Money
as currency is a tool to exchange the produce of one against another and
globally replaced the barter system after the advent of industrial age around
the year 1770, when printing of currency came into vogue. Money is yet another
form of energy and has no attributes except the value printed on it. But the
way the money is created in the system or by an individual, gives it a karmic character. Lakshmi is the fund manager or banker of the money resulting from
the karm of devta or positive attributes or attitudes of creative producers and
Kuber is the fund manager or banker of the money resulting from the karm of asur or negative attribute or the attitude of exploiters, looters
and moochers.
Like
every human being has a name, body, face and energy, every country has to have
a name, territory, flag and currency. All the 204 countries in the world
continue to print currency and by a well-managed system, regulated by those who
create the rules at global level de hors the national governments, these currency
continue to fluctuate. Every person in India has to work harder by 55 times (I
US $ = INR 55) than a person working in US and 70 times (1 Euro = INR70) more
than a person working in Europe to keep him at par.
Technology and Infrastructure based on
technological advancement brings about growth momentum of the economy in the
country. Agriculture and housing and inter connectivity of human settlements led
to water channels, water pipes and roads; electricity led to erection of
generating systems and distribution network, Home TV led to satellites, cable
network; mobile phones to erection of transmission towers and now Wi-Fi. R & D must continue to take mankind
towards harmonious, happy living and sustained relationship for that is what we
all are looking for. After the advent of Industrial Age (1770 AD) and
introduction of currency Banks came into existence and industrial growth and
infrastructure projects have continued to be financed by Banks. After the World
War II and formation of United Nations, the developing nations have been
financed by the World Bank and other Development Banks and several Funds,
existing globally and locally.
The source of all this Bank funding is
fundamentally and basically in the nature of debt. All the currency that exists
is minted by the 204 countries in exercise of its sovereign power either under
a contract (Federal Reserve Fund for USA) or by an independent authority (RBI
for India) against Bonds issued by Government, with promise to pay. These bonds
are however never paid back, for more money is minted against more bonds when
more is required and the bank debt fund continues to increase in the globe and
continues to be circulated on fractional reserve basis. Fractional reserve base
creates and circulates more money out of thin air, without actual currency in
place. The accounting system at individual, state or national level reflects a
limited picture. In the postmodern new age, when we the economic picture at
global level, we find that the total global debt fund of all the countries in
2012 is about 40 trillion US $. This would simply mean that if on a single day,
all persons decide to withdraw all the funds in their credit, the Banks will
fall short 48 trillion US $ (1 trillion US $ = 55 Lakh Crore),
This money created by Governments has continued to
change hands from person to person, for the products produced by individuals
for corporations or companies (from MNCs to Proprietorship Firms) and services
rendered by individuals (from those working in NASA to rag pickers). Monopoly,
Trade, Vyapaar and Career were indoor children games played by us all,
where the pre-existing currency was distributed by a Banker to all the players
who continued to roll the dice and buy properties collect rentals or pursue
their career with passion, ambition and diligence, till they were too tired and
exhausted (after 4-5 hrs.) to play more and the money went back to the Bank to
start all over the next time. The global economics draws a parallel and the
Banks continue to dominate the life of every nation and every individual.
It is
extremely difficult to comprehend and appreciate that those who matter in
determining prudent financing policies in national interest in India are
showing total ignorance and obliviousness about the crumbling world economic
structures and the apparent changes which could be seen by every intellectually
honest economist in India as the impact of the information age which is
changing the social structure is demanding restructuring of economic and
political structure from global to local level.
The (incorrectly) structured economic cycle continues
to create more Kuber dhan and continues lead us all to disastrous
consequences like corruption and civil disobedience movement for the whole
system is fuelled by those very people who have first got the policies in place
to receive the debt and thereafter landed the money to legally extract money
out of the system. This is simply a global manifestation or a globally expanded
form of the old Zamindari system which led to real deterioration of
human values and the deep level of insecurity perpetrating deep in the soul of
India. Money was lent for fertilizer and seed, to the farmer by mortgaging his
land. The loan would never be paid because the crop was burnt or money was spent
in rituals (dowry, mritubhoj etc.) and the debt and mortgage continued
in perpetuity. The Zamindar would openly molest and rape the females in
the house of the poor farmer and not only laugh it out but glorify his
misdeeds, misdoings and misadventures at his post evening and late night daru
(drink) and tangri (chicken legs)
parties followed by mujra (erotic dance).
The system was fully supported and fuelled in
British Raj and the Privy Council said “Once a mortgage always a
mortgage” and reiterated even after independence. All that was the reason for
all the land reforms by giving khudkasht (self-tilling) rights to all
the cultivating land less persons and abolition of Zamindari system at
the dawn of independence. This was the
rise of the Lakshmi dhan once again after 947 years of eclipse. It is
not difficult to understand that the supports by judiciary to land reforms led
to the first amendment of the Constitution of India for the than leaders
(members of Constitutional Assembly and Parliament) with their vast readings
(free time spent in jail) and interactive global exposure were able to
understand and appreciate the interplay of global economic forces.
Industrial age ended and e-age made its advent in
1955, making all information available to individuals leading to twitter,
wikileaks and scams and exposing those who were amassing the Kuber dhan.
After 1990 though there is a deep quest of making the world unipolar to enable
minting of a global currency and amass the entire Kuber dhan, which only
happened once in the history of civilization, when Ravan tilted the
balance of the earth and should happen never again. This well-managed and
well-connected conglomeration of (seemingly unconnected) Bankers, Fund and
Asset Managers, Financial Consultants, MNC’s, Media called CP – GOD (Currency,
Pharmacy – Gold, Oil and Diamond) have continued to control the affairs of the
Governments and individuals on the basis of fluctuating markets (called market
forces) and conflicts (ethnic, civil disobedience, terrorism, wars etc.) and
amass the benefits sought to be created by 7 + billion human beings for
themselves and their family. Governments and persons sees money only from the
time it comes into their hand a leaves their accounts, but that is the
miniscule visible part of money cycle and the mega part remains un-manifest to
the commoner. But seers, economists and people who can think objectively and
see beyond the veil, are now been able to decipher the real play of forces. It
is time to see rise of Lakshmi dhan in the horizon, making the world multi
polar and that the sham and phony regulation and management slipping out of the
control of CP-GOD.
In 1998
India issued the Resurgent India Bonds (RIB) and in 2000 the India Millennium
Deposits (IMD) for a tenure of five years to target channelizing NRI savings
into India, which would have even otherwise reached India in due course of
time. PIOs have moved out of India for over 1000 years now, working hard
wherever they got a chance and showing their real mettle and have never lost
their roots. To meet its challenges of growth, Government of India has created
an Infrastructure Debt Fund of about 2 billion US $ and is further gearing up
to create further funds by issuing long term 30 yrs. Government Bonds at about
9 % fixed income to the Bond Holders, which will certainly be purchased by the
FIIs, which control Global Financial Institutions and economy, directly or
indirectly.
In 2011
India created an Infrastructure Debt Fund (IDF) for about INR 10,000 Crores and
now the State owned India Infrastructure Finance Corporation Ltd.(IIFCL) are
finalizing broad contours for a multi-billion-dollar 30-year
proxy sovereign bond that (as projected) will allow the Indian Government to
raise funds from Foreign Institutional Investors (FII). It is expected that
these Bonds would be floated with a guaranteed return of about 9 % in the
expectation that, with the Europe shrinking the bonds will fully subscribed, in
spite of the credit rating loaded against India (by global statistic holders),
for dismal and slowed growth rate of 5.3 % in the last quarter of 2011–12, the
slowest since 2003–04. 80 % of
the money so sought to be raised is expected to provide some solace to the
parched infrastructure, which India has continued to build since independence
and the balance would go to Public Sector Banks to enable them to lend more
money and obviously take it back by making book entries against unpaid debts
(creating more NPA’s). It is also expected that the inflow will help prop up
INR which in June 2012 hit a record low of 57.32 against US$. All this is
expected against the widening of current account deficit gap export earnings
and import payments and rising inflation in double digits and oil prices above
110 US $ a barrel, rising FDI repatriation and large external commercial
borrowing redemptions.
Interestingly
and amazingly nobody is asking the questions as to why India needs to pay hard
earned tax payers money to repay 9 % interest to the Foreign Institutional
Investors when money is said to be available at LIBOR + 2 % or the money lying
with the FII’s does not belong to them but belongs to High Net-worth Individuals (HNI), Qualified
Institutional buyers (QIBs) and Fixed Income Buyers (FIBs) who get only 3 % interest from FII’s and
would be more than willing to fund any project in India @ 5 % interest and
continue to roll it over. The other question which nobody wishes to ask is what
will happen after a period of 30 years when a new generation of Indians will be
hit by the tsunami of repayment.
In view of the real play of forces, interlocked in
networked, the commitments sought to be made by the Government of India, such
decisions would logically and certainly take the growth further down, as the
objectives are not achievable from the debt fund (Kuber dhan) and will
not increase production but will only increase inflation. Companies will reduce
employee’s salaries budget or reduce number of employees (they can’t reduce
travel, entertainment, marketing and gifts), leading to employees unrest
(Maruti in Gurgaon) and will not be able to invest anything in R & D and
continue to depend on utran (discarded technologies), for the companies
will have to meet the direct and indirect tax demands (validated by Courts)
made by the Government at every taxing event from excise to sales and service
to wealth. Government has also no choice for it has to pay high rate of
interest on the debt funding, choicelessly received by it.
For providing long-term debt to
infrastructure projects Mr. Edward Fortin, President & CEO Global
Operations of Fortin Financial Group
(FFG) a BVI Company, has devised a
proprietary funding mechanism primarily keeping in view the global melt down of
existing banking structure and currency wars which will certainly change the
balance in global economics in the new age. It is not only difficult but
impossible for anyone to negate that the PIO’s are making their mark all over the globe not only in the field of
IT, Astronomy, finances but also politics. It is not difficult to decipher the
reason for all this and that is the deep rooted ancient heritage, profound
culture, traditionally oriented family structures with simple and positive
values, natural entrepreneurship skills, integrity, honesty and finally
adherence to relationship above mere economics.
After
long and deep search in existing economic structures managing the affair of the
world for over 220 years (since 1791) it is necessary to shift from Banks Debt
Funding to Insurance Credit Funding (ICF – Lakshmi
dhan). ICF is a perfect solution to provide long-term funds without a
baggage more particularly because the source of money is not a fund created on
debt against Government Bonds but the hard work of individuals. ICF will be an
extremely efficient method of providing loans, on very reasonable terms as to
interest and repayment to Public Sector Undertakings and Private Entrepreneurs
by fully collateralizing the project only and without seeking any personal
guarantees as is prevalent with Banking Sector. ICF is not faced with the
inherent risks involved with the project development investment and that is
that the investment made may not be returned back with interest and penal
interest.
ICF
based on the expanded vision and faith and trust in the entrepreneur executing
the project. The tacit understanding is that every project is able to achieve
its object and purpose, if the money is spent on the project is not siphoned
off in land banking, share markets or other projects not under the management
of the entrepreneur and somebody provokes him and shows the possibilities of
making some quick money, which is never made. The real objective of every
project of job creation and sustainment of personal well-being, is always
achieved and that in fact and in real terms adds to the Gross Domestic Product
(GDP) or Gross Personal Happiness (GPH). The inherent insecurity (Zamindari
system obsession) in every individual decision maker, makes it extremely
difficult to appreciate, understand and realize that, why a Company would
invest funds in another company without full security of its recovery and
realization. But that is when they are looking at individual companies or corporations
without looking at the larger picture, for the Company managing the ICF is
finally always getting more even if there is a 10 % fall out.
The
confidence that this system of funding permeates because of the inherent
strength of the financial structure of Credit Funding raised against actually
existing Insurance Funds from those who care for the world and have feelings
for the mankind, as contradistinguished from the money raised against
Government Bonds from those who do not care, how the money grows. The stake
holders in creation of these funds are:
The
stake holders in this creation of money are:
1. Life
Insurance Company – In USA
2. Senior
Citizens – in USA
3. Otkritie
- Broker, Asset Manager, Financial Consultant and Investment Banker – Russia /
UK (http://www.otkritie.com/)
4. Fortin
Financial Group (FFG) – British Virgin
Island (BVI)
5. J.P.
Morgan – in U.K.
6. Insurance
Company – AXA, ING and Allianz - in Europe
7. High
Net-worth Individuals (HNI), Qualified Institutional buyers (QIBs) and Fixed
Income Buyers (FIBs) – All over the globe especially Europe
10. State
Government, PSUs and Private Entrepreneurs – in India
11. Independent
Engineering Consultants and Project Acessors– in India
12. Financial Structuring and Techno Commercial
Appraisal and Security of Documents in India
13. PSUs and Projects – in India
Backdrop
-
Insurance
appeared simultaneously with the appearance of the human society. Since 1680,
all over the world first marine insurance, then fire insurance and thereafter
several other forms of insurance have continued to grow. Life Insurance
Companies continue to provide and citizens continue to take Life Insurance
Policies (LIP) or Senior Life Settlement (‘SLS’) to provide security to their
families after their death. Citizens continue to pay premiums against these
LIPs on monthly, quarterly, half yearly or yearly basis. In view of the
judgement of Supreme Court of USA, in USA these LIPs are transferable and/or
assignable to third party. Over the centuries, the insurance surplus fund has
continued to accumulate all over the world. This wealth is in fact the fund
generated by beings which existed on planet earth, had worked and had deposited
premiums with the Insurance companies and the insurance companies even after
paying the legitimate dues to the people have been left with legitimate
profits, which they have continued to invest against securities including
government securities on low interest rates.
These
profits constitute about 40 % of actual cash deposits in the Bank as
contradistinguished from digital money and freshly minted currency and is to
the tune of about US $ 23 trillion in US and Europe with an premium of 4.3
trillion US $ coming in every year, for it is inherent in the human
functionality, that nobody consumes more than he produces. The only exceptions
are those who do not produce anything but live as looters and moochers (CP-GOD)
on the wealth produced by other private entrepreneurs. All the currency printed
in the world does not get destroyed except when burnt in wars, attack by terrorists
or natural disasters.
The
Process -
Senior
Citizens in US, who are holder of LIP and are in need of immediate funds, look
forward to surrender the LIPs to the Insurance companies. However, in view of
their assignable nature, the senior citizens can assign the same on a higher
premium. Fortin Financial Group (‘FFG’) has got in its fold policies of senior
citizens preferably above the age of 72 years (life expectancy in USA is 76.2
years)
(http://en.wikipedia.org/wiki/List_of_countries_by_life_expectancy)
and
have paid surrender value of the LIPs along with a premium amount to the senior
citizen, who is more than satisfied as having received more value, than the
surrender value they would have got from the Insurance Company. FFG continues
to pay the premium, from year to year to the Insurance Company, for the rest of
the life of the person, whose policy they have assigned to themselves. FFG will
be entitled to receive the insured value of the LIP at the time of death of the
policy holder. A simple calculation of the surrender value paid to the policy
holder with premium and the payment of annual premium to the Insurance
companies vis a vis the insured value to which FFG would be entitled, reveal
that FFG is conveniently left with a substantial surplus amount as their
profit.
Having
purchased the policies of senior citizens for a premium, FFG has retained the services of J.P. Morgan Trusteeship Services U.K. an
Investment Banker to keep the policies in their trust and continue to pay the
premium to insurance companies and to collect the insured value as and when it
becomes due and payable by the insurance companies. The surplus amount left
after payment of surrender value and premium amount takes care of the total
value of the insurance amount to which FFG would be entitled from the insurance
companies and a surplus fund. This surplus fund is sufficient to secure 5 %
annual simple interest for a period of 10 years for any investor who subscribes
to the Bonds issued by FFG and is totally secured by the J.P. Morgan Trusteeship
U.K. A totally secured annual return of 5 % for 10 years is a perfect,
lucrative and flawless investment for High Net-worth Individuals (HNI),
Qualified Institutional buyers (QIBs) and Fixed Income Buyers (FIBs) all over
USA and Europe, when LIBOR (London Inter-Bank Offered Rate) is about 1.35 % for
12 months and continues to vary at 11.45 am (London Time) every day at the
behest of BBA (Britain Bankers Association) – and extension arm of CP-GOD. The
maximum amount that the assured fixed return that the investment Banker or
Asset Managers provide to the HNI, QIBs and FIBs are against long term
investment is LIBOR + 1 % i.e. 2.35 %.
The
exponential and phenomenal growth of quantum and nature of data and easy access to
information from all directions, brought about a clear awareness with the High
Net-worth Individuals (HNI), Fixed Income Buyers (FIBs) and Qualified
Institutional buyers (QIBs) of the link between men made atrocities, violence,
terrorism and wars and their money. These HNI, FIB and QIB are now able to
trace the use of the funds and are feeling the true impact and effect of the cancerous
growth of Kuber dhan. These HNI, FIB and QIB in the new age fully wish
to disassociate and severe all connections, either indirectly or even remotely of
being privy to any form of return from corrupt funds or blood or money used for
exploiting the commoners around the globe, with whom they now feel connected.
These HNI, FIB and QIB are now actually and genuinely wish to be a part of the
development of the world and not contributing or underwriting the corrupt funds.
India with its attributes, is the only country in the world to be able to touch
and shake the deep dormant conscious and becomes the most preferred parking
place for these funds.
In
that view of the matter, FFG is simultaneously executing MoUs with Public
Sector and Private Sectors undertaking for their infrastructure projects in
India by creating an SPV or equity participation or granting loans to make
these funds put to use. With the formal commitment made for projects in India,
FFG will load the Mid Term Notes (‘MTN’) or Bonds from its SLS portfolio and
instruct J.P. Morgan Trusteeship U.K, its Investment Banker to provide the HNI,
QIBs and FIBs with information required to enable them to access the MTN or
Bonds offered via the Bloomberg Terminal in order to perform due diligence of
the projects to be executed in India. With the due diligence accomplished, the
sale of MTN or Bonds can be completed with the MTN sold @ par to HNI, QIBs and
FIBs all over USA and Europe assuring return of principal and a 50% fixed
return (5 % per annum), both payable at the end of year ten (10). The Investor
purchases these MTN, for such investment eliminates the inherent risk of any
loss of principal and interest which is associated with project investment and
also gives him a sense of contribution to actual genuine development and not
contributing to blood money or corrupt funds.
The
fluctuation of currency has no effect, implication or influence on these transactions
as the entire money in India is coming as capital of BFIL from the profits
earned by FFG. The repayment that will have to be made to HNI, FIB and QIB on
maturity of the Bonds after 10 years shall be settled by J.P. Morgan
Trusteeship, UK from the money received by them from the insurance company
after the maturity of SLS. The Bonds floated by FFG have, with their
international contacts with HNI, FIB and QIB, are more than acceptable.
The
investor (HNI, FIB and QIB) receives:
·
* MTN ownership, backed with ‘A’ rated or
better SLS with a non-lapse
premium contingency.
· * Principal reimbursement at maturity
· * 50 % fixed return, payable at maturity
· * SPV security where ever applicable
· * Equity stake where ever applicable
· *Additional windfall where ever
applicable
Funding
in India –
Having
secured the principle and interest payable to the investors, FFG has to ensure
use of the funds raised against these MTN or Bonds be financed for Public
Sector Undertakings and Private Entrepreneurs in projects in India, that would
be actually executed or lying dormant and can be executed forthwith. This
funding could be provided on long term basis of 7 years at interest rate of 6.5
% for PSUs and 7.5 % for Private Sector or to be decided on case to case basis.
This interest amount received by FFG would cover the expenditure that FFG has
to make in maintaining the MTNs, marketing and selling the Bonds, fees and
expenditures of the Investment Bankers, professionals associated with the
entire project, travel and other organizational expenditure and some profit.
Experience
has established that most of the projects in India have an immediate need of a
bridging finance or a seed capital. In a typical Real Estate, Hotel or other
Infrastructure project, persons have invested the available capital in the land
and basic infrastructure and are looking for finances to complete the project
to bring it to a take-off stage (in several cases the funding received from FIs
has led them to courts) or have huge lands as securities and are looking for
finances to develop and complete the project before they market it to the
consumer. With most Indian Entrepreneur’s having burnt their fingers and lost
total trust in their effort of raising finances through the Big Four (4) and in
deep debt with Banks and other Financial Institutions all over the country, not
only find it difficult but impossible to pay any advance or up front to bring
in fresh funds.
Bridging
Finance using a Credit Default Swap (CDS) –
Both
Public Sector Undertakings (PSU) and Private Entrepreneur (PE) are in dire
needs of funds to give fillip to the infrastructure development and industrial
growth in the country. All these PSU’s and
PE’s need bridging finance to initiate the process of the Project before the
real project fund arrives, which would normally take 6 months. This need to
bridge the gap between the submission, sanction and approval of the Project and
receiving the funds through MTNs and Bonds, spreading over a period of 6 months
can be met by raising finance by issuance of a CDS by a nationalized Indian
Bank. BFIL can submit the approved project and the valuable securities of the
Public Sector or Private Entrepreneur to the Bank, which can issue a CDS.
Against the CDS the BFIL can raise the bridging finances from its Credit Line
existing overseas for its associate companies and provide it to the PSU or PE.
As soon as the project fund is received, the CDS can be released and utilized
according to the project cash flow analysis. The amount can be rolled over if
the need so arise.
The
entire fund which comes to India comes as Capital of BFIL, with no strings and
shall continue to be rolled over in India alone with no movement of funds
outside India again. Reorientation of the family structures, coming up of new
entrepreneurs and modernization of technology shall continue to need fresh
finances, which can continue to be provided as the total Insurance funds lying
overseas are to the tune of 23 trillion US $ and 4.3 trillion US $ coming in
yearly. India neither lacks entrepreneurship nor does it lack commitment to the
cause, but needs correct thinking and execution with determination and will.
India only needs the necessary momentum to break the existing inertia, which
can be provided by FFG and BFIL by resourcing funds through Insurance Credit
Funds or Lakshmi Dhan and work as a
consortium with nationalized Banks.
Reorientation of the
family structures, coming up of new entrepreneurs and modernization of
technology shall continue to need fresh funding ad infinitum. The quest and the will of every human being to create
world anew and a will to create a better human society or natural disasters
will continue to take the infrastructure and the world around to the next level
year after year, whether it is basic like bijli
(electricity), pani (water), sarak (road) or real estate and housing,
telecommunication, sports, old homes, education or heavy, medium and small
industry, to next level and continued reconstruction. The time has come now for
the Laksmi Dhan flow to India in its purest form and help India to take a
quantum leap.
