5.43 pm GMT – Wednesday 1st February 2011

The 32nd day 2012, I’ve worked on the USA Economic analysis all morning, and its pretty good, scary but good.
I’m going to copy it below, then work on adding it, along with the Small business chapter, the property values graph and the new USA economic graph into the main paper before sending it to Lee Chazen’s. I will send to one person per day from the list of 16, made on the 16th.

Economic Analysis 2000 – 2012 (OBM Figures used for total debt, main source Wikipedia)

When President Bush was elected in 2000 the USA was $5,629 Trillion Dollars in Debt, which equated to 57.6% of GDP. GDP stands for Gross Domestic Product, put simply “what it sells” or in business terms “turnover”. A countries GDP can be considered as its “performance” as such regardless of inflation, it is a relatively good yard stick to measure against a countries debt.

If at the end of a year a countries debt to GDP ratio increases, it’s been a bad year, and on the other hand if it decreases it’s been a good year. It should be noted that economists Carmen Reinhart and Kenneth Rogoff calculated that on average country with debt above 90 percent of GDP grow 1.3 % slower than others.

In 2000 the USA debt increased by only $18 Billion and by 2001 the GDP ratio was down to 56.6%. 2000 was a very good year, possibly the best financial year in American history .In hindsight, it would have made sense to simply “leave things as they were”, the old adage “if it’s not broke, why try to fix it” would have been well considered.

However no doubt spurred by electoral promises &the opportunity of turning the USA into profit, President Bush put into motion what is now known to be “The Bush Tax Cuts”. On the 7th June 2001 the Bush Administration introduced a tax aimed at economic growth which projected a $1.2288 profit over the next three years. This is what is known as “fiscal policy” the idea being that lower taxes equates to harder work, therefore more profit and a higher GDP and as such an overall higher tax yield.

However no one could have predicted what happened next and its effect on the USA economy as on September the eleventh 2001, a terrorist attack on the two world trade towers in New York destabilized the USA and Global economies. Not to be deterred however President Bush introduced another Tax cut in 2003 this time aimed at Jobs & Growth.

In 2005 a review showed that the projected $1.2288 profit had in effect made a loss of $581 Billion, with 22% attributed to 9/11 related spending. However the actual losses were worse as between 2002 and end 2005 the USA went a further $2,126 Trillion in debt, an average of 30 times more than 2000. The GDP ratio now stood at 63.6%, with total debt rising to $7,905 Trillion.

2006 & 2007 saw $539 and $500 Billion increases with the GDP up to 64.8%, at this point questions were being asked, most notably 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. Total debt rose to $8,951 Trillion.

2008 brought the banking crisis which saw a $1018 Trillion loss as tax receipts were significantly lower than expected. This increased the total debt to $9,986 Trillion: 69.6% of GDP.

One trouble that followed was for the governments to consider the global financial crisis in the same manner as all that had come before, “a simple rebalance that would pass in a year or two”. However this was not the case, the global crisis was due to first world debt, caused by social security, welfare and medical payments to an increasing large and aging population, further hampered by pharmaceutical bills became increasingly expensive. For example, 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

Usual methods of fiscal policy (adjusting taxes) and monitory policy (spending on infrastructure to create jobs) did not apply as a solution, rather a quick fix. The problem is created by debt, and as such creating more debt cannot be the answer. Either severe austerity (saving/cuts) or an economic plan such as “American Butterfly” which requires no government borrowing yet increases both tax revenue and creates jobs, is needed. However as there was no “American Butterfly” on the table and severe austerity was an election looser, the status quo and the respective governments borrowed more money to try to spend themselves out of danger. We also saw some very poor estimating by bean counters as in....

2009 having lost significant income due to low tax receipts the year before the government increased their expected tax income to $2.7Billion, only to receive $2.1Billion. An unavoidable $400 billion expected loss was already forecast. However spending went $400 Billion over budget on this forecast. After which a further $470 Billion was spent on “Other” totaling a loss of $1,887 Trillion, with total USA debt at $11,898 Trillion, GDP: 84.4%.

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.

2010: The Obama Administration.

An election promise is an election promise and as such a 58.6% increase to welfare was enacted, alongside a host of other increases across the board totaling 20%, tax yields increases by one percent. All common sense would suggest that debt would have increased by more than the $1,887 created the year before, However it did not as 2010 debt was down to $1,654 Trillion.

In real terms however 2010 was another disastrous year as total debt rose to $13,529 Trillion, GDP: 93.4%. Now at the point where economists Carmen Reinhart and Kenneth Rogoff calculated the USA will now grow 1.3 % slower than countries with lower debts.

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”.

The “politically toxic” comment was probably directed at the “Bush Tax Cuts” that were due to end at the end of 2010

In August 2010, the Congressional Budget Office (CBO) estimated that extending the 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.

The Bush Tax Cuts, have been hotly debated for a decade, all be it not specifically from a democratic perspective. “The Heritage Foundation” alleges that the Bush tax cuts led to the rich shouldering more of the income tax burden than the poor. While the “Centre on Budget and Policy Priorities” concluded that the tax cuts have the largest benefits, by far on the highest income households.

As such with no political party wishing to stick their necks out on the 30th November the tax cuts were extended for a further 2 years

The 2011 budget indicated that: jobs, health care, clean energy, education, and infrastructure will be priorities; it further mentions investments in science and technology. These are of course the major components of “American Butterfly” The federal budget was increased from $3.6 to $3.8 Trillion, while total taxes and other revenues rose from $2,217 billion to $2,364 billion.

Figures are scarce on actual spending, total yearly loss and GDP ratio

However as of today 1st February 2012 the USA debt clock states that the USA is $15.3 Trillion of debt. Up $1,772 trillion from the end of 2010, (It appears OBM figures are calculated yearly not as per budget months) As such, in 2011 the USA debt increased by $1,635 Trillion.

Based on the 2010 U.S. budget, total national debt will nearly double in dollar terms between 2008 and 2015 and will grow to nearly 100% of GDP However, ahead of predictions, total national debt reached 100% by the third quarter of 2011

In May 2011 Economist Paul Krugman wrote: "What happened to the budget surplus the federal government had in 2000? The answer is three main things. First, there were the Bush tax cuts, which added roughly $2 trillion to the national debt over the last decade. Second, there were the wars in Iraq and Afghanistan, which added an additional $1.1 trillion or so. And third was the Great Recession, which led both to a collapse in revenue and to a sharp rise in spending on unemployment insurance and other safety-net programs.”

Military spending: The military budget of the United States during FY 2011 was approximately $740 billion in expenses for the Department of Defense (DoD), $141 billion for veteran expenses, and $48 billion in expenses for the Department of Homeland Security, for a total of $929 billion.

The 2012 budget predicts an increase in tax from $2,364 Trillion to $2.627 Trillion, the interesting point to note is that for the first time in recent history, the federal budget has gone down, from $3.8 Trillion to $3.7 Trillion.
Actual figures for the 2012 budget will be available after September 2012
The “Office of Management and Budget” forecasts that, by the end of fiscal year 2012, gross federal debt will total $16.3 trillion.

Analyses

In July 2010 The CBO (Congressional Budget Office) reported several types of risk factors

- 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 than would otherwise occur;
- 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 offered a solution called the “Extended baseline scenario” that aimed to reduce the yearly deficit to 1% of GDP by 2021 (about $140 Billion a year)

Eliminate all the Bush Tax Cuts in 2012; reduce Medicare rebates to doctors, try to increase tax revenues from the average 18% GDP to 23% GDP. Lower the cost of defence and many domestic programmes, to the lowest levels of GDP since before World War 2 and expect interest payments (now $164 Billion) to increase from one to 4% of GDP.
In other words, raise taxes, cut spending and hope for an economic miracle, which fortunately is available via “American Butterfly”

The CBO also offered the “alternative fiscal scenario” which considers keeping the Bush Tax Cuts, and expecting tax revenues to stay closer to their historical average, however this scenario sees Public debt at 190% by 2035 (Note Public debt is in effect only 70% of total debt) as such Total debt would be closer to 300% GDP.

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."

Then in 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.

Ben Bernanke 2007 comment: "The longer we wait, the more severe, the more draconian, the more difficult the objectives are going to be” starts to ring true!

Strategies:

- Promote economic growth and employment: A fast-growing economy offers the win-win outcome, of a larger proverbial economic pie to divide, with higher employment and tax revenues, lower safety net spending and a lower debt-to-GDP ratio.
- Make equitable trade-offs: For example, taking away benefits from those in or near retirement may be considered inequitable, while phasing out retirement benefits for younger workers may be considered less so.
- Keep short- and long-term issues in perspective: Healthcare cost inflation and an aging population are the primary long-term deficit drivers. Unemployment and various tax and spending policy choices are the primary short-term deficit drivers. Measures to encourage economic growth today can be implemented along with other measures to reduce future deficits
- Invest productively: Some spending can be categorized as investments that lower future deficits. For example, if infrastructure, education or R&D investments could make U.S. workers and products more competitive or generate a revenue stream, these could reduce future deficits. Examples might include installing windows that reduce energy costs, toll roads and bridges, or power plants

Specific Government proposals

- President Obama established a budget reform commission, the National Commission on Fiscal Responsibility and Reform, which released a draft report in December 2010. It included various tax and spend adjustments to bring long-run government tax revenue and spending into line at approximately 21% of GDP, with $4 trillion debt avoidance over 10 years.

- President Obama announced a 10-year (2012–2021) plan in September 2011 called: "Living within Our Means and investing in the Future”: The President’s Plan for Economic Growth and Deficit Reduction." The plan included tax increases on the wealthy, along with cuts in future spending on defense and Medicare. Social Security was excluded from the plan. The plan included a net debt avoidance of $3.2 trillion over 10 years. If the Budget Control Act of 2011 is included, this adds another $1.2 trillion in deficit reduction for a total of $4.4 trillion.

- The House of Representatives Committee on the Budget, chaired by Rep. Paul Ryan (R), released The Path to Prosperity: Restoring America's Promise. The Path focuses on tax reform (lowering income tax rates and reducing tax expenditures or loopholes); spending cuts and controls; and redesign of the Medicare and Medicaid programs. It does not propose significant changes to Social Security.

- The Congressional Progressive Caucus (CPC) proposed "The People's Budget" in April 2011, which it claimed would balance the budget by 2021 while maintaining debt as a % GDP under 65%. It proposed reversing most of the Bush tax cuts; higher income tax rates on the wealthy and restoring the estate tax, investing in a jobs program, and reducing defense spending.

- The Bipartisan Policy Centre sponsored a Debt Reduction Task Force, co-chaired by Pete V. Domenici and Alice M. Rivlin. This panel created a report called "Restoring America's Future," which was published in November 2010. The plan claimed to stabilize the debt to GDP ratio at 60%, with up to $6 trillion in debt avoidance over the 2011-2020 periods. Specific plan elements included defense and non-defense spending freezes for 4-5 years, income tax reform, elimination of tax expenditures, and a national sales tax or value-added tax (VAT).

Summing up

At the end of the 20th century USA borrowing was at an all time low, with national debt at $5,629 Trillion Dollars in Debt, which equated to 57.6% of GDP. Since that time debt has risen to $15.3 Trillion, over 100% of GDP.

This is largely due to a combination of “The Bush Tax Cuts”, The Obama Spending increases, wars and lower tax receipts due to the financial crisis, amplified by an increasing cost in social security, welfare and medical payments to an increasing large and aging population, further hampered by pharmaceutical bills becoming increasingly expensive.

The overwhelming consensus amongst economists and budgetary organizations is that “the Bush Tax Cuts” should not be extended past 2012, however certain individuals like anti tax activist Grover Norquist are making the sensible option increasingly difficult.

All agree that the cost of wars needs to be reduced, many suggest a dramatic reduction.

Without exception, it is agreed that the biggest long term threat is Medicaid & Medicare; the numbers on persons enrolled in the latter expected to increase from 47 Million to 80 Million by 2030. However it is more the rapidly rising costs of medical bills that see the predicted rise from 5.3% GDP to 10% in 2035 and 19% in 2082. By which time if paid in full, all tax revenue will be spent on Medicaid and Medicare; as such there would be no money for any other services, not even a salary for the President.

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”.

As such, no government, republican or democrat can implement the measures needed to reduce the yearly deficit to a manageable level without committing parliamentary suicide. As such, the essential tough decisions that are essential will not be made, the economists and the budget makers will be ignored, the USA will continue to loose over $1 Trillion a year, and within a year their credit rating will drop from its AAA rating. At which point borrowing will cost more.

If the global economy miraculously reverts to pre 2007 levels, interest rates will rise, and within a handful of years, the USA will be spending close to $1 Trillion a year on interest payments and according to statistics will grow slower than other economies due to its debt to GDP ratio being over 90%.

By the end of this decade, there will not be enough money to pay for most Medicare and Social Security obligations, this will cause deep distress as Medicare and Social Security are in effect social insurance programs into which US Citizens have contributed all their working lives.

At this point, the United States of America will be a very different land indeed, the effect on the Global economy, devastating, the effect to world peace and stability unimaginable.

It is extremely lucky, that there is a Plan B.

“American Butterfly”

Using a baseline figure of current losses at $1,635 Trillion, starting at February 2012’s $15,300 Trillion total debt, American Butterfly conservatively estimates, the USA will be in profit by 2015 and in the black (all debts paid) by 2027.

This allows for the “Bush Tax Cuts” and all other current tax rebates to remain in place in their entirety and does not touch Social Security, despite adding in that area.

So far nine areas of savings have been presented, no doubt, once the CBO, BEA and other institutions have added to the model, further savings and revenue streams will be made.

The only contentious issue is “8: Savings Wars” however, figures presented are simply in line with those currently on the table. Should these cuts not be made, it will have a negligible effect on the solution.

It is however highly likely, that as soon as the USA is making profit, more tax cuts will be offered to the public, American Butterfly wished to suggest, that future tax cuts be applied in the main, to companies that are using the Sienna.Gov software to calculate and pay tax. Implemented in the correct way, one could see a different attitude to tax, where one is proud to be in a higher tax bracket, and is boastful of their rebate, nationalist entrepreneurial capitalism at its finest.

Note the word’s “American Butterfly conservatively estimates” the word conservatively is used as the above figures are largely based on the initial investment round and companies created from said investment, it does not address the true ambitions which are to expand experientially, remember the land procurement stage aims to buy 7 times more land than is used in the initial $16 Trillion phase.

Further: After 2019 no increases are recorded, and whilst further savings are not necessary, increases across all tax creating sectors are expected.

Let’s analyze the 9 profit centers.

1. Tax not collected $350 Billion;
This is based on research gathered by the IRS in 2007, the Sienna.Gov software if free will save businesses money and time, whist offering increased efficiency and easy to read bottom line essential figures. The network will decrease costs and increase marketing opportunities, the advisory service will be of further benefit. If the IRS calculates that $350 Billion dollars was missing in 2007 whilst $2.57 Trillion was collected, this indicates that less that 86% of taxes are paid.

In most cases we expect that tax is not avoided rather not paid in full, by maybe a quarter of the yield, so 5% to 10% maximum, as such the savings on the system outweigh the extra tax that would be paid.

One does not need to be a part of the EEE business structure to use the software, and to use the network one needs to use the software, as such we believe it’s reasonable to assume that the software runs most businesses by 2018.

The IRS of course, will have less work to do, as such, they will concentrate fully on businesses not using the software, further consider the PQS (Predictive Quantum Software) that will me measuring the flow of money throughout the USA, and tax evasion will be incredibly difficult.

Further consider, future tax cuts being offered only to those using the software, and the public good will for companies that use the software as they have new hospitals and schools and the USA is no longer in financial danger, and a general air of suspicion will be cast on those not using the software.

Further consider a referendum for USA citizens regarding making the software mandatory, and lastly consider the concern of businesses that if a referendum is called and they are called to task, the software will easily pick up previous evasion.

Lastly consider a tax amnesty for all who start to use the software.

All in all, we believe a complete end to tax fraud and evasion in the USA, we expect in reality there will be more than $350 Billion extra collected.

2: Usual Business Restored

The totality of the “American Butterfly” initiative dictates that as soon as the first $4Trillion is raised GDP will sky rocket, and at the very least pre 2007 conditions will be restored. Further add the $4 Trillion in land acquisitions, effect of raising USA house prices back and past their 2007 levels.

Further consider the “American Butterfly” system being applied to Europe.

10.57 am GMT – Thursday 2st February 2011

Year, we don’t have lift off LOL

It went well, but as I started the explanations of the income streams, as I got to 2: Usual Business Restored, I was flagging, and considering, these explanations are the main part of the solution, or a main part, certainly the conclusions, more time and thought was needed.

I have decided to make the last 8 years fluctuate, and really present, not a worse case scenario, rather a “low estimate” and have workings for all figures, or a credible explanation. I’m also considering more info on the 8 software types, and adding links, then making and exec summary.

This will obviously take another week maybe two, however I can send to selected targets, explain that cooperation and help is needed rather than, look at this masterpiece.

I’ve adjusted the figures for revenue stream one, starting at $50 indicating an immediate worry by the electorate that they will be caught, then increasing 25% a year as such indicating it will take 13 years for the software to become the industry, or more to the point government standard. Which is more reasonable, it also shows the government and for that matter the USA citizens that a referendum (or Gov policy) on making it the official tax tool, i.e. using it is mandatory. With only 14% or so of evaluation and $350 plus to be gained, one could realistically expect a 95% yes vote in a referendum, all be it, the whole “big Brother” wariness syndrome, could knock it down some, further if Greece makes it mandatory, and its works there, it will assist in gaining the votes.

As for section 2: usual business restored, we need to realistically consider, as soon as USA butterfly is announced, the recession will end, as shares in mentioned company get bought and a land grab occurs. As such jive used the 2007 Total revenue 257 in and the 2009 211 in equaling a 460 loss as my baseline figure and shown that coming in force in 2013.

Revenue from new EEE businesses I will address now, in a number of formats, GDP effected by direct investment and the very difficult expected earnings, and then consider, what of these earnings is taken from usual GDP, absolute crazy random estimate, without the benefit of a team (100) of experts and a rudimentary PQS.
This is going to take a couple of days I can tell, it will need a dedicated spread sheet, and whatever figure I come to, I had better half for safety. I thing however it will be an essential and fun exercise, and without doubt something surprising will happen.

12.00 pm GMT – Thursday 2st February 2011

I’m very excited, I’ve just been processing the income from EEE in terms of Tax and GDP and its colossal, I’m going to make some sections, put rough estimates then go for a walk and process.

First, the effect to standard GDP, this initially will go up; however this is already accounted for in the “Usual Business” however over time it will reduce as more companies incorporate. I had better over estimate this section by about 35%.

Another exciting thought is that Corporate tax is only 10% of total tax yield, as such making EEE companies free of corporate tax will have only a 10% reduction in tax revenue, which is easily affordable. Such a rebate, will make using the software more appealing, as the only tax property taken that effects business is VAT, if the USA has VAT. Ahh they do, it’s called sales tax and food and medicine is exempt

Certainly removing or reducing Corporate tax will encourage use of Sienna.Gov financial software, EEE company or not. Maybe a 50% reduction for using the software and a 100% reduction for incorporated companies.
I’m going to make a new spread sheet
___________

1. $4T Investment from 75% USA companies and Individuals, 25% foreign let’s assume $ 1.5 Trillion would be diverted from usual USA spending, and so deduct $1.5 Trillion from overall effect. Let’s further assume given the think tank and rudimentary PQS, we can achieve the UK Railway figures of $1 spent $2 made as an effect of GDP.
What are today’s GDP figures, I struggled with this yesterday, IMF say in 2000 $14.5T, I’ll work on an even $15T
So in 2010 $14.5T generated and with the CBO realistically working on Tax = 18% of GDP whatever the GDP rises by receipts in will go up by 18%.

You know, I bet this is how the conservatives worked out their railway projections, no think tank, no rudimentary PQS, just some Muppet quoting figures from a text book on economics. This is the advantage of having no economic training, it makes you work things out for yourself, and as such you understand the process.

This is no doubt why the economists were saying the railway money could be better spent. The way I see it, it is payroll tax that makes the most money, if paid to earners over $50,000 as such the more jobs VS Company profits the higher the percentage of tax revenue from GDP, not to mention the saving in welfare, and effects to society.

Ok so let’s work it out, $4 Trillion minus the $1.5T = $2.5T set aside the $500 Billion as it is ring fenced for education years 5 to 8 = $2 Trillion x 18% = $360 Billion. Work this over 4 years including the next 3 $4Trillions and spread it as its not possible to spend all at the beginning 2012 – 2015 = 100, 280, 480, 580, from there on we can consider a further $4T per year in other investment. If you remember in the investment summary, I included a proviso to continue limiting investment to $4T, to make it exclusive and promote Global Investment. From 2016 I will insert a baseline $360, nope, I need to add the money from the ring fenced $500 B, = $125 per year on top. Thus 485T, returning to 360T on year 9 onwards. Note in the long run, we are expecting either deflation or a strengthening of the dollar, or both.

I’m going to make two columns one for the investment one for the GDP loss and lose the ring fenced education 16/19 adjustment. $4T x 18% = .72T

Take of the $1.5T x 18% = $270B

Next we need to consider both POP investment and tax on successful companies; this is going to mean I need to do an assessment of company success.

This has the danger of being random; however I have had some considerations, Cars for instance if we issue an order for 20 million electric cars between $4,000 and $8,000 with an average of $1,500 profit per car that’s $30 Billion profit as such 7.5 profitable EEE companies, or 4, creating a good POP. However we would need to repeat this exercise 276 times to make all USA EEE companies create a good POP.

If we consider 25% a good POP and move the profit to $2,500 we get 12.5 companies or 10 making 25%, I like the idea of automatic trade in after 2 to 4 years with cars being well priced in the first place, to stimulate the market, recalculating and the opportunity for drivers cars to keep up with technology, this may mean 20 Million a year, however it’s a tall order, so I will half to 10 Million as such EEE can sustain 6 car companies at 25% POP per year.

We could make the cars a part of the salary packages, as such guarantee the orders. And force the use of electric cars, something that will go down very well with most.

If we add sales to non EEE residents and exports, we can double the figure again, back to 12, plus, as the EEE cities grow past the initially planed 16 x 256 x 4 = 276 more cars will be needed, a lot more.

276/12 = 23, as such one only needs to make an argument for 23 industries doing as well and we can show a $4 Trillion profit per year. All to easy. Yes :)

Time for that walk its sunny but minus 1 degree outside.

Actually its not that simple as we wish a lot of interns, my head is however spinning with good ideas. My mind is of not the PQS HC1

3.46 pm GMT – Thursday 2st February 2011

You’re going to love this, first the construction.

Construction profit margin 20% with 5% contingency, no more, but if they go over budget they lose.

Construction jobs $2 Trillion a year so $400 Billion a year.

Add to this 10% of profit if houses sell for 110% of their minimum value which is $4 Trillion so add another $4 Billion a year, then go to a sliding scale when sold for more that 110% as such if sold for $120% 12% and so on. This should make another $200 Billion, and then have a residual resale price, lower again depending on profit, as such creating another $200 Billion. Total from construction $1.2 Trillion a year. Plus builders have utter motivation to make houses excellent.

Only use materials from EEE suppliers and laborers are EEE paid, working 3 days on the sites, one day on businessbook and one day learning.

END HERE PLEASE MIKE

But more to the point a communication to facebook.

How to make more

Issue 4 Billion shares, hold 2 Billion back

Value shares at $4 each, tell the world half the money goes to African children, and sell the first half to facebook users, maximum 4 shares ($16) once sold. Sell the rest on the stock market at a minim um of $4

Facebook makes an extra $ 4 Billion and $8B for African Children (saving +/- 25,000 lives) and total facebook valuation rises by 4, divided by two for readjust to $200B

The advantages of all facebook users owning a small piece of facebook are obvious.

You will of course ignore this advice as it is not about ad’s code or apps.

No mind, my USA debt solution will soon be in the hands of the CBO then the President, and I’m pretty sure mark will not ignore advice from the President about how to make money for facebook and the world.

My advice as always asks for no reward, so long as you follow the “Give half Back” principal

If you want to know more check my application for fb Director of Business Development last year that you ignored, a position I am no longer willing to take, I am however happy to throw you some very lucrative bones.

LOL… How funny is that, and by coincidence the “I am God” Virgin Prunes song is playing on my I POD,

I’m off for another walk, then I’ll send it to my fb email addresses and post it on the directors fb walls, I’ll probably include this page and the “American Butterfly”

I think I’ll end the email off with

If by some miracle you do read American Butterfly, you will find instructions for what to do next at the end!

8.02 pm GMT – Thursday 2st February 2011

Notes from walk, initial company must retain building contract, all POP companies will find it harder to make profit due to no contracts, however initial company profit will balance. Over all creating more than 16T Company’s making $16T profit will get harder and harder, lots of small businesses will ease this, as will profit flow. Will need to lower dividends on POP companies, to ensure “GHB” Incorporated companies dividends need to be equal to current yield as such higher than 25% until POP makes as much as they do now.

Will send to fb email addresses today, with one complete Jan attachment, will/may write on Marl/Cheryl/Cox/Bret homepage between 3pm Sat and 3pm Sun, 4 times each. Will send slightly more complete American Butterfly to Director or other facebook position job, and advice them to look there for further instructions, will make list of 16 directors and advise fb to call them all to fb for meeting in from of audience and the world. Thrash it all out. Need breakdown figures on Social security and Medicaid/care. Definitely need no corporation tax on EEE companies. I guess I sound like a Cylon right now :)

I’m going to write the fb instructions now, leave it here and copy to ”AB”, first I’d better write a quick end to “AB”
Ill copy the last couple of paragraphs on “AB” and then make a quick conclusion, I’ll send a few times with different subject lines

1. How to make $8Billion not $4Billion from the IPO
2. 100$ says Gaia theory dumbs you down, starting now!
3. Errr I’m a facebook email answer and I’m that stupid
4. Wake up dumbasses.

Yep that should suitably make Mark cringe if they don’t answer, which they won’t.

Ok, let’s do the “AB” Thing.

2: Usual Business Restored

The totality of the “American Butterfly” initiative dictates that as soon as the first $4Trillion is raised GDP will sky rocket, and at the very least pre 2007 conditions will be restored. Further add the $4 Trillion in land acquisitions, effect of raising USA house prices back and past their 2007 levels.

Further consider the “American Butterfly” system being applied to Europe.

OMG, Gaia Theory did not dumb you down!, well then you are committed now, and welcome to the party.

Ok I’m quickly going to give one line answers to the other 7 revenue streams, it’s all pretty much irrelevant as I’ve just realized the EEE revenue stream is colossal, but I’ll give you an explanation anyway

3. Tax on New EEE Companies: This is money made from New EEE companies; it’s possible this will rise to 4 or so trillion a year, cut back to 2T

4. Tax on Small Businesses: The intention is to make 75% of small businesses successful over 5 years not 50%, as such the figures presented are very low.

5. Tax on medium, large and corporations increased due to the systems, networks and software: I know little about large companies so this is an educated guess, we need however to include all small businesses that succeed to medium and large enterprises so the figures are probably light.

6. Saving on Medicare: with 10,000 soon 20,000 new hospitals (all 5* experiences) and free medication a $450 saving of over $1T is more than reasonable.

7. With the USA having no unemployment and a need for about 20 Million more workers, plus retirees welcomed back to the work force a $325B saving is more than reasonable

8. In line with current thinking and strategies, add to this “The Spartan Theory” which basically bribes warring nations to lay down all weapons for Cities and relief, seeing regimes in tribal areas given a split rule ½ normal government half EEE government. (It’s complicated, but simple)

9. Improved government systems, i.e. removing humans from accounting and the “PRS”

Ok, if you are with me this is the plan, get Mark to gather a temporary board of 16

1. President Obama
2. Mitt Romney
3. President Clinton
4. President Bush
5. All Gore (representing Apple)
6. Bill Gates
7. Christine Lagarde
8. Jeff Jonas (IBM)
9. Sheikh Mansour bin Zayed Al Nahyan
10. Ben Bernanke (ex head of Federal Reserve)
11. Sir Richard Branson

And representatives from: Google, Mensa, Nobel & China.

Mark makes 16

I am advisor only and have no power other than to refuse to talk, I will however be proposing mark as Chairman, as such he has power over a split decision.

Of the latter 4, make sure we have a Democrat/Republican balance i.e. 6 Republicans 6 Democrats and 4 swing voters, or 7/7/2 or 8/8

Further make sure we have a religious balance, no more Christians, equal Muslims and Jews, and at least one Hindu and one Buddhist.

If this is not possible let me know and I will reassess initial nominations.

If you skipped to the end to start with, you had better read it from the beginning and the other attachments, particularly the most recent, then have a good look through www.s-worls.biz.

This works, you will not be able to comprehend its totality, but you will be able to see its potential.

Go team fb, lets save the world.

Nick Ray xx

Ok I have the attachments prepared, let’s just have a quick look over the email

How to make $8Billion not $4Billion from the IPO

Issue 4 Billion shares, hold 2 Billion back

Value shares at $4 each, tell the world half the money goes to African children, and sell the first half to facebook users, guarantee 4 shares ($16) per applicant until sold, but allow larger applications, then pro rata shares per application. Sell the balance on the stock market at a minimum of $4

Facebook makes an extra $ 4 Billion and $8B for African Children (saving +/- 25,000 lives) the total facebook valuation will rise by 4, but then divided by +/- two for readjust to $200B

The advantages of all facebook users owning a small piece of facebook are obvious, consider adding a tab saying “facebook” owner under their name

You will of course ignore this advice as it is not about ad’s code or apps.

No mind, my USA debt solution will soon be in the hands of the CBO then President Obama, and I’m pretty sure Mark will not ignore good advice from the President.

My advice as always asks for no reward, so long as you follow the “Give half Back” principal

If you want to know more read the attachments, instructions of what to do next are found at the bottom of “American Butterfly” the USA and Global Economic Recovery initiative. For more about me, check last year’s applications for Director of Business Development.

I’ll bet 99% you ignore this, don’t worry, I’ll not hold you to the 25,000 thousand African Children’s lives you put at jeopardy as there is a very high possibility Gaia Theory has just dumbed you down.

I’ll be posting this on Mark, Sheryl, Chris & Brett’s fb pages over the weekend between Sat 3pm GMT and Sun 3pm GMT

Cheers

N Ray xx

LOL, its jewels like this that makes my own company bearable and you know what, it’s so ballsy it may grab someone’s attention.

Partners@facebook.com Partners@fb.com Marketing@facebook.com Marketing@fb.com

11.41 am GMT – Friday 3rd February 2011

That email to fb was funny, in retrospect however it was the construction profit that made yesterday special. As for the idea, the inspiration for the fb IPO idea, it was simply that I wanted to buy one share, and realized I could not.

I’ve also been giving some serious consideration as to the amount of companies that can make POP year on year, the first batch are probably fine, but times that by 7 and we are looking very doubtful. Adjustments may need to be made.

It’s the party tonight, Barry’s party, but I’ve decided not to go, it’s not the time to develop a social life, to expensive in money and time.

The email to Marketing@facebook.com failed but the one to the others went through, the Marketing@fb.com auto returned with these extra email addresses

Speaking & Press being relevant

I said I would send them more from 3pm Sat to 3pm Sun, and it gives me something to work towards. After which I will need to make some new sending targets. Firstly, I’m going to add the small business section to “AB”

2.01 am GMT – Friday 3rd February 2011

Oops, I’ve used the wrong figures for the land development; I’m just going to check some infrastructure budgets.

Cost of a road: http://www.publicarchitecture.co.uk/knowledge-base/files/indicative_building_costs.pdf

These are 2006 prices; however as building cost more in 2006, I think they are fair.

One lane: About GBP2,750,000 per linear KM for Rural design 2 lanes, we have 2 KM’s of housing, with windy roads desired, this said most of the houses are big, let’s say 5KM Rural 2 land roads = 13,750,000, in $ we will call it 20M
Let’s add the street lights, sewerage, water supply, eclectic cables, CCTV cams and some traffic lights.

Note: External works refer to elements such as: Drainage, Paving, Driveways, Walling, Decking, Ballustrading, Topsoil, Turfing, Tarmac surfacing, and Exterior lighting. In other words all work on outside the footprint of the work.

Business parks: 5-13%, Hospitals 10% to 20%, Houses 6% to 20% (big projects have lower percentages.

Hang on these prices are in pounds.

Its going to take too long to find proper stats, I’m going to have to estimate.

I will however put a 4 land road into the housing area, so I’ll add another 5 Million

1. Housing areas (2KM2)
5KM Rural 2 and 4 land roads = $25Million
pavements = $2.5 Million
Sewers, water and eclectic under same = $15Million
Traffic Lights, Street Lights & CCTC cams = $2.5 Million
TOTAL: $45 Million

2. Parkland (1KM)

Plants, soil, Irrigation, paths, lights, CCTV, cycling tracks and earthworks =

TOTAL: $20 Million

3. Commercial area (1KM2)
4KM Urban 2 and 4 land roads = $25Million
pavements = $2.5 Million
Sewers, water and electric under same = $15Million
Traffic Lights, Street Lights & CCTC cams = $2.5 Million

Campus/Hospital (1/2 KM2) = $25 Million
Commercial Retail = (1/2 KM2) = $25 Million

Total: $95 Million

SUB TOTAL: $160 Million

Alternate power (300,000 per 100 houses) – 700 houses + offices + shops + University = 2000 houses equivalent as such 10 Million should easily cover it,

Alternate Power: $10 Million

Water Works could be expensive, as will running pipes from the nearest town, sewerage will be the same. Building a small town is proving far more expensive than a big one, and multiplying the land by 4 has much the same effect. Hmm better to know now than later, we can afford it, there are not so many frills, and I don’t have the desired budget for a spectacular shopping mall or a luxury res hall for the students.

I suppose with 2000 residents in the houses plus 2000 people in the Uni, a big shopping Mall is not necessary, so I’ll plan to make ¼ now and the rest when the next plot is taken up. This will however lower the money in from selling the shops and offices. Hmmmm

I’m going to have to go $10 Million for the waterworks and the same for the sewerage and include fire police and council building and two it all under municipal expenses and call it an even $25 Million.

It may be an idea to channel the Give half back model to $1Billion not $4B, it will make it less scary, and target more achievable. It may be an idea to divert the first 25% of company profit before GHB to infrastructure.

Municipal Expenses: $25 Million

I need to consider public transport, all be it it’s a long term project as in a small town there will be little point in having a train that goes, nowhere, as such we can just allocate space for the train tracks and build them out on the next company/plot money. Good, a saving at last.

I’m going to lighten the budget of the commercial district roads etc as at least half will be the shops and Campus, and include pavements into the Housing Budget for free

So what have we got so far?

1. Housing areas (2KM2): Roads, Pavements, Sewers, Pipes, Electrical, Lights & CCTV = $45 Million
2. Parkland (1KM): Plants, Soil, Earthworks, Irrigation, Paths, Tracks, lights, CCTV = $20 Million
3 a. Commercial area Basic (1KM2:) Roads, Pavements, Sewers, Pipes, Electrical, Lights & CCTV = $30 Million
3 b. Alternate Power = $10 Million
3 c. Municipality: Waterworks, Sewage Refinery, Reservoirs, Fire Station, Police Station, Council Offices, Community Buildings: $35 Million
3 d. Campus/5* Hospital/5* Student residences: $50 Million

TOTAL: 45+20+30+10+35+50= $190Million

Ok now we are getting somewhere, a good budget for the municipality, and enough for the luxury student quarters, and $60Million to spare.

We need to consider that the next development will be taking advantage of the Municipality services and part of the Campus. As such a $50 Million rebalance sounds fair, let’s work on the principal, the land cost will be $150 Million and 50% of that goes to Municipality and Campus improvements, the other $100 Million into building credits, plus they pay the train costs.

As such we have $60 Million for luxury projects, no lets switch it, and the $60M is spent on Commercial real estate, Mall, shops, offices, down town area, then the $100 Million from the land is spent on luxury projects.

The contingency will be simple; whatever is over budget will be absorbed by the first profits made, before we go to POP.

So let’s make something to insert into the “AM” presentation

A typical founding town/district infrastructure budget

1. Housing areas (2KM2): Roads, Pavements, Sewers, Pipes, Electrical, Lights & CCTV = $45 Million
2. Parkland (1KM2): Plants, Soil, Earthworks, Irrigation, Paths, Tracks, lights, CCTV = $20 Million
3 a. Commercial area basic infrastructure (1KM2) Roads, Pavements, Sewers, Pipes, Electrical, Lights & CCTV = $30 Million
3 b. Alternate Power = $10 Million
3 c. Equipped Municipality: Waterworks, Sewage Refinery, Reservoirs, Fire Station, Police Station, Council Offices, Community Building, Schools, Crèches, Montessori schools s: $45 Million
3 d. Equipped Campus: Rooms, Labs 5* Hospital, 5* Student & Teacher residences = $50 Million
3 e. Downtown & Shopping Mall: Commercial, Retail & Offices = $50 Million

Founding company, sells next plot for $150 Million of which $50 Million is to bolster Municipal services, $50 to $100 is for luxury “WOW” items (Stadiums, Ski etc) the balance (up to $50) is to add to the Commercial district or Campus.

Any overspends in initial infrastructure costs will be recouped from company profits before POP.

3.17 pm GMT – Saturday 4st February 2011

Just been for a lovely walk, very pleased I did not go to the party last night.

Yesterday I read “American Butterfly” from the beginning, its beginning is weak, however that can be amended by a 3 page congressional summary at the beginning.

I’ve decided not to omit to much detail from the work, it is becoming the book not the introduction, but with a summary and a 10 page edited version, its better. We are looking at two weeks or so to complete, this said, I have come to the conclusion, it will never be complete, and this is a life project.

However, if I can get it so it’s a 100% solid investment that’s enough, and I’m close, especially with the 1st wave of contracts (building, cars etc.)

I’ve found the infrastructure budget does not go so far on the smaller cities in the first phase, and I’m thinking of making the first ¼ of company profit go to additional infrastructure.

I’m going to change the share allocations, to make more for the first set the Big 4 becoming the Big 16 or 12.

I’m going to try to get mike to get all the BEA & CBO addresses, the idea of 16 big players publically trashing out the plan all advised by a team of 16 at facebook may work, we can use the 3pm - 3pm times. I need to be 100% sure of all the facts presented, or at least 100% sure of success. This route will gain public support as a global idea not just something presented by the powers that be; it also gives the option for investment pledges.

I’ve added the symmetrical string theory to back up the “Economically Protected Capitalism” and I’m going to change a few bits on the diagram.

Ok back to the main Paper.

11.01 pm GMT – Saturday 4st February 2011

It’s been a constructive day on the “AM” paper, a number of corrections and additions. I went to the Horse and chatted with Sam, she was very complimentary about my….. Which was nice

I’m gearing myself up for the big one, the initial company profits, which including EEE contracts I’m pretty sure I can make 100%, as such it’s a 200% min return for investors. I changed the first wave of investment to 16 companies and found out there are close to 100,000 tech companies in the USA.

I’m going to add an fb status update: To paraphrase the immortal Ian Astbury: I love the snow. It’s so pretty; it makes everything beautiful, a day of nature over man made intrusions.

12.18 pm GMT – Sunday 5th February 2011

Feeling a little hung-over, but not completely useless, the snow is very beautiful in the back garden :)

Think I will make the post on Mark and co’s fb pages,

Dear Mark

I wanted to buy a few shares in facebook, not as an investment, just to have ?, but brokers will not bother for such a small amount, chances are I’m not the only one.

Why not issue 4 Billion shares at $4 each, tell the world you will give half the cash to African children, or ecology, or something like that.

Then let fb members buy half of them direct, guarantee allocations for 4 shares, but accept higher applications, then wait a few months and pro rata the unsold shares to the higher applications. Then as the baseline value is $4, chances the last 2 Billion shares will sell on the markets for the same.

Maybe you have considered this and thought it was not a good strategy, however if I have a giant rabbit up my sleeve that will guarantee your success.

Do you or whoever is directed to read this on your behalf, have the where withal to ask the question. What is it that will guarantee fb make an extra $4 Billion and do great good in our world?

Or does your message reader presume to believe you already know all that there is to know?

Kind Regards

N Ray

I sent it to mark and Chris, Sheryl does not have an inbound message service.

Ok so, time to get on with it, the initial investment stage, contracts and the flow of money within EEE.

First we have the Construction, where we allow an immediate 20% profit margin, with 11% return on house sale if sold for over 110% of its bottom line value, with a further pro rata percentage the more profit it makes
i.e. 11% on 110, 12% 120, 13% 130 and so on, plus a half this figure again, it the house is resold at a profit.

As such we are looking at 40%

So from $1 Billion we get $400 Million

Different industries

Businesses, or industry, can be classified in three groups. These are: (1) Primary industry - These industries are involved in the extraction or production of raw materials, eg. Mining, farming, fishing, forestry, etc. (2) Secondary industry - These industries are involved in the processing of raw materials, eg. Manufacturing, building, any form of factory work. (3) Tertiary industry - These are the service industries, eg. Transport, dentists, doctors, and so on. It is generally easier for most people at start up to start a business offering a service (that is, in the tertiary sector). The capital required for a manufacturing business (secondary sector) is usually prohibitively large.

Advertising

2.44 pm GMT – Sunday 5th February 2011

Hmmm, walking in the snow, is not the same, to slippery ? Wish I’d gone with Mum and Dad for their amble, as opposed to a power walk, anyway I’ve had some ideas.

It’s going to be very difficult to make specific profit predictions for industries I don’t know. I can however work quite well in retail, working on the advantages of no rent and cheaper staff.

I think we definitely need to turn S-World into a TV network ASAP, we will have many partners in the field, to advise and we can make it exclusive in EEE territories, all be it one can pick their partners i.e. S-World SKY or S-World VIRGIN.

I think I’m going to have to ditch the social security and re-consider the population limit.

The Social Security dictates the population limit, and as far as the USA economists are concerned, it’s the Medicare not the social security that is the threat.

The problem with the population limit is that is makes the houses expensive but more to the point in the small $1B plot developments, there are not enough people to sustain a health retail/restaurant/bar environment.

Maybe I will double the population/house limit, to 4000 people and look to accommodate about the same at the University residency, we may have to consider the possibility that a $1B plot is to small and the minimum is a $2B this will cut down the “places” by 2,048, but with shared infrastructure costs and a larger population, they will be more financially efficient and successful.

I will do a spreadsheet for a cheaper development, well same price more houses, and consider one development as per before and one with more houses, one rule of house selling is that there are more people who can afford cheaper ones than expensive ones. So we will need to make a development with houses just above and below the national average.

5.44 pm GMT – Sunday 5th February 2011

I’m starting to consider, the chances of all the companies making their yearly POP, is very unlikely, as such “Give half Back” is affected. The University is OK as the initial investment is ring fenced for 8 years; as such a target is to get all companies to POP lever within 8 years.

It’s the size of the project, it creates competition by itself, I’ll keep thinking.

6.35 pm GMT – Sunday 5th February 2011

We definitely have a problem, a big one, if POP in not reached then the dividends are not made and so investment attractiveness is lessened. If we think about $16 Trillion invested, by current counting methods mean $16 Trillion profit a year, which is ridiculous. It’s as big as USA GDP. At a broad estimation I will have to cut my forecast down by four, which would lower dividends from 25% to 6.25%. Which was actually considered not so long ago, we are not blown out the water, but it definitely lowers the banks longing to do split deals with the tech companies.

Well it’s lucky I worked this out before sending it off to anyone, fb will never read the emails I sent them.

This is obviously disappointing; I’m not sure why I did not think about this before, as it seems so obvious now.

This is going to be quite a mission predicting profit, I’m going to have to consider the ones I know, consider the USA Total, then pro rata it across all plots, then factor in the PQS and upturn in the economy.

I’ve got to reconsider the figures for the university and the hospitals etc.

Darn, drat and double drat. :(

11.35 pm GMT – Sunday 5th February 2011

It’s not the end of the world, if Cape Villas can make 100% so can others, however if we look at a 25% yearly profit target, we will retain credibility, this will of course effect “Give Half Back”.