Free Mercedes?

by | Nov 8, 2012 | Archives

What if I offered you a free Mercedes Benz?

You would probably say YES… but would be thinking… “What’s the catch?”  That’s good because we all know there is no such thing as a free lunch… much less a free new car.

Would an answer be harder if instead there was a choice… a FREE Mercedes or $4 million bucks (as in US dollars)?

Most would choose the cash.  Yet of course we would still be expecting a catch.  There is a penny to drop… some risk and the need to ignore the thundering herd and an absolute requirement of discipline.

The US election is over… but not in the minds of almost half the American voters… who lost.    The US as the economic engine that has been pulling the world is a nation divided and the administration for the next four years… good or bad… has huge challenges and pitfalls ahead.

The view of the election results in markets around the world was dim.  US Stocks plunged and the Dow had its worst day of the year.  Other north and South American markets finished sharply lower.

Euro markets dropped because the German economy is slowing and tens of thousands at Greek rallies against austerity turned violent.  Protesters in Athens threw Molotov cocktails at the Parliament and police fought back with tear gas outside.  World markets slid on a weak growth outlook.


However, all this bad news can be good for those who are prepared! Let me share a true story about how and why an investor in similar circumstances got the Mercedes and had the $4 million… but then lost it.

The story contains three valuable tips… explaining the FREE car plus how the millions were gained and lost.

Here is the true story… a tale of politics, economics and US debt.

Once upon a time 1981 to be exact… similar circumstances to the current economic and political mess arose across the land.    The story began with unemployment.   In 1981… the US Presidential election was over,  the US economy was crashing and the a new government and president were turning on a money printing machine.

This was a dark and gloomy time… those early 1980s.  Really.   That was the worst recession since the great depression.

You often hear we are living now through the worst recession since the great depression.  This is statistically wrong.

The U.S. economy may seem in bad shape now, but 1982 was worse.

The economy is not as bad as it was after the 1980 election.  It’s not even that close to being as bad. The ranks of unemployed and underemployed were much larger in 1982 than today.

The first big blow to the economy back then was the 1979 revolution in Iran. That glitch sent oil prices skyrocketing.   The bigger blow was a series of sharp interest-rate increases by the Federal Reserve, meant to snap inflation.  Home sales plummeted.  At their worst, they were 30 percent lower than they were when the real estate market bottomed in 2011.  The industrial Midwest was hardest hit, and the term “Rust Belt” became ubiquitous.  Many families fled south and west, helping to create the modern Sun Belt.

Nationwide, the unemployment rate rose above 10% in 1982, compared with 7.9% now.

The times were much darker.  In October 2012 another 6.7 percent of the labor force can be added to the current 7.9%. This group has given up trying to find a job or are involuntarily working part time.  These groups bring the combined underutilized employment rate to 14.6%.

As bad as this number is, it is still not that close to the 1982 peak of 16.32%  (or anywhere near Depression levels, which were probably above 30 percent). The early ’80s really were that bad.

This story begins at the end of the 1980 Presidential election when the US economy was at its worst in 50 years and getting worse.

Debt Growing

There is another similarity in the 1980 story to the here and now… a runaway US debt.

As this chart below shows, the US debt debacle really began after that 1980 election.


Click on photo to enlarge.  Debt by President graph at

Now the story begins.  The stock market began a 17 year bull cycle that led to the greatest US and global affluence known to the recorded history of mankind.

The chart below says it all.    From that darkest hour, the Dow Jones Industrial average rose 1,410%.

Dow Charts

These stock market bull and bear cycles are based on cycles of human interaction, war,  technology and productivity.

Our hero in the story saw the coming stock market boom… despite the fact that everyone thought everything was bleak and black.   He approached Jyske Bank and said he wanted to invest in the stock market and wanted to leverage his bets.

His goal was to make enough to buy a brand new Mercedes Benz.

He opened the account and bought shares. He used those shares as collateral to leverage these investments with borrowed Japanese yen.

His timing was lucky.  The stock market rose quickly.   The Japanese yen collapsed.  His profits shot past his goal to buy the car.

The Fever

Bubble fever had set in so when the hero’s investment manager called with that great news… “You have enough for your new Mercedes“, the investor changed his mind.   “Let it roll,“… the investor said.  “I want to make a million instead”.

The investment manager left the portfolio alone and soon the investor’s profit rocketed past 1 million dollars.

The investment manger called.  “You have made a million bucks… perhaps we should take some profits.

Let it roll,“… the investor said. “I have decided to make two million instead.”

The investment manager left the portfolio alone and soon the investor’s profit rocketed past 2 million dollars.

The investment manger called.  “You have made two million bucks… perhaps we should take some profits.

Let it roll,“… the investor said. “I have decided to make three million instead.”

The investment manager left the portfolio alone and soon the investor’s profit rocketed past 3 million dollars.

The investment manger called.  “You have made three million bucks… really we should take some profits.

Let it roll,“… the investor said. “I have decided to make four million.”

As the portfolio was nearing four million in value the investment manger called.  “You have made almost four million bucks… perhaps we should take some profits.

Let it roll,“… the investor said. “I have decided to make four million and enough for a Mercedes.”

Shortly after the stock market corrected and the yen strengthened.   Profits fell so quickly the investor lost a million almost overnight.

The investment manager called.  “You have lost  a million bucks… we had better take the profits.

Hold,“… the investor said. “The market will come back”.

The stock market fell more and the yen grew stronger.  The profits fell even faster and the investor lost another million.

The investment manager called again.  “You have lost  another  million bucks… it’s time to take your profits.

Hold,“… the investor said. “The market will come back”.

The stock market continued to plummet and the yen rose more.  The investor lost another million.

The investment manger called.  “You have lost  three million bucks now…  You really should take the profits left.

Hold,“… the investor said. “The market will come back”.

Finally as the market plunged more and profits faded away… the investor, having lost more than 3.5 million, closed his positions and had just enough profit left to buy his new car.

The Mercedez was black and shiny… a big 500 SEL model… king of the road.   The hero never enjoyed it much.

The morals of the story

#1: If you get into the market at the beginning of a long term bull… you can make a lot of money… quickly.

#2: When you leverage the investments with low interest leverage the profits come even faster.

#3:  When you leverage investments… you need a plan AND a discipline.

This is why I want to introduce you to our Multi Currency Portfolios Report entitled “Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich”.

This is a report that can help anyone with even a few thousand dollars to invest (or millions) diversify globally for safety and long term success.

The economic explanation below follows global multi currency and market positions from 2006 through to the earthquake and tsunami in Japan so you can see how multi currency investing should flow.

This will help you learn how to protect and enhance your savings and wealth as the US dollar and stock markets rise and fall.

The US dollar has fallen… badly against major currencies like the yen, euro and Swiss franc for 41 years.

For example here is the long term, steady appreciation of the Japanese yen versus the US dollar.


Click on photo to enlarge.

Three Opportunities of  Which We Can be Sure.

First, The US dollar will fall more…much more as stock markets in the USA and globally enter their next bull phase.

Second, there will be confusion. Many…in fact most uninformed investors will lose…a lot.

Third,  there will be inflation…worldwide due to the excessive spending in the current global financial bailout.

Smart investors who know how to spot value in multi currency portfolios at some of the world’s safest banks have already earned 57%…120% …263% so even with the doom and gloom, they are still ahead.

Borrow Low-Deposit High helps you learn how to find good value and develop multi currency portfolios that suit specific circumstances.

Before I explain how you can use this report, let’s look at both the up and down side of these high performing portfolios.

The report provides an extensive beginner’s guide to developing multi currency portfolios backed up by our decades of experience working with Jyske Bank and its investment management subsidiaries to create and track multi currency portfolios real time.  The report data comes from dissecting and discussing the portfolio results.  This is a totally novel way to learn…real time from real portfolios created by some of the best investment managers in the world as these portfolios rise or fall in the market place…in the here and now.

Jyske Bank assists by providing portfolio details.   Our symbiotic relationship allows me to combine my experience with this bank’s incredible knowledge, real time capability and expertise so reader of my report can learn in a most practical way from some of the greatest multi currency experts in the world.

Here is our educational performance over the past six years.

We created five portfolios for educational purposes beginning in 2006.  One of the five multi currency portfolios was the Asian Emerging Multi Currency Portfolio. The portfolio started with a $100,000 investment and a $200,000 loan in Japanese yen (more on the loans in a moment).

This gave us $300,000 to invest in this portfolio.

75,000RupeeJyske Invest Indian Equity Mutual Fund
75,000YuanJyske Invest Chinese Equity Mutual Fund
75,000YenJyske Invest Japanese Equity Mutual Fund
75,000MultipleJyske Invest Emerging Market Bond Fund

Investments Total Value $300,000.

Invested $100,000

Loan $200,000 100.00% JPY at 1.63%

Loan cost for one year $3,260.

This portfolio diversified into bonds and equities throughout Asia ..very multi currency.

Chinese yuan, Indian rupee, Japanese yen and more.

Twelve months later the portfolio was worth $417,420. Paying off the loan cost $203,260 leaving $214,160 or $114,160 (114.16% profit) on the $100,000 originally invested.

On November 1, 2006 we made the five changes mentioned above.  We dropped the Japanese equities and emerging market bond mutual funds and added an Eastern European, Far Eastern and Turkey equity mutual funds. This is how the rearranged portfolio stood.

75,000RupeeJyske Invest Indian Equity Mutual Fund
75,000YuanJyske Invest Chinese Equity Mutual Fund
75,000EURJyske Invest Eastern European Equities
50,000AsianJyske Invest Far Eastern Equities
25,000LiraJyske Invest Turkish Equities

Investments Total Value $300,000.

Invested $100,000.

Loan $200,000 100.00% Czech Koruna at 3.875%

Loan cost for one year $7,750.

As promised this portfolio only had five changes. We swapped the Japanese equity fund for a Eastern European equity fund and dropped the bond fund replacing it with a Far Eastern and Turkey equity fund.

May I, at this point, interject a note about Jyske Invest fund managers. They are a Danish firm and are the investment management affiliate of Jyske Bank. This rock solid organization uses a good value system and have been rated #1 by Morningstar. They use this value system to select shares in their mutual funds.  We place these funds in our multi currency portfolios because they are strictly regulated by the Danish government and have such an excellent record…because they focus on finding value, not market timing.

So how did this new updated portfolio do? From November 1, 2006 to October 31, 2007 the fund rose in value from $300,000 to $430,370. The loan payoff of $207,750 leaves a profit of $222,620 or a rise of 122.62%.

There you have it, a portfolio created at and held in one of the world’s safest banks. With only three trades in two years the performance has been up 114.16% in year one and up 122.62% in year two.

I am sure that when looking at performance like that you are thinking “How did the other portfolios do?” Good question and your suspicions are correct…some of the other portfolios did not rise this much.

Yet believe it or not some portfolios did even better.

For example, the 2007 Green Portfolio consisted of six shares and rose 266.30%!

Here is the exact performance of all five portfolios for the last two years.

2006 Portfolio
US Dollar Long9.04%
US Dollar Short10.43%
US Dollar Hedge11.46%
Emerging Market42.93%
Asia Emerging Market114.16%
2007 Portfolios
Dollar Neutral38.67%
Dollar Short48.19%
Swiss Samba53.32%
Asia Emerging Market122.62%

You can imagine with performances like this,  quite a bit of attention was attracted.  However these high returns are not the important benefit you gain with our multi currency report.

The report Borrow Low-Deposit High does not recommend specific portfolios.   The portfolios in the report are educational and designed to help readers work with their own investment manager to create their own multi currency portfolio that suits their own special, individual needs.

Our multi currency investment report helps readers learn how to manage their manager… nothing more.

Yet this is incredibly valuable because Jyske Bank can provide a stable and safe institution for those who wish to employ a multi currency strategy.

The report helps guide readers so they can direct any investment adviser or investment manager who understands how to invest in more than one currency.

The report also helps you learn why and when to invest in shares, how to leverage, how to create discipline and manage risk. The incredible portfolio performance above was achieved because the portfolios were leveraged using a tactic we call a multi currency sandwich.  Investors borrow low and invest in yielding or growth portfolios. The portfolios used loans in Japanese yen and Swiss francs to magnify profits in good times.

The report teaches how these loans can magnify losses in bad times as well.

For example look at the performance of the leveraged portfolios we created to study from November 2007 through September 2008.

2008 Portfolios
Infrastructure Portfolio-112%
Blue Chip Portfolio-79%
Danish Health Portfolio-92%
Asia Emerging Market-73%

Leverage in 2008 caused the portfolios to lose badly… in one instance the total portfolio was lost!

The report  Borrow Low – Deposit High is useful because it helps investors not to expect rising markets all the time.

The course helps subscribers learn how to look ahead and act rather than react (after the fact when it is too late).

The sad fact is… we all have to become multi currency investors.  Trusting your fate to any one currency now can destroy your purchasing power.    Every investor needs to know what to do!

The report helps learn how to look for times when to leverage and for times when to retract.  The idea is to cash in when the going is good and then withdraw.

Plus the report combined with our regular personal portfolio updates helps you to stay on top of currency and investment markets.

For example in 2007…  we began warning readers to exit the markets well before the crash.  Our first of many early warnings said:  “We have enjoyed two years of enormous growth.  Periods of high growth are normally followed by periods of low growth.”

In 2012 we became bullish on equity markets again and history suggests that despite the doom and gloom so many preach… we are at the threshold of the next big global economic acceleration.

This is why I invite you to read my current update of Borrow Low Deposit High…  in the beginning of this wave when profit potential is greatest.
This nine chapter report has been read and studied by tens of thousands of investors over the years.  This report has been sold for decades as a survivor’s hand guide to currency turmoil for $79 and we are not raising the price now just because the next bull market is beginning.

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” $79.

Here is what a few others from around the world have said about our services and reports on international investing.

Gary , I am a long time subscriber in various media, and while cleaning out my files today I found some old ‘Gary A. Scotts World Reports’. In particular, the April 1988 issue provided the info that made me over a million dollars. Just wanted to say a belated ‘thank you’ and please continue the excellent work. Warm regards,”

From an Unknown Reader

Dear Gary, I would like to give thanks to you for introducing me to Jyske Bank two years ago.

“I have been a long-time client of Merrill Lynch, but am in the process of re-evaluating my relationship with the largest brokerage company in the world. My problem is that when I compare Merrill to Jyske, Jyske outshines Merrill (or other major U.S. brokerage firms) in most categories as follows:

“1) Even though Jyske is much smaller, it has a much more global perspective which is critical in an evermore global investment environment.

“2) In order to maximize their own individual revenue, the brokers at Merrill prefer to outsource the day-to-day management of their accounts to various fund managers and hence, ‘manage the managers’. In contrast, I can call my Account Manager at Jyske and he can discuss every aspect of my account in detail with me.

“3) I attribute this difference in #2 to the fact that Jyske’s employees are not compensation driven, but instead are focused on satisfying their customers. That is why Jyske’s clients stay with the Bank on average for 12 years, which is phenomenal by Wall Street standards.

“4) Jyske’s security is far more stringent than that of Merrill’s. In addition to the standard account code and password, to pass through Jyske’s security one has to enter a Key Card number and also a randomly-generated 4-digit number from said Key Card.

“5) Having an account offshore allows me to sleep better given the anxious times we live in. Since I report the existence of the account and pay all taxes due, I am fully compliant with the law. However, such an account gives me and my family a ‘financial life boat’ should events in our own country ever get out of hand.

“As Dorothy Parker once said, ‘You can lead a horse to water, but you can’t make them THINK’. Jyske is a thinking person’s bank. My only complaint is the time zone difference since I live in California . However, since I am an early riser and my Account Manager is very responsive to my emails, this problem is very small relative to the HUGE benefits.

“Again, many thanks for introducing me to Jyske Bank. Given the ‘dumbing down’ that occurs in the popular media today, your ezine and its recommendations are ever more important. Please continue your good work to enlighten your readership.

“Warm regards,”

C.M. CALIFORNIA Businessman

“I was so overwhelmed with information I received I had to spend several days reading, sorting and filing it! I have decided to move my modest investment capital overseas.”


“Send me your report on safe banks lending at 7% for redeposit at 13% or more.”

B.V. ADDIS ABADA ETHIOPIA Economic Commission United Nations\

A number of new and significant contacts were made. It would be extremely helpful if you could supply us with WORLD REPORTS.” 


“You are as good as your word which is rare these days. I look forward to attending one of your seminars.”


“In spite of my marketing experience, your information really got me going!” M. C. LONDON, ENGLAND Marketing Consultant

Thanks for the three reports. They are very interesting and should find many readers here in Japan .”

M.A. Tokyo , JAPAN Computer Programmer

“I would like to say how much I enjoyed the information I received.” A.B. Providenciales TURKS & CAICOS Accountant

“First let me say how much we enjoyed the investment seminar.” W.J. SAUDI ARABIA Oil Engineer

Once again thanks for all the great information.” G.K. PERTH , AUSTRALIA Insurance Executive

“Your letter of November 8th warned me to beware of the market just a week before the 120 point crash on November 15th!”


This report is guaranteed.  Satisfaction or your money back.

Borrow Low Deposit High – How to Use the Multi Currency Investment Sandwich” $79.


Meet Thomas Fischer of JGAM… a Danish bank that makes multi currency loans at our February 1-2-3, 2013 Super Thinking + Investing & Business course.

See yen chart at

See yen chart at

See more on the National Debt Graph here