Ufo propu engine, closed loop

[ltseung888]

 Imagined Meeting in Beijing

Economist A: "Now that China is Forex Trading via its own Exchanges, there is no need to worry about attacks on RMB by the crocodiles. What is the next step?"

Economist B: "Let all friendly Nations know that they can do the same. Every Nation can theoretically manage the exchange rate of their currency."

Economist C: "Will there be irresponsible Nations printing huge quantities of their thin-air currency and maintaining their exchange rate?"

Economist D: "Other Nations can stop trading with the irresponsible Nation. It will suffer the same fate as in the current set of rules."

Economist A: "What will happen to the future of RMB?"

Economist B: "If China maintains a stable exchange rate, a higher interest rate and occasionally appreciates the RMB, other Nations will be eager to use RMB as settlement and reserve currency."

Economist C: "Bilateral trade with many Nations will increase. China will have the currency of many Nations via Mutual Credits. The pace of world economic development will greatly increase. If Relationship Selling is improved, the GDP growth of China will rise back to 8% or more."

Economist D: "The real GDP of China will exceed that of USA in a couple of years – not just the PPP. (Parity Purchasing Power)."

[ltseung888]

  Imagined Meeting in Beijing
 
Economist A: "What will happen to the future of RMB?"
 
Economist B: "If China maintains a stable exchange rate, a higher interest rate and occasionally appreciates the RMB, other Nations will be eager to use RMB as settlement and reserve currency."


Economist C: "Bilateral trade with many Nations will increase. China will have the currency of many Nations via Mutual Credits. The pace of world economic developmetnt will greatly increase. If Relationship Selling is improved, the GDP growth of China will rise back to 8% or more."[/font]
 
Economist D: "The real GDP of China will exceed that of USA in a couple of years – not just the PPP. (Parity Purchasing Power)."

Imagined Meeting in Washington

Strategist A: "Now China learned the currency weapon. What should we do?"

Strategist B: "They also learned that they were our willing slaves. We placed orders and gave them thin-air money. They polluted their water and air. They gathered the villagers into factories. They produced the goods. They bought our thin-air treasure bills and proudly announced that they had trillions of USD reserve."

Strategist C: "We wanted them to fight regional wars. We wanted them to go to war with Japan, Philippines, India and Russia. We wanted them to start trouble in North Korea. We told them that the North Korean Nuclear Weapons were a greater threat to them. They did not fall into the trap."

Strategist A: "We can bomb the Nations if they got Infrastructures built by China. We do not need to use our pilots. We just give weapons to the democracy supporters. They can overthrow the Governments and destroy the Infrastructures. We give them the missiles or explosives. We then blame China – labelling them as neo-colonists coming to rob the resources of poor Nations."

Strategist B: "Would it be simpler to get Taiwan to declare Independence? China is likely to take military action. We can then nuke China with the excuse of defending Taiwan and Democracy."

Strategist C: "We have to consider the reaction of other existing nuclear powers and some new ones. We may have to nuke North Korea, Pakistan and Russia too."

Strategist A: "We have to kill or imprison all the Chinese already in US soil. We may have to put troops in every corner of the Earth. Some Chinese might secretly re-develop nuclear weapons and use them on us. That option will lead to the end of the Human Race. I do not want to be part of it."

Strategist B: "If we follow the suggestion of competing with Russia+China. The game is to help poor Nations develop, what will happen?"

Strategist C: "We may get many Nations obey us like Germany and Japan. But many Nations may go to the Russia+China Camp. We will not be the only Super Power any more."

[ltseung888]

Concept of Sure-win Businesses
 
If we define a sure-win business as – putting X dollars in and getting more than X dollars out, we can have many sure-win businesses. The main reason behind is the ability of Governments to create thin-air money. If a Government backs up a business and injects thin-air money in, the money out can easily be more than the X dollars the businessman puts in.
 
For example, in building Infrastructures, the Government selects Company A to build a Road. The Government pays all costs related to the construction of the Road. Company A focuses only on the building of the Road. Company A does not worry about whether the Road will generate income. Company A receives the thin-air money so long as it does a good job.
 
The Government knows that it has to increase the money supply for its Citizens to get wealthier. However, it wants its Citizens to generate Meaningful Economic Activities. Meaningful Economic Activities include many different types - especially those that provide more comfort, security and enjoyment. Good Infrastructure Projects definitely qualify as Meaningful Economic Activities.
 
For example, China and Pakistan together build a Road and a High Speed Rail to link a Seaport between the two Nations. That easily qualifies as a Meaningful Economic Activity.  A Mutual Credit or Bilateral Arrangement can be set up to pump Y dollars into such a project. Some of the Y dollars can be from China and the rest can be from Pakistan. Both Nations can print thin-air money to do so. No debt needs to be imposed on either Nation. Many Companies, A, B, C will be involved in the project and receive the Y dollars. These A, B, C Companies are effectively involved in sure-win businesses. They may have to put in X dollars to do the initial study and bidding. But they can easily get much more than X dollars if they are successful.
 
We shall think and expand more on such sure-win businesses. The World will be more prosperous and more peaceful with such sure-win businesses...

Tseung, you have not discussed the bond market. That is even larger than the 5 trillion USD per day Forex Market. If you own an Investment Bank that can help Companies go public, would your Investment Bank be considered as a sure-win business?

Lehman Brothers was an Investment Bank. It issued bonds using the USA Home Mortgages as the means of generating income. It also packaged many derivative products. Its marketing to the consumer was: "We pay a higher interest than normal bank deposits. Our bonds are one of safest in the World. The USA citizens will pay mortgages to own their homes."

Unfortunately, as with all private, profit-motivated ventures, it was overdone. Mortgages were issued to seventy year olds and many others with no possibility of payment. The excuse was that the Banks can always take back the property and sell it for a profit on an appreciating value property market. Some economist even argued that the USA Government would not allow any big Investment Banks to fail. (They are too big to fail.)

Many private Companies issue Bonds assuming that the new Bonds will cover the promised interests and that investors will continue buying their bonds. It is a legal way of increasing thin-air money. The market depends heavily on faith. The USA Government cannot allow that faith to vaporize. Thus much of its QE money was used to pop up such Bonds.

China must not fall into that trap. It buys US treasury bills – bonds by the US Government. Because the US Government can always print thin-air money, that is considered super safe. But treasury bills are just paper or just numbers in a trusted institution. It is much better to use that money for more Meaningful Economic Activities. China must not allow its private Companies to issue Bonds similar to US. The issuing of bond is equivalent to private Companies using thin-air paper to exchange for thin-air money. Leaving that in the hands of private companies will inevitably lead to greed and overdoing.

The largest Meaningful Economic Activities at present is Infrastructure Building in the many Developing Nations. Thus the one-belt-one-road initiative is the correct win-win path to take at present. The thin-air money can be turned into actual projects that will benefit the Human Race.

[ltseung888]

Concept of Public Investor

The most important element in any field is knowledge and skill. China will be the number one economy. But its financial brains are not developed to take on that position yet. Losing one trillion USD foreign currency reserve to protect the RMB Exchange Rate is not exactly smart.

How can China develop an elite group to master money and the financial markets dominated by Wall Street? One proposal is to have Public Investors. These Public Investors are selected as follows:

1.       They will go through a basic training on investments. The training can be via the Internet. They must understand the basic financial terms. They will be judged on simple multiple choice questions. In addition, they must participate in discussion forums demonstrating their financial views and insights.

2.       They will go through dummy trading on one or more areas of their choice. For example, if they want to trade in Forex, they will have a six month period doing dummy trades. In the dummy trade, they will compete with many other Public Investor Hopefuls. The amount of Dummy Money is one million Yuan.

3.       The different areas of Investment will be selected by the Local or Central Government. These areas may reflect the local region characteristics. These areas may be updated from time to time.

4.       There is no age limit for such Public Investors. Seniors can participate so long as they have a functional brain and be able to use the Internet.

5.       The winners of the Dummy Trades will also be judged on the postings they posted on the various "judgement" financial forums.

6.       A certain number of Public Investors will be selected to do real investing on behalf of China. They will each be give one million RMB to do real trading. Their trading will be recorded and analyzed by the many Public Investor Hopefuls.

7.       If they are successful in a predetermined timeframe, say, 5 years, they can return the one million RMB and keep the profit. They can also become moderators of the financial forums and be part of the selection committee for Public Investors.

8.       If they are not successful, they can return whatever was left. They can try to become a Public Investor again via competition with other Public Investor Hopefuls. Their experience will be treated as learning lessons for the Nation.

9.       Thus many citizens will participate in the Financial Markets. The collective knowledge will increase greatly. The thin-air money will be more effectively used.


Some hints on Forex Trade training:
https://en.investing-deals.com/forex/?vid=309&a=383&c=2827&s2=GDN-Forex-SE-Asia-EN_Text&s4=__c&s5=168541423916_none&gclid=CMWUkJq1itMCFYGbvAody6cBtw

[ltseung888]

Concept of Sure-win Businesses

If we define a sure-win business as – putting X dollars in and getting more than X dollars out, we can have many sure-win businesses. The main reason behind is the ability of Governments to create thin-air money. If a Government backs up a business and injects thin-air money in, the money out can easily be more than the X dollars the businessman puts in.

For example, in building Infrastructures, the Government selects Company A to build a Road. The Government pays all costs related to the construction of the Road. Company A focuses only on the building of the Road. Company A does not worry about whether the Road will generate income. Company A receives the thin-air money so long as it does a good job.

The Government knows that it has to increase the money supply for its Citizens to get wealthier. However, it wants its Citizens to generate Meaningful Economic Activities. Meaningful Economic Activities include many different types - especially those that provide more comfort, security and enjoyment. Good Infrastructure Projects definitely qualify as Meaningful Economic Activities.

For example, China and Pakistan together build a Road and a High Speed Rail to link a Seaport between the two Nations. That easily qualifies as a Meaningful Economic Activity.  A Mutual Credit or Bilateral Arrangement can be set up to pump Y dollars into such a project. Some of the Y dollars can be from China and the rest can be from Pakistan. Both Nations can print thin-air money to do so. No debt needs to be imposed on either Nation. Many Companies, A, B, C will be involved in the project and receive the Y dollars. These A, B, C Companies are effectively involved in sure-win businesses. They may have to put in X dollars to do the initial study and bidding. But they can easily get much more than X dollars if they are successful.

We shall think and expand more on such sure-win businesses. The World will be more prosperous and more peaceful with such sure-win businesses...

Tseung, you are putting too much emphasis on the role of Government. If a Government is corrupt or incompetent, the Citizens will suffer. Market Forces, through competition, will be better in most cases.