase profits… but leverage also increases risk.  This is why the warning… never speculate more than you can afford to lose… is so important.

Yen loans of the past have created considerable added opportunity when the yen was in a position of strength as it is now.

However we must also maintain respect for the industriousness of the Japanese.  Like Americans… they are innovative people. Innovation can create increased productivity which can help strengthen a currency and create pleasant surprises in Japan.

Pleasant surprises in the Japanese economy can be bad news for yen borrowers!

This excerpt from a recent Economist article “Patents are a virtue which countries file for most international patents?” shows wy the eyn loan should be entered with caution.

THE number of applications for international patents fell by 4.5% in 2009 compared with the year before to 159,000 as companies in Western countries cut back on R&D spending during the recession. Yet applications from east Asian economies, including Japan and South Korea, increased slightly, while those from China soared by 30%. Since 2005 applications from China have grown by 210% as the country has developed a home-grown high-tech sector. But, reflecting America’s economic power and corporate dynamism, the United States is still the country from which the most filings orginate, and it has a huge lead. However, the number of American applications has fallen substantially from a peak of 54,000 in 2007.


This chart form the article shows ow innovative the Japanese are.

Another article at Japaneconomynews.com “Economist Intelligence Unit: Japan the Most Innovative Country in the World”
by Ken Worsley says:  In a study released this week, the Economist Intelligence Unit ranked 82 economies based on their levels of innovation from 2002 to 2006 and predicted how the rankings might change from this year to 2011. Japan came out on top of the rankings, followed by Switzerland and the United States.  Japan was credited as having an ‘innovate-or-die’ approach that helped it reach the top of the list, despite ranking low in the index measuring environmental factors conducive to innovation.

The message for governments is that there is no substitute for good education, nor for policies that encourage investment in IT and communications infrastructure. For companies, the process of renewal should, if anything, be accelerated. The proportion of total sales from new products and services needs to increase. The top three nations are not expected to change their positions before 2011.

Despite Japan’s innovation, a yen loan to invest in other currencies still makes sense. The yen currently looks like a perfect currency to borrow… overvalued and with a low interest rate.

Plus there are two other short terms pushes (beyond0 the appreciating Chinese yuan  that may help borrowers make a quick profit right now.

First the euro has been undervalued because of panic over Greek debt, but the market is now becoming confident that the euro will not become unglued.

Second there has been plenty of bad Japanese news at Toyota. This could help create yen nerves in the minds of investors.

Investors previously worried about Europe may switch their concerns to Japan.  The result… a stampede out of the yen into the euro and… a sudden extra profit for those who have borrowed yen and invested in euro.

This has already happened!

However these little short term benefits are not the reason to make this multi currency sandwich.

The multi currency sandwich is a long term investment based on positive carry. the purpose of the sandwich is extra income.  Forex profit s an extra bonus one hopes for. Forex loss is the main risk.  The low lending rate on the yen and god returns elsewhere are the main reason for this en euro sandwich now.

The yen loan position looks so strong to me now that I am updating my report “Borrow Low – Deposit High”.  Our emailed Borrow Low-Deposit High report can help you learn how to expand your profits with up to 400% loans just as our reports have helped thousands of readers do over the past twenty years.

You can learn why this profit is available in my new updated “Borrow Low-Deposit High–How to Use the Multi Currency Investment Sandwich” emailed report. This email report explains everything you need to know about how to create and invest in the Multi Currency Investment Sandwich.  (See details below.)

Tens of thousands of readers have purchased this report, and several updates, since it was first published in the 1980s. You however can have the most up to date edition at a $30 savings.

I am updating Borrow Low-Deposit High now. When the new update is complete it will be offered at $79.

This report will include ideas on were to invest in China and Russia (both neighbors of Japan)  now.

You do not have to wait and miss this yen opportunity, buy our report “Borrow Low-Deposit High” for $49.  I will email it to you immediately… plus when the new update is complete, I’ll email that to you also… FREE.

The report helps you see why and where to invest and learn why and how currencies and interest rates rise and or fall.

Finally, as always you are protected by our 30 day completely satisfied or your money back guarantee.

Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich… click here to get this emailed report for only $49.

This is also why we maintain close contact with Jyske Bank, Denmark’s second largest bank. Denmark is rated by Standard & Poor’s as the safest country in the world to bank in. Jyske Bank is the only bank we know that specializes in the Borrow Low Deposit High strategy. Jyske Bank is also one of the leading currency traders in the world. Unlike most banks (that trade only eight hours a day) Jyske maintains a 24 hour trading service. They have been our bank for over twenty years and help us stay informed about global equity markets, plus global currency parity and interest rate trends so we can learn from portfolios that are real time. What you learn from is actually happening as our service unfolds.

More importantly Jyske Bank  has created an entire subsidiary that provides a stable and safe institution for US investors  who wish to invest globally including a Borrow Low-Deposit High strategy.


Save $100 more. There is another important benefit you gain when you order my emailed report “Borrow Low-Deposit High”.  You can save $100 at the next Jyske seminar where I review the new H.I.R.E. overseas banking regulations.

Share strategies with me in California and Save.

I speak at the Jyske Global Asset Management’s April 30 – May 2 Foreign Exchange Investment Seminar in Laguna Beach, California.

The normal seminar fee is$499 or $750 for two.

However Jyske is providing the same discount to our premium subscribers (including those who order Borrow Low – Deposit High) as to their clients… $399 single and $599 for a couple.  You save $100…even though the emailed report “Borrow Low Deposit High” is only $49.

Order “Borrow Low-Deposit High – How to Use the Multi Currency Investment Sandwich”… click here to get this emailed report for only $49. Save $100 on JGAM’s California seminar.

See more on the JGAM California seminar here.

If you have questions about Jyske’s seminars contact Thomas Fischer of JGAM at fischer@jgam.com

Learn more about the IRS and Mother’s Day roses in Ecuador.


Join us in North Carolina this June to learn more about how to bank abroad. June 24-27 International Investing and Business North Carolina


See how to own the view above with these sunsets.


See how one person can earn $540,000 or more on an Ecuador beach view investment now.

Our Ecuador exports tour is filled but you can still learn about Ecuador real estate.

Apr. 17-18   Imbabura Real Estate Tour ($499 or couple $749)
Apr. 20-21  Coastal Mid Coast Real Estate Tour ($499 or couple $749)
Apr. 23-24  Quito & Mindo Real Estate Tour ($499 or couple $749)

April 26-27 Cuenca Real Estate Tour

May 9-12       Super Thinking + Spanish Course, Cotacachi Ecuador

May  13-14    Ecuador Shamanic Minga

May  16-17    Imbabura Real Estate Tour

May  19-20    Coastal Real Estate Tour

May  22-23    Quito Real Estate Tour

May  25-26    Cuenca Real Estate Tour

You enjoy discounts by attending multiple seminars and tours.

Here are our multi tour adventure discounts.

Two Pack… 2 seminar courses & tours $998 Couple  $1,349 Save $149 on couple

Three Pack… 3 seminar courses & tours   $1399 Couple  $1,899 Save $98 single or $348 on a couple or more

Four Pack… 4 seminar courses & tours   $1,699 Couple $2,299 Save $98 single or $697 on a couple or more

Five Pack… 5 seminar courses & tours  $1,999 Couple $2,699 Save $496 single or $1,046 on a couple or more

Six Pack… 6 seminars courses & tours  $2,199 Couple $3,099 Save $795 single or $1,395 on a couple or more

Here is the balance of our 2010 schedule.

June 24-27 International Investing and Business North Carolina

June 28-29    Ecuador Travel & Andes

June 30-Jul 1 Imbabura Real Estate Tour

2010 Summer Schedule

July 3-4      Coastal Real Estate Tour
July 6-7      Quito Real Estate Tour
July 9-10     Cuenca Real Estate Tour

Sept.   3-6   Ecuador Export Tour
Sept.   8-9   Imbabura Real Estate Tour
Sept. 11-12   Coastal Real Estate Tour
Sept. 14-15   Cuenca Real Estate Tour
Sept. 17-18   Ecuador Shamanic Mingo

Oct.    7     Quantum Wealth North Carolina
Oct.   8-10   International Investing & Business North Carolina
Oct.   11-12  Travel to Quito and Andean Tour
Oct.  13-14   Imbabura Real Estate Tour
Oct.  16-17   Coastal Real Estate Tour
Oct.  19-20   Quito Real Estate Tour
Oct. 22-23    Cuenca Real Estate Tour

Nov.    4-7   Super Thinking + Spanish Course Florida
Nov.    8-9   Travel to Quito and Andean Tour
Nov. 10-11    Imbabura Real Estate Tour
Nov. 13-14    Coastal Real Estate Tour
Nov. 16-17    Quito Real Estate
Nov. 19-20    Cuenca Real Estate Tour

Dec.   3-5    Ecuador Shamanic Mingo
Dec.   7-8    Imbabura Real Estate Tour
Dec.  10-11   Coastal Real Estate Tour
Dec. 13-14    Quito Real Estate Tour
Dec. 16-17    Cuenca Real Estate Tour

Read “Patents are a virtue


Economist Intelligence Unit: Japan the Most Innovative Country in the World


China Seems Set to Loosen Hold on Its Currency