jueves, 23 de abril de 2015

Third Part

The reason why the trade agreement is essential and other recommendations that could be wise:

a) China and India need to replace the United States as their larger consumer. The reality is that China keeps buying USA securities, just to keep their factories open. China needs to meet the growing demand for new products by the population of executives and their families in Chinese and Indian companies. These new economic sectors of all those new members of middle class in China have become consumers and investors. However this plan can only help China towards their goals in Latin America which needs development and industry, Asia needs more food and raw materials.

b) To meet the need of our countries to obtain technological equipment for the production of new processes and industries. It is suggested here that Ecuador creates a “trade zone” in Manta where all machinery and products can be imported from Asia while at the same time all products from South America can be exchanged and exported to Asia. Asia is an expert in Fairs as an example the Canton Fair is truly a good example to follow and we need to establish that as soon as possible in Ecuador. Undoubtedly Because of the huge amounts of supply and demand and the benefits of all kinds of logistics, then lower prices can be expected and lower tax tariffs applied to the member of the trade agreement. Prices could be reduced substantially and accessible at a reduced tax cost. In fact special car cost agreements can be made to make cars truly affordable in Latin America. Apart from the advantages in cost reduction, it means creating a center of import / export and global distribution. The largest retailer in the world such as is WAL-MART uses exactly this method to provide cheaper products in all the United States and we are either too dumb to use such simple concept or too radical in ideology to follow proper business practices.

c) The huge cargo ships that transport resources and raw materials to Asia and bring products will benefit by bringing products massively and returned loaded, reducing transport costs to supply all South America and would be benefit to be fully loaded in one port. Ideally, this port is the port of Manta in Ecuador and for petroleum and gas should be the port of San Lorenzo. Asia would have huge benefits as the amount of equipment that is needed to build the entire infrastructure across South American is huge. While all countries can benefit from professional jobs that would be created as each country follows their commitment in this trade agreement. I am hopeful that each country takes upon to improve of this ideas and I am hopeful they will use its best minds for the consolidation of this plan.
The expansion of Manta, San Lorenzo on the pacific coast of Ecuador and the expansion of the ports of Napo and Aguárico is necessary. The railway between Manta and Napo, roads, bridges to joint such railways and highways will generate huge employment in Ecuador in the immediate term. The same will happen in all participants as they initiate their part of this agreement. Asia can provide the loans needed for the project to be carried across the country together.

d ) Brazil would save billions in costs of exports and imports of their products, and it will cut the time significantly for products from and to Asia ( possibly three weeks)since it takes cargo ships traveling around the continent and the time of the Panama Canal, which in addition will save in fuel and therefore help in protecting the environment. If all Brazilian products travel through a port on the Napo River, later though train to Manta and then Asian ports, time is considerably reduced. On the other hand pipelines in Brazil, Peru, and Bolivia could perhaps be integrated as roads for oil and gas. While Bolivia could supply its fabulous gas resources to others in need for their industries or for export to other countries. Thus, creating the possibility of transnational pipelines between countries and the assistance of the United States is crucial.

e) The benefits for Ecuador are very significant as they can import and export their products through the Amazon River and then African and European markets and logically to Brazil. Increasing cooperation and increasing their exports as prices could also be reduced.

f) Bolivia, Uruguay and Paraguay do not have ports to the Pacific and it would be easier to send everything to Ecuador on a plane and eventually in a train system. This would lead to the creation of the first South American interconnected network of trains, which would increase trade and tourism among all countries and will help to achieve regional integration. Thousands of Latin American citizens can visit each other, and even college students could participate in regional competitions, professional organizations can cooperate to integrate education and knowledge. Also everything could be imported via Ecuador and then shipped by air to other countries significantly cutting import costs and therefore help their economies and motivate investment in new industries.

g) Venezuela, Peru, Bolivia could send both oil and gas through a system of international pipelines and multinational cooperation. So cargo ships from China and India could be loaded in Ecuador for the easiest export of their products.

h) All South American countries need to export products to Asia and Australia and the right thing to do is through Ecuador which could become the Hong Kong of South America, providing import and export services. I am sure no changes will be made to the financial system so at least then we could continue justifying dollarization as a means to facilitate international trade, together with a stock exchange where all countries could invest and attract foreign investment more easily.

j) The adaptation of the ports of Manta and San Lorenzo so they can receive the huge cargo ships from China and India, combined with the airports that could receive all the products to and from other countries. This can be done with the cooperation of Latin American companies

k) Two rail lines that come together at the port of Manta, Cuenca, Zamora and Napo for easy transport of minerals and metals. While another railway line to gather Manta, San Lorenzo, Ibarra, Quito and Napo, said railroad to carry and bring products from Ecuadorian ports to ports on the Napo. That could be combined with the rail networks in all countries.

l) The huge investment needed for such infrastructure projects, technology, transport and energy could allow a huge investment from all countries and a stock exchange is needed. China needs to invest and this would allow them to avoid huge risk in billions of dollars in holdings is dollars reserves. Although Ecuador does not have some of the infrastructure needed it could greatly benefit to all nations and all Companies from China, India, Brazil, Venezuela, Bolivia, Paraguay, Peru, Uruguay, Chile that would be involved as they facilitate trade and bring progress and international cooperation to levels never before seen in South America. A new level of international cooperation is needed to justify the Investment in South America.

Investment and international cooperation are necessary for such decisions, it’s essential for the progress of the whole American continent. Our countries are indeed kidnapped right now with "Trojan Horses" that have been passing laws that claim to be “socialists” but are mere pretext for the global elite to build the infrastructure with the resources of the country, and power hungry politician that want to control their citizens, while expensive loans and oil or mineral guarantees are taken away with the clear objective to prepare the nations to be stolen of all resources and wealth. But every leader should make his nation and its sovereign right the only priority. South America cannot continue to struggle against poverty, against imperialism goals and to be played as pawns of world powers. But above all we can no longer be paralyzed by the disease of political demagoguery struggling among compatriots, arguing failed ideologies and we achieve nothing. We cannot afford to continue failed policies and absurd social experiments that create unsustainable economic programs where the new bureaucracies consume all the taxes perceived by countries and will only achieve to keep us underdeveloped. It is time to join our forces and through mutual cooperation of sister nations allow the development of our people. Such cooperation would enable the international exchange in education, cooperation in medical sciences and in all fields. Cooperation in hybrid plants will produce clean electricity, power generation with wind turbines and solar power, and hydro power, and geothermal power.

The world is facing new challenges. The same area of the Amazon and the Amazon River rely on Ecuadorian glaciers and the number of rivers that flow from the Chimborazo, Cotopaxi, Cayambe, Antisana, Illinizas, Sangay, Reventador, etc is what makes the most affluent rivers such as Napo, Putumayo, Aguarico, Pastaza, Tigre, and Zamora, Machinaza, Santiago and many more rivers that make the Amazon River. But those glaciers are losing volume and melting away year by year. Therefore though this cooperation we should establish a goal to plant at least five million trees in every country as a counterbalance of cooling off the earth by the most massive effort to plant trees in all the mountains of the Andes. Please visit my son’s page and help in this effort. It is vital to clean air and the avoidance of dangerous levels of carbon toxins. Otherwise, in the future we will experience less rain and therefore in the term of twenty years we could experience a drastic reduction of the forest and global warming will melt those glaciers and the water level of the Amazon. For those who believe that this is impossible, they should know that Lake Chad in Africa and pretty close to the equator has disappeared.

Once again geographic position and physical laws on our planet makes the situation even worse. The Equator bulge makes Ecuadorian mountains to be 21 kilometers closer to the sun. In fact there is a difference of 42 Kilometer between the diameter on the equator and between the north and south poles. There should be a study of this phenomenon because while glaciers in Ecuadorian mountains melt we could see a temporary increase in the volume of water in the Amazon, but then there may be a huge drop in the volume of water (less volume of glaciers, less volume of water to the Amazon) which requires an urgent plan to plant millions of trees in the mountains and national parks (I've also created a plan for it) Ecuador has assigned protection zones but without the same international cooperation they are being neglected.

Ecuador enjoys a strategic geographical position both with respect to the South American continent and in the world. There are these factors to be taken into account:
Ecuador has access to the Amazon by several rivers, but the most important are the Rio Napo, and Pastaza, and Aguarico. These are conducive to create ports and facilities for international trade.

The Pacific Ocean and its two major currents: El Niño and Humbolt are off the coast of Ecuador, the ocean currents make navigation faster for large and small ships.

The coasts of Ecuador are conducive to two major ports such as San Lorenzo and Manta.
Thanks to the proposed plan all our countries can share a large investment from the United States that will benefit by massive investment in Wall Street in all companies involve in this plan. China and Asian countries will also benefit of investment in their own stock markets and the massive exports that will be created. However, it is also very important that such investment would not allow the rules of Breton Woods affect this investment. Because the United States is broke. It has massive deficit, massive debt and therefore it has no right to manipulate the monetary systems and demand that once dollars are received then they have the right to devalue the currencies of other countries. That will only increase inflation and double and triple their national debts and rather than providing a solution this will be used as a tool of destroying the sovereignty of countries.

An agreement between all countries should be put in place that such “manipulation by the USA no longer can be allowed” The only way to do so is to retire the Breton Woods agreement and stop the dollar devaluation scheme that it is to be blamed for the factitious and created debt of Latin America. It has been far too long the way that they have double and triple our national debts. To allow such manipulation will derail the investment and bring upon poverty and the increase in national debt and the United States will be the beneficiary while doing nothing whatsoever. This investment must benefit all nations because it leads to job creation and progress within a framework of justice and peace, and cooperation. Trade, tourism, integration and employment generation will take our nations to equitable development and a better society. Therefore we cannot allow old accounting trickery and thievery of external forces to derail such treaty between. Only the huge increase in tourism and development, employment and trade (imports and exports between our countries) will offset the lower tariff rates for products and this will lower prices and bring down inflation considerably. We must fight head on the inflationary effects that tax tariffs and protectionism cause. These savings could represent billions of dollars for each nation. China and India need resources and countries like Argentina, Brazil, Bolivia and Venezuela, Paraguay, Chile, Colombia and Ecuador are so rich in certain subjects that it would benefit from all industries. The same could be said of Asian products that are needed to improve industry in our countries.

While some countries may still claim to the farce o socialism XXI aka project Camelot, Condor, Simpatico, etc. Such socialism has the only goal to impoverish the nations and serves its masters to create massive debts and huge expenditures. We must create a new system based in cooperation, in investment of the people, by the people and for the people. We must eradicate from Latin America such failed policies and experiments and as an act of conscience we must do what is right for our countries. Ask not what the governments can do for their citizens but what the citizens can do to change their countries. Ask not what your ideology or mine could be but what we all can do together regardless of politics and ideology. We must take control of our countries and we must stop believing in this false systems imposed by the elites and bankers. We can lead our countries to a new era of progress and development and this can be the beginning.

I firmly believe that it is essential that these rules and this plan is approved as quickly to save the economy and protect our people.

Personal notes.
I do want to state clearly that I have develop this plan alone. I have studied the economic situation of the world since 2004. I have investigated, researched and in the process I have formulated some of this ideas and some have been influenced by some economist, some publications, some books and some plans. I do not mean to violate their copyrights and much less to avoid giving credit where credit is due. But I have initially made notes with the expectation to write a sequel of my novel “Salvacion en las Siete Cuevas”, and a book inspired in Philip Dru and the Prince, those are still a work in progress. But years of looking at the facts and making commentaries largely ignored in my blogs I decided to formulate this plan. I am eternally grateful for the knowledge to those great minds and my sincere apology to all those people. I simply never bothered to write notes placing who gave me an idea or not.

I have received no financing or money from anyone towards creating this plan. I am not involved in politics, the banking system or affiliated to any government. I am not related to anyone in power and I have received nothing from any government, institution or entity. I will truly appreciate if you buy a book or two of my novels that will help in educating my son, the greatest human being I have ever known. My sole purpose in writing this plan as well other plans to save my country from financial ruin, and my plans for my company and my inventions is to help my country, my continent and my people. This is the result of years of studying the economic situation, years of writing recommendations that mostly have been ignored and yet no changes have been made that could prove me wrong. It is my hope that the content of this plan is embraced by leaders of our continent and that it will serve to initiate a program of change. I am not naïve enough to believe that some “leaders” are nothing but puppets of the powers that be. I expect nothing from them.

I am aware that some people will criticize or discard my plan, but any errors that may be contained here will hopefully be corrected by those who criticize it. Some may use this plan for their own goals and agendas. Others would play with their economic policies to try an out-performance by equities and currency depreciation. Others may try to position themselves to play the financial markets' reaction. Yet others may not see it more than a possibility to get an immediate shot in the arm with some money.   It is my hope that this plan will translate into greater economic activity and it could serve as a catalyst for a better future. I will hope that fear does not discouraged those governments that are happy to become even more dependent on central banks to do the heavy lifting. Worse yet there could be that one leader that is already talking about a “Patria grande” when in his nations he has done nothing but create massive debt and destroy any democracy that existed. His goals I am afraid will be to position himself to claim this as his plan. Rather than build on the positive measures that efforts of this kind could represent. It is also my hope that this could be used to launch a new economic system that will rehabilitate banks, the economy and democracy itself. Wealth inequality worsens more than ever before and it is time to rescue our society.

I am hopeful that this plan will inspired a sense of duty and that it will pick up a lasting momentum of genuine change. The reason for this is simple: The lacking support of better ideas and the scarcity of any comprehensive policy measures by governments, central banks and World institutions that pretend to solve problems as money changers and loan producers have only created the ever expanding massive debt and prosperity. It is only a lie that can never be achieved as long as a true reform of the World financial system is put in place.

Despite mounting evidence that the World economic system is broke, despite concerns and growing economic disappointments by countries where real hunger is happening, there seems to be little if no urgency among either the leaders of the countries, the private sector, and much less central banks that act as deer caught before the headlights. This plan pretends also to expose its incompetence. There cannot be any more reluctance to act. They could not claim a lack of understanding of the increasing risks of collateral damage and unintended consequences. We are before World War III and you have no excuses not to act. Rather, it reflects the absurd belief that, although it is far from ideal, there is nothing that can be done about the Federal Reserve Bank. The Fed is nothing but another corporation, freeze their assets and stop the evil cabal of bankers. Let us rebuild the economy, this is a start. Indeed, while it is far from being a perfect plan as I have no powers and quite honestly no agenda or budget to influence anything, much less to implement or do anything about it, and I may never see a cent for my time and effort. I have yet to see a single nations that had sent even a thank you note for my previous “suggestions”. It is certainly not THE solution, it can only be the first effort.

I am also hoping that this plan will help develop a more comprehensive governmental policy response. I pray that countries and their central banks find their autonomy and act upon it. Political talk is cheap the reality is we are facing depression, collapse, chaos. Let us do something about it and we could see a light as the ultimate destination — and in particular, whether, when and how governments will finally step up to their economic governance responsibilities. 

My map has been based on leylimes, It is key to take advantage of powerful ancient knowledge and electric power is stronger and key to the running of a new and fantastic new era 

Second Part

In other words a new capitalism and new democracy could be born out of this agreement. The best way to reduced risk in investment and at the same time a fair distribution of said investment will be to share equally the investment and the profits. For example if the central government makes an investment of 15%, the local government another 15%. Foreign investors, 15%, Local investors 15% making a 60% shared investment that will benefit all sides involved. The rest could be shares sold to any other investor. This could allow for all the checks and balances where at the same time democracy triumphs and true capitalism works for the benefit of all. At the same time dividends could be allowed up to 7.9 % of corporate profits to be delivered in the form of dividends to its investors. Most important as part of this project all participating corporations could be allowed to invest 15% of profits in education to take advantage of the new development to educate our children. There should not be any need of subsidies by governments if all great corporations involved in this endeavor pay 15% of their profits in the respective countries where they operate. Said monies can be reduced as tax breaks by the governments. People could benefit from the growth of companies. Companies at the same time can nurture the best minds in the continent. Allowing the investment share of the people in these infrastructure projects and the profits, entails establishing a new trade center in Ecuador where all companies can exchange stock and investments. No doubt stock exchanges in Brazil, Argentina and all the nations’ capitals could give new investments and profit making opportunities to all citizens in the Americas. Developing progress in a true and meaningful way that will reach the people and allowing people to benefit of the development that will come from this plan and not just paying their governments who often have fallen prey to corruption.

The members of the trade agreement could undertake to maintain a reciprocal and fair way to give hiring priority to Latin American Companies in infrastructure, rather than yield and award contracts to multinationals from other countries not in the agreement. This plan could serve promoting cooperation, employment and professional development of our countries.

To this end several projects could allow an organized development of cooperation to create a better American economic system. It is expected that these projects can be implemented in the long term, but to be put in motion as immediately as possible.

·         Promote electrification projects using renewable technologies with hybrid centers. I have am specific project that could start immediately and it will use new technologies that could allow creating centers of Renewable Energy with wind, hydro, solar and geothermal energy. This could allow small projects to provide electricity without causing further harm to the environment. To see the project visit. www.thesunlighenergy.com

·         To promote biodiesel refineries throughout Latin America. The advantage is enormous for South American nations. Many countries’ economies are still based on agriculture, every year; millions of hectares are wasted by pests, causing heavy losses to farmers. But with the creation of biodiesel refineries is to give a giant step to use oil burned by cars, oil and butters produced by restaurants that should be recycled and combined with ethanol produced out of plants, vegetables, fruits that otherwise would be wasted and may be purchased from farmers  at a basic price. It could literally save hundreds if not millions of farmers as it will provide some protection to their investment when pest destroy their crops.

·         Promote cooperation in projects in all multinational trading, creating in every participating country trade Malls style "outlet" to allow trade in textiles, fashions, styles, pottery etc. of all Latin American countries and much needed trade shows of new technologies, machinery and equipment from Asian countries. To this end the members of the agreement should establish special rates. The IVA taxes should become lower helping the consumers and lowering inflation, and purchases in such malls and trades should be free of taxes to increase commerce and tourism.

·         Motivate all Latin American nations to coin GOLD and SILVER coins to be properly minted and recognized by members of the trade agreement to be able to provide cushion to their citizens of the probable collapse of the US dollar. It is only proper that the enormous wealth in natural resources of Latin American countries should be allowed to back up their currencies. Specially, since such trade agreement main objective is to increase commerce, industry, tourism and development in production of oil, gas reserves, etc. Unfortunately, the wealth of minerals in gold, silver, uranium, among other are opposed by the local community because they cannot see an advantage of doing it. But if allowed to purchase their own gold could make their citizens eager to lower the barriers of opposition if allowed to possess their own silver and gold. To this end let each participant in the agreement country set its own gold coins and to make them available to its citizens so investment in gold and silver could truly PROTECT people from the eventual collapse of the dollar. (China has the Panda, Canada the Maple and the United States the American Eagle) Our countries must immediately create coins of one gram, 2.5 grams, 5 grams, ten grams and an ounce of gold and the same can be done with silver to absorb the collapse of the dollar.

     Motivate countries to create reserves of their countries banks and financial institutions based on a basket of their commodities.

     The incomparable beauty of all types of ecosystems coast, mountains , jungle, desert islands make South America one of the most beautiful places in the world and the potential to increase tourism. Every Latin country has enormous potential and is worthy of exploration as its mountains, beaches, forests are some of the richest floras and faunas of the world making it a paradise for tourism. Thus the construction of a railway system to join all our countries, while at the same time a system of roads in each country could allow the exchange not only of products but to boost tourism and trade, as never before between our brotherly countries.

·         Participants of this international agreement should allow professionals in all fields, particularly in engineering to be employed freely by any member country without having to obtain a visa immediately, so they can have at least six months of employment without having to register as a resident. In other words, a kind of temporary visa for professional cooperation among all countries that could immediately boost knowledge, science, employment and the development of all our citizens must be allowed.

Our Latin American countries cannot continue to live in poverty when we can move together to a new economic era. The United States cannot continue being played by the Federal Reserve that is neither Federal nor has any reserves. The Federal Reserve is nothing but an independent corporation own by a cabal of bankers. Literally is a criminal cartel of usury. Therefore, the Federal Reserve Note must be removed as the trading currency of the world. Only the US government can do so. But it can no longer continue to cause inflation and poverty by blooding the world with useless dollars. Yet we live in such a crazy world that the Fed may want us to believe that the dollar is stronger than ever. When in fact they have collapsed already the other currencies to look strong. So is the world we live in.

The only way to fair trade will be to keep all currencies in a fix rate for at least five years. The key to avoid World War III is cooperation and this treaty could be the first step towards such united effort. It can only makes us stronger.

It is not productive to blame the historical legacy of intervention and nationalistic quarrels. We are facing an imminent collapse of the world economy. We have before us such massive debt that New York City could be flooded with the trillions of dollars in debt of the Federal Reserve Note. To do nothing about it is irresponsible and the option to continue in this path will result in an unavoidable and imminent World War III. It is time to be honest and face the facts. It is time to put away the toys of accounting trickery and we must present real solutions to save our nations from the chaos that it will face in the coming months if we do nothing about it.

We must be honest and confront the issue of the Federal Reserve debt, which being that is neither a Federal institution nor it has any reserves as I have outlined before, then it is their debt. The FED exceeds 275 trillion of debt. While the U.S. government is using accounting mechanisms to claim that their debt is lower, once the debts of the Federal government is added, debts of states, counties, municipalities, cities, school districts, industrial and commercial debts, credit card debt, mortgage debt and the giant of all debts derivatives debts. All those debts mean the eminent collapse of the economic system. How professional economist, presidents and leaders of our nations cannot face up to the true is beyond me. We the citizens know these facts, so stop the charade. The only reason the Federal Reserve stays afloat is because the Federal Reserve owns the printing presses and it is the forger of the almighty dollar. To continue in this road to madness could only mean that the United States government has no intention to pay.  We must learn from history and Germany already did that and World War II was the result of it.   Let’s face it, The Federal Reserve cannot pay such debt. It is their debt let them deal with it. It cannot be done. Since such fiat money is based on faith it will remain a currency so long as people believe it has any value, but the cat is out of the bag and the currency will fall. However, the United States can and should print its own money and should issue its own currency without having to pay 9% for the privilege to the Federal Reserve. The new currency should be backed by their gold and it should start doing it now. Otherwise the rest of the world has the right to defend itself.

At the same time, we must understand that China, Japan, Europe, Russia have the necessary knowledge and they are making the proper steps to create a new financing system backed by a basket of currencies and backed by gold and silver. It is a wise step that hopefully avoid war.

Those countries have also technology to drive industry and trade. Latin America has the natural resources and raw materials. China and India need consumers of their products, but their people need to eat and need materials for their factories. This agreement is the right thing to do at the right time.

We NEED an agreement as an integral and essential part to save our economies for the common good of all nations. The countries that have huge amounts of positive trade balance are in Asia and Europe. The U.S. on the other hand has a huge massive debt of trillions of dollars. Printing more simply floods inflation in the rest of the world and has done nothing to alleviate the billions of daily interest that the USA has to pay. It is the United States who will drive us to war if they remain with the Federal Reserve Note. But it is the United States that can place the Federal Reserve Note in bankruptcy court and issue their own money and start a new era of prosperity. If the United State does that then all debts should be forgiven and the world can start anew. The option not to do so is World War III and that means total destruction and annihilation. The world cannot continue purchasing such debt, inflation, and deficits as investments as the United States keeps trying to spread their debt as US securities and it is sold as investment. The Federal Reserve keeps printing dollars like there's no tomorrow and as if there is no debt to be paid. The madness must be stopped or today’s economist would be the zombies to blame for the next collapse.

My plan is aimed at solving the economic situation of Latin American countries, our economies are interconnected and our development and economic health will mark the present and the future of all our countries. It is no longer a matter of flag, politics and ideology. The stupidity of failed social systems have only brought poverty and despair to our countries.

International cooperation is a key. A large investment from developed countries is needed. We must set the example of development through bilateral agreements.

So my plan originates in five important factors: The plan has actually been going on for years, when some years ago I sent some suggestions to every president of every Latin American country. I am sure most simply have dismissed my recommendations, other implemented it.

  1) The population of China and India surpass 2.6 billion people. In China alone is believed to exist now 300 million people with purchasing power, said number of consumers is greater than the entire population of the United States. Not to mention that all 1.3 billion Chinese consumers may be willing to buy bananas, cacao and coffee. That can add another 2 billion to the people of India, Malaysia, Taiwan and the Philippines. We can truly say “Ask not what Asia can do for me but what can we do for Asia.”

2) The economic development of China and India as the factories of the world is entering a phase of change; they are not only producers but there is a growing demand for articles and products by their growing numbers of "consumers."

3) China and Japan have positive trade balance. India is growing as rapidly as China. These economies were growing between 10%, to 12 % annually, now have begun to decelerate because they introduce more services. This has generated new investment and markets are hungry, apart from a hasty demand for natural resources.

4) All South American countries need to develop new industries to replace the oil industry, which quite possibly can no longer export oil in ten years and will not have even for domestic consumption in 15 years. Another key issue that is only wise to invest in refineries of biodiesel as the best option to replace gas in an efficient manner. Besides the fact that machinery needs large amounts of diesel, and far from contaminating the environment, it actually helps clean the environment as burn oil, old restaurant oil and ethanol from fruit and vegetables can be used to create biodiesel.

5) All the countries need to buy equipment for processing industries diversify food , beverages , vitamins, herbs, oil products , mining , metals, medicine etc. . (Millions of tons of fruit rot in our countries are not processed) machinery exists in Argentina and Brazil and instead of importing from our neighbors we are still importing from other countries. Huge metal production happens in Chile but no proper trade and cooperation in metallurgical or industrial products.

The key solution is to perform this integration agreement, investment, industrial development among all countries in the Americas and Asian countries. The size of the economies of Latin American countries compared to the United States and Asian nations as well as their populations is a decisive factor; we simply cannot hope to put pressure on The United States, China or India to change its business practices. However, by uniting and making a considerable economic partnership then the volume of trade, and the bilateral agreements will help establish an equal playing field for imports and exports. We could be much more effective than higher tariffs and tax increases. Taxes are counterproductive.

A case example is Ecuador. The government imposed a 5 % tax under the pretext that capital could escape the country, Ecuador is dollarized and pays 9% for the use of every dollar. That means that Ecuadorians pay 14% for the privilege of not having money of their own. When the government of Correa imposes 45% tariffs in some “imports”, on top of 12% IVA and 32% income taxes. Those number add 103% of tariffs and taxes. It is a formula for disaster that only could result in chaos eventually. The size of black market smuggling and trafficking of products that enter Ecuador via Colombia or Peru are in the billions. To add insult to injury subsidies provided by the Ecuadorian government only feed corruption. For example diesel in Ecuador is sold for $ 1.10, which benefits from two dollars subsidized by the Correa government. No sooner diesel is received and imported by Ecuador, when smugglers and traffickers would load up their tanks with the $1.10 diesel in Ecuador and take it back to other countries where they make an easy quick buck selling it at the $3.30 being paid in Colombia or Peru causing heavy losses to the country. The solution is rather simple, but let him figure it out to establish standard measures, fair tariffs between our countries, allowing international trade and take advantage of common ports to create a center for imports and exports of South America that would reduce prices, increase trade, industry and promote the development economic .

lunes, 13 de abril de 2015

Comprehensive development plan for Latin America

Comprehensive development plan for Latin America

Copyright © Germanico P. Vaca
(author98@aol.com;blog: http://cambiorealecuador.blogspot.com/ )

The entire continent of America needs a radical change that will allow real progress in every front: economic, commercial, industrial, and agricultural, as well as tourism development are much needed. We are faced with the challenge to find real solutions. 


I could spent countless hours detailing the ills of the economy in the United States and the rest of the world, and I could waste my time debating the ideological and political environment in Latin countries. Let us not waste our time in debates. Let us create a plan.

In the aftermath of the 2008 financial crisis, financial regulators and central banks across the world assured us that we could have a financial system more stable, increasing bank capital and liquidity requirements, developing bank resolution plans, and requiring derivatives trading to go through central clearing houses. It is probable that a financial crisis in the short term may have been solved.  But they have still failed to address the fundamental issue – the ability of banks to create credit, money and purchasing power, and the instability which inevitably follows. As a result, the reforms agreed to date still leave the world dangerously vulnerable to future financial and economic instability.  It serves no purpose whatsoever to continue to argue in the grounds of politics or ideology as we all have our different perspectives about it. We need specific action and for that we need a plan to confront the problems head on, by providing economic solutions. The only thing that matters is that we need to create jobs for our children, otherwise what is the purpose of education, living and working? We need a plan, period.
To that end independent public corporations should be created so that each country can be represented equally, while they will have government oversight, at the same time it can operate independently as a corporation without government restrictions and bureaucracy, but rather as free enterprises with their own budgets. To achieve such goals the treaty will:

This is a plan for the comprehensive cooperation for integral development of all countries in the Americas. To this end we need to make a commitment, an investment and a full effort with one single purpose. The improvement of humanity through a concerted cooperation and investment to develop our countries. World leaders must make their commitment to freedom and peace, we must maintain sovereign principles, freedom and independence and desist those imperialistic goals of a "new world order" that has only resulted in chaos and despair, and could only result in World War III, which has only one meaning: No one Wins. This way we grow together. The path of war is a road to nowhere but destruction, so any miss guided effort to re-initiate an arms race is beyond stupidity. 

Therefore we must pursue the creation of a “Peace and Unity Treaty”. An intercontinental network of transport and communication to serve as a massive initiative to create jobs through infrastructure building with mutual cooperation among all participant countries, which will allow the growth of industry, trade, tourism, and communication between all countries. The obvious benefit for the United States is the financing, the technological know how and the thousands of jobs from engineering, design, bridge and road building, metal and machinery sales. It will be huge.

1)     Build a railroad network that will cover all Latin American countries and connect with a network of s new and sophisticated train system in the United States such as the world has never seen, even better than the Chinese and Japanese. .
2)     Expand four ports that will serve as hubs of entry and exit for large scale imports/exports to Asia.
3)     Implement an initiative for the modernization and technological advance of Latin America.

The importance of this treaty can be resumed in the following points:

a)     The construction of a network of train systems in every country in North, Central and South America that will create an intercontinental system of mass transportation with the goal of opening new markets for exports, commerce and industry. It will reach the most productive agricultural regions on the continent, the best fishing towns, the best gold, silver, copper and steel mines, the best factories of all kinds of products in every nation. Opening international markets for everyone and creating the roads to major access for large scale commerce.

b)    The agreement will empower people in the Americas, it will motivate new investment in agriculture, industry and commerce. It will benefit greatly all communities. It will be help trade, industry and tourism. The railroad network to be built could be joined and integrated to the United States, and to the proposed large scale ports that will serve as gateways to Asia.

c)     The agreement would provide the framework and financing to build an advanced fast train systems in every participant country that will interconnect at the borders of countries to transport products and people, and even a line of “super-fast railroads”. Imagine the opportunities that will open up if in three hours you could go by train from Buenos Aires to Quito. The cooperation of the United States, Japan, China and all Latin countries is vital. The development, construction and design of these new systems will create thousands, if not millions of jobs in all nations and will challenge the use of new technologies as cooperation of scientist, investors and inventors will be needed to meet the geographical challenges, the engineering and architectural challenges to build on the jungles of Ecuador, Colombia, Venezuela, Peru and Brazil, in the mountains of the Andes, and the deserts of Chile and Argentina, and the altiplano of Bolivia and Peru. It will require great infrastructure building in a scale that it has never been seen in the continent.

d)    The agreement will finance and launch an implementation of the most advanced technologies in mass transportation for the renewal of existing trains and the building of new railroad systems. The combination of which will allow integration of the economies, development in all countries, construction of the greatest infrastructure ever seen as bridges, tunnels, train stations, warehouse buildings, trade fair buildings, malls, new hotels, new housing will be motivated as a result of this plan. It could facilitate further cooperation in all industries, agriculture and commerce, it will trigger a new era of tourism.  

e)     The agreement will help create three commissions: One for technology, one for finance and one for the legal framework of operation. Later this will result in the creation and organization of an institution composed with three representatives (1 economist, 1 engineer and 1 lawyer) for each member country. This international institution will then coordinate, organize, plan and budget the proposals contained in this document.

f)     This agreement will acquire, facilitate and finance the most advance super computers to keep track of the thousands of jobs being created, the contracts and the companies, the bus gets and the legal framework, national and international laws and regulations, investment of each sector and companies, payments and purchases, lists of corporations involved, the logistics of transport, the machinery needed, fair salaries, fair practices and fulfillment of the plan and its implementation. But not only that, it will ask the best software corporations for the creation of computer programs that will help in the design of each system, each train, each railroad track. As well as the programs for the operation and scheduling once the railroad system begin operation. It could be even ideal the creation of a program that will help in the decision making when it comes to cost and it will track performance of each corporation involved and the fulfillment of their obligations.

g)    The development of this project will increase employment in all sciences and thousands of civil, electrical, and industrial engineers. All professional organizations could establish a system of mutual cooperation with their colleagues from other countries. All universities could initiate programs of international cooperation in all their departments and cooperation in all fields could be unequaled as never before. Towards this goal this agreement will promote a study to unify all university programs for international acceptance and recognition. Certification of Universities by an international University Board so we will no longer have to re validate degrees in each country. This agreement indeed will improve cooperation in every field. From archaeologist and geologist, from biologist to engineers will have plenty of discoveries to be made. Great progress and development will come from exchanging knowledge and experiences. The greatest era of cooperation will come from working together for the development of all countries. The greatest advantage will be the economic cooperation of all the nations of our continent.

h)     The agreement would aim to create an expansion of trade and industry development between North America and Latin America and the rest of the World. To that end an economic plan of equal tariffs and taxes should be tried for the next five years. Equal opportunities and fair commerce practices cannot be achieved if each nation operates under their own rules. While total respect for the constitution of each country and the absolute respect for the laws of the member nations is an integral part of this agreement. An international treaty must be made to implement the rules, regulations and obligations of this agreement. Towards this goal a “mediation board” must be created.

i)      The agreement will help plan, build and construct the expansion of the gateway ports of San Lorenzo in Esmeraldas Ecuador and Manta in Ecuador to serve as points of entry to the continent to import and export from Asia and the rest of the world. While a port in Mexico and Chile can be implemented also to make trade and commerce much more effective. It could be ideal that most South American countries could increase their exports of agricultural products, metals, and all natural resources, while we import much needed machinery to motivate small industry at the lowest possible price dealing directly with Asian factories. The ability from all sides to increase their imports/exports will result in great progress in commerce. Indeed the United States cannot continue being the “world consumer”. Products to be exported from South America could all go to the ports in Ecuador by the new railroad system to be built, and from Ecuador to all Asian nations and the United States, while the reverse can also happen and most imports from Asian countries can come directly to Ecuador and be distributed there to the rest of the continent. The reason is that transporting everything to one single country could provide many benefits. Ecuador benefits of ocean currents on the Pacific Ocean and the Amazon River on the other side, and several navigable rivers allow rapid transport of all products. The benefit is huge for countries like Brazil, Uruguay, Argentina, Paraguay and Bolivia because the prices and time of export will be reduced considerably and that will reduce prices for consumers in both sides of the pacific. Therefore cost could be reduced and exports will increase exponentially as much needed products for industries could reach their destination much faster; as well as products that could not be exported to Asia before from Latin countries because of length of time and they could go to waste. Large Super Cargo ships can come loaded from China and unload completely in Ecuador and distributed form there in the new railroad system and even by plane. Other small cargo ships will take over the distribution and through the railroad system things can be shipped directly in the fastest way to several cities of all the continent from the Ecuadorian ports, reducing all kinds of logistics of transport and cost. The commerce and the growth in all industries, exports and jobs could bring the greatest prosperity to the continent. To that end opening ports of Napo and Aguarico could allow such trade directly through the Amazon River. Hence the construction of a railroad line between Manta-Ibarra and Napo could allow transport of all Brazilian products.

j)      The agreement should aim for the reduction of tax tariffs across the boards in all participant countries. Some products could be exported with only 5% tariffs and other with no more than 15% of tariffs. Otherwise the citizens of Latin countries are paying extremely high prices for products, machinery and food imports. There is no such thing as FREE TRADE, but a reasonable amount of tariffs and taxes should be paid. In exchange all the necessary loans from North American and Asian countries should be able to finance this investment. At the same time an investment of at least 15% by each participating country should be expected. On the one hand China cannot cope with having millions of unemployed in their factories if the dollar collapses. The massive losses of bonds and securities held by China in USA dollars cannot serve any purpose. To this end investment is needed to inject money, provide loans and investment. However the rules of Breton Woods are often manipulated and such influx of money can be used by money usurers such as the Federal Reserve to cause massive inflation in all Latin countries, and the devaluation tool could be used to take advantage of our countries. Therefore this plan has been submitted to all nations so we all can deal in the most honest ways knowing what is at stake.

k)     This agreement should implement an economic framework for a fix rate for all Latin currencies for at least five years until proper restructuring of the World economy is achieved.  While China and the United States wishes and wants the natural resources of Latin America, Latin America need to increase production of agriculture and industry. We all benefit by working together and avoiding economic chaos and war.

l)      This agreement has as principal objective to create jobs for millions of people and to that end we need to establish a legal frame that will provide visas, facilitate travel, communication and will permit the creation of department of coordination in the embassies. Thus citizens that are from Argentina could be informed properly of requirements and duties to follow if they are to work in Mexico or Ecuador and vice versa.

m)   This agreement must also create some rules for the protection of consumers as the plan intends to drive development. It will also create consumers. Millions of people employed and thus people that perceive a constant salary become consumers, thus propelling trade; Tourism from Asia and from Latin countries can also be expected; cooperation in a constant flow of scientist, professionals in all fields and technicians from Japan India, China, Korea and other countries to visit and travel with their families to Latin countries and vice versa. While, also in Latin America will enter a new era of cooperation and development. But millions of new consumers should also enjoy protection so we can keep a lid on real estate speculation, scalping of prices, and protection so tourist and workers are not taken advantage.

n)     Countries that are party to the agreement must facilitate mutual cooperation to "stabilize" prices of tariffs on all countries to allow fair trade product, setting the same rate will increase trade and any losses resulting from the reduction of tariffs and taxes will be offset with the huge increase in trade volume.

o)    The members of the trade treaty could benefit from the most ambitious cooperation and development between all countries, which can ignite their economies and industries. To that end Better Business Bureaus and cooperatives trade associations and commerce organizations should be motivated to work together at an international level for recognition and support. 

p)    The members of the treaty could agree to create a fair system of investment for the purpose of motivating that wealth reaches all members.

Continues to Second Part