Debts : You can borrow up to 10x your future earnings

Central bankers need to take note, you can afford to kick start your economy in a recession by following these rules :

  1. Keep interest rates as low as possible.

  2. Do not allow borrowings beyond 10x the person’s future earnings.

  3. Create an expansion of credit up to 700% but must put into the right sectors.

  4. Food security. Agriculture. Infrastructure. Automation. Machinery for production. Technology and Innovation to create higher productivity. So it is kickstarting businesses.

  5. Micro Loans in home industries especially for woman.

  6. Do not pump money in Real estate as it will create a bubble. Create affordable housing so that the poor got a roof over their head. Expand your rental markets.

  7. Create jobs especially in industries of high growth. Retrain workers with skills that is relevant today and create great productivity.

  8. Improve your education system by providing affordable trainning by online courses and certifications especially in areas of great growth.

The global economy will go into a technical recession for a period of 1 year with slow growth in many industries but I do not see it falling off a cliff. So if you take the necessary steps your pain will be short and you will jump start your domestic economy faster when the global economy recovers.

Now is the best time to start all your projects. Renewable energy, power grid, electric vehicles, autonomous cars, infrastructure for better roads, rail, air transport, etc due to the availability cheap credit, low costs, and businesses need to expand and compete in such an environment.

Contributed by Oogle. 

I am the greatest wealth creator

My Plans which will take place within 2 years

I will setup my R & D lab in Singapore with one of my partners which will be a public listed company and take shares in the company. Starting I  will create PCs, laptops, tablets and mobiles with my own branding which I will concentrate on customising everything about security. The market I am interested in is the low and mid range following the direction of what Blackberry has done. Nokia can also do likewise as now the smartphone market is too competitive and customers cannot differentiate your products in different markets. I will setup this ecosystem but will diversify to produce neuromorphic computers when the time is right, and outsource the manufacturing to China to contain costs. My marketing plans is to first give away free to the poor in Singapore to built up my brand and get feedback, thereafter to launch to the global markets after 2 years. I am not afraid of competition as in 1 years time, I can easily move away from any features I want, but now VPN and Secure folder, and a new browser will be built into all my products. All this will happen after my book is launched. i do not believe in building everything myself unless I am forced to relying on partners is a better solution. I do not need to seek an IPO cause my capital requirement is only $100 million, which can be easily raised from private institutions. My prospectus and disclosure will be ready then.

My goals will be after creating the neuromorphic computer is to bring it alive in blockchain. Even if the entire world tries to stop me they can’t because I hold the key to unlock every technology on earth and I am capable to create the Next Gen Internet if I have to, to setup a decentralised network to link the entire world exchanges together. You can take 100 years without my help, but I will only take 10 years even with limited resources. I do not need the participation of all any US technologies to do this, and if I am forced to, keep them out forever from my ecosystem. I call the shots, not President Trump, you will fail miserably. I can create extreme wealth with God as my provider, even writing off the entire trillions of US debt if it is according to God’s will, creating trillions of digital currency to replace the US dollar, but nothing will happen if you do not agree to God’s plan, and this entire generation will pass until the next generation who will listen.

By end 2020, I will apply for a virtual banking licence in Singapore and start my Internet finance project on blockchain, I will use bitcoin as my main currency and follow Ant Financials model of business, but everything will be managed by Artificial Intelligence and Machine Learning on Super fast neuromorphic computers, matching both lenders and borrowers on my platform. After a successful launch in Singapore, my next target is Hong Kong, but it will not be available in mainland China and US, which will be geo-blocked. P2P Lending Platforms in Singapore : Seedin vs Funding Societies vs MoolahSense vs Capital Match vs CoAssets vs Minterest.

I am the greatest wealth creator. After creating my neuromorphic system I will attempt to link the entire world exchanges together. By merging all my technologies I will create a system of intelligent HFT trading where you can get 99% accuracy of making money. I do not need to know how your algorithms work, just by observation I will already know your secret sauce, and using HFT, AI and machine learning I will create the most astonishing wealth creator of printing money, solving poverty for all times, as long as you are willing to work, there will not be any problems to resources, the Economy of Abundance.

I am not a speculator, and if I do invest I invest for the mid to long term to achieve my goals, and I only in invest on those I am familiar with, like Futures, CFDs, ETFs, Crypto etc and if I want I can make billions because I can see the future with hundreds of views and weigh every outcome to reduce my risks, but this is not what God has planned for me, I can help my investors make money but based on my rules, which I am so confident of achieving but not to get rich, I am willing to share the risks in everything I advised, 50/50 if you make money, and 50/50 if you lose money. No investment company in the world dare to take this risk. I do not believe in living a lavish lifestyle when I succeed and if I do, I would have already cash out on the crowns I am running for to save up treasures in heaven. This rule only applies for me and not for others depending on your goals. I am a team player, and will never do it alone, even if I setup all my businesses I will only keep a controlling stake and sit in the Board of Directors, my goal in life is to make money from my works and retire with at least S$1 million to travel the world at 65. Those who follow me I will protect your interests, and I will not short change your talents, because I am in business for the long term, and will never go for things that benefit for only the short term, cause I do not need to. So if your contributions are great I will even offer you share options.

The Co-relation between Demand and Supply, Inflation and Interest Rates

Under the Old Economy, Asset inflation and Interest Rates will always create a Bubble, and the FED cannot control the Economy by just printing money, it is just kicking the can down the road. In the New Economy, Bitcoin as a digital currency has no inflation, and the demand and supply of bitcoin is tightly regulated, central bankers cannot anyhow create credit in the banking system which will cause a bubble, you are in control of your own money, so all the risks are taken away from the economy, there will not be a financial collapse. Contributed by Oogle.

What is Inflation?

Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. Inflation is a key concept of Macroeconomics. Central banks attempt to limit inflation and avoid deflation in order to keep the economy running smoothly.

Relationship of Interest Rate and Inflation

Inflation and interest rates are often mentioned in the same breath, and this is because Inflationand interest rates are closely related. In the United States, baseline interest rates are set by the central bank, the Federal Reserve Bank also known as the Fed. The Fed meets eight times a year to set short-term interest rate targets. During these meetings, the CPI and PPIs are significant factors in the Fed’s decision, because the Fed, as well as other major central banks, has a specific interest rate target in mind for the economy to achieve, usually 2-3% annually.

  • In order to control high inflation, the central bank increases the interest rate.

     When interest rate rises, cost of borrowing rises. This makes borrowing expensive.

     Hence borrowing will decline and as such the money supply(i.e the amount of money in circulation) will fall.A fall in the money supply will lead to people having lesser money to spend on goods and services. Hence, they will buy a lesser amount of goods and services. This, in turn, will lead to a fall in the demand for goods and services.

     With the supply remaining constant and the demand for goods and services declining; the price of goods and services will fall

  • In low inflationary situations; the interest rate is reduced. A fall in interest rates will make borrowing cheaper.Hence, borrowing will increase and the money supply will also increase. With a rise in money supply, people will have more money to spend on goods and services. So; the demand for goods and services will increase and with supply remaining constant this leads to a rise in the price level i.e inflation.

  •  Inflation and interest rates are often linked and frequently referenced in macroeconomics. Inflation refers to the rate at which prices for goods and services rise. In the United States, the interest rate, or the amount charged by lender to a borrower, is based on the federal funds rate that is determined by the Federal Reserve (sometimes called “the Fed”).

In general, as interest rates are reduced, more people are able to borrow more money. The result is that consumers have more money to spend, causing the economy to grow and inflation to increase. The opposite holds true for rising interest rates. As interest rates are increased, consumers tend to save as returns from savings are higher. With less disposable income being spent as a result of the increase in the interest rate, the economy slows and inflation decreases.

Under a system of fractional-reserve banking, interest rates and inflation tend to be inversely correlated. This relationship forms one of the central tenets of contemporary monetary policy: central banks manipulate short-term interest rates to affect the rate of inflation in the economy.

To understand how this relationship works, it’s important to understand the banking system, the quantity theory of money and the role interest rates play.

Fractional-Reserve Banking

The world currently uses a fractional-reserve banking system. When someone deposits $100 into the bank, they maintain a claim on that $100. The bank, however, can lend out those dollars based on the reserve ratio set by the central bank. If the reserve ratio is 10%, the bank can lend out the other 90%, which is $90 in this case. A 10% fraction of the money stays in the bank vaults.

As long as the subsequent $90 loan is outstanding, there are two claims totaling $190 in the economy. In other words, the supply of money has increased from $100 to $190. This is a simple demonstration of how banking grows the money supply.

Quantity Theory of Money

In economics, the quantity theory of money states that the supply and demand for money determines inflation. If the money supply grows, prices tend to rise, because each individual piece of paper becomes less valuable.

Interest Rates, Savings, Loans and Inflation

The interest rate acts as a price for holding or loaning money. Banks pay an interest rate on savings in order to attract depositors. Banks also receive an interest rate for money that is loaned from their deposits.

When interest rates are low, individuals and businesses tend to demand more loans. Each bank loan increases the money supply in a fractional reserve banking system. According to the quantity theory of money, a growing money supply increases inflation. Thus, a low interest rate tends to result in more inflation. High interest rates tend to lower inflation.

This is a very simplified version of the relationship, but it highlights why interest rates and inflation tend to be inversely correlated.

The Federal Open Market Committee

The Federal Open Market Committee (FOMC) meets eight times each year to review economic and financial conditions and decide on monetary policy. Monetary policy refers to the actions taken that affect the availability and cost of money and credit. At these meetings, short-term interest rate targets are determined. Using economic indicators such as the Consumer Price Index (CPI) and the Producer Price Indexes (PPI), the Fed will establish interest rate targets intended to keep the economy in balance. By moving interest rate targets up or down, the Fed attempts to achieve target employment rates, stable prices, and stable economic growth. The Fed will raise interest rates to reduce inflation and decrease rates to spur economic growth.

Investors and traders keep a close eye on the FOMC rate decisions. After each of the eight FOMC meetings, an announcement is made regarding the Fed’s decision to increase, decrease or maintain key interest rates. Certain markets may move in advance of the anticipated interest rate changes and in response to the actual announcements. For example, the U.S. dollar typically rallies in response to an interest rate increase, while the bond market falls in reaction to rate hikes.

Plan B to resolve when the World goes into Global recession

1st priority is to restart nuclear arms control to totally eradicate weapons of mass destruction. When it is in place the next priority is to get rid of conflicts.  The money  and resources saved can be channeled to other areas of need. The Asia region is my first priority  and I will solve the Rohingya crisis to allow them to return to Myanmar, and start them on a new path of economic prosperity concentrating on technologies on agricultural and free trade with Asean and the rest of the world. Next will be North Korea and when North Korea joins the Global economy, do you know how much it will affect the Global economy? Lastly will be the Middle East and Africa which is essentially the problem of the Islamic State., which can easily be resolved with money and the promise of peace and prosperity.  Therefore if a global crisis is to come, I can change it’s direction to focus on exponential growth with enormous expansion of credit thru Internet financing and help SMEs and create jobs for the masses, put the growth of the global economies back on track again at the shortest amount of time possible.  Contributed by Oogle.

Singapore : What can be done for reforms within our budget by investing in the future

1. Reducing minister salaries by 50% and reducing defence spending.

2. Making healthcare more affordable – Change a For Profit model to a Co-operative/Non Profit model. Setup a similar model like RIP Medical Debt to write off debts citizens are unable to pay.

3. Increasing GST only on luxury items? – Change GST to a Sales Tax on Luxury goods and increase to 10%.

4. Raising the income tax for the Top 1% earners to 30%

5. Returning CPF in full by age 55. Change all CPF schemes to cover permanent disability with non draconic conditions for DPS, Eldershield and Careshield. Allow transfer of OA and Special Account to Medisave. Make it non mantory to topup for Self Employed. In order to compensate for our missing CPF, it needs to be done in stages from 3 – 5 years as billions is required, make it non mantory to stretch your repayments to 92 years. We need to change policies that do not serve our needs.

6. Implementing Minimum Wage of $10 per hour. Change Workfare to payout in cash and free yearly insurance in Medisave to cover hospitalisation.

7. Reducing HDB prices? No need. If you pay market prices, you need to be compensated by privatising HDB to similar rules like HUDC, so that at the end of 99 years lease you will be compensated in redevelopment especially in choice districts. When you use your CPF to pay, no interests need to be repaid, but what you borrow need to be return to CPF for Retirement Fund when you sell your property.

8. Reinstating estate duty

9. Stop unnecessary spending after infrastructure investments like installing solar on all HDB flats, create a Power Grid network and support island wide power stations for electric cars. Use incentives for car owners to convert to electric especially with new ERP system for pay as you use model.

10. Fulfilling a Smart Nation agenda on Next Gen Internet on Blockchain which is unhackable, if you go full swing now every infrastructure like Power. MRT will be septical to hacking.

11. About time to upgrade our MRT which is coming to 30 years using China Train Technologies and AI robotics for maintenance.

12. Everything can be achieved by deficit spending for the next 5 years and slowing planning for returns after that when the Global economy recovers.

13. Change the direction of GIC and Temasek to invest in Singapore Human capital by retraining on Technology and Innovations with new changes on our Education system on Higher Education. You need foreign talent but only those who have skills we need, who can train Singaporeans, not any Tom Dick or Harry.

14. Freeze all rental increases for 1 year until Singapore Economy improves. You start running a deficit for 5 years, the law of diminishing returns will fade and you will return back to a healthy balance sheet.

15. Do not privatise essential service like water, power, hawker centres etc and ensure food security by our own local producers.

I am a firm believer of a Free market, and by tweaking demand and supply you can control the price, you do not need to dump billions now, it can be done in stages over the 5 years, most critical is the overhaul of HDB and CPF first, reducing high rentals and changing GST will indirectly increased consumption and more foreign investments, Singapore by virtue can achieve change, if it plans for it. You can verify everything I say by talking to a qualified accountant.

Can we afford to start printing money without a backup plan? Definitely not. You need to maximise resources, leverage on credit and be prudent in your budget. I have given everyone a timeline of 10 years until we reached the Economy of Abundance – The Perfect Economy. So in the meantime, there will not be a crash of the global economy, growth maybe slow and you can run an account deficit for countries like Greece and Turkey, but the goals is still to create jobs and feed your entire population. I based my projections on the increase of land sales, more people buying HDB and FDI from foreign investors and increased trade. Contributed by Oogle.

Towards a Perfect Economy

There is no way I can solve Global poverty without achieving these:

1) Get rid of  weapons of mass destruction all over the world.

2) Resolve all conflicts in the world.

3) Promote Free Trade without tariffs and sanctions

4) Redirect all resources spend on war towards peace building projects

5) Link all the world exchanges so you can trade both your assets and debts 24/7 365 days a year for all assets and comodities.

6) Use Bitcoin as a digital currency to finance IMF/World Bank to print digital currency and to prevent loss of confidence, to back it up with trillions of technologies and innovations that far exceeds it’s value.

7) Teach Governments to have change and reforms so that they can balance their budget.

8) Look beyond GDP growth and set creating jobs and a roof over everyone’s head as a priority.

9) Help those who fall under the cracks with social enterprises.

10) With technologies and innovations, create an Economy of Abundance when we reached a Perfect Economy where every citizen in the UN will receive a Universal Basic Income to cover their cost of living even if they are unemployed. It will take me about 10 years to achieve everything. Peace and Prosperity for all.