Friday, December 20, 2013

Establishing Worldwide Economic Stability in the Long Term

          The question has been rambling around my head since I began this blog. How do we (the financial gurus) help/advise world governments to do what is necessary to fix the world's economies long term. Now that the EU has been rescued for awhile, if they churn the budget savings back into job, that is), I can work on a long term economic model that will keep this from happening again. Oh, I already have- it is called -The Time Exchange- and it is posted here on this blog in an earlier post.
          However, the global inept, those who are presently in charge today, but won't be tomorrow, because fortunes come and go, and morons and selfish people die everyday. A financial genius, John Kenneth Galbreath Jr. once told me face to face that he was one of the most unhappiest men in the world, even though at the time, he was the wealthiest man in the world. He had just lost $29 million plus on a stock the day before. He was a multi-billionaire so it didn't hurt him all that much.
           Still, he charged me for a Coke, the cheap bastard. He advised many others who are now the alleged "elite" of the world towards the end of his life. Few people showed up at his funeral. He was not missed by many. His entire motivation for living was taking from others and adding to his already too large stack of chips.
            He didn't care if he closed a company, it was nothing personal- just business. I think back on how many lives his greed affected and shudder. Anyway, if building wealth is your purpose for being on this planet, do the rest of us a favor and end your life today. We don't need you. You're going to hell anyway. You might as well take the express.
            Now onto business, to stabilize the world's economies long term we need to flatten out the top 4% of the economy into the top 35% of the economy. This can be done by attrition, by force, or by market manipulation. The choice is yours. Now you might say, market manipulation? Isn't that illegal? No, it isn't. Every government, every company, and every family has manipulated their markets to achieve the desired results. In fact, the United States Federal Reserve has been manipulating the NYSE and the CBT since early 2008. Why do you think the fed can't back out of quantitative easing?
            The solution then is a little complex and would require a joint resolution in the UN. The process would essentially be a reverse debt process that I call simultaneous debt deflation. As debt increases, the compound interest will gradually become unmanageable. Soon, all you are doing is servicing the debt, like the United States, most of the European Union, Russia, China, and many other countries are doing right now. This process of compound interest must be reversed asap.
             First, I would collapse Debt Swaps and make them illegal. The holder of the debt just eats the loss.
             Second, a resolution would be agreed upon that on a specific date, every United Nations countries debt would be deflated at the rate of 5 to 1. Each country would have to enact and enforce a Balanced Budget Act that would require that country's budget to be balanced every two years (giving short term flexibility) to allow for economic fluctuation. This would be a continuing requirement of the UN resolution. Countries found fudging the books would be taken over by the UN Economic authorities and the World Bank. Countries not in compliance would be required to submit to an audit within one month of their non-compliance date. A country that failed to correct their budget to come within compliance would be fined 1% of their budget monthly until the budget was in compliance. These funds would be placed into an enforcement and compliance fund that would also pay for UN Peacekeepers if they were needed to protect the auditing teams, other personnel.
              As you see, the short term effects can be harsh, the medicine however, has a long term effect of rewarding those who are in compliance. It also punishes those countries that refuse to stay in compliance.
You might ask, just how practical is this? You are asking large countries to give budget oversight to the UN.
Well, if it is in their own best interest, people tend to do what is necessary for survival. Don't they? These actions are necessary for the short term survival of the present corrupt economic system that has been permitted to inflict damage on a majority of the residents of this planet. The damage needs to be repaired in such a way that the pain is intense, and the healing begins immediately. Step One accomplishes that. Step Two reinforces the long term economic goals of every civilized and even those nations under the thumb of a dictator (for the time being).
              Third,  would be to include in the UN resolution a requirement tat every nation shall be required to have democratic elections for their national leaders every four years. These elections must be certified as fair by the United Nations. If a nation does no receive said certification, UN sanctions on that country's trade begins thirty days after the fraudulent election was held. 
               But, you say, aren't you interfering in that country's sovereignty? What sovereignty? When you agreed to be part of the United Nations, you gave up the right to treat your citizens like animals and property. Step three is the foe hammer that could be wielded to bring many nations into human rights compliance as well, if anyone at the UN has the balls to pull the trigger. Set a firm date for compliance, then enforce sanctions, no UN security council meeting for China or Russia to veto, as these sanctions would not be under their authority to veto.

                  It is time to take away the dictatorships around the world and give these citizens back their countries:
                  Venezuela, Sudan, Eritrea, Cuba, Swaziland, Turkmenistan, Equatorial Guinea, Russia, China, Saudi Arabia, Myanmar, Uzbekistan, Syria, and North Korea. I am sure there are others out there that I missed.

                   The UN Resolution would require no less than three candidates for each election with the candidate receiving a majority of votes cast would be declared the winner of the election. No election areas, no districts, no fraud tolerated, election fraud would be considered a human rights violation and sanctions would be immediately imposed. Finally, the citizens of the world just might be able to run their own countries without having crooks and corrupt people in charge.

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