The world's Central Banks and all elite banks has since 1971 been creating money out of thin air, in the process maintaining economic and social pyramids of various sizes and tapers throughout all humanity. The lesson must not be lost: Our dreamed Employees' banks (EB) can just as well create such fiat moneys as needed by businesses, but this time to narrow down wealth gaps. In the Philippines, how may mega co-ops set up an EB?
Capital for a nascent Philippine EB and its nationwide branches should come from: a) all mega co-ops at 10% of capital; b) the government at 10% of all local and foreign loan proceeds for all time, all converted to non-voting EB capital stock; c) all State agencies, corporations and local governments at 10% of yearly operations budget, also converted to non-voting EB capital stock. Said provision should prevent old-style politicians' meddling with monetary volumes while enabling State to earn interest income; d) all private CSR corporations and interested foreign companies and institutions; e) resident and expatriate Filipino employees and the local public. All entities mentioned should be encouraged to buy EB capital shares and make deposits as often as desired in order to earn above-average dividend income due to absence of a few self-seeking capital controllers as in regular corporations. Finally, a law should prevent EB capital shares from being traded except thru EB purchase in order to prevent speculator manipulation.
Investments should be evidenced by voting shares on one vote per investor basis no matter the volume of investment. However, by-laws should require Contract Approval by Referendum, whereby 30+ % of top investors shall vote on all major contracts via website to assuage big investors' fears of 'no control' and guard against corruption and elite or State control. The policy will enable top and middle investors or their proxies to actually participate in bank governance, thus erasing all suspicions of corruption, capital takeovers, or elite control of the masses' bank. The one-investor-one-vote policy will also ensure that middle classes will be included in the 30+% top investors who approve policies and contracts and who vote on winning bids, all thru internet websites. Large-scale corruption shall be checked by the consequent inability of contractors or suppliers to afford bribing thousands of investor 'names' who vote the winning bidders of all major contracts via EB websites. 'Small time' corruption should be prevented thru EB employees owning EB shares. Such employees should be watchful of any form of corruption to avoid diminishing their dividend income incident to corrupt or even inefficient employee practices. Regular internal audits by shareholder committees and external audits by accountancy firms should further help in preventing corruption and mismanagement.
A Philippine National EB composed of mega co-ops' regional EBs should target the set up of branches in world cities where large congregations of Filipino expatriates are employed. In due time, it has to set up insurance companies linked with mega co-ops that deduct premiums out of their employees' salaries to provide for life, accident, hospitalization, educational and pension insurance to help in making sure that the 'redeemed poor' do not revert to poverty during their senior years. The EB should maintain 14+% yearly interest reward for long-term deposits so employees may build million-peso 'nest eggs' at old age thru interest compounding. It should require all EB employees to buy shares in the bank and thereby earn good dividends every quarter. For operations, the EB should lend to mega co-ops and to small-group businesses set up by section to division level local employees and to Filipino expatriate groups that desire to set up foreign-based marketing nets in conjunction with mega coops. All EBs should not engage in consumer lending, which is a costly exercise for the bank and which encourages conspicuous consumption among employees.
The Philippines' EBs may be expected to accumulate quadrillion-level funds over decades. It can therefore provide many social benefits for the masses: a) help maintain local inflation rates at 0-2% yearly by cooperating with the Central Bank and the Movement-controlled State regarding national lending volumes; b) help to maintain peso purchasing power by participating in a State-imposed metal-backed monetary system whereby gold and silver coins as well as 5 kg. ingots of high purity industrial metals (nickel, chromium, zinc, tin, etc.) are freely traded among banks, companies and the public. All encased in glass with holes for electronic probes to determine purity, such monetary metals should arrest depreciation in value of paper money because people will prefer to buy them as investments whenever possible, since precious metals' prices keep rising over the years while paper currencies keep losing value. Losses in depreciated paper money values can hence be more than offset by gains in sale of precious metals, in effect maintaining monetary purchasing power over the years. The consequent reduction of paper money in circulation as voluminous monetary metals are bought, traded or pawned by the public should likewise help bring down general prices during inflationary times due to reduced demand for goods and services; c) help reduce the Philippines' 90% dependence on consumer and industrial imports by lending to factories set up by mega co-ops with import substitution programs; d) help raise the incomes of 66+ million Elementary level mega co-op employees by granting them loans for education and team invention purposes; e) in due time create 'blue chip' bond status in international bond markets thru repayment of bonds upon due dates at above-market interest. 'Blue chip' means outstanding credit worthiness, or ability to borrow even more; f) help raise mega co-op capital from expatriate Filipinos by selling mega co-op stocks and bonds to them; g) help all mega co-ops to capture world markets by investing in and lending to ASEAN Festival Malls worldwide and to 'sideline' marketing outfits set up by Filipinos in over 100 countries; h) participate in State-business century-level planning (with 5-year reviews) to prevent local cut-throat competition and centralize market research data from ASEAN malls, expats' sales outlets, and mega co-op clusters' marketing companies; i) help facilitate rural infrastructure construction by lending to mega co-op construction companies that provide local materials and services to foreign build-operate-transfer and joint venture projects in rural areas; j) help to further narrow down wealth gaps by lending to employees who wish to buy capital shares in companies they work for; k) help finance Philippine mega co-ops' expansion throughout the tropics thru inter-coop joint ventures towards establishment of clean and green industries.
The Philippines' EBs should hence be major anti-poverty and anti global warming tools which should be nurtured by everyone who desires to 'fix the world' for good income, especially when the Philippine mass entrepreneurship model as described in this work gets copied by other 3rd World countries.
Capital for a nascent Philippine EB and its nationwide branches should come from: a) all mega co-ops at 10% of capital; b) the government at 10% of all local and foreign loan proceeds for all time, all converted to non-voting EB capital stock; c) all State agencies, corporations and local governments at 10% of yearly operations budget, also converted to non-voting EB capital stock. Said provision should prevent old-style politicians' meddling with monetary volumes while enabling State to earn interest income; d) all private CSR corporations and interested foreign companies and institutions; e) resident and expatriate Filipino employees and the local public. All entities mentioned should be encouraged to buy EB capital shares and make deposits as often as desired in order to earn above-average dividend income due to absence of a few self-seeking capital controllers as in regular corporations. Finally, a law should prevent EB capital shares from being traded except thru EB purchase in order to prevent speculator manipulation.
Investments should be evidenced by voting shares on one vote per investor basis no matter the volume of investment. However, by-laws should require Contract Approval by Referendum, whereby 30+ % of top investors shall vote on all major contracts via website to assuage big investors' fears of 'no control' and guard against corruption and elite or State control. The policy will enable top and middle investors or their proxies to actually participate in bank governance, thus erasing all suspicions of corruption, capital takeovers, or elite control of the masses' bank. The one-investor-one-vote policy will also ensure that middle classes will be included in the 30+% top investors who approve policies and contracts and who vote on winning bids, all thru internet websites. Large-scale corruption shall be checked by the consequent inability of contractors or suppliers to afford bribing thousands of investor 'names' who vote the winning bidders of all major contracts via EB websites. 'Small time' corruption should be prevented thru EB employees owning EB shares. Such employees should be watchful of any form of corruption to avoid diminishing their dividend income incident to corrupt or even inefficient employee practices. Regular internal audits by shareholder committees and external audits by accountancy firms should further help in preventing corruption and mismanagement.
A Philippine National EB composed of mega co-ops' regional EBs should target the set up of branches in world cities where large congregations of Filipino expatriates are employed. In due time, it has to set up insurance companies linked with mega co-ops that deduct premiums out of their employees' salaries to provide for life, accident, hospitalization, educational and pension insurance to help in making sure that the 'redeemed poor' do not revert to poverty during their senior years. The EB should maintain 14+% yearly interest reward for long-term deposits so employees may build million-peso 'nest eggs' at old age thru interest compounding. It should require all EB employees to buy shares in the bank and thereby earn good dividends every quarter. For operations, the EB should lend to mega co-ops and to small-group businesses set up by section to division level local employees and to Filipino expatriate groups that desire to set up foreign-based marketing nets in conjunction with mega coops. All EBs should not engage in consumer lending, which is a costly exercise for the bank and which encourages conspicuous consumption among employees.
The Philippines' EBs may be expected to accumulate quadrillion-level funds over decades. It can therefore provide many social benefits for the masses: a) help maintain local inflation rates at 0-2% yearly by cooperating with the Central Bank and the Movement-controlled State regarding national lending volumes; b) help to maintain peso purchasing power by participating in a State-imposed metal-backed monetary system whereby gold and silver coins as well as 5 kg. ingots of high purity industrial metals (nickel, chromium, zinc, tin, etc.) are freely traded among banks, companies and the public. All encased in glass with holes for electronic probes to determine purity, such monetary metals should arrest depreciation in value of paper money because people will prefer to buy them as investments whenever possible, since precious metals' prices keep rising over the years while paper currencies keep losing value. Losses in depreciated paper money values can hence be more than offset by gains in sale of precious metals, in effect maintaining monetary purchasing power over the years. The consequent reduction of paper money in circulation as voluminous monetary metals are bought, traded or pawned by the public should likewise help bring down general prices during inflationary times due to reduced demand for goods and services; c) help reduce the Philippines' 90% dependence on consumer and industrial imports by lending to factories set up by mega co-ops with import substitution programs; d) help raise the incomes of 66+ million Elementary level mega co-op employees by granting them loans for education and team invention purposes; e) in due time create 'blue chip' bond status in international bond markets thru repayment of bonds upon due dates at above-market interest. 'Blue chip' means outstanding credit worthiness, or ability to borrow even more; f) help raise mega co-op capital from expatriate Filipinos by selling mega co-op stocks and bonds to them; g) help all mega co-ops to capture world markets by investing in and lending to ASEAN Festival Malls worldwide and to 'sideline' marketing outfits set up by Filipinos in over 100 countries; h) participate in State-business century-level planning (with 5-year reviews) to prevent local cut-throat competition and centralize market research data from ASEAN malls, expats' sales outlets, and mega co-op clusters' marketing companies; i) help facilitate rural infrastructure construction by lending to mega co-op construction companies that provide local materials and services to foreign build-operate-transfer and joint venture projects in rural areas; j) help to further narrow down wealth gaps by lending to employees who wish to buy capital shares in companies they work for; k) help finance Philippine mega co-ops' expansion throughout the tropics thru inter-coop joint ventures towards establishment of clean and green industries.
The Philippines' EBs should hence be major anti-poverty and anti global warming tools which should be nurtured by everyone who desires to 'fix the world' for good income, especially when the Philippine mass entrepreneurship model as described in this work gets copied by other 3rd World countries.
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