Since the USA ended dollar convertibility to gold in 1971, the world's central banks and private banks had been creating money out of thin air by simply printing currencies or making electronic entries in their ledgers. Unfortunately, quadrillions of such created cash and bank deposits have not been and still are not proportionately allocated to the entire population but end up mainly among businesses owned or controlled by relatively few entrepreneurs. Together with key managers, said entrepreneurs use their borrowed money (from banks and other entities) to pay employees who thence create goods and render services which when sold lead to enormous profits. As corporate loans get paid, the company's assets, credit worthiness, and stock shares' values proportionately rise. Since very few entrepreneurs own stock shares, trillions of dollars in wealth largely created by masses of employees and managers become the properties of a relatively few capital controllers. In effect, mere promises to pay are magically transformed by employee masses into solid goods, useful services and monetary wealth that largely end up among very few investors. Additionally, corporate controllers and worker oversupply decide how much employees' services are worth (which are very little, based on their low salaries), so controllers pocket the major part of profits. The system thereby routinely channels fabulous wealth to a few hundred thousand billionaire controllers worldwide, 'survival income' for 2 billion or so employees that form middle classes, and 'starvation income' for 5 billion individuals of the lower and bottom classes especially in the 3rd World. The system has become a permanent culture for all humanity, forming societies with wealth differentials that are merely wide among 1st World societies to stratospheric among 3rd world peoples.
Our Mega Co-op Movement desires to overhaul the unjust system by simply replacing individual entrepreneurs with masses of employees as corporate owners. The replacing is to be done by another simple approach: copy the exact ways by which the world's billionaire elites build up their corporate groups that each include a bank which creates money out of thin air.
One of the copying tactics for mega co-ops is to create Employees Banks owned by region-wide mega co-ops and that serve mainly mega co-op needs. A Philippine National EB (bank of regional EB banks) with branches worldwide can potentially accumulate quadrillion-level funds. It has to partner with the Philippine Central Bank (which should in future be owned 70% by local banks and corporations, and 30% by government to minimize politicians' meddling) to maintain lending volumes which do not raise inflation rates at around 0-2%. Over-printing (no proportionate production created) will raise local prices because of high buyer competition, since much of the created money end up in people's hands. The lessons of over-printing have been embossed in the Philippines by the 20-year Marcos regime, when prices rose by 10%-50% yearly due to State overspending without proportionate production and export volumes. The resultant crises sped up the Marcos end-game.
Fortunately for our future Philippine economy, local mega co-ops will largely sell to export markets, which means the entire world's buying habits becoming the subject for measuring lending volumes. Translation: mega co-op corporate groups will never run out of buyers, especially since they are capable of producing multitudes of product types according to human wants, which are infinite. The presence of mega co-op corporate groups' world-class skills will enable such groups' production systems to quickly switch from an over-supplied product line to a low-competition line according to need. Thus, if one product line's market gets saturated, the mega co-op simply defers its production and concentrates production and marketing on scores of other products that have strong demand. Measurement of demand may be made by ASEAN Festival Malls worldwide and Filipino expats' 'sideline' marketing outfits in major cities worldwide, each outlet reporting buyer needs to mega co-op clusters' regional market research centers. Considering the world's gargantuan needs for limitless types of products and services, mega co-ops will very likely sell whatever they throw to world markets at zero effect in terms of local inflation.
What does this imply for mega co-op financing? It means that the Philippine Central Bank, the Employees' Banks, and all local private banks will have no problem creating quadrillion level money out of thin air for investment and lending to mega co-ops without fear of local inflation at crisis levels. It further means that world markets will ensure the sales of Philippine exports at volumes that will prevent recessions and economic crises in the Philippines. It further means that trillions of dollars in Philippine Treasury bonds sold abroad will have no problem getting repaid. It likewise means that new quadrillion-level wealth from world-scale mega co-op operations will flow among the Philippine masses, not towards the country's elite few, contrary to current culture. Finally, it means that all mega co-ops and their 1st World joint venture partners will be able to finance clean and green industries throughout the tropics for all time, thereby helping reduce global warming back to pre-industrial levels on perpetual basis.
Our Mega Co-op Movement desires to overhaul the unjust system by simply replacing individual entrepreneurs with masses of employees as corporate owners. The replacing is to be done by another simple approach: copy the exact ways by which the world's billionaire elites build up their corporate groups that each include a bank which creates money out of thin air.
One of the copying tactics for mega co-ops is to create Employees Banks owned by region-wide mega co-ops and that serve mainly mega co-op needs. A Philippine National EB (bank of regional EB banks) with branches worldwide can potentially accumulate quadrillion-level funds. It has to partner with the Philippine Central Bank (which should in future be owned 70% by local banks and corporations, and 30% by government to minimize politicians' meddling) to maintain lending volumes which do not raise inflation rates at around 0-2%. Over-printing (no proportionate production created) will raise local prices because of high buyer competition, since much of the created money end up in people's hands. The lessons of over-printing have been embossed in the Philippines by the 20-year Marcos regime, when prices rose by 10%-50% yearly due to State overspending without proportionate production and export volumes. The resultant crises sped up the Marcos end-game.
Fortunately for our future Philippine economy, local mega co-ops will largely sell to export markets, which means the entire world's buying habits becoming the subject for measuring lending volumes. Translation: mega co-op corporate groups will never run out of buyers, especially since they are capable of producing multitudes of product types according to human wants, which are infinite. The presence of mega co-op corporate groups' world-class skills will enable such groups' production systems to quickly switch from an over-supplied product line to a low-competition line according to need. Thus, if one product line's market gets saturated, the mega co-op simply defers its production and concentrates production and marketing on scores of other products that have strong demand. Measurement of demand may be made by ASEAN Festival Malls worldwide and Filipino expats' 'sideline' marketing outfits in major cities worldwide, each outlet reporting buyer needs to mega co-op clusters' regional market research centers. Considering the world's gargantuan needs for limitless types of products and services, mega co-ops will very likely sell whatever they throw to world markets at zero effect in terms of local inflation.
What does this imply for mega co-op financing? It means that the Philippine Central Bank, the Employees' Banks, and all local private banks will have no problem creating quadrillion level money out of thin air for investment and lending to mega co-ops without fear of local inflation at crisis levels. It further means that world markets will ensure the sales of Philippine exports at volumes that will prevent recessions and economic crises in the Philippines. It further means that trillions of dollars in Philippine Treasury bonds sold abroad will have no problem getting repaid. It likewise means that new quadrillion-level wealth from world-scale mega co-op operations will flow among the Philippine masses, not towards the country's elite few, contrary to current culture. Finally, it means that all mega co-ops and their 1st World joint venture partners will be able to finance clean and green industries throughout the tropics for all time, thereby helping reduce global warming back to pre-industrial levels on perpetual basis.
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