Ufo propu engine, closed loop

[ltseung888]

An imagined meeting in Beijing on Relationship Selling and Mutual Credits

Economist A: "We are going to discuss Relationship Selling and Mutual Credits today. Both are related to trade agreements between two parties. In Relationship Selling, price is not the most important issue. The most important issue is to build relationships. The relationship should aim for producing high quality products with the best technology."

Economist B: "We have to change our way of thinking. We have been educated to seek the cheapest product with the best quality. We do not care about who is the manufacturer. Now we have to add the element of knowing and helping the other party."

Economist C: "We now have to treat a trading partner as a relative. When I buy or sell goods to a relative, price is not the main issue. Relationship is more important. If the other side is poorer, I do not mind paying more and advising him on how to improve the product. If the other side is richer, I shall focus on the additional meaningful economic activities that we can both generate."

Economist D: "Does that have conflict with WTO?"

Economist A: "WTO is Multi-lateral Agreement amongst many parties. The issues are much more complex and agreements are much more difficult to reach than bilateral agreements."

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Economist A: "If we add Mutual Credits to Relationship Selling, we have a very powerful combination. A richer Nation A has the currency of Nation B to use to spend on special projects in special economic zones. Nation A can showcase its development model on the soils of Nation B and give the investors in Nation A a chance to expand to Nation B. Nation B can immediately purchase goods and services from Nation A without incurring any debt. The meaningful economic activities will increase greatly for both Nations."

Economist B: "It will take the Economists and Politicians from both Nations time to digest such a new concept. There will be attacks and distortion reportings from third party Nations. Some working examples need to be established first."

Economist C: "China can quietly build such working examples with friendly Nations such as Pakistan or Ethiopia."

[ltseung888]

A real Relationship Selling example.

I participated in a government subsidized birthday party for Seniors. It was held in a Hotel with an all you can eat buffet. I paid HK$270. The normal cost of the buffet was HK$275. I received standard birthday gift worth HK$250. There was also ruffle prizes. Everyone won something. Mine was drinks worth HK50. The lady sitting next to me got cookies worth HK100. The top prize was an apple iPhone worth over HK$7,000.

Normally, a Senior would not go to a buffet as he could not eat too much. But this was fun and enjoyable. The cost of HK$270 bought meal and gifts worth more than HK$570. We also enjoyed the Company and the atmosphere.

The Chinese Government is doing something similar. The seniors got to ride on public transport FREE. They received meals and gifts in the many festivals. Such contributed to the consumer economy. It was better than giving money to these seniors. (Most of them would save the money.)

Can China reach its goal of moving to a consumer based economy? With Government or Government supported organizations spending on the consumers' behalf, this should not be a problem. Advantage of State Capitalism?

Relationship selling - seniors happy; Hotel happy; gift shops happy; thin-air money bought happiness... Who cares about ROI (Return On Investment)? Who cares about one man one vote?

[ltseung888]

Comment:

Government or Government supported agency spending on behalf of some groups of citizens.

In Hong Kong, housing is the most expensive in the World. However, some people are living in old, decaying apartments that are badly in need of repairs or demolishing. These are private housing where the owners wait for some developers to buy the building to redevelop. However, some owners want to wait for a higher price or wait for the Government to compensate them to move out.

In such situations, should Government "spend" on their behalf to improve their standard of living? Should Government move them into much better housing and pay them extra cash?

In China, some village hotels are being built with high standards of comfort. The goal is to show the villagers what is modern comfort. These hotels may be turned to homes for the villagers later. It is a case of Government spending on behalf of the Citizens. Increasing consumer spending is not a problem in State Capitalism. China will not be poor again with modern knowledge and technology - just do not have too many babies!

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China has a new slogan: Houses are for living and NOT for speculation.

In some cities, non-residents are not allowed to buy property. In some cities, citizens are not allowed to buy more than two pieces of property. These new policies aim to stop property speculation. However, some avenues must be developed for the increasingly wealthy citizens to invest.

This is a hot topic in China. One suggestion is to have investment funds targeted towards the short term projects within the one-belt-one-road initiative. Another suggestion is to allow Forex and other derivative trading. In both cases, Government is in effective control. Government will manage the bilateral or mutual credit arrangements. Government will set up or support the hedge funds to smooth out market fluctuations. Government will be regulating or even acts as casi*o owner in Forex and derivative trading.

It is a good problem. China, with its much larger and better educated population, will undoubtedly develop to be the largest economy in the World. With political stability and clear vision, the Chinese Citizens will master the financial concepts and tools in addition to technology, technology and technology.

Seniors can help when their brains are still functional. Retiring at 60 and still contributing...