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 .