Comprehensive development plan for Latin America

Copyright © Germanico P. Vaca

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. We are faced with the challenge to find real solutions. 

Considerations

We could spend countless hours detailing the ills of the economy in the United States and the rest of the world. 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. While a financial crisis in the short term may have been solved.  After twelve years we can see that they have failed to address the fundamental issue – the debt.

It is the massive debt created by the Federal Reserve and the debt system that has robbed 12 cents of each dollar (9% seniorage + 3% printing charged of the GDP) flooding the world in insurmountable debt that is draining any possibility for a better future. (US real debt is $375 trillion dollars, more than ten times the GDP). Federal Debt is $28 trillion + National debt is $82,7 trillion + Unfunded liabilities are $155,9 trillion, and you still have to add Medicare, Medicaid, social security, credit card debt, mortgages debt, credit card debt etc. 

As long as the US dollar collects 12% of each dollar created to benefit the World Bankers who really own the US currency, the world has no chance whatsoever to pay the debt. At least the 3% of printing should be reduced to 0.5% since most of the money supply is actually digital money and is not printed at all. The economy of the world must be restructured. Americans have accumulated so much debt that the US is not capable of paying.

Meanwhile, the socialist regimes (manipulated as social engineering projects by the CIA) have created an economic catastrophe in Latin America that has resulted in a massive migration of people in Venezuela and other nations. Argentina is on the brink of collapse. Ecuador is in a chaotic mess of corruption. The solution is not building walls because that does not address any issue. It solves nothing for the United States and nothing in the economies of Latin countries and it creates no opportunities. The idea of stopping “immigrants” is absurd because it could take twenty years and a massive budget to even build such a “fence” and hence the whole idea is rubbish. Let’s face it if they walked 400 miles to get here to the border, they are going to walk ten more miles to where they can cross.

The issue at hand for all nations is to create employment and opportunities for all their own citizens. But governments, companies and financial institutions are pushing an agenda of robotic technology, self-driving cars, robotic built cars and trucks, creating a massive number of people that could never have employment.

The ability of banks to create credit is virtually nonexistent because the currencies are virtually not valuable, the dollar barely is worth two cents. Money and purchasing power are near zero, 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.

There are three ways to go about saving the world economy. The first is to rely on the criminal cartel that has created the system we have today. In other words, to continue creating massive debt on insurmountable debt. The second is to create a new way and that is what I am proposing here. The last one is allowing China to take over the world economy with the Petro yuan or electronic digital crypto yuan. The results of that are to allow the USA to become a third world nation or to unleash World War III.

The China Plan

China wants to create an economy based on the crypto or digital yuan and to that end has set out a trap of debt. Massive infrastructure projects for poor nations committing their resources. This is truly not an option for the world.

The construction of the Silk road by China has a sinister purpose. First of all, is to create massive debt by nations in exchange of megaprojects. But Chinese companies will be the ones building those projects with Chinese workers, with no benefit for the citizens of the nations. Chinese financing will be given and a guarantee they will take the resources which will be committed to China. The Chinese sphere of control is growing by the day. Russia is becoming a partner in every way and Germany has also initiated an expansion of their companies. Meanwhile, Trump's America first allowed China no take over the world.

It was appalling the incompetence of the Trump administration. They never realized that the Silk road was created to grabbed all the financing and expansion of Chinese companies is becoming the  supplier of technology, Chinese machineries, Chinese technology and of course they are grabbing all the resources such as steel, copper, silver and metals and that will result in such demand that the prices of all commodities will increase significantly. So, the United States using tariffs, which is nothing but taxation on their own people is truly stupidity combined with ignorance and incompetence.

The Federal Reserve End Game

The Federal Reserve Note known as the US dollar, in reality, is completely broke. At this point is nothing but a Ponzi Scheme. The printing of money out of thin air was supposed to survive through sales of US securities, in reality Kissinger creation of the petrodollar is what has sustained the existence of the Us Federal note, but the neocons had the great idea of destroying Venezuela with their fake socialist regime, supposedly that was going to create massive amounts of money in the fracking industry. Instead they have poisoned America and created a massive exodus of Venezuelans. Today nobody can afford to buy bonds unless they are willing to lose money. Indeed if interest is lower than inflation you are getting screwed and yet forced to grab US bonds for your retirement, any news on your COVID vaccine yet?. In short American debt that can no longer be paid unless the Federal Reserve uses fraudulent means of an omnipotent counterfeiter. So they will allowed inflation to become the new Weimar republic, so soon enough they can tell the world "here is the payment of your US bonds" by the way we are keeping the gold you had entrusted us and now is ours. The only way to save the US dollar is actually under this proposal. To turn the petrodollar into an “infrastructure dollar”. In a few words do the same as the Chinese.

The New Plan

The third is to work a peace economic agreement. The United States must declare the Federal Reserve under bankruptcy and create the new US treasury dollars. The real value of gold is $34,890 and silver's real value is around $5,000. Under a new system of interchangeable currencies, fixing the value of currencies under one fixed price. Technically all debts are forgiven and the losers are the world bankers who own the Federal Reserve. Otherwise, just turn the US Federal Note into an infrastructure currency,  

To that end independent public corporations should be created for each nation 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 the 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 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 misguided 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 the 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. The beneficiaries are all the industries all over the American continent.

 But this project is taking into consideration the future of humanity. Sea levels are rising and Global warming is causing massive problems. If cities get flooded then literally entire cities and their populations need to be moved. The only way to be able to do that is to create massive transportation like the railroad system I am proposing here.

1)     Build a railroad network that will cover all Latin American countries and connect with a network of super-fast and sophisticated train system from the United States to every Latin Nation, 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 both oceans Pacific and Atlantic).

3)     Implement and initiative a plan for the modernization and technological advance of Latin America. Instead of a linear economy a diversified and investment policy. Just the growth of stock markets in every Latin country could create the most massive and powerful investment network in the world. 

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. The steel industry, aluminum, copper will benefit tremendously also in the US as well as other nations.

b)    The agreement will empower people in the Americas, it will motivate new investment in agriculture, industry and commerce. It will benefit greatly to all communities. It will 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, Europe, Africa and the rest of the world.

c)     The agreement would provide the framework and financing to build an advanced fast train system 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 with all nations is vital. The development, construction and design of these new systems will create thousands, if not millions of jobs in all nations and illegal immigration will not be an issue anymore. The challenge to use new technologies and the greatest cooperation among scientists, 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 on 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 of 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 advanced supercomputers to keep track of the thousands of jobs being created, the contracts and the companies, the budgets 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 begins 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 the performance of each corporation involved and the fulfilment 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 unequalled 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 revalidate 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 its 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, construct or expand gateway ports of San Lorenzo in Esmeraldas, Manta and Guayaquil to serve as points of entry to the continent to import and export from Asia and the USA. While ports in Mexico, Perú and Chile can be implemented also to make trade and commerce much more effective. The ideal is that most South American countries could increase their exports of agricultural products but already processed, metals, and all natural resources, while we import much-needed machinery to motivate small industry at the lowest possible price dealing directly with all kinds of 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”. But policies of decades ago and the Trump's stupid policies of America first created an economic mess for all kinds of nations.

Products need to be exported from South America countries to create jobs and much greater economic output that only benefit the United States. The investment in Ports in Ecuador, Brazil, Argentina, Chile and the investment in a new railroad system to be built can only bring progress and development, and from those large ports to all Asian nations. The reason is that transporting everything to one single locations could provide many benefits. The Amazon model of creating certain distribution centers can also benefit 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, the 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 the length of time instead of being wasted. Large Super Cargo ships can come loaded from China and unload completely in Ecuador and distributed from 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 content 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 for machinery and equipment and others 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 number of tariffs and taxes should be paid. In exchange for all the necessary loans from North American and Asian countries and International organizations. It should be able to finance this investment. At the same time investment of at least 51% (22.5% by locals’ communities or cities and 22.5% by each central government plus 22.5% by domestic investors of each participating country should be expected. The United States will have the great solution to its immigration problem and also resolve the 100 million plus of Americans without a job (some not on the workforce and some counted as unemployed) Otherwise the alternative is 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. The United States should issue its own money without being manipulated by the usurers of the Federal Reserve banks. All currencies should have a fix exchange rate.

k)     This agreement should implement an economic framework for a fixed rate for all Latin currencies for at least five years until the 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 the 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 framework that will provide visas, facilitate travel, communication and will permit the creation of departments 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 a 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. I have put forward Scientific Community Wealth as a plan of dividend sharing.

Continues to Second Part

https://integraldevelopmentplan.blogspot.com/2015/04/second-part.html