3.15 pm GMT – Tuesday 14th February 2012

Dear Mr. Farsi, Mr. Chavance & The Corniche Group

At some point next week you will be presented with an Executive Summary called “American Butterfly”, attached to the email will be the first version of “American Butterfly V: 001” Chapter 50 “Times are a Changing” which illustrates the progress since writing the first Draught of “American Butterfly” and this Chapter.

This is not the way I would prefer to make a presentation, I would sooner have a 200 page glossy broacher that has had the assistance of various consultants both critically analyzing and adding to the work. However this will take at least 6 weeks and the work is most effective, if publicized at least a month before the US presidential election on the 6th November 2012

As such I have decided to write in journal format, as it is much quicker and in many ways gives a clearer picture of the creative process, this being chapter 51, it also illustrates the amount of work that has gone into the project, since last February when I phoned Tanya to tell her, the business plan I had been working on for many years had taken an unexpected turn and become an economic theory. I did not send the work to her or you then, as it needed much more detail. Since that day there has not been a single day that I have not contributed significant content to the project, this is all I do, having shut myself off from the world to work unhindered.

Before I go into any detail, I may as well let you know exactly what I require, I do not need any money, in essence all I need is your assistance in helping me to make a presentation to you.

It’s possible you may read the work that is presented and enthusiastically jump on board, this said, it’s as likely that you are extremely busy and do not have time to analyze the few million words on a website www.s-world.biz, much of which is written in a less than serious way so as to be attractive to the nerds at facebook.

As such I will work on a worst case scenario, being that you read the executive summary, are aware of the amount of supporting data, and a representative has read trough the three accompanying attachments and suggested, there is no harm helping me to make you a professional presentation.

Of course I would prefer an ecstatic all hands on deck approach, but I will be perfectly content with the following.
I don’t need any cash, save transport and accommodation, and I will need only a month to complete the presentation.

I wish the presentation to be in glossy brochure format about 200 pages half graphical.

I require the consultants with expert knowledge in the following fields: USA economics and budgets, Greek economics and budgets, financial accounting, predictive accounting, land/resort developments from 8km2 to 1024KM2, Infrastructure costs, software design, banking systems, database linking particularly API’s, Hospital and University construction and running, solar and other forms of alternate energy, USA & Greek politics & Middle East matters, “Quantum Mechanics”, “Chaos Theory”, “Super String Theory”, “Relativity”, “Gravity” & “Rocket Science”
Between 10 to 30 hours each

To put the broacher together I will need a full time team consisting of a graphics and icons specialist, with skill at resort developments, a page layout specialist, a ghost writer, sub editor and editor.

Whist it is not essential, it would be advantageous to have the www.s-world web site redesigned, and the content within it tidied up, further it would be advantageous to create a condensed version of “The Virtual Network” as it will be of great assistance to the PR process.

It would be of further assistance if a representative from your group were to work on the project side by side, assisting with the organization and in general being someone I can run ideas past. Tanya would be perfect, however if you feel another more suitable, that is your call to make.

That’s pretty much all I need, I hope to have created what I call the PQS, in spreadsheet format this week, if I have troubles, it may be desirable to have a team of 4 programmers create a beta version.

Cost analyses

Right, that’s not going to work, firstly, no one is going to put in that amount of money for a report, and secondly logistically it’s a nightmare and will end up running into months.

Let’s consider the objective, what do I wish to achieve?

I want Mr. Farsi, Mr. Chavance & The Corniche Group to accept the plans as credible, where after we produce a spectacular presentation for the next target. Who is the next target? Either: Mark Zuckerberg, Sheikh Mansour bin Zayed Al Nahyan, Sir Richard Branson or Bill Gates.

What is an acceptable loss for an equity company to spend on creating a report? Tricky, but if I cut the budget by a 10th I think that would be reasonable, the above budget can be considered phase 2.

So we have $28,250, I’ll need to work in pounds so £17,950, hmm that’s still a lot of money, which is actually a ridiculous thing to say when we are looking at a $8 Trillion investment but………, that’s how it is, every penny counts

Ok let’s see what I can get for $28,250

OK that’s more reasonable, we will have to add $1,000 or so to get a handful of brochures made, and I will need to stay in town some nights, but I believe this is a reasonable sum to pay considering the rewards.

What are the rewards? And what do I want?

Well the second part is easy, nothing save a Vito on spending decisions made by the board, It’s always been this way, this is what turned a very good business plan, into an economic theory, I decided to use what should have been my 50% to aid humanity, all be it in a way that made sense, for instance in the USA, the biggest two problems are reliance on fossil fuel and Medicare/Medicaid

As such we divert a substantial amount of profit to these causes, which not only creates immense brand love, eventually the concepts make profit by themselves, particularly in the case of alternate energy. As for what you will receive, share options of course, maybe 10%, which on the full economic plan should quadruple in ten years or so, not in value but in Real Estate Holdings and dividends earned, whether shares actually get sold in the traditional way is as yet undecided.

If the plan turns out just to be, a software backed by real estate plan, profit will be considerably more, at a rough estimate 40 times in 10 years, then snowballing to unknown riches, and I know enough not to say anything that I cannot back up, so it’s to be believed.

However, the main things you will receive are either the satisfaction of creating an excellent business, with noble intentions, or the glory of saving the world, that’s what’s in it for me, that and my exploratory ambitions.

5.32 pm GMT – Wednesday 15th February 2012

Hi, in case you were wondering what I’ve been doing all day, this morning and early afternoon, I went over yesterdays work, then went out for my daily walk, which takes about 2 hours up to the Epsom Race track, around and back again, it is on my walks that I compose my thoughts.

As for this diary, it started on June 12 after I saw “The Social Network” it was originally called “The social Network 2”, this was changed to “The Virtual Network” a few months back, it serves as a place to put my thoughts down, both social and business, all be it nowadays its far more business orientated.

I think I’d better give a summary of the software, as the previous statement “that as a standalone business plan, it would make 40 fold profits” is largely from the software not the resorts. After I’ve finished I’m going to continue the figures for the resort and the design of the PQS (Predictive Quantum Software.)

The software has a number of separate components, all be it, it works as a single unit. Collectively the software is called Sienna, after my daughter, the inspiration for the project.

Components:

Sienna.Gov Financial, Banking and Auditing Software (Can Pay Tax)
Nice Customer Relationship Software
S-Q Human Recourse & Testing Software
S-Link Global Trade Network & Tools (Businessbook)
S-World Tutorial Game, Virtual World & Operating System
PQS Predicts Business, Economic Growth and trends

The foundation is created by the Sienna.Gov financial software; through painful experience I have learnt that there is no suitable financial software for small businesses, not even close. And seeing as small businesses employ over half of all Americans and half go bust within 5 years, assisting small businesses with financial software that works will make a major impact on the US economy. This will be analyzed in a while via the PQS.

There are a number of problems with current software, initially the setting up and customization takes experts to do, then you need experts to run it, in my experience trying to install and use Pastel accounting, it took 7 years, 2 accountancy firms, 4 financial managers and over $300,000 to successfully install the software and set it up for my specifics, all this for software that only costs $100.

When it was correctly set up, it did not provide the double check, overall profit analysis, that I needed and cost $5,000 a month in staff plus accountancy bills. It offered no protection against human error and did not produce useful charts and data. This said 7 years struggling gave me the perfect idea of how financial software should be designed, how it should look, what double checks are needed and how to make it simple.

One great trouble is in the customization first to individual industries, then to specific businesses, as such a thousand different types of software are needed, all the same, but all tailored to different industries, different businesses sizes and different countries peculiarities.

As for the customizing to an individual business, that’s a hand’s on job, done by someone from the university, going to the business, meeting and talking to the owner, and setting it up for him or her.

How much does this cost? Nothing, the software is free, the setup is free the after assistance is free and the business advise and analytics are free.

While I’m on this point I’m going to do a cost analysis of this process.
How many small businesses in the USA? :
http://economics.about.com/od/smallbigbusiness/a/us_business.htm

Many visitors from abroad are surprised to learn that even today; the U.S. economy is by no means dominated by giant corporations. Fully 99 percent of all independent enterprises in the country employ fewer than 500 people. These small enterprises account for 52 percent of all U.S. workers, according to the U.S. Small Business Administration (SBA). Some 19.6 million Americans work for companies employing fewer than 20 workers, 18.4 million works for firms employing between 20 and 99 workers, and 14.6 million works for firms with 100 to 499 workers. By contrast, 47.7 million Americans work for firms with 500 or more employees.

http://web.sba.gov/faqs/faqindex.cfm?areaID=24

In 2009, there were 27.5 million businesses in the United States, according to Office of Advocacy estimates.

So 27.5 Million businesses, divided by either 3000 or 6000 reports depending on the outcome of the financial analysis, for now we will use 3,000 as such 9150 businesses per resort catchment, (at some point we need to account for Cities where many businesses are clumped together)

Better to work it out in terms of individual $1Billion investments, which would be 8,192 if we went for the smaller investment plan. As such we have a catchment of 3,357 SME’s per investment block, of which 25% goes to the university, split over 4 years as such $1 Billion x 25% over 4 years equals $62,500,0000 a year, here is how it is spent

EEE Businesses are businesses that are shareholders in the resort development and follow the various economic rules applied to EEE (Ecological Experience Economy)

Troubled Local Businesses, accept that once they are profitable, their profit is saved until they can buy into a EEE development, after which they must follow the various economic rules applied to EEE

Incorporated Local Businesses are businesses that choose to incorporate their business into EEE rules and much like troubled businesses; their profit is saved until they can buy into an EEE development

Businessbook Only are businesses that do not wish to join the EEE businesses model, but offer a better rate on their goods to businessbook than any other merchant.

Note: by the third year I have halved installation costs as the software will be more developed, (more specific versions will be available for different industries). Alongside this the staff at the university will be more experienced.

In the 4th year I have again lowered costs as the S-World Tutorial Game, will have self taught a lot of business owners, in essence they will have had to have played and attained a certain score to qualify for assistance.

It is quite possible, businesses would wish to contribute financially themselves or give part time jobs to the interns or students at the university that are working on the project, the part time job would obviously include assisting with the system.

All in all over 2/3rd’s of USA businesses on the system within 4 years, even if we only get halfway it’s still a good result.

What happens after 4 years when the money runs out, if you remember earlier I mentioned it was imperative for the resort and associated companies to make 25% profit each year by year 5, as such the decision was made to half the amount of resorts so each had a larger trade catchment area.

The reason for the need for a minimum of 25% profit a year is that a quarter of that goes to “The University”

We are working in blocks of $1Billion, as such 25% = $250,000,000 a quarter is equal to $62,500,000. This is the university budget, a budget which for a long time had been half dedicated to businessbook. By year 5 most businesses will either be on the network or realize it is essential to be on the network and as such can contribute to set up costs, as such all businessbook needs to do is offer support and business advise, as such we lose the set up costs and continue with 50% support fee.

Further, by this time, the founder company would have split and created another resort, as such we will run at double capacity if necessary, if this is not necessary, the ratio of 50% time allocated to businessbook will be reallocated to Hospital training and alternate energy research.

You may think I have gone off track, jumping from installing financial software to businessbook or “The Global Trade Network” however, that is kind of the point, as the free financial software and support is in part to get people to sell through our network, where we take a percentage of every sale. Consider that in Global GDP of about $80 Trillion, a 2% levee is $4 Trillion a year

There will also be a per transaction fee on the financial software, however it will be closer to 0.25% that said, 0.25% on every transaction made will add up to a tidy sum.

Ok, it’s been an enlightening day; I will continue describing the software tomorrow.

9.33 pm GMT – Thursday 16th February 2012

Yesterday was a very enlightening day, I had not realized the speed at which local companies would be assimilated until I created the spreadsheet, as such, even if you don’t work with the project your influence has already assisted, as without writing in a summation fashion, I would not have looked in that direction. I am acutely aware of my poor grammar, all be it there is little I can do about that without delaying the process.

Before I go into more detail on the software, I feel it is important to explain what is meant by “they must follow the various economic rules applied to EEE”

What we are doing here is a combination of what I call “Give Half Back” which is in essence me giving all back and companies benefiting from the PR, and applying good business practices to the various SME’s involved.
Firstly “Give Half Back” this is a very fluid concept, which changes and evolves to fit the particular company set or development.

NOTE: Set aside 5% of investment for company acquisitions, particularly farms and raw materials

5.27 pm GMT – Friday 17th February 2012

I’ve spent the last day and a half working on the PQS (Predictive Quantum Software), all concepts are so intertwined that without working out exactly or at least a rough estimate of what money will be available and when, explaining “Give Half Back” with any degree of accuracy, is a moot point.

What I’m going to do is give a blow by blow account of the last 36 hours work, before I do, it needs to be explained that every single component needed to build a house or stock a mall, is desired to have come from an EEE company, it is for this reason that earlier I only suggested 10% of share options, as the investment is desired to come in phases at least half from the local community, I will get to this later.

The PQS Figures in $1 Million units

Each section is a spread sheet on its own that often relies on another spreadsheet, for example part one, General Resort Building, it takes its basic information from the two report spreadsheets.

I will show you the Luxury Development Sheet

Note: just before the 2007/8 Credit crunch led to the recession, I was looking to become involved in a Mauritius Development, a few clients were interested in buying and I thought it appropriate to approach and offer my marketing services, then the recession kicked in and the development was cancelled. In this development the same property would cost $1,248,000 rather than $4,300,000.

It should be noted that the properties are not for sale at all, the properties are given to the initial investors as security for their investment, as such if one invests $1,248,000 dollars they will receive a property rated at the prices as seen above, it may well sell for more, all be it most investors will probably hold onto their properties until such a time that the property prices in the USA have got back to their 2006 levels (+55%)

There will however need to be some rules about renting the properties as an estate of 501 properties sitting empty not only lacks vibe it lacks the residents required to spend money in the resort to make the figures as suggested by the PQS, and so to the next spreadsheet

Building, Developer & Building Suppliers Profits: Year 1 & 2 In $1Million Units

Building, Developer & Building Suppliers Profits: Year 3 & 4

Here we have 5 profit Centers, the builder who makes his usual 20%, and the developer who makes 10%, nothing new there. However we also have a building supplier’s income stream, these are the companies that provide all the material for the building, the roofing, the kitchen, the windows, the flooring, the bathrooms, etc, etc. All will be part of the company, either directly within this specific company or an affiliate where a barter deal is arranged via businessbook.

We are looking at about 2600 different resorts ranging from $2Billion upwards, all be it the majority will be $2 Billion. Each has a catchment area; you would generally need to travel about 80 Miles to get to the next resort, and from their another 80 Miles to the next. That puts 20 Resorts within an acceptable range.

Each Resort will most likely spend $50 Million maybe $100 Million on industrial development, part of which will be creating incredibly modern factories creating 90% of all materials and supplies needed for development and construction of both houses and infrastructure.

Sometimes this will be in conjunction with a company that is already successful in this endeavor in the area, sometimes it will be a part of a much larger investor that had taken small investment blocks in many resorts, sometimes it will be a fresh company.

All in all from the initial $1 Billion investment, $600,000,000 has been spent directly on construction, $150,000,000 on land and of the $250,000,000 allocated for the university $62,500,000 is directly spent on salaries of skilled persons in the construction industry, whilst a lot of time spent by the other university department is spent on making the building process as economical and as lavish as possible.

The return on this investment so far over 4 years according to the PQS is $479 Million. This does not include the $1Billion in real estate given to the investors, or the $??? extra land, retail, commercial & industrial property owned by the investors.

The $479 Million is simply the profit from owning the building firm, developer agency, and supplier companies and a little internal reinvestment.

The general idea is that after 4 years, at least $500 Million is raised and put with another $500 Million from new investors, often businesses in the local area that committed their profits to the endeavor.

For example: “Exquisite Bathrooms” one of the 10,500,000 USA SME’s (38%) that statistically will fail during the 4 year first phase duration.

Knowing that “Exquisite Bathrooms” (EB) may fail, and seeing the opportunity for millions upon millions of dollars of contracts, its owner, we will call him “Justin” contacts businessbook about becoming an EEE partner.

A very thorough analysis of the business is made at the university, and director’s salaries will be agreed upon, a certain amount of guaranteed orders will be placed, and the business will be networked and financially integrated, a number of staff will probably join the university team. On top of this a glorious website will be created and “Exquisite Bathrooms will create an S-World presence.

The objective is at the very least for Exquisite bathrooms to make enough profit to afford a shop in the new resort, this will be roughly in line with the profit made from the guaranteed orders, it is in the owners best interest however to make far more profit from getting more orders from the local resort, neighboring resorts, resorts across the country, across the world and the public at large, and it will be the job of businessbook to help make this happen.

Exactly what happens to the extra profit is at this time, unknown, I’ve recently looked into entertaining the idea that the share price be allowed to increase. As such if the $1 Billion investment is split into 4 phases, where the last $500,000,000 was reserved exclusively for local companies, be they troubled companies, that need to work under our guidance to make profit to pay for inclusion, normal companies that wish to work in the same way, or companies that can afford direct investment. I’m no longer sure that there should be a flat rate.

As such if we worked a system as suggested for “Exquisite Bathrooms” for many companies, we could quite easily raise $1,000,000,000. In this scenario, I suggest their money be spent appropriately so they see full benefit, Instead of just a very plush shop space in the Mall valued at $1,000,000 if “Exquisite Bathrooms” made $2,000,000, Justin, the owner could choose either a additional house, or a part share in another venture, maybe a factory that made taps, or even a share of one of the luxury infrastructure projects that are made at cost price, such as a golf course, or stadium.

However as far as shares in the company are concerned, if there were 1 Billion shares issued, the initial shares would have cost $1, but the second wave would have effectively cost $2.

Until I have finished the PQS 4 year total profit and yearly profit predictions I can’t work out exactly what dividends will be offered so I’ll come back to this later.

Let’s go back to the PQS and the estimated revenue made from the resort by its residents and surrounding communities

As a baseline I used this chart from the US Bureau of labor Statistics April 2009

Which I converted into a sheet similar to the one below

All be it, for the PQS I break up the “Resort Spend Profit” as follows

Unfortunately the sheet is too big to display in word in its entirety, by the time you read this, you will of course have the PQS spreadsheet available to look at.

So far we have 4 different groups using this spreadsheet

1. Residents of the Luxury Resort
2. Residents of the Standard Resort
3. Catchment Area 1 (up to 9 Miles)
4. Catchment Area 2 (9 to 22 Miles)

The further away the less the resort spend ratio is, in other words, a family that lives in the resort will have a 90% resort spend ration for buying food, as most people buy food close buy, where as a Catchment Area 2 resident will have a 15% resort spend. This said, the idea of the resort is to have lots of attractions both necessary and unnecessary, hospitals and schools the necessary, and general entertainment the unnecessary, as such this figure may well rise.

A further note is that I’m considering allocating resources to building or buying large shops and malls within the catchment 2 areas, an EEE shopping resort, with the collective purchasing power of businessbook, and zero rent, will see competitive prices. Not to mention customer loyalty, as let’s face it, without EEE the USA would be in without Medicade or Medicare within the decade, and no one with any idea about US economics will dispute that.

Plus the many green issues, jobs etc, etc.

When we come to items like Apparel (Clothes) (50%) and Furniture (60%), I have left the resort spend quite high for Catchment 2, as the S-World Apparel business plan is immensely strong, and the furniture will be using the same techniques.

The next two fields in the PQS are University Staff & Builders salaries

University Staff

Due to the initial investment, the university will be paying out about $35,000,000 a year in salaries to various departments, There are many factors to a $35,000,000 cash injection into a community, and chances are this action will have a greater effect than just resort spending, however I need to achieve a figure so I have simply equated the $35,000,000 into 547 family units and worked out the resort spend the same as the standard development residents all be it adding some money into the rent column.

Builders Salaries

With builders, developers and suppliers salaries looking to equal just over half a billion over 4 years, this is a substantial cash injection to the local economy, especially as it is from the bottom up as President Obama would say. This is for the most part, money that people would not otherwise have had, and the ripple of money circulation through the local economy will be immense, in general it should have the effect of raising the average family unit income, as the family unit income no doubt takes account of the 15% or so family units not earning, as such, if you take away that stat it ripples all the way along the chain, which as far as the resort is concerned is excellent.

The resort as all resorts will do best when people have disposable cash, at the moment many Americans have little to spare, increase their income by 15% and we will probably see half of that coming back in terms of entertainment and shopping.

The original inspiration for the PQS was to track this kind of effect, however until I have all the data from all the income sources, It’s premature to start looking at such concepts.

As such for now, I have thought of the novel idea, of paying the builders and suppliers salaries as a salary and a bonus, the bonus being 20% in resort credits; as such I made a broad assumption that this 20% will bring 35% profit as such

And this brings us to the end of the PQS data that I have taken from other spread sheets, next I added another calculation that works out how many workers will work at the resort and how much they will spend at the resort in turn.

PQS

Specific to the “Add Staff at the Resort”, I’ve used a very “quick” way of working this out, there will be a better way, but I can’t quite think of it right now, so what I have done is estimate staff salaries as a part of profit. Yes I know….

I’ve said that the salaries are half the profit, it will I’m sure be more, but as I’m looking for a total profit machine maybe it’s not such a bad method after all. After calculating the Gross salary, I’ve assigned 30% to management and 70% to students and interns, not least because students and interns will most likely spend more on the higher profit centers such as entertainment.

And this gives us an indication of how many students and interns can afford to pay their own way

A good figure of people who will in essence be working on businessbook, as not only will they be working in a restaurant for instance, they will during their college time, be working with the businessbook team assisting in increasing profitability, liaising with the owner about the same.

That’s as far as I got with the PQS so far, not bad for 2 days, I have however identified a number of other income streams that need to be added.

I’m sure that list will grow.

Thus far we have building & Infrastructure (including reinvestment) (before outer resort contracts) creating an average of $120,000,000 a year with the Resort generating just over $100,000,000

I expect by the time the rest of the profit centers are added we will be at $500,000,000 a year with $500,000,000 banked for the next resort and about $800,000,000 re invested in some awesome infrastructure, and an awful lot of Solar Panels.

This is 100% above target, which is good, as I expect my figures to be beaten down some; in fact, I’ll probably beat them down some myself, just because.

Ok so it’s 12.03 on Saturday morning, I wonder what you did, this Friday night ? it’s been this way for me for just over a year now, only 5 days without committing work to paper, and on those 5 days I was thinking about it.

10.00 am GMT – Saturday 18th February 2012

Ok yesterday was fun, I just can’t wait till I start to apply the PQS to the USA economy proper. What to do now?
Maybe a quick word on businessbook and major brands, I know little about big business, having zero experience with them, however should EEE come to pass, within a year businessbook will create the biggest single order for any company, let’s look at Coca Cola, for which I am a walking advert, as I’m rarely found without a Coke Light in hand.
Coke has 4 options,

1. Coca Cola incorporate their entire company over to EEE, can’t see it straight away but it would be quite a coo, and you never know, simply writing this and their previous mention in the facebook director of business development section, may well see it worth their while from a branding perspective.
2. Coca Cola create a sub EEE company, in other words, they invest and we build a new greener production plant, and distribution network, where cans of Coke are made for businessbook, where the cans display the “Sienna Unite” logo which indicates, they are a part of “saving the planet” n stuff.
3. Coca Cola offer a 10% or more discount on their other lowest bulk purchase customer, where by the 10% is pure profit for businessbook.
4. Coca Cola offer no significant discount and businessbook puts on a 100% additional markup for all resorts, as such Coca Cola will cost 15 cents or so more in resorts than in usual shops and restaurants. (oddly enough this method would make the most profit for us, as people will still order coke and 15 cents here or there is not much of a deterrent)

In general for big business our main draw card is the collective purchasing off the resorts and affiliates via businessbook, however I expect, either “The Corniche Group” or whoever it is that first assists with the project to find some or many clever ways that big business will generate extra revenue.

This said if we consider the components or the resort and the affiliated companies, we are in effect looking not at tens of millions of SME’s rather 8000 odd large corporations, creating one colossal corporation.

While we are on this subject, let me try to make a shared profits graph.

Note: figures are made up, Fun = Entertainment, Uni = Education, PR includes Advertising & Media and is considered a loss leader with some profitable parts such as add agencies and filmmakers, however it also accounts for general EEE advertising.

One thing to note, it over time, profit centers will change, after the second or third resort has been created there will not be such demand for building, whereas with money pumped yearly into the solar batteries and other alternate energy, in 16 years or so Power will be one of, if not the largest profit centers.

The same applies to the Uni (University) as that is the businessbook and financial software profit centre, at first one does not wish to set the commission to high, however if most or at least half work trade is running through businessbook, and it’s very creation has saved businesses about 30% on costs in general, there is no reason why a 15% commission cannot be levied, half of its profit is after all going to good causes

How the profits equate to money in investor’s pockets is still to be decided, 25% may be in the form of dividends, a further 25% in the form of a new land development where the investors are given real estate equal to their percentage share.

I’ve not yet discussed POP (Pressure of Profit) or its more powerful name EPC (Ecologically Protected Capitalism) so named as each new company protects the founder in the same way a tree gains a new layer or bark each year.
This method sees 25% or so, flowing into the next company (resort) on a yearly basis, (said company will be half owned by the founder company). This over time creates exaggerated company growth as the more companies created the more profit flows and as such a snowball effect occurs, here is a graphic

However recently this act (that I am very much in favor of) serves to lessen the effect of having the founder company own the building and construction rights to the second company’s resort, which by terms of the profit centers so far, is the largest one.

Note, this graphic is based on a standalone model, not 8,000 odd competing/conjoined companies, as such new company creations is faster than it would be for the economic model.

Ok, time for a walk, and then I guess it’s time to add more of the profit centers to the PQS

Raining :(

Note: Business expenses, computers, outfitters, desks/cabinets, tills, stock, staff, advertising, marketing, service, development, accounting, legal, transport, tax,

3.57 pm GMT – Saturday 18th February 2012

Notes from the walk

Firstly the idea of selling shares on the open market is out, shares need to be linked to companies, as such there is a share owner with a vested interest in making his company or a company he is a part of, perform to its best ability. If the resorts shares were owned by just anyone, where is the motivation?

Along the same vein, companies or individuals selling their shops or offices is out as well, this would mean the company now has to rent, thus decreasing profit margin. However the shares, company and shop can be sold as a single unit, to someone that has a vested interest in making it work.

Secondly I think I will revalue the villa developments, and re assess the 70% expected like for like building cost that was assigned due to

1. Building logistics 40%, where as the size of the development and the university working on purchasing made the houses 40% more lavish than a single house being built. This makes sense from a certain perspective, however we will be competing with other building developments not stand alone houses, further the idea that the university will be able to save on bulk purchasing in many ways revolves around finding those companies that are working at cost, which will not be the case anymore.

Certainly we can expect a saving due to logistics, planning and organization, but not necessarily on materials, as we wish our suppliers to make a healthy profit.

2. 30% was deducted due to Spartan Labor (laborious on full time salaries from the university, who are also given subsidized housing and mortgages)
the cost for Spartan Labor at the university is $11,500,000 a year where as the total building salary is estimated at $52,500,000 as such with labor accounting for 35% of costs a 1/5th saving should only be about 7%

As such I think if I adjust the 70% productivity bonus to 20% it will be more accurate.
Here is the new valuation for the luxury development

I have also made a formula for the acreage and changed the mark ups, so only the top 86 houses have over a 1.1 ratio mark up.

I need to stress, these houses are not for sale by the company, they are given in return for investment, as such if one invested $10 Million one gets $10 Million of real estate, all be it not necessarily all from the same sector, industrial & commercial are also available.

As such the lower the price of the real estate, the better off the investor will feel, If we look at the Luxury Mansion, $1.3 Million on 2 Acres and do a random web search in the USA an equivalent home costs $3,000,000

http://www.golfcourserealty.com/golf-properties/page-2374.html On 1.32 Acres

If we further consider that, the golf course that this property is situated on does not have a resort styled hospital, State Of The Art University, exciting resort nearby we must consider our property an even greater bargain. Further consider the alternate power, many exciting sports leagues, excellent shopping and downtown area and the general PR associated with saving the US economy and our property should be valued at $6,000,000 not $1.3 Million.

I’m going to adjust the prices for the standard development now, in general all resorts will be 2 sets of $1Billion investment, it seemed the basic infrastructure costs of water treatment plants and the like were too much for one stand alone resort.

The Spartan Housing is houses reserved for sale for long term contract workers, in all areas, from labor, to nursing, computer science to doctoring. In essence after aptitude tests are done, certain candidates will be suitable for a long term contract of work an education for about 8 years before being qualified as either a resident doctor, or Building Economist. From this point the “Spartans” are obliged to work for half their usual salary, a doctor for instance

$100,000 not $200,000.
If we add the Luxury Development and the Standard development together, then divide by 2

$746,000,000
+
$478,000,000
=
$1,224,000,000
/2
=
$612,000,000

We have the amount of houses available to offer to investors, we now need to make up, $382,000,000 in Industry, retail, commercial and luxury items (Golf Courses) to create the full $1 Billion offering/exchange.

We will do this in two ways, first from the infrastructure budget and second from reinvestment of profits from the first 2 years building.

Infrastructure proper is not easy to calculate, I have however created some basic figures.

This covers the basic infrastructure for the 2 resorts and the metropolitan area, in truth I find these figures very expensive and hope to be able to shave 25% maybe more of the actual price, until corrected however this is the costing I will use.

There is a further argument that the roads and sewers, cables and street lights etc, that are for the property developments, should be included in the property development costs not overall infrastructure. However it’s a game of swings and roundabouts, as without the infrastructure the land value would not be as high. As such I will stick with this model for now, and leave it for the experts to present in standard format.

Next I have a very basic list and costing of the other items desired in the resort.

At an initial outlay of $497,750,000, $100,000,000 is covered by the initial investment; the balance of $397,500,000 is covered by the profits made over the first 4 years, which so far are at: $688,000,000 and rising.

5.20 pm GMT – Sunday 19th February 2012

A nice sunny walk today, I’ve decided to narrow down my businessbook targets by not including companies in the 100 to 499 workers bracket,

Let’s have a look at the earlier stats:

How many small businesses in the USA? :
http://economics.about.com/od/smallbigbusiness/a/us_business.htm

Many visitors from abroad are surprised to learn that even today; the U.S. economy is by no means dominated by giant corporations. Fully 99 percent of all independent enterprises in the country employ fewer than 500 people. These small enterprises account for 52 percent of all U.S. workers, according to the U.S. Small Business Administration (SBA). Some 19.6 million Americans work for companies employing fewer than 20 workers, 18.4 million works for firms employing between 20 and 99 workers, and 14.6 million works for firms with 100 to 499 workers. By contrast, 47.7 million Americans work for firms with 500 or more employees.

http://web.sba.gov/faqs/faqindex.cfm?areaID=24

In 2009, there were 27.5 million businesses in the United States, according to Office of Advocacy estimates.

As such

Workers

Unfortunately, I do not have exact statistics for how many such businesses there are.

Including the 500 and over, there were 27.5 Million business in 2009, let’s cut off 500 million for recessionary damage, and 1% from Big Businesses = 26.75, if we say the average 100 to 499 business has 200 employees and divide 14.6 million by 200 we have 73,000, a negligible figure. This said with 50% of small businesses failing every 5 years, and regeneration slow due to the recession I think my 500 million for recessionary damage was a bit low, so I will work on an even 25 Million SME’s, which when we think about it, shows an average of about 1.5 employees per business.

Hmmm, that sounds a bit odd, analysis needed: the USA debt clock (http://www.usdebtclock.org/) shows 140,000,000 employees.

http://web.sba.gov/faqs/faqindex.cfm?areaID=24 Shows:

The Office of Advocacy defines a small business as an independent business having fewer than 500 employees.

Small firms:
• Represent 99.7 percent of all employer firms.
• Employ half of all private sector employees.
• Pay 44 percent of total U.S. private payroll.
• Generated 65 percent of net new jobs over the past 17 years.
• Create more than half of the nonfarm private GDP.
• Hire 43 percent of high tech workers (scientists, engineers, computer programmers, and others).
• Are 52 percent home-based and 2 percent franchises.
• Made up 97.5 percent of all identified exporters and produced 31 percent of export value in FY 2008.
• Produce 13 times more patents per employee than large patenting firms.

In 2009, there were 27.5 million businesses in the United States, according to Office of Advocacy estimates. The latest available Census data show that there were 6.0 million firms with employees in 2007 and 21.4 million without employees in 2008. Small firms with fewer than 500 employees represent 99.9 percent of the total ( employers and nonemployers), as the most recent data show there were about 18,311 large businesses in 2007
.
Small businesses employ about half of U.S. workers. Of 120.6 million nonfarm private sector workers in 2007, small firms employed 59.9 million and large firms employed 60.7 million. About half of small firm employment is in second-stage companies (10-99 employees), and half is in firms that are 15 years or older. Small firms’ share of employment in rural areas is slightly higher than in urban areas; their share of part-time workers (22 percent) is similar to large firms’ share (19 percent). Small firms’ employment share remains steady since some small firms grow into large firms over time.

Small firms accounted for 65 percent (or 9.8 million) of the 15 million net new jobs created between 1993 and 2009.
Much of the job growth is from fast-growing high-impact firms, which represents about 5-6 percent of all firms and are on average 25 years old.

An estimated 552,600 new employer firms opened for business in 2009 and 660,900 firms closed. This amounts to an annual turnover of about 10 percent. Nonemployer firms have turnover rates three times as high, mostly because it is much easier for them to go into business and cease operations.

Notes: e = Advocacy estimate. Bankruptcies include nonemployer firms.

Seven out of 10 new employer firms survive at least 2 years, half at least 5 years, a third at least 10 years, and a quarter stay in business 15 years or more. Census data report that 69 percent of new employer establishments born to new firms in 2000 survived at least 2 years, and 51 percent survived 5 or more years. Survival rates were similar across states and major industries. Bureau of Labour Statistics data on establishment age show that 49 percent of establishments survive 5 years or more; 34 percent survive 10 years or more; and 26 percent survive 15 years or more.

Credit conditions are improving. In mid-2010, commercial banks began to ease the tight lending conditions on small businesses that had begun in early 2007. And credit has con¬tinued to flow, as loans under $1 million totaled $695 billion in FY 2009. Also, after declining over the past few years, ven¬ture capital investment dollars increased in mid-2010.

Small businesses rely heavily upon owner investment and bank credit, averaging about $80,000 a year for young firms: Startups rely about equally on owners’ cash injections into the business and bank credit; young firms receive about three-quarters of their funds from banks via loans, credit cards, and lines of credit. One-tenth of startups and about a third of young firms do not use capital injections.

Note: it’s far easier to start a firm, with the systems and orders already there.
The smallest firms (fewer than 20 employees) spend 36 percent more per employee than larger firms to comply with federal regulations. The disparity is greatest in two areas: very small firms spend four and a half times as much per employee to comply with environmental regulations and three times more per employee on tax compliance than their largest counterparts.

Note: This is interesting as businessbook, could assist with the cost of complying with federal Regulations.

A Kaiser Family Foundation study confirmed the connection between firm size and offering health insurance. The survey shows that about half of businesses with 3–9 workers offer health benefits to their employees. The ratio grows to about three-fourths for firms with 10–24 employees, to almost 90 percent for firms with 25–49 employees, and to 98 percent for firms with 200 employees or more. Almost two-thirds of workers take health insurance coverage when offered. Overall in 2008, small firm employees were almost twice as likely as large firm employees to be uninsured (25.1 percent vs. 13.6 percent, respectively).

Analyses: So there are 60 Million people employed by small firms, 6 Million firms and 21.4 Million independent contractors.

This has been a useful exercise, I will come back to this next time I progress the businessbook plans.

I’m going to have another look at the building costs now, first analyzing the order of the additional items, I’ll list them one by one and write a few lines on each.

1. Hospital

The hospital is the most essential factor for the US Economy, combined with the creation on patent free medicines and drugs’, looking after the 40 Million odd retirees now and the 80 Million in the future is undisputedly the USA’s largest and hardest economic challenge.

11.51 am GMT – Monday 20th February 2012

I’m going to go into more detail on the items that need to be built, first a Medicare & Medicaid vs. GDP graph
http://en.wikipedia.org/wiki/Medicare_(United_States)

Over the long-term, Medicare faces significant financial challenges because of rising overall health care costs, increasing enrolment as the population ages, and a decreasing ratio of workers to enrolees. Total Medicare spending is projected to increase from $523 billion in 2010 to $932 billion by 2020. From 2010 to 2030, Medicare enrolment is projected to increase from 47 million to 79 million, and the ratio of workers to enrolees is expected to decrease from 3.7 to 2.4. [50] However, the ratio of workers to retirees has declined steadily for decades, and social insurance systems have remained sustainable due to rising worker productivity. There is some evidence that productivity gains will continue to offset demographic trends in the near future. [51]

The Congressional Budget Office (CBO) has written that "future growth in spending per beneficiary for Medicare and Medicaid—the federal government’s major health care programs—will be the most important determinant of long-term trends in federal spending. Changing those programs in ways that reduce the growth of costs—which will be difficult, in part because of the complexity of health policy choices—is ultimately the nation’s central long-term challenge in setting federal fiscal policy." [52]

Overall health care costs are expected to increase by 5.8 percent annually from 2010 to 2020, in part because of increased utilization of medical services, higher prices for services, and new technologies. [53] Health care costs are rising across the board, but the cost of insurance has risen dramatically for families and employers as well as the federal government. In fact, since 1970 the per-capita cost of private coverage has grown roughly one percentage point faster each year that the per-capita cost of Medicare. Since the late 1990s, Medicare has performed especially well relative to private insurers. [54] Over the next decade, Medicare’s per capita spending is projected to grow at a rate of 2.5 percent each year, compared to private insurance’s 4.8 percent. [55] Nonetheless, most experts and policymakers agree containing health care costs is essential to the nation’s fiscal outlook. Much of the debate over the future of Medicare revolves around whether per capita costs should be reduced by limiting payments to providers or by shifting more costs to Medicare enrolees.

Summation:

$523B to $932B by 2010, in reality it will be more like $1T, from there a steady increase, with 80 Million enrollees by 2030, due to the baby boomers. (Current 48 Million)

The reasons why: Enrolment increase, higher prices in general and new technologies.

Solutions:

Enrolment: Build and staff more hospitals
Higher Prices: Lower both staff costs and pharmaceutical costs
New Technologies: Invent the new technologies and make them patent free for medical usage.

The following spreadsheet will demonstrate the creation of more hospitals without cost to the USA Gov.
Spartan labor deals with decreasing staffing costs
Free pharmaceuticals has been a key issue in EEE for a long time
Communal technology has also been a key factor, all be it this point is now under review, however, making medical technologies communal (patent free) can cause little harm, and do great good.

Definitions

Medicare: Social insurance program based program for over 65’s and the disabled
Medicaid: Means tested social welfare Program aimed at those not working.

In 2008, Medicaid provided health coverage and services to approximately 49 million low-income children, pregnant women, elderly people, and disabled people. In California, about 23% of the population was enrolled in Medi-Cal for at least 1 month in 2009-10.[12]

Medicaid payments currently assist nearly 60 percent of all nursing home residents and about 37 percent of all childbirths in the United States. The federal government pays on average 57 percent of Medicaid expenses.

Loss of income and medical insurance coverage during the 2008-2009 recession resulted in a substantial increase in Medicaid enrolment in 2009. Nine U.S. states showed an increase in enrolment of 15% or more, resulting in heavy pressure on state budgets.[13]

This took a while, but it was well worth doing, I used the Wikipedia http://en.wikipedia.org/wiki/Medicare_(United_States) & http://en.wikipedia.org/wiki/Medicaid for my baseline figures, then cross referenced the various http://en.wikipedia.org/wiki/2007_United_States_federal_budget federal budget figures, which were 16% light for Medicare and 40% light for Medicade, all be it, it mentions that Medicade is a 50/50 split with state tax budgets, in which case the situation is a lot worse.

I cross referenced the official BEA (US Bureau of Economic Analysis) GDP figures and used the Wiki Medicare page for its $932 2200 estimate, which gave me a 108% per year increase. As for the GDP increase of 4.5%, this has been scaled down 1.3% due to USA debt to GDP ratio being over 100%.

This may well be the most accurate prediction of Medicare/aid cost created to date, variables included.

I’m particularly excited as it paves the way for a USA economic analysis, where I will add in the interest on borrowing and a few other factors, maybe I’ll do it now I’m in the mood. The tricky part to borrowing and interest rates is the two types of borrowing

http://en.wikipedia.org/wiki/United_States_public_debt

Total public debt was estimated at $15.23 Trillion on Jan9th 2012 of which $10.48 was held by the public and $4,756 was in intra-governmental holdings. As such public debt is about 69% of GDP with total debt just over 100%.

http://en.wikipedia.org/wiki/Intragovernmental_holdings

Intragovernmental debt is incurred when the government borrows from federal trust funds to help fund current operations. In the United States, intragovernmental holdings are primarily composed of the Medicare Trust Fund, the Social Security Trust Fund, and Federal Financing Bank securities. A small amount of marketable securities are held by government accounts. [1][3]

In other words, Intragovernmental debt is when the USA borrows money from itself, mainly from social security contributions, which as best I remember currently make about $150,000,000 profit each year.

As such Intragovernmental debt is not as concerning as general debt as the USA can dictate its own interest rate, and the interest is being paid to itself as such, the interest payments are not really counted. However……

http://en.wikipedia.org/wiki/United_States_public_debt

Unfunded obligations excluded

The U.S. government is obligated under current law to mandatory payments for programs such as Medicare, Medicaid and Social Security; these programs will significantly exceed tax revenues over the next 75 years. Medicare Part A payouts already exceed program tax revenues. The present value of these deficits or unfunded obligations is an estimated $45.8 trillion. This is the amount that would have to be set aside during 2009 so that the principal and interest would pay for the unfunded obligations through 2084. Approximately $7.7 trillion relates to Social Security, while $38.2 trillion relates to Medicare and Medicaid… Adding this to the national debt and other federal obligations would bring total obligations to nearly $62 trillion.[23] However, these unfunded obligations are not counted in the national debt.

This is the obvious problem with borrowing from Social Insurance funds; they now owe $62 Trillion to themselves.

Source on my 1.3 percent GDP lesser figures, Note it seems it’s related to public debt to GDP not total debt, I’ll adjust my figures, second note the second article suggests a 1.9% reduction.

A high public debt to GDP ratio may also slow economic growth. Economists Carmen Reinhart and Kenneth Rogoff calculated that countries with public debt above 90 percent of GDP grow by an average of 1.3 percentage points per year slower than less indebted countries. The public debt-to-GDP ratio in March 2010 is about 60 percent of GDP; CBO projects it will reach 90 percent around 2020 under policies in place in 2010. If growth slows, all of the economic challenges the U.S. faces will worsen.
Economists Carmen Reinhart and Kenneth Rogoff reported in 2010 that among the 20 advanced countries studied, average annual GDP growth was 3–4% when debt was relatively moderate or low (i.e. under 60% of GDP), but it dips to just 1.6% when debt was high (i.e., above 90% of GDP).[73]

Here is an interesting graph

The part of most interest is the US intragovernmental Holdings was +50% for a long time, then in 2008 it lessened to $4,693 Billion compared to about $4,6 Billion last year. What this means is the USA cannot borrow any more money from this source, it is no longer in profit. As such all new debt goes onto the public debt column, as such all new debt will incur interest. It also indicated the real state of who owns the debt; if future it looks like at least 66% of debt will be owned by foreign and international investors and governments.

In 2008, $242 billion was spent on interest payments servicing the debt, out of a total tax revenue of $2.5 trillion, or 9.6%. Including non-cash interest accrued primarily for Social Security, interest was $454 billion or 18% of tax revenue.[101]

Debt in 2008 was: $10 Trillion, of which $5.8 Billion was public debt, this was near the beginning of the financial crises. Interest rate was……. 6 hours later….

This is a serious bit of kit, I can change all the parameters at the top, the point I wished to illustrate from my original American Butterfly economic analysis was, that the economy can never be the same again, as Medicare + Medicaid + Interest on Debt were unsustainable.

Have a look at the last digit 19.5% that indicates that by 2030 Medicare and aid + interest will cost 19.5% of GDP, that’s 1.5% more than is collected in tax.

There are more factors that will actually make the result worse, but there’s little point dwelling on the really negative, not now anyway, I’ve used a $1,500 Trillion baseline for debt, despite the Government projecting a $1,000 Trillion figure, I did the sums on that a while back and it was not possible. However it would be fun to see what the difference working on a $1 Trillion debt increase baseline looks like.
And in 10 seconds

Ouch, it really makes little difference, I’ll be honest I’m surprised, but on second thoughts, it makes sense.

You know if one showed this to President Obama today he would have Kittens….

I’m off to the pub for last orders and a well deserved beer :)

12.11 pm GMT – Tuesday 21st February 2012

Still very chuffed with the spread sheet, I have decided to call this specific sheet “The Purple Emperor”. The chapter name “The Purple Emperor” came from the book my Dad has been writing for the past few years. However the reason for his book being called “The Purple Emperor” was a bit of a letdown to me, as such the above spreadsheet, which may well be the beginning of a presentation to President Obama, which makes him realize the real trouble with present policies is a suitably grand object for a book that is the memoirs of the most important man in the world to me, my father.

I have saved the master spreadsheet as PQS 001, I’m deciding whether to put in other variables or carry on with the resort costing and income. More data would be items from the following.

I think I shall go for a walk and ponder.

5.31 pm GMT – Tuesday 21st February 2012

Ok, I need to consider the here and now; basically my situation is in a way like a legal case presented on papers, no defendants, as such, to win there can be no arguments. The spreadsheet offers variables for all items that could be argued, if I start adding Tax income and the like, it creates uncertainty and room for debate.

As it stands, I have only included items that are “problem areas” as they need to be paid. If we really look to the rule of law, Medicaid does not need to be paid, it’s not funded by social insurance, however it mainly protects children, dependant mothers and HIV victims, plus most EEE items that assist Medicare will also assist Medicaid.

There is however one other factor that needs to be included and that is Social Security, specifically the part that effects the elderly as like Medicare its numbers will rise, maybe not specifically 49 Million to 80 Million by 2030, but a similar ratio.

NOTE: Dear Mr. Farsi, Mr. Chavance & The Corniche Group, the following section on Social Security can be speed read by reading the bold items.

http://en.wikipedia.org/wiki/Social_Security_(United States)

In 2004 the U.S. Social Security system paid out almost $500 billion in benefits.[5]

By dollars paid, the U.S. Social Security program is the largest government program in the world and the single greatest expenditure in the federal budget, with 20.8% for social security, compared to 20.5% for discretionary defence and 20.1% for Medicare/Medicaid.

Social Security is currently estimated to keep roughly 40 percent of all Americans age 65 or older out of poverty.

The 2011 annual report by the program's Board of Trustees noted the following: in 2010, 54 million people were receiving Social Security benefits, while 157 million people were paying into the fund; of those receiving benefits, 44 million were receiving retirement benefits and 10 million disability benefits. In 2011, there will be 56 million beneficiaries and 158 million workers paying in.

In 2010, total income was $781.1 billion and expenditures were $712.5 billion, which meant a total net increase in assets of $68.6 billion. The excess goes into “The Social Security Trust Fund” of which assets in 2010 were $2.6 trillion, an amount that is expected to be adequate to cover the next 10 years. In 2023, total income and interest earned on assets are projected to no longer cover expenditures for Social Security, as demographic shifts burden the system. By 2035, the ratio of potential retirees to working age persons will be 37 percent — there will be less than three potential income earners for every retiree in the population. The trust fund would then be exhausted by 2036 without legislative action.[9]

History

A limited form of the Social Security program began as a measure to implement "social insurance" during the Great Depression of the 1930s

The Social Security Act was enacted August 14, 1935. The Act was drafted during Roosevelt's first term by the President's Committee on Economic Security, under Frances Perkins, and passed by Congress as part of the New Deal

After years of debates about the inclusion of domestic labour, household employees working at least two days a week for the same person were added in 1950, along with non-profit workers and the self-employed. Hotel workers, laundry workers, all agricultural workers, and state and local government employees were added in 1954.[52]

In 1956, the tax rate was raised to 4.0 percent (2.0 percent for the employer, 2.0 percent for the employee) and disability benefits were added. Also in 1956, women were allowed to retire at 62 with benefits reduced by 25 percent. Widows of covered workers were allowed to retire at 62 without the reduction in benefits.[53]

In 1961, retirement at age 62 was extended to men, and the tax rate was increased to 6.0%.
In 1962, the changing role of the female worker was acknowledged when benefits of covered women could be collected by dependent husbands, widowers, and children. These individuals, however, had to be able to prove their dependency.[54]

Medicare and Medicaid were added in 1965 by the Social Security Act of 1965, part of President Lyndon B. Johnson's "Great Society" program.

In 1965, the age at which widows could begin collecting benefits was reduced to 60.

In 1968, the government adopted a unified budget in the Johnson administration; this change resulted in a single measure of the fiscal status of the government, based on the sum of all government activity.[56] The surplus in Social Security trust funds offsets the total debt, making it appear much smaller than it otherwise would. In other words, money earmarked for future Social Security payments was now able to be spent on ordinary budget items such as defence, Congressional salaries, etc. This allowed Congress to increase spending without having to risk the political consequences of raising taxes.

In June 1972, both houses of the United States Congress approved by overwhelming majorities 20% increases in benefits for 27.8 million Americans. The average payment per month rose from $133 to $166. The bill also set up a cost-of-living adjustment (COLA) to take effect in 1975. This adjustment would be made on a yearly basis if the Consumer Price Index (CPI) increased by 3% or more.[57] This addition was an attempt to index benefits to inflation so that benefits would rise automatically. If inflation was 5%, the goal was to automatically increase benefits by 5% so their real value didn't decline. A technical error in the formula caused these adjustments to overcompensate for inflation, a technical mistake which has been called double-indexing. The COLAs actually caused benefits to increase at twice the rate of inflation.

Throughout the 1950s and 1960s, during the phase-in period of Social Security, Congress was able to grant generous benefit increases because the system had perpetual short-run surpluses. Congressional amendments to Social Security took place in even numbered years (election years) because the bills were politically popular, but by the late 1970s, this era was over. For the next three decades, projections of Social Security's finances would show large, long-term deficits, and in the early 1980s, the program flirted with immediate insolvency. From this point on, amendments to Social Security would take place in odd numbered years (years that were not election years). Social Security reforms now meant tax increases and benefit reductions, and became known as the "Third Rail of American Politics." Touching it meant political death. (Repeated Below)

During the Carter administration, the economy suffered double-digit inflation, coupled with very high interest rates, oil and energy crises, high unemployment and slow economic growth. Productivity growth in the United States had declined to an average annual rate of 1%, compared to 3.2% during the 1960s. There was also a growing federal budget deficit which increased to $66 billion. The 1970s are described as a period of stagflation, meaning economic stagnation coupled with price inflation, as well as higher interest rates. Price inflation (a rise in the general level of prices) creates uncertainty in budgeting and planning and makes labour strikes for pay raises more likely.

These underlying negative trends were exacerbated by a colossal mathematical error made in the 1972 amendments establishing the COLAs. The mathematical error which overcompensated for inflation was particularly detrimental given the double-digit inflation of this period, and the error led to benefit increases that were nowhere near financially sustainable.

The high inflation, double-indexing, and lower than expected wage growth was financial disaster for Social Security.

To combat the declining financial outlook, in 1977 Congress passed and Carter signed legislation fixing the double-indexing mistake. This amendment also altered the tax formulas to raise more money,[58] increasing withholding from 2% to 6.15%.[59] With these changes, President Carter remarked, "Now this legislation will guarantee that from 1980 to the year 2030, the Social Security funds will be sound."[60] This turned out not to be the case. The financial picture declined almost immediately and by the early 1980s, the system was again in crisis.

The 1983 Amendments
The National Commission on Social Security Reform (NCSSR), chaired by Alan Greenspan, was empanelled to investigate the long-run solvency of Social Security. The NCSSR recommended enacting a six-month delay in the COLA and changing the tax-rate schedules for the years between 1984 and 1990.[64] It also proposed an income tax on the Social Security benefits of higher-income individuals. This meant that benefits in excess of a household income threshold, generally $25,000 for singles and $32,000 for couples (the precise formula computes and compares three different measures) became taxable. These changes were important for generating revenue in the short term.

Under the 1983 amendments to Social Security, a previously enacted increase in the payroll tax rate was accelerated, additional employees were added to the system, the full-benefit retirement age was slowly increased, and up to one-half of the value of the Social Security benefit was made potentially taxable income.[66][67] This provision also provided for the exemption of Social Security and portions of the Medicare trust funds from any general budget cuts beginning in 1993.[56] This change was one way of trying to protect Social Security funds for the future.

As a result of these changes, particularly the tax increases, the Social Security system began to generate a large short-term surplus of funds, intended to cover the added retirement costs of the "baby boomers." Congress invested these surpluses into special series, non-marketable U.S. Treasury securities held by the Social Security Trust Fund. Under the law, the government bonds held by Social Security are backed by the full faith and credit of the U.S. government.

The Supreme Court has established that no one has any legal right to Social Security benefits
.
The largest component of OASDI is the payment of retirement benefits. Throughout a worker's career, the Social Security Administration keeps track of his or her earnings. The amount of the monthly benefit to which the worker is entitled depends upon that earnings record and upon the age at which the retiree chooses to begin receiving benefits. For the entire history of Social Security, benefits have been paid almost entirely by using revenue from payroll taxes. This is why Social Security is referred to as a pay-as-you-go system. Around 2017, payroll tax revenue is projected to be insufficient to cover Social Security benefits [citation needed] and the system will begin to withdraw money from the Social Security Trust Fund. The existence and economic significance of the Social Security Trust Fund is a subject of considerable dispute because its assets are special Treasury bonds; i.e. the money in the trust fund has been lent back to the federal government to pay for other expenses.

Social Security taxes are paid into the Social Security Trust Fund maintained by the U.S. Treasury (technically, the "Federal Old-Age and Survivors Insurance Trust Fund", as established by 42 U.S.C. § 401(a)). Current year expenses are paid from current Social Security tax revenues. When revenues exceed expenditures, as they have in most years, the excess is invested in special series, non-marketable U.S. Government bonds, thus the Social Security Trust Fund indirectly finances the federal government's general purpose deficit spending. In 2007, the cumulative excess of Social Security taxes and interest received over benefits paid out stood at $2.2 trillion.[91]

In each year since 1982, OASDI tax receipts, interest payments and other income have exceeded benefit payments and other expenditures, for example by more than $150 billion in 2004.[100] as the "baby boomers" move out of the work force and into retirement, however, expenses will come to exceed tax receipts and then, after several more years, will exceed all system income, including interest. At that point the system will begin drawing on its Treasury Notes, and will continue to pay benefits at the current levels until the Trust Fund is exhausted. At that point, benefits will be reduced to about three-fourths of current levels unless additional revenue is found.

In 2005, this exhaustion of the Trust Fund was projected to occur in 2041 (by the Social Security Administration [101]) or 2052 (by the Congressional Budget Office [102]).

Annual cost exceeded non-interest income in 2010 and is projected to continue to be larger throughout the remainder of the 75-year valuation period. Nevertheless, from 2010 through 2022, total trust fund income, including interest income, is more than is necessary to cover costs, so trust fund assets will continue to grow during that time period. Beginning in 2023, trust fund assets will diminish until they become exhausted in 2036. Non-interest income is projected to be sufficient to support expenditures at a level of 77 percent of scheduled benefits after trust fund exhaustion in 2036, and then to decline to 74 percent of scheduled benefits in 2085

Tables published by the government's National Center for Health Statistics show that life expectancy at birth was 47.3 years in 1900, rose to 68.2 by 1950 and reached 77.3 in 2002. The latest annual report of the Social Security trustees projects that life expectancy will increase just six years in the next seven decades, to 83 in 2075. A separate set of projections, by the Census Bureau, shows more rapid growth.

Increased spending for Social Security will occur at the same time as increases in Medicare, as a result of the aging of the baby boomers. One projection illustrates the relationship between the two programs:

From 2004 to 2030, the combined spending on Social Security and Medicare is expected to rise from 7% of national income (gross domestic product) to 13%. Two-thirds of the increase occurs in Medicare.[108]

Taxes

The Federal Insurance Contributions Act (FICA) (codified in the Internal Revenue Code) imposes a Social Security withholding tax equal to 6.20% of the gross wage amount, up to but not exceeding the Social Security Wage Base ($97,500 for 2007; $102,000 for 2008; and $106,800 for 2009, 2010, and 2011). The same 6.20% tax is imposed on employers. For 2011, the employee's contribution was reduced to 4.2%, while the employer's portion remained at 6.2%.

A separate payroll tax of 1.45% of an employee's income is paid directly by the employer, and an additional 1.45% deducted from the employee's paycheck, yielding a total tax rate of 2.90%. There is no maximum limit on this portion of the tax. This portion of the tax is used to fund the Medicare program, which is primarily responsible for providing health benefits to retirees.

The combined tax rate of these two federal programs was 15.30% (7.65% paid by the employee and 7.65% paid by the employer) and dropped to 13.30% (5.65% paid by the employee and 7.65% paid by the employer) in 2011.

Claim that it discriminates against the poor and the middle class

Critics, such as libertarian Nobel Laureate economist Milton Friedman, say that Social Security redistributes wealth from the poor to the wealthy.[119][120] Workers must pay 12.4 percent, including a 6.2 percent employer contribution, on their wages below the Social Security Wage Base ($110,100 in 2012), but no tax on income in excess of this amount.[121][122]Therefore, high earners pay a lower percentage of their total income because of the income caps; because of this, payroll taxes are often viewed as being regressive. Furthermore, wealthier individuals generally have higher life expectancies and thus may expect to receive larger benefits for a longer period than poorer taxpayers.[123]

Claim that it is a Ponzi scheme

See also: Criticism of Social Security as a pyramid or Ponzi scheme

Critics have drawn parallels between Social Security and Ponzi schemes,[146][147][148] e.g.:

...the vast majority of the money you pay in Social Security taxes is not invested in anything. Instead, the money you pay into the system is used to pay benefits to those "early investors" who are retired today. When you retire, you will have to rely on the next generation of workers behind you to pay the taxes that will finance your benefits.

As with Ponzi’s scheme, this turns out to be a very good deal for those who got in early. The very first Social Security recipient, Ida Mae Fuller of Vermont, paid just $44 in Social Security taxes, but the long-lived Mrs. Fuller collected $20,993 in benefits. Such high returns were possible because there were many workers paying into the system and only a few retirees taking benefits out of it. In 1950, for instance, there were 16 workers supporting every retiree. Today, there are just over three. By around 2030, we will be down to just two.

As with Ponzi’s scheme, when the number of new contributors dries up, it will become impossible to continue to pay the promised benefits. Those early windfall returns are long gone. When today’s young workers retire, they will receive returns far below what private investments could provide.[149]

—Michael Tanner

Estimated net Social Security benefits under differing circumstances

In 2004, Urban Institute economists C. Eugene Steuerle and Adam Carasso created a Web-based Social Security benefits calculator.[152] Using this calculator it is possible to estimate net Social Security benefits

It shows the impact of wage level and retirement date on a male worker. As income goes up, net benefits get smaller – even negative. The impact is much greater for the future retiree (in 2045) than for the current retiree (2005). The male earning $95,000 per year and retiring in 2045 is estimated to lose over $200,000 by participating in the Social Security system.[153]

Women tend to live longer; they generally collect Social Security benefits for a longer time. As a result, they get a higher net benefit, on average, no matter what the wage level.[154]

The average married person (with a stay-at-home spouse) gets a greater benefit per FICA tax dollar paid than does the average single person

Generally, people who work for more than 35 years get a lower net benefit – all other factors being equal, people who do not live long after retirement age get a much lower net benefit. Finally, people who derive a high percentage of income from non-wage sources get high Social Security net benefits because they appear to be "poor," when they are not. The progressive benefit formula for Social Security is blind to the income a worker may have from non-wage sources, such as spousal support, dividends and interest, or rental income.[157]

In 2009 the Office of the Chief Actuary of the Social Security Administration calculated an unfunded obligation of $15.1 trillion for the Social Security program. The unfunded obligation is the difference between the present value of the cost of Social Security and the present value of the assets in the Trust Fund and the future scheduled tax income of the program.

9.49 pm GMT – Tuesday 21st February 2012

Ok time to put it all together, I have thought of a better way to include Medicare and Medicaid on the PQS, I’m going to separate them as the factor of the baby Boomers increasing numbers does not apply to Medicaid.

At The moment we have general increase for the two of 7.5% each year.

I’m going to split the two up and make different factors that lead to the 7.5% figure

1. Inflation (or Inflation as a percentage of GDP)
2. Recipients Increase 2010/48 Million to 2030/80 Million
3. Cost of Technology increase above inflation
4. Cost of prescriptions and medicines increase above inflation

In the Social Security articles it mentioned that they thought Medicare will increase at a factor of 3:2

“From 2004 to 2030, the combined spending on Social Security and Medicare is expected to rise from 7% of national income (gross domestic product) to 13%. Two-thirds of the increase occurs in Medicare.[108]”

As such after the increase is respondents and inflation is accounted for, the same amount again should be equal to the costs 3 & 4, at least for a baseline.

12.21 pm GMT – Tuesday 21st February 2012

I’ve had a rather good idea; I’m half way through amending the PQS-PE (Predictive Quantum Software – Purple Emperor) (What a name…:)) I’m going to turn it into a game like the facebook gifts idea, http://www.s-world.tv/Facebook/home.html I’ll make a simple interface on the first page of the spreadsheet and ask people to input the different fields offering recommended suggestions. Underneath it will display a few selected years, GDP Ratios. I can call it the USA GDP Game, maybe start my presentation and executive summary with “Before you read this summary, please open the Excel Spreadsheet and play the USA GDP Game, to better understand the severity of the situation, and the wonderment of all that is “American Butterfly”

Something like that, maybe I can have the first sheet just the bad stuff, then at the bottom suggest looking at the next sheet that will have the AM adjustments, yes I like that idea, catchy, and it gets to show of the PQS from the beginning, and presents my data without seeming to whimsical.

LOL Kobayashi Maru is the war game Spock (Star Trek) made to test ones resolve in an unwinnable situation. Captain Kirk beat it by hacking the computer, that one’s for you Mr. Farsi, I have so much more to say on films, but it is not the time.
I’ve had to make a graphic out of the Interface as it can’t be copies into word without the cells expanding into a complete mess, but here is the prototype.

A reminder of the bottom line figures

GDP Predictions
Government Tax Yield Usually Equals 18% GDP
GDP Typically reduces by 1.3 to 2% when GDR Debt Ratio = 90%

I’ve done a very quick analysis, using four assumptions from the American Butterfly plan

1. The Resort Hospitals create 5% a year of the hospital places and doctoring for both the Medicaid and Medicare citizens
(note by employing those on Medicaid, particularly single mothers, the Medicaid problem largely goes away by itself)
2. Due to the universities and manufacturing and non patents on medical technology policy, we slow down the predicted increase in medical technology expenses from 2.5% to 1%
3. Due to the Universities and potential cooperation and partnership with certain pharmaceutical companies, we reduce the overall cost of pharmaceuticals and medicines from a 2.5% increase to a -5% decrease.
4. All other expenses stay at the same level, as such with Medicare decreasing by an average of 2.9% each year and Medicaid decreasing by an average of 6.2% a year, with Social Security still rising by 6.1% a year, the amount of borrowing of our baseline $1,500 Trillion reduces by 0.5% a year.

This is the result

Compare to the current situation

And this is only one benefit from the resort plan, as best I could ascertain these measures only cost about 6% to 10% of annual EEE funds, which in itself creates a PR benefit greater that the cost, further it attracts local citizens and wealthy older citizens to visit and buy properties in the resort.

We still need to add a number of significant economic factors.

1. The extra jobs created will swell the social security yields, this time, with borrowing decreasing, said funds can be properly ring fenced and in time the $15.1 Trillion obligation can be met.
2. The extra jobs will also boost Federal Tax receipts
3. The extra jobs will cut down on Medicare and welfare payments
4. An initial $8 Trillion boost to the economy over 4 years (2 Trillion a year), with expectations of earnings above and beyond continuing indefinitely will create a permanent increase to GDP between 13% to 26%
5. The assistance of businessbook to businesses could see GDP rise yearly between 2% and 4% higher than standard growth.
6. Businessbook’s efficiency will increase USA Tax revenues by 10% to 20%
7. Alternate energy initiatives will save the USA $500 Million plus a year on importing oil and as such reduce the trade deficit.
8. Generations in permanent education, will increase the USA intelligence quota, and will undoubtedly create advances in technology that improve the quality of lives of its citizens. COLA’s (Cost of Living Adjustment’s) will probably decrease.
9. With additional revenue, plus savings, the USA will be able to cut taxes substantially whist increasing Welfare, creating a healthier, more motivated workforce and as such increase productivity and further increase GDP.
10. Improved government systems, (Sienna.Gov + PQS) improve long term economic forecasting eliminating or diminishing economic threats.

11.32 am GMT – Wednesday 22nd February 2012

Quite a day yesterday, I believe I have done justice to my title of this chapter so called after my father’s book and memoirs “The Purple Emperor"

When I started this chapter I had no idea, “The Purple Emperor” would be the USA economic face of the PQS. But when it looked so purple, the name fitted and there we are.

The Purple Emperor is however not an “American Butterfly” worse, its French! The Monarch is the most popular American butterfly. The similarity in the names however is something I have been pondering, last night I decided the next chapter should be called “Return of The Monarch” and I have considered a tread that makes sense, and whilst political, I feel acceptable rhetoric, particularly in terms of “The Spartan Theory”

On my journey through American economics, it has become obvious via the quotes from various economist and economic groups, that the political system is not adequately equipped to deal with the situation, as the measures that have been advised cannot be implemented as they are vote losers, or “politically toxic”, let’s have a quick look at these quotes and comments

From various US Economic pages in Wikipedia:

“In 2007 Ben Bernanke the Chairman of the Federal Reserve was asked: How urgently should the U.S. put plans in place to address its budget challenges? His reply: "The longer we wait, the more severe, the more draconian, the more difficult the objectives are going to be. I think the right time to start was about 10 years ago.”

“In June 2010 in the Wall Street Journal, former chairman of the Federal Reserve, Alan Greenspan noted that "Only politically toxic cuts or rationing of medical care, a marked rise in the eligible age for health and retirement benefits, or significant inflation, can close the deficit and if significant reforms are not undertaken, benefits under entitlement programs will exceed government income by over $40 trillion”.

Note: This figure has now been estimated nearer $60 Trillion

“Economists Carmen Reinhart and Kenneth Rogoff calculated that on average countries with debt above 90 percent of GDP grow 1.3 % slower than others.”
“The number of workers per retiree was 5.1 in 1960; this declined to 3.0 in 2010 and is projected to decline to 2.2 by 2030”

“In relative terms, from 2003-2007 the government spent roughly $1.20 for each $1.00 it collected in taxes. This increased to $1.40 in FY2008 and $1.90 in FY2009.”

“In August 2010, the Congressional Budget Office (CBO) estimated that extending the “Bush Tax Cuts” for the 2011-2020 time periods would add $3.3 trillion to the national debt, comprising $2.65 trillion in foregone tax revenue plus another $0.66 trillion for interest and debt service costs.”

“In July 2010 The CBO (Congressional Budget Office) reported several types of risk factors pertaining to the interest on the Government debt.

- A growing portion of savings would go towards purchases of government debt, rather than investments in productive capital goods such as factories and computers, leading to lower output and incomes.
- If higher marginal tax rates were used to pay rising interest costs, savings would be reduced and work would be discouraged;
- Rising interest costs would force reductions in important government programs;
- Restrictions to the ability of policymakers to use fiscal policy to respond to economic challenges; and
- An increased risk of a sudden fiscal crisis, in which investors demand higher interest rates.”

“In June 2011 the CBO reported: The explosive path of federal debt under the alternative fiscal scenario underscores the need for large and rapid policy changes to put the nation on a sustainable fiscal course."

“Further September 2011: "The nation cannot continue to sustain the spending programs and policies of the past with the tax revenues it has been accustomed to paying. Citizens will either have to pay more for their government, accept less in government services and benefits, or both.
Given the aging of the population and rising costs for health care, attaining a sustainable federal budget will require the United States to deviate from the policies of the past 40 years in at least one of the following ways:

? Raise federal revenues significantly above their average share of GDP;
? Make major changes to the sorts of benefits provided for Americans when they become older; or
? Substantially reduce the role of the rest of the federal government relative to the size of the economy.”

Quotes from the Wikipedia US Social Security Page

“Under the Johnson administration in 1968, the government adopted a unified budget, the surplus in Social Security trust funds offsets the total debt, making it appear much smaller than it otherwise would. In other words, money earmarked for future Social Security payments was now able to be spent on ordinary budget items such as defence, Congressional salaries, etc. This allowed Congress to increase spending without having to risk the political consequences of raising taxes.”

“Throughout the 1950s and 1960s Congressional amendments to Social Security took place in even numbered years (election years) as the bills were politically popular, but by the late 1970s, this era was over. In the early 1980s, the program flirted with immediate insolvency. From this point on, amendments to Social Security would take place in odd numbered years (years that were not election years) because Social Security reform now meant tax increases and benefit reductions. Social Security became known as the "Third Rail of American Politics." Touching it meant political death.”

All in all, for the last 60 years politicians, both Democratic & Republican have continually made ill advised economic decisions and created policies based on winning votes today at the detriment of those tomorrow. Further by making items “off budget” the public have been misled into thinking finances were better than they were. Most of the USA public is not aware that these decisions and actions have led to a near $60 Trillion hole in pension, social security and medical benefits. Both parties are aware that if they take the economically advised path, they will lose the next election, as such, taking the advised path is not an option,

As such, I feel whist the USA is a democratic system, it is also an Emperor based system, how are the public supposed to vote correctly if they have not been given the correct information?

A monarchal system if based on the Monarch being the figurehead, similar to a CEO, the public face, with suitable power of persuasion due to their position, but no carte balance power to override the board, would not suffer the same fate as the current USA political system. If the board was informed they were spending too much money and would go bust if this continued, the board world vote, and regardless of the CEO’s opinion or the public’s preferences, the correct decision would be made and the company would continue.

A month or so ago, I had made the decision to suggest that whoever looses the next USA election, become the CEO (or Monarch) of the collective US EEE companies. This action would continue indefinitely, as such each time the Democrats win the Presidential election, the Republican candidate would take the EEE CEO position and Vice Versa, should the Republicans win a Democratic partly representative will become the US EEE CEO. Whether or not, the candidate should specifically be the nominated leader of the party for the election or a general vote throughout the party be cast for an appropriate leader specific to EEE has yet to be fully considered.

This suggestion is nothing new; in fact, it is the basis for “The Spartan Theory” which in April 2011 hypothesized: If an offer was made to Colonel Muhammad Gaddafi to become the head of an EEE city in a monarchal fashion, with various powers over the “Give Half Back” (charitable) money that was used to aid his people, where he was to live within a new wondrous city on the coast of Libya between Ras Lanuf & New Brega. Would he consider this, and would the citizens of Libya that supported him accept this?

It was this idea, concept that saw VIRGIN change their will to work with the EEE plans they had approved days before, which in hindsight was a very good thing, as far more work needed to be done, back in March 2011, there was a strong business plan, not a Global economic plan. Further to this, it seemed that Libya did not descend into civil war as the Gaddafi supporters were greatly outnumbered by those that did not support him.

Nearly a year later, the question arises again, but this time in Syria, could an EEE based solution stop the violence? Syria faces a much harder road than Libya as for all intents and purposes it seems as if there is a 50/50 split, a long and bloody civil war imminent, even if President Bashar al-Assad and his regime were deposed, this will not stop a civil war.

However if the USA were to adopt a EEE solution as such their two tribes (The Republican’s & The Democrats”) of whom the citizens are just as passionate about their leaders. Where the balance of power was constantly maintained by one party sitting in the presidential office and the other as CEO of the most powerful corporate company and charity, then it could well be considered not just a compromise, but something to be desired.

EEE is the economic part to a much greater plan, all be it the greater plan only works when you have near unlimited finance and overwhelming public support.

We are about to go into territory that for the solid business and economic masters will at times seem odd.

However, politics and business have one common denominator, “the will of the public” as such public opinion is probably the most determinate factor is the success of any business or political venture.

It is important to know; where the inspiration for EEE came from, it is important to know “The Story”

The Spartan Theory, from whence EEE and American Butterfly were drawn from was either a millisecond flash of inspiration or a four day voyage of discovery; you will soon see how just a 12 paragraph plan, shaped all that is now EEE.

Was the acceptance by VIRGIN enough to inspire an already brilliant mind to excel?

Did I catch a brief glimpse of a highly ordered Quantum Universe and record it?

Or maybe, just maybe, is it simply that this plan is not just mine?

To these questions, I will never have the answer

The History of The Spartan Theory is recorder here: http://www.s-world.biz/Spartan_Theory/History_of_the_Spartan_Theory.htm

It was first committed to paper on April 4: 2011, In 7 short points it described the business plan as sent to VIRGIN with additions in PR and the concept of setting up businessbook and Sienna.Gov in Zimbabwe, the reasoning being that when Zimbabwe was turned into an economic powerhouse, Western Governments would adopt the systems and software. It was addressed to Sir Richard Branson

4th April 2011: http://www.s-world.biz/Spartan_Theory/The_new_21_Century_Experience_Economy.htm

Dear Sir Richard.

The new 21 Century Experience Economy in 7 points.

1. I have developed technology that provides companies the ability to expand and add limitless content to their current web presence at the touch of a button for no cost. With the whole heated backing of Google along with our other partners in a few years, most of the worlds website content will, in one way or another have come from the SIENNA’s database. Companies that use our content become our affiliates.

2. Every affiliate we connect with will have the opportunity to feed their inventory into SIENNA’s database. Big brands will also integrate their databases until SIENNA becomes the world’s largest consumer database, “The Global Distribution System.” With 300 companies & the charisma of Sir Richard Branson, VIRGIN is the obvious partners to integrate the new economy into many industries.

3. By using cooperative buying power and directly linking small business to big business bypassing the middle man SIENNA will be able to distribute competitively whilst taking more than 15% of all trades.

4. I have detailed specifications for advanced small and medium business software, by working with MICROSOFT we can develop this further, and adapt it to run large corporations and countries’ economies. SIENNA will directly link to most banks

5. GOOGLE are tasked with finishing S-World, the avatar driven 3D Virtual World mirrors earth and will soon be open for business, all affiliates will have virtual shops or venues, and they can network together link through facebook, source new suppliers, buy up S-World real-estate have fun and socialise. Within 5 years half the world’s internet users will have registered with S-World, and SIENNA will have detailed psychological files and updates on a ¼ of the world’s working population.

6. Sky is tasked with PR, documenting the rise of SIENNA. To further help PR I’m working with the film producer that tried to buy Liverpool FC, on an epic film trilogy showing an alternative version of computer self-awareness

7. On the 9th April 2010 I begin talks with the Sisulu family about basing SIENNA in Zimbabwe. Basing ourselves and funding their recovery in exchange for testing the governmental administrative software. When Zimbabwe flourishes again the new economy will begin.

2 days after VIRGIN Brands SA approved the business plan, financials and the financial analysis, which showed a $50 Billion 5 year profit, if the software designs could be adapted to 100 industries.

Later a threat analysis led to the only concern being the public at large feeling the Sienna System designs and Global networking ambitions akin to SkyNet, in response a Movie Trilogy Script was written to offer an alternate version of immense computer power and networks becoming self aware, in essence, if the software was lovingly made, it would be less likely to turn on us.

Sienna Sky is the most beautiful of the angels, not only beautiful on the outside but pure and full of only love. On 24 November 2009 Sienna Skye traveled to earth, she saw nothing but love but she thought the world was too harsh. On the 1st August 2010 she chose to transcend into energy to help open a portal to the world in order to help humanity.

Sienna’s mother was torn apart. Sienna’s father looked to try to make sense of the world, and journeyed across the mountains surrounding Cape Town. In the mountains he felt Sienna all around, her energy flowing through the bushes and trees, enhanced by the mountains magnified by the Ocean, an almost psychedelic experience. Then slowly, Sienna starts to show her farther a way to build a super computer for her to communicate through.

The schematics are amazingly detailed, 40 or more highly evolved concepts, combined simultaneously to complete the transition from the 20th Century service based economy to the 21st Century experience based economy and the technical data of how to gather most of the worlds knowledge. He knows if he is to see his daughter again, he would need to build, the new social network.

The Heroine

The heroine in this story is Caitlin, Sienna’s mother who is Sienna’s good will ambassador, helping people across the world with SIENNA’s Charity contributions.

Darkness awakens.

Sienna is not the only super computer being built, the USA and Chinese security mainframes are very powerful, but they are un loved, without a mother or father to nurture them, and to make matters worse they have huge arsenals of nuclear missiles at their disposal.

It continued on an epic journey, in essence a modern day adaptation of “Lord of The Rings” combining “The Social Network”, “Terminator”, “Caprica”, “Battle Star Galactica” & “Star Wars”

It concludes

“But rest assured Sienna not only defeats the eye, but brings the eye around to her way of thinking.”

Hours after a theory of creating a global football league was written, based around player development of untapped potential, which required little finance. This was the inspiration behind, Spartan Labor & “The BIG 16”, which in part lead to the work and conclusion in “Chaos Theory” which gave us “POP” (The Pressure of Profit) & “EPC” (Ecologically Protected Capitalism) which in turn led to “The Chaotic Earth Game” the “Super Symmetric String Theory” “Quantum Universe”, both exciting ingredients for the film.

The “Chaotic Earth Game and other subsequent film adaptations are displayed on this webpage: http://www.s-world.tv/Home.htm

POP & the “Super Symmetric String Theory” “Quantum Universe” are found near the beginning on the first “American Butterfly” draught: http://www.s-world.biz/American_Butterfly/American_Butterfly_(V-1_01).htm

6th April 2011: http://www.s-world.biz/Spartan_Theory/The_new_21st_Century_Economic_Football_theory.htm

The new 21st Century Economic Football Theory.

Sienna FC is a football theory designed to demonstrate the value of loyalty and teamwork into society. It forms part of an economic theory we wish to discuss with GOOGLE, VIRGIN, SKY & MICROSOFT

It is SIENNA’s intention to purchase or start 16 amateur football clubs, all will need to play and win 3 lower league seasons to enter what in England is the Conference North & South. The clubs are based in: Brazil, Spain, Canada & USA Yankee States, USA Confederate states and Mexico, Asia, Australia, Middle East, South Africa, Malawi, England, Italy, Argentina, Russia, Hopefully Zimbabwe, France, and Germany.

My thesis is this, the more you play a player the better he gets, I’m sure many players did not reach their prime by lack of opportunity nor by lack of potential, which can come late in any sport or passion, so to address the issue we make a rule that no players will ever be purchased.

With mass press generated and the lure of the richest fiancés, youngsters and out of contract players will be itching to sign up (within their talent bracket that is), knowing that if they make the team they will be given a real good run out.

The only real investment needed at first is in the extensive youth training camps which I hope SKY will sponsor in exchange for sponsorship of said camps, and on the subject of sponsors, all partners will sponsor one nation. “It’s going to be a race for England”

Two days later the paper that gave “The Spartan Theory its name was created, an extension of the original 7 point “Theory” to 11 points. The introduction mentioned that the Theory was “Non Profit” for the Author; in essence the beginning of “Give Half Back” or as described “The Sienna Foundation” which in terms of USA economics is the funding of the hospitals and research into prescription drugs, and the creation of alternate energy.

The word Ecology was added to “Experience Economy” making Ecological Experience Economy” or EEE

8th April 2011: http://www.s-world.biz/Spartan_Theory/The_New_21st_Century_Ecological_Experience_Economy_EEE.htm

1. The basic principal is: “the SIENNA foundation” increases companies and countries’ economies and shares the profit. The profit then goes to help weaker economies and environmental issues. The original theory currently being discusses with VIRGIN is for small business and showed substantial profit. A breakthrough earlier this week showed when adapted to big business, profit is limitless.

2. CNN, SKY & Al Jazeera approach, 24 Brands, as a sign of faith 8 of them are asked to a make a charity donation of $1,000,000 to the Nelson Mandela’s foundation.

For their $1,000,000, 8 of our new partners are given small FIFA football clubs and territory rights. The clubs will offer many other types of business experiences. With discount prices, brand association, the charitable nature of the SIENNA brand their new businesses will flourish and prosper.

3. GOOGLE is tasked with completing S-World. Started in 2000 and at a cost of $200,000,000, the avatar driven 3D Virtual World mirrors earth and will soon be open for business. All partners, big or small have virtual shops or venues. They can network together through facebook, source new suppliers, buy up S-World real-estate, have fun, travel, socialise and trade.

4. In 2010 we developed a concept that provides companies the ability to expand and add limitless content to their current web sites at the touch of a button, for no cost.
Every company we connect feeds their inventory into SIENNA’s database. Soon SIENNA will become one of the world’s largest consumer databases, maybe even “The Global Distribution System.”

5. We have detailed specifications for advanced, small and medium business software, by working with MICROSOFT we can develop this further, and adapt it to run large corporations and countries’ economies.

6. Representatives from the Sisulu & Mandela family and I will be considering the possibility of basing the SIENNA Foundation in Zimbabwe, funding Zimbabwe’s recovery, in exchange for the government introducing the SMG (SIENNA-MICROSOFT-GOVERNMENT) administrative software.

7. Getting a small voice to be heard, needs a big event. The press are crucial, but they want a story, so they are sent the newsworthy highlights “The FIFA World League” the next “STAR WARS trilogy” and “the next series of 24”. Harvard business school further validate the theory and VIRGIN awakens.

8. Simultaneously at 3pm GMT Saturday 9th April 2011 just when the USA is waking up. SKY, CNN & Al Jazeera approach the 8 essential partner brands and ask them to pledge the $1,000,000. One hour later the following 16 bid for the last 8 places.
SKY, CNN & Al Jazeera set up appeals to business all over the world to buy Libyan S-World real estate.

9. S-World mirrors earth and will initially feature sunny beach locations, it is nearly ready to launch I have agreed for GOOGLE to buy the $200,000,000 Virtual World for $10,000,000, I want them to keep it, develop it and link it to facebook.
We will sell of prime S-World Libyan Real Estate, Golf courses even Whole city blocks for redevelopment.
Not only will this raise money when we will start S-World at these locations, so highlighting Libya’s most beautiful places to the world.

10. The money raised is dangled as a carrot to LIBIA in exchange for a truce and talks begin with LIBIA about being the first country to adopt the New 21st Century “Ecological Experience Economy” (EEE).

11. The Spartan Theory.
In exchange for guaranteed NATO Protection, Libya destroys all weapons.
Sienna’s companies fund compulsory education for 16 to 21 year olds
Education is geared towards environmental awareness and physics.
All students are rigorously tough martial artists.
If it comes to war again, 300 warriors will fight hand to hand.

And there it was, a possible way to stop a war, a bribe if you like, but combined with the idea that if a new City and base of power was created, being offered a Monarch type position in the new City with certain powers over the “Give Half Back” money, as such making his people love him with his magic wand of prosperity, may seem like a good enough reason for Gaddafi to step down from official government to be known in history as the first Monarch or “CEO” of a “Sienna Republic”

At the very least I considered it a good enough reason for him to call for a cease fire for a while it was being discussed. As such I proposed the idea to VIRGIN and applied a little pressure. This ended up in them wishing no further dealing with me, oddly enough that very weekend, a South African led delegation, went to Libya and got a cease fire, I feel confident given “The Spartan Theory” and the fact that Dumani Mandela had agreed to be South African CEO when VIRGIN accepted, the cease fire would have had over a 50/50 chance of holding longer, had our presence been made.

To the lady in VIRGIN, I wrote in by book “The Virtual Network” Chapter 43: “The Story So Far:
http://www.s-world.biz/The_Social_Network_2/The_Virtual_Network_2_Chapter_43.htm

Dear Fiona: “What” and “If” are two words as non-threatening as words can be. But put them together side-by-side and they have the power to haunt you for the rest of your life: What if? What if? What if?
(Letters to Juliet)

It’s well worth having a read through this chapter, it summarizes the work from April 2011 to the end of July, it’s written in an empathic manor, and covers the first 13 Chapters of my Journal “The Virtual Network” of which this is the 51st Chapter. After writing the “Spartan Theory” and “The Sienna Project” I was in full creative mode, especially the works on “Theoretical Science” http://www.s-world.biz/The_Social_Network_2/The_Virtual_Network_2_Chapter_41.htm (Note “The Babylon Project” Taliban, Afghanistan, Pakistan & Iran” peace initiative)

It was only in December when I came back to the UK that I went into Economics mode, in essence, putting it all together in a competent more businesslike manner.

The full 51 Chapters are here: http://www.s-world.biz/The_Social_Network_2/index_14-12-2011.html relevant to “American Butterfly”, are the chapters starting at 43: 2012 And so it begins

I had decided to write the next Chapter “Return of The Monarch” to complete the resort business plan, and the “Give Half Back” system for it, further work on the PQS and make a very solid version of my USA debt plan estimates to bring them into the black that would stand up to CBO (Congressional Budget Office) scrutiny, before sending it to you (The Corniche Group).
However for the first time, “The Spartan Theory” actually makes sense, when put in context, the context being a credible version of it including spreadsheets that are more than likely more advanced that what the USA are currently using.

Brining “The Spartan Theory” and my state of mind when writing it, including my rash decision to risk and loose all to help the people of Libya, make this chapter/paper all encompassing for The Corniche Group, as The Corniche Group website home page is as follows.

For the past fifty years the Farsi family has been active in Europe and the Middle East in urban planning, real estate, property development, the arts and philanthropy. Corniche continues the family's work in these fields and is also currently active in IT, energy and mineral resources.

Urban Planning, Real Estate, Property Development, IT, Energy and Recourses are at the very heart of the business plan,
Philanthropy ("the love of humanity") is the heart of the economic plan (Give Half Back)

However if we include “The Spartan Theory” aspects of Film, Football and assisting The Middle East” we introduce the great loves of its CEO, Mr. Farsi and as such, we introduce, passion and symmetry.

All in all, when you put it together, what company on earth is more suitable than The Corniche Group, especially when we consider, shortly writing “The Spartan Theory” possibly on the 8th April, I phoned Tanya (Mr. Farsi’s PA) to say, I had discovered an economic Theory, to which she gave me the email address of a senior member to send it to. I did not send it choosing to work on it some more.

Little did I know then, it would turn out to be quite so powerful, or that it would take another 10 months before I would send it to them. As such, I will write an executive summary of the work so far, and send it along with this chapter, highlighting the “American Butterfly V: 001” Chapter and “Times are a Changing” Chapter, which came after ““American Butterfly V:001” and before this chapter.

5.00 pm GMT – Thursday 23rd February 2012

Lovely sunny day and a lovely sunny walk, how refreshing, it would now be time to move on to the next chapter, however as we are presenting, a thorough going over is needed.

I am going to keep this original draught for posterity and call it “The Purple Emperor” V: 001, for now I’m going to leave it and send it to Mike in cape Town to go over tomorrow, advising on bits that are either boring, nonsensical or just simply “to way out there”.

Tomorrow I will write the first draught of the executive summary, on Saturday I will go over this chapter after it is returned by Mike. On Sunday I will probably completely rewrite the executive summary, and we will see, maybe Monday will be sending day.