Niaz Ahmad, Khan (2007): Economic Revolution Of This Century.
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I have developed a new financial instrument which will be much more valuable than the bonds or the treasury bills government sells in the open market to raise much needed funds to run the country. These are all interest based instruments and can only be used by institutions. The instrument I am proposing is without interest and will be used by everybody to purchased goods and services in the government and private sector resulting in up to 60% discounts .This is why these will be massively bought up front in large amounts in the shortest period of time of one month to run the country for at least a year and much more by the end of the year.
INTRODUCTION: The world is facing many challenges with no solution in sight.
The main cause of all these ills is the POVERTY. Float bonds which can be used by everybody rich or poor and are not debt to the state so there is no question of interest.
How: Take the example of USA which is going through a great recession.
USA borrows money by selling treasury bills and the interest based bonds. The suggestion is to sell these bonds on non interest basis
EXAMPLE: ONE dollar buys 5 bonds on the condition that the amount should be $100000 or multiple of it. Fewer amounts will get the rate of four and three. This discount massive period is only for first month at the start of the implementation of this system. In the second month the rate will be 4 but the rate of 3 will apply to subsequent months for the same amount WHERE THESE BONDS WILL BE USED?
1. All state controlled services and commodities.
EXAMPLE: A bill of (any service or Commodity) $100 can be paid with 200 bonds and there will be no exception to this rule .A NET DISCOUNT OF 60 %.
A simple formula will apply: Total bill in dollars x2 is the number of bonds surrendered. Price in bonds will not be less than the cost price but without the direct indirect taxes and the duties which are added to the present to make it very expensive.
It will attract at least 50 million people to take this opportunity as early as possible. And if one is sure of making 100% profit within 30 days there will be many more that will help themselves.
RESULT - Government gets at least $15 trillion within a very short period of time of few days and much more in the rest of the year .THIS IS NOT A DEBT AS STATE HAS SOLD BONDS( Commodity) WHICH IS AN ALTERNATE CURRENCY AND DO NOT CARRY ANY INTEREST. One immediately thinks who will join this club bear the loss and this loss to the state will not be more than total year budget of $2.5 trillion which it collects in one year with all the taxes and the duties but the bond price is simply a cost price without any kind of tax or duty. So there is a net gain of approximately 2.5 trillion within a short period of time.
WHO WILL SELL THESE BONDS?
State will float tenders to will select a private agency (USMF) UNITED STATES MONITORY FUND JUST A NAME GIVEN TO THIS ORGANIZATION with the lowest bid WHERE AS second third and forth bidders will be auditors of USMF. This agency will employ at least 20 million unemployed on 10% commission basis and without any salary. These agents will have to pay $500 as an annual fee to USMF in order to build the infrastructure for the sale of bonds. Agents quota Will be $300000 per month or they will be allowed to sell their whole year quota in one day or in a month, This will only materialize if the agent shares his commission with the would be buyer. Greater the share of commission quicker the sale. This investor or a buyer will sell these bonds at the same rate of 5 per dollar and his bonds will sell like hot cakes every day as there is no condition of the amount of money to purchase of bonds. In this way even the poorest person will get the same rate or near the same rate as the investor except for the commission which he takes from the agent who makes almost 100% profit by only investing $100000 .He will sell these bonds repeatedly and will keep at least 6% profit every day till the demand lasts. NOW THINK HOW MUCH STATE HAS ACCUMULATED Much more than few years budget in matter of only one month.
|Item Type:||MPRA Paper|
|Original Title:||Economic Revolution Of This Century|
|English Title:||Economic Revolution Of This Century|
|Subjects:||A - General Economics and Teaching > A1 - General Economics > A19 - Other
A - General Economics and Teaching > A1 - General Economics > A11 - Role of Economics; Role of Economists; Market for Economists
|Depositing User:||Niaz Ahmad Khan|
|Date Deposited:||19. Jan 2010 00:18|
|Last Modified:||12. Feb 2013 14:25|
Economic Revolution of this century