Surviving in a Predatory World

by | Apr 16, 2010 | Archives

Here are some tips for surviving in a predatory world.


Predator at Chachimbiro Spa.

This is a great place by the way… tucked in the Andes above Cotacachi.  There is a wonderful restaurant and…


naturally hot mineralized thermal waters for healing as well as play.


We’ll see more about Chachimbiro in another message.

Here let’s look at a problem because…there are predators everywhere… high and low… who will try… and to take your money.

In response to the recent message at this site warning about Ecuador politics, a reader recently wrote:

“Gary, remember that many will sell their home and use the cash which is their main asset to buy a place in a foreign country, thinking that it is a safe investment.  Their home and their social security check is most of what they have.”

How unfortunately true this fact is and the sad thing is events are rising that could destroy the value and… the purchasing power of both the… US home and Social Security.

This is one more reason to look at Ecuador as a place to retire.   Ecuador like every country has its fair share of problems, but we have to ask what is the alternative. Staying in the US?

A social contract in America has been broken.  The American way was “work hard you can earn a a lot of money.  If you do not spend all that and save and invest it instead you can build capital which will then work hard for you”.

There were those who saved and those who spent.

Unfortunately every time those who spent, spent too much and ran into trouble, the government has spent money to help them out… and have created so much debt in the process that the capital that the money of those who have saved built is going to hardly work… instead of working hard.

Matters are about to get worse.  An excerpt from a USA Today article entitled “Aid plan could lower payments on more underwater mortgages” helps us understand why.  The article says:  After months of criticism that it hasn’t done enough to prevent foreclosures, the Obama administration is announcing a plan to reduce the amount some troubled borrowers owe on their home loans.  The effort will let people who owe more on their mortgages than their properties are worth get new loans backed by the Federal Housing Administration, a government agency that insures home loans against default.  That would be funded by $14 billion from the administration’s existing $75 billion foreclosure-prevention program. In addition, the homeowner’s existing mortgage company will get incentives to lower the principal balances on underwater loans.

The plan, announced Friday, would also enable the borrowers’ existing mortgage companies to receive incentives to lower their principal balances.

That would be “enough to provide help to those for whom help is worthwhile … and to provide some kind of stability in the market.”

To help borrowers who have been hurt by falling home prices, the government also will require mortgage servicers to consider cutting a loan’s principal if it is up to 15% more than the home is worth, officials said.

The federal program, known as the Home Affordable Modification Program (HAMP), is aimed at helping up to 4 million Americans avoid foreclosure. So far, about 170,000 homeowners have been granted permanent modifications with lower monthly payments through the plan.

First, this added government spending may not help the housing industry.

House prices need to fall until an equilibrium is reached.   Time and again it has been proven that centralized planning is not as healthy as market forces in stabilizing markets.  House prices may look like they are maintained but the added government spending will add to pushing the dollar down.  So a hundred thousand dollar house will remain a hundred thousand dollar house… but a hundred thousand dollars then will buy much less.

Plus the added government spending on savings homes for those who paid more than they could afford will also likely mean… higher property tax… and less local services… poorer police… education… social services etc… so the house will be a less attractive to have and more expensive to maintain.

Plus these US economic problems are causing political instability and adding to social strife.

Excerpts from another article in yesterday’s New York Times entitled “Poll Finds Tea Party Anger Rooted in Issues of Class”
By Kate Zernike and Megan Thee-Brenan says:  Tea party supporters are wealthier and more well-educated than the general public, tend to be Republican, white, male, and married, and their strong opposition to the Obama administration is more rooted in political ideology than anxiety about their personal economic situation, according to the latest New York Times/CBS News poll.

The 18 percent of Americans who identify themselves as Tea Party supporters look like Republicans in many ways, but they hold more conservative views on a range of issues and tend to be older than Republicans generally. They are also more likely than Republicans as a whole to describe themselves as “very conservative” and President Obama as “very liberal.”

And while most Republicans say they are “dissatisfied” with Washington, Tea Party supporters are more likely to classify themselves as “angry.”

Most send their children to public schools, do not think Sarah Palin is qualified to be president, and, despite their push for smaller government, think that Social Security and Medicare are worth the cost.

Their fierce animosity toward Washington, and the president in particular, is rooted in deep pessimism about the direction of the country and the conviction that the policies of the Obama administration are disproportionately directed at helping the poor rather than the middle class or the rich.

The overwhelming majority of Tea Party supporters say Mr. Obama does not share the values most Americans live by, and that he does not understand the problems of people like themselves. More than half say the policies of the administration favor the poor, and 25 percent, compared with 11 percent of the general public, think that the administration favors blacks over whites.

Asked what they are angry about, Tea Party supporters offered three main concerns: the recent health care overhaul, government spending, and a feeling that their opinions are not represented in Washington.

The Tea Party supporters are more likely than the general public to say their personal financial situation is good or very good. But like the general public, 55 percent are concerned that someone in their household will be out of a job in the next year. And more than two-thirds say the recession has been difficult or caused hardship and major life changes. Like most Americans, they think the most pressing problem facing the country today are the economy and jobs.

In short the government spending is hurting and angering the middle class…  the spinal column of American wealth.

Older middle class people should be angry because as the reader stated above “Their home and their social security check is most of what they have.”

As government deficits and debt fuel inflation those who will be hurt most are middle class who have just a home and social security. Costs will rise and the purchasing power of their social security will fall.

There are just a few things we can do.

#1: Learn ways to earn additional income with our own small business.

#2: Invest better.

#3: Move to a place where the cost of living is lower and Social Security will still have an impact.

Our websites are focused on sharing ideas to help readers achieve these goals.

See one way to figure out how to live better in a predatory world here.

Cotacachi fractals


Join us in North Carolina this June 24 to 27 to learn more about Quantum Wealth. June 24-27 Quantum Wealth and International Investing and Business North Carolina

Our North Carolina courses in 2010 will be conducted in the new…

ecuador-wine and cheese

West Jefferson Hampton Inn.

ecuador-wine and cheese

Just opening this June 2009 with very nice rooms and…

ecuador-wine and cheese

really great…

ecuador-wine and cheese


ecuador-wine and cheese

During this course we’ll enjoy an organic  wine tasting at the New River Winery. Here are delegates at a previous wine tasting.


We’ll also have an informal afternoon tea at our summer home in the mountains. Here are delegates at our house with Lucy our Appaloosa.


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


Merri, Shaman apprentice Don Alphonso with Jean Marie Butterlin who will conduct our May Super Thinking + Spanish and Shamanic courses.

May  13-14    Ecuador Shamanic Minga


You can also enjoy a May or June real estate course and save on multiple tours.

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

June 30-Jul 1 Imbabura Real Estate Tour

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

Mother’s Day roses in Ecuador.


Read Aid plan could lower payments on more underwater mortgages


Poll Finds Tea Party Anger Rooted in Issues of Class