NEWSLETTER
14 February 2009
Dear Member
We need your help! Could you please drop us a line and tell us what you think of the Government and the way they are running the country? We are all short of money and political correctness has gone mad.
Over £50 billion of our money is going to the European Union every year, money we need for our own country. Please write and give us your views. If you would like to pay us a visit, we shall be pleased to see you. The office e is open now on Monday, Tuesday, Wednesday and Friday from 9.30 – 12.30 and on Thursday 9 – 10.
We also give notice that we have our AGM on the March 25th at 7.15 p.m at the office in King Street, Ramsgate.
Nomination forms are enclosed. Currently the present members of the committee are willing to stand again. However it is always good to have new members with new ideas and if you would like to nominate someone, provided they agree of course, then we would welcome the opportunity to have a democratic vote.
Yours faithfully
Jean Wisker, Hon. Secretary.
…………………………………………………………………………………………
Chairperson…………………………….. Hon Secretary……………………………..
Hon. Treasurer…………………………Committee Member…………………………
……………………………………………………
……………………………………………………
……………………………………………………
|
|
Dear Sir,
I have been putting some thought to the current global financial crisis and would like to put forward to you a hypothesis for consideration, if it is a viable solution to the increasingly catastrophic situation the global financial system is currently experiencing.
It is about time that someone came up with some constructive thoughts and started to look at the ‘credit crunch / recession /depression) as an entirely global problem that is not going to improve in anything like the near future.
Global problems require global solutions and the only REAL solution is to tackle the problem on a global scale.
Consider this hypothesis - the only way to revive the world economy is to instill confidence in the public mind, give investors something to invest in!
Banks and bankers cannot do this anymore nobody trusts them
The answer is to respond to the masses in such a way that they have the power to bring the world economy back on track.
Bring confidence back and it will turn around very quickly, the burning question is HOW?
A simple solution is available, provided that the world financial systems and all governments work as one entity for one goal.
THE SOLUTION IS SIMPLE IN CONCEPT BUT DIFFICULT TO RESOLVE WITHOUT 100% GLOBAL COOPERATION AND METICULOUS PLANNING TO IMPLEMENT THE CHANGEOVER TO REVALUED CURRENCIES AND ALL FINANCIAL TRANSACTIONS ADJUSTED TO THE NEW LEVEL.
Close down all financial dealings for 48 hours
The concept is to take all global assets, everything but hard cash and reduce the value to one tenth
Next take all cash assets and multiply value by ten
(this would require revaluation of every world currency) yes print new money
This would create wealth for every man and women in the world overnight and create a differential of 100 times between asset values and cash values globally and therefore will not have any inflationary impact whatsoever.
after 48 hours all transactions would recommence with all assets a tenth of what they were before, but cash assets having being multiplied by ten they would be worth 100 times more. However the status quo of assets, wages, prices, etc., relatively, will remain the same.
The windfall from the change gives revenue back to the people to spend but have 100 times more spending power. Costs of assets are slashed and the cash assets allow people to buy houses and spend while still maintaining the original differential as the revaluation is totally global therefore there will be no difference in the relative values of assets compared to incomes.
If such a plan was considered and published globally it would almost certainly create confidence, in fact ity may even improve the world economy before it is applied. Just the knowledge of global improvement may give the kick-start the banking bail-out strategy has not.
I am an engineer, not an economist, I look for solutions to problems every day.
Regards,
CG London
Comment by cliff — February 23, 2009 @ 8:53 pm
The simple solution for the global economic crisis
Figures are example only
The following chart is excel so I will send on separate e-mail
Fixed Assets Iiquid Cash value A/C prices, wages A/W
Value
100000 1000 5000 Multiplier
100 20 Before 10
Divide 10 10
Multiply 10 A/C A/W
10000 10000 500
1 20 2 days C/O Change Differentials
A/W A/C
10000 10000 500
20 1 After Return to normal differentials
All fixed assets drop by the multiplyer ie. 1/10 for all holders therefore differential between holders is not changed.
All cash is revalued at multiplyer times the original. ie 10
This gives the consumer multipler squared times more cash to spend due to the drop in prices. ie 100 relatively
All prices and wages are revalued at one tenth of the original making it easier for the consumer to buy.
Differential between Assets and prices / wages is maintained
Value of liquid assets is increased and available to the consumer to create new cash flow.
Cash flow = profits, less debts, savings, higher interest rates to savers, more stable housing system
More Government spending, no government debts, better balance of payments, reduced taxes
You may ask what happens to the debts from the previous period - Answer, they are also reduced to one tenth also (using the multiplyer 10)
The relative difference between wages and prices remains unchanged however the amount of cash available to buy, invest, save, is increased many times
Mortgages drop, house prices drop, money starts flowing, lending starts, cash flow is renewed to higher levels, economy grows, unemployment drops,
This level of revaluation does not create inflation as the transition is 100% global therefore everyone benefits at precisely the same time and the prices and wages
are adjusted simultaneously.
However the greatest benefit is the windfall cash from the transition where all cash changed to the new currency is mutiplied relatively by 100 times if the 10 multiplier is applied.
This could be adjusted to suit the most effective value.
If this system is adopted the global fiscal system will still operate as normal but will have a powerful weapon to address any future global economical problems
A ‘hidden’ benefit to this system would be that while it is being prepared for implementation confidence will return to the markets as the ‘value’ of stocks will increase due to the fiscal policy and the final ‘value’ will be greater than before as a differential as all stocks will be devalued identically and their purchase power will be undeminished.
Comments please
CG
Comment by cliff — February 23, 2009 @ 9:03 pm
Dear Sir,
I have been putting some thought to the current global financial crisis and would like to put forward to you a hypothesis for consideration, and if, in your opinion, it is a viable solution, or could form the basis of one, to the increasingly catastrophic situation the global financial system is currently experiencing.
It is about time that someone came up with some constructive thoughts and started to look at the \’credit crunch / recession /depression) as an entirely global problem that is not going to improve in anything like the near future.
Global problems require global solutions and the only REAL solution is to tackle the problem on a global scale.
Problems now and problems future
Lack of cash, Unemployment, Insolvencies, Market crashes, Lack of confidence, Lower sales, Rising prices, Inflation, Deflation, Negative growth, Government debt level, Personal debt level, Government spending cuts, More unemployment, More Government expenditure on benefit and the list goes on.
If nothing is done to stem the tide of the failing Global Economy we will eventually move into a global depression, the signs are already showing as the Lloyds/HBOS merger begins to look shaky, (what is coming next?) whereby the global financial system will completely stagnate and create a situation many times worse than that of the so called \”Great Depression\” as the present global financial system has far more reaching tentacles than that of the 1930\’s and the interdependence of countries economies is far greater than in the past.
Even now we are hearing of difficulties in Countries such as the United Arab Emirates that in the past would never have been affected by a \’glitch\’ in the financial system but this is not a \’glitch\’ by any stretch of the imagination and must be addressed as a matter of urgency.
Solution Hypothesis
To Stabilise the Global Economy
To attain this it will be necessary to increase cash flow by injecting more cash into the system and giving the masses more (untaxed) cash in their pockets to stabilize their situation and have a sustainable income by having the opportunity to improve their financial and social status. The only way is to devise a method of cash injection in such a way that the existing percentage differentials between fixed assets and liquid assets remain the same whilst releasing liquid assets to the masses.
The reader may be surprised at the mention of giving the windfall cash untaxed. The reason for this is the fact that early recognition of this plan by Governments can give a massive boost to economies as the effect of \’printing money\’ will not be felt during the changeover therefore individuals and governments can recapitalise during the period.
The public have a tax free windfall and the governments can rebalance the books so the taxpayers and there grandchildren are no longer in hock for governmental mistakes and banking mismanagement.
Ideally there should be a cap on both private and government cash reclamation this would have to be determined by individual governments in the preparatory period to the changeover.
This may seem the perfect recipe for rampant inflation and certainly would be if implemented by a few governments. However if it were implemented globally at precisely the same time the effect would be zero as all currencies across the globe would change simultaneously.
There is a definite benefit in applying this method to stabilize the global financial system as it can be applied at any time to a greater or lesser degree should a rebalance be required in the future.
For example the percentage changes can be determined to suit the severity of the imbalance in the future.
The principles of the concept are to provide the following actions, the duration of which could be up to 6 months or more in preparation.
1) Reduce the value of all fixed assets to one tenth of their current value including, shares, companies, buildings, houses, bonds, all assets except liquid cash and cash deposits in banks etc.,
2) Increase value of all liquid cash assets, cash in hand, bank deposits and savings by ten times..
3) Close down all financial transactions for 2 days to revalue all currencies, databases, accounts etc.,
4) Open financial transactions after 2 days
5) All prices, payments, wages, salaries, debts etc., reduced to one tenth of previous value.
6) All New currency is worth 100 times the new pricing but wages are the same percentage differential as before.
The implementation of this plan would be announced as soon as possible to provide \’confidence\’ in the market and bolster the market in preparation for a bull market that will surely result from such a surge in confidence in the global markets.
The above is an example of the concept the actual revaluation level will be open to debate to reach the most effective solution.
On first glance it seems we would be losing on both asset and cash values but on closer inspection all prices and asset values would be the same as they are now relative to our income but everybody\’s initial cash windfall would allow a massive change in social welfare.
The benefits would be endless to both the general public and Governments.
We only have to push the reset button!!!
The Masses
Affordable homes for everyone
Manageable Debt
Opportunity to improve lifestyle
Less Crime
Government
Improved Environment (green issues)
Reduce Unemployment
Increase Commercial Activity
Increase Public Expenditure
Target Special Development Areas
Improve all roads
Improve all Schools
Improve all public services
The list would be endless and the opportunity is now because somebody has to stop cluthching at straws and making excuses and squabbling over what could mean the future of the world for the next 20 to 30 years.
I look forward to hearing from you in the near future to hear your comments and criticisms for my \’out of the box\’ thinking on this globally critical situation where the whole world is currently looking for answers.
The above can also be read in conjunction with the spreadsheet I sent via e-mail.
Comment by cliff — February 23, 2009 @ 9:27 pm
Dear Sir,
I have been putting some thought to the current global financial crisis and would like to put forward to you a hypothesis for consideration, if it is a viable solution to the increasingly catastrophic situation the global financial system is currently experiencing.
It is about time that someone came up with some constructive thoughts and started to look at the ‘credit crunch / recession /depression) as an entirely global problem that is not going to improve in anything like the near future.
Global problems require global solutions and the only REAL solution is to tackle the problem on a global scale.
Consider this hypothesis - the only way to revive the world economy is to instill confidence in the public mind, give investors something to invest in!
Banks and bankers cannot do this anymore nobody trusts them
The answer is to respond to the masses in such a way that they have the power to bring the world economy back on track.
Bring confidence back and it will turn around very quickly, the burning question is HOW?
A simple solution is available, provided that the world financial systems and all governments work as one entity for one goal.
THE SOLUTION IS SIMPLE IN CONCEPT BUT DIFFICULT TO RESOLVE WITHOUT 100% GLOBAL COOPERATION AND METICULOUS PLANNING TO IMPLEMENT THE CHANGEOVER TO REVALUED CURRENCIES AND ALL FINANCIAL TRANSACTIONS ADJUSTED TO THE NEW LEVEL.
Close down all financial dealings for 48 hours
The concept is to take all global assets, everything but hard cash and reduce the value to one tenth
Next take all cash assets and multiply value by ten
(this would require revaluation of every world currency) yes print new money
This would create wealth for every man and women in the world overnight and create a differential of 100 times between asset values and cash values globally and therefore will not have any inflationary impact whatsoever.
after 48 hours all transactions would recommence with all assets a tenth of what they were before, but cash assets having being multiplied by ten they would be worth 100 times more. However the status quo of assets, wages, prices, etc., relatively, will remain the same.
The windfall from the change gives revenue back to the people to spend but have 100 times more spending power. Costs of assets are slashed and the cash assets allow people to buy houses and spend while still maintaining the original differential as the revaluation is totally global therefore there will be no difference in the relative values of assets compared to incomes.
If such a plan was considered and published globally it would almost certainly create confidence, in fact ity may even improve the world economy before it is applied. Just the knowledge of global improvement may give the kick-start the banking bail-out strategy has not.
I am an engineer, not an economist, I look for solutions to problems every day.
Regards,
CG London
Comment by CG — February 23, 2009 @ 9:45 pm