The most powerful inflation fighter is your own business. Businesses by their nature have to make a profit so they are inflation neutral as long as the product or service is essential enough to have price elasticity. In other words the product has to be able to rise in price with inflation. This is one reason why airlines have a difficult road ahead. A huge portion of air travel is discretionary. If air fares rise too much, travelers simply stop. But if a business sells bread, people will give up a lot before they stop buying bread.

Fixed interest debt can also be a money maker during inflation. Take this as fact. I hate debt so for me to even suggest that you have it, shows how powerful this can be as a way to fight inflation.

Take a business, with lots of debt, that makes bread. It borrows $100,000 today. Bread costs three dollars a loaf and the business makes

50 cents profit per loaf. Next year bread costs six dollars a loaf and the business makes one dollar per loaf profit. The business has stayed in line with inflation as far as purchasing power. But in real purchasing terms that business loan costs half as much to pay off.

Real estate bought with fixed mortgages is a really good inflation fighter. You buy a property (if this is possible) with a fixed loan. The property rises with inflation. The loan cost remains fixed. Inflation robs fixed income and interest and capital placed in loans is fixed income.

We can also fight inflation, as Bob suggests by moving to a country with a lower cost of living. This especially helps those on a fixed income. If bread is three dollars in the US and 50 cents in Ecuador, you have a huge savings when you buy bread. Moving there deflates the cost of living.

This is why Merri and I are focusing on helping readers learn how to own real estate, live and earn in Ecuador.

This is working! Steve Marchant, our man in Ecuador just wrote:

Gary, “More good news, one delegate just bought 12 saddles. The owners of the shop were thrilled and gave me a gorgeous leather hold all that I can bring full of samples of things to export for the September Little Horse Creek seminar. The same people, Julio and Alex, are a really nice young couple and have agreed that we will all go on a weekend hike and fishing trip to Pinan Lake which is far in the mountains to the west. The trout are to die for, large and pink inside like a salmon, a meal by themselves with just salt and butter. This will be a great story.

“Hacienda San Francisco is now on the market. Asking price is $200,000 but I suspect the owner will take $180,000.”

Ecuador’s high mountain lakes are wonderful so here is an idea. Buy a hacienda near a lake and start fishing tours! Here is just one of many lakes. You’ll see it if you join us this July. Join Merri, me and Steve Marchant this July in Ecuador. DETAILS

Or come this September to our course in North Carolina (Steve will come along with Thomas Fischer of Jyske Bank) and learn how to start your own business in Ecuador!

Steve also wrote “One of the delegates who signed up for the One Month Hometel program is a lateral thinker. He wants to split his stay into three or four trips. Most who read about the Hometel don’t realize they can do this. I think you should let them know and few extra people will come stay for a month but a week at a time and enjoy this considerable savings.

“I am off to Doctor Vaca’s now and then to watch the World Cup, Ecuador plays Costa Rica – another win and they will be in the last 16 – the locals go nuts – what a carnival atmosphere exists at the moment.”

You have been notified. We have a special Hometel program so you can stay at El Meson. You do not have to stay the entire month at one time, but can stay 30 days total taken in various trips. See details at www.garyascott.com/catalog/ibeznc

Try it this weekend. Until next message enjoy better health and wealth.

Gary

P.S. We had such success with Dr. Mishra’s weekend health course on learning how to balance pH, that we asked Dr. Terry Hambrick to condense his one week August course to a long weekend instead. Terry’s course promises to be special because it will help balance your pH during the course plus show you how to keep it balanced after you leave! To enroll or for more details contact Merri at merri@littlehorsecreek.com