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
