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GLOBAL ALLIANCE INVESTMENT ASSOCIATION
THE TWO PARTS OF THE GAIA PROGRAM
TO BRING ABUNDANCE TO THE PHILIPPINES
INTRODUCTION TO GAIA
A. PRESENT CONDITION OF THE WORLD
1. World Domination has been a driving goal of a few men, and even fewer women, since the dawn of man. The opposite, Freedom, individual sovereignty, has been precious to, and sought by, other men and women. Sovereignty, the direct connection of a person to God/Aton/Allah (the God of Light by whatever name), is the condition desired by God. He has said, "I want, and need, no "broker" between My people and Me." If taking sovereign responsibility for ones self is the condition desired by God, then it is axiomatic that the opposite condition, that of being under the domination of the Adversary (Satan, or whatever name is used) will be the condition sought by those of the Adversary.
2. Without attempting to trace the history of domination, most of it today can be characterized as economic tyranny through the control of money, gained and maintained through the control of energy and communications. Through the use of usury and tools such as the IMF and World Bank, the International Banking Cartel (IBC) bleeds the smaller "victim" nations of their "foreign exchange" so that their domestic supply of money grows ever smaller each year and they are forced to beg for more loans at higher rates because their "credit rating" (also established by the IBC) is "losing quality".
3. In about 1920 Henry Ford, owner of the Ford Motor Car Company, commissioned a very comprehensive investigation, taking more than three years and costing more than one million dollars, a huge sum in those days, to determine the source of political and financial manipulations that were adversely affecting the United States. The report, published in a set of four volumes, disclosed that the Congress, news media, entertainment industry, liquor and tobacco industries, stock exchanges, banking, and the Federal Reserve System were all tightly controlled by the IBC. Since 1920 they have, of course, captured what was left.
4. Using the USA as its power base, the IBC sponsored and bankrolled the Russian "Revolution" of 1917 while also drawing the US into World War I through the use of its stooges, Woodrow Wilson and Colonel Mandell House. The "Bolsheviks" of Russia were Communists from the Bronx in New York City and the people running Russia from that time till very lately serve the same masters as those running the US. The same faction has infiltrated China and Japan. (US military technology doesn't move through Israel to China accidentally.) Whether these peoples can throw off the (mainly) economic chains that bind them is yet to be seen.
5. World War II was also a product of the IBC, which owns nearly all of the major munitions makers and owns or controls virtually all the manufacturers of military hardware. An examination of the many "hot-spots" around the world today will reveal the presence of their "intelligence" arms, the Israeli Mossad, British MI6, and the US CIA. Nearly all of the larger terrorist groups are funded out of London, which is the headquarters of the financial octopus sucking the money out of the "developing" nations, their former colonies.
6. How diabolical the masters of the IBC are can be shown by illuminating their heinous scheme for "population control". It is called HIV/AIDS. In 1990 then President George Bush was quoted as saying, in an address to the UN, that the planet Earth could only indefinitely support 550 million people (less than 10% of the people now on Earth) and that it was a responsibility of the UN to address the problem of overpopulation. As early as 1990 several "free press" newspapers in the US were researching and publishing the impending epidemic of HIV/AIDS. It was learned at that time that the biological warfare unit at Ft. Deitricht, Maryland had developed the virus and that it was introduced in Africa by a series of vaccinations by the London-based World Health Organization in the late 1970s. It was also introduced to the "gay community" in San Francisco, using a Hepatitis B vaccine, which was also given to some men from Haiti who then carried the virus to Haiti. The "head start" in Africa is beginning to show its virulence. At least 16 million people have died of AIDS and 35 million are known to have it, according to a current UN report. In mid-July in Washington DC Sandra Thurman, director of the White House Office of National AIDS Policy said, "We certainly know before we're able to stop this pandemic, we'll have hundreds of millions of people infected and dead, and that's the best-case scenario." HIV/AIDS is slow acting; they have developed other "plagues" (like Ebola) that can clog the hospitals and overpower the medical and interment facilities in less than a week.
B. WHAT CAN GAIA DO?
1. As part of an ALLIANCE, GAIA can furnish the financial base which will permit those nations being harmed by the IBC to pay off their debt and re-establish their sovereignty. As one of those "divine coincidences", it happens that each "dollar" made available to an ALLIANCE member is a dollar subtracted from the accumulated wealth of the IBC.
2. To understand that statement and its significance, one must know the origin of the debt held by GAIA, as well as the mechanics of using that debt. So, let us accurately describe it. It is a debt of the U.S. Treasury (by assumpsit of Peruvian debt in 1906) guaranteed by the Federal Reserve System (pursuant to the Federal Reserve Act of 1913), and payable in gold (per the original Peruvian Bearer Bond, Bonus 3392-181), all of which has been finally established per the election of the UST and FED to accept a default to the GAIA Uniform Commercial Code procedure completed February 16, 1999, from which there is no further appeal possible.
3. The size of the debt is much greater than the known combined assets of the IBC, reported to be in excess of $100 trillion. But less than $1 trillion would pay off the poor nations' debt to the IMF/World Bank and re-establish their economic sovereignty.
4. Control is gained and maintained by the IBC through its control of the exchange-rate of currencies.
5. In all of the world only Malaysia has recaptured control of its money. The IBC is not particularly concerned about Malaysia because it is a small nation in an "isolated" part of the world. Besides, unless Malaysia soon moves to base its currency on gold its independence will be swept aside or drowned in the debauchery of the US dollar.
6. Fiat (by decree) baseless paper money is required, by the IBC, to purchase "foreign exchange" money before it can be used to pay a debt between nations. This gives the IBC complete control of the value of each and every currency--there is really no such thing as a legitimate currency "market". That whole mechanism is a drama created by the IBC, an illusion to keep the central bankers of smaller nations from understanding what is happening to their currency.
7. "Globalization" is an IBC term/concept created to foster and promote the continued use of paper money and foreign exchange--fabulous wealth is taken from small countries by that mechanism.
8. How can a small, or "developing", country reestablish its control of its own currency? By returning to a system that worked for hundreds, perhaps thousands, of years, gold-based money. For confirmation, look to Switzerland. Until recently its currency was gold based, and most people do not yet know that its gold standard was removed. Switzerland, a nation of just 7.5 million people, has never had the value of its currency questioned.
9. As was mentioned above, it is a matter of National Sovereignty.
10. The "recipe" for doing so will be outlined in the balance of this paper.
PART I
A STABLE CURRENCY
A. TWO KINDS OF CURRENCY
1. Gold (and gold-based) Freely interchangeable with all other gold-based currencies; no need for "foreign exchange". Stable unit (peso) value. Zero inflation; low interest rates; good business environment.
2. Fiat (un-backed) paper money Not acceptable as "foreign exchange" or in payment of foreign debt. Value of the unit determined by others, unstable and manipulated to the detriment of the nation. "Controlling" inflation is a constant struggle; high interest rates; difficult business environment.
3. WHICH is a choice made by each Sovereign Nation, a fact kept secret by the International Banking Cartel (IBC) since it is much to their advantage for all nations to use paper money, giving the IBC complete control of those currencies. The facts are, however, that a Sovereign Nation can use seashells or wicker baskets as currency if it wants to. The conflict will come only when paying for, or being paid for, commodities from other nations which are using fishing floats and sinkers as their currency. Paper seems to be a logical solution but paper has neither value nor limit to unscrupulous manipulation. However, if the paper is gold backed, redeemable in gold, as it was for hundreds of years before 1900 when the IBC began to denigrate gold, it serves beautifully to effect payment between nations as well as within nations. Let us be emphatic: THE DECISION TO USE GOLD AS THE BASE OF A NATION'S CURRENCY IS A SOVEREIGN CHOICE OF THAT NATION AND OF THAT NATION ALONE. JUST THE SAME AS THE DECISION TO USE THE DEEDs ISSUED BY GLOBAL ALLIANCE INVESTMENT ASSOCIATION IS COMPLETELY A SOVEREIGN DECISION AND HAS ABSOLUTELY NOTHING TO DO WITH THE DEBTOR, THE USA.
B. AVAILABILITY OF GOLD
1. GAIA has received assurance of an adequate supply of gold in the Philippines to supply the needs of all nations desiring to base their currencies on gold.
2. The central bank, Bangko Sentral ng Pilipinas (BSP), has the facility for refining, processing, and hallmarking gold.
3. BSP can purchase gold with newly created money at virtually no cost and with no negative impact on the value of the peso, whereas the issuing of new money without the purchase of gold "dilutes" or devalues the value of the existing currency.
4. Holders of gold, especially that which might be considered "treasure", will not bring it in to BSP buying stations, fearing confiscation, etc.
5. When GAIA issues a DEED to a Holder (of gold), those fears are removed because the Holder knows that he will be paid. With government's cooperation, the Holders can be assured of safety so that their gold can be transformed into useable money for the development of their communities and livelihood projects. This also adds to the money supply in the nation without depreciating the value of the currency.
6. Under current conditions, a Holder must accept huge discounts, 30-50%, in order to sell his gold. Selling direct to BSP under the GAIA shelter, there should need be no discounts, fees, or costs, except the expense of delivery to the nearest BSP buying station. Further, the gold remains in the nation and is not spirited offshore to be lost forever to use in this banking system.
7. When GAIA issues a DEED to BSP, the risks of spending money for transportation and security are removed so that if there is misrepresentation on the part of the Holder (or a broker), BSP is not damaged. More important, however, is that the Holder can be paid a substantial portion of the value of the gold without having to wait until it is all processed, which might take several weeks in some instances.
8. The transaction will be structured as a 50/50 joint venture between BSP and GAIA so that when a delivery is completed and processed 50% of the gold belongs to each. So that none of the value of the gold (as banking reserves) is lost to BSP, GAIA will lease its share back to BSP. Other than the potential of taking some small loans, using its gold as collateral, GAIA will only benefit if and when gold increases in price. Further, the accumulation of gold in the GAIA account will act as "ballast" in stabilizing the value of gold and the value of currencies based upon gold.
9. In addition to 50% of the gold, BSP will be permitted to retain the GAIA DEED, increasing the nation's reserves twice as much twice as quickly.
C. BENEFITS
1. The benefits to the banking system, and to the nation, are immediate and huge. With no further need for "foreign exchange", all foreign borrowing can be stopped and the outflow of interest payments, a disastrous hemorrhage of this financial system, stemmed. Inflation can be brought to zero, eliminating the "inflation component" of some 10+% charged by banks so that rates can be brought to the 2-4% level, allowing many more people to afford homes and to start/expand businesses.
2. After the system is stabilized, foreign loans can be paid off, and loans may even be made to less fortunate nations to help them to regain their sovereignty.
3. This nation, once known as The Philippine Islands, Pearl of the Pacific, possesses so much wealth that a former president began to establish it as the "world's banker". That title can be earned and deserved when a partnership between the Republic of the Philippines and GAIA can be entered into in good faith, thus beginning the creation of the GLOBAL ALLIANCE. That is a worthy goal.
4. The rationing of money has long been a tool of control of the colonies of the IBC. In Mexico it is laughingly referred to as "keeping them barefoot and pregnant". It is a reprehensible practice of colonists for hundreds of years and is still being used with little or no resistance in all of the IMF/WB-assisted countries all over the world. The Republic of the Philippines has in its banking/monetary system some P1.2 trillion, the equivalent of less than US$30 billion. The US, with less than four times as many people, has more than $6 trillion. To have the same relative amount of currency with which to do its business, the Philippines must increase the money in circulation by 50 times, to P60 trillion.
5. The proposal of GAIA, that the BSP be allowed to purchase gold brought in by the efforts of GAIA and millions of hungry Filipinos, will certainly not result in a "devaluation" of the peso. Rather, the SANDAANG PISO of the Philippines can soon become the most sought-after and valuable currency on the planet.
6. This is an endeavor, however, that must transcend individual self interest to succeed. It must be a national endeavor, entered into for the betterment of the nation and the benefit of the people with the goal of leading all nations in this region to an era of stable prosperity.
PART II
PROJECT FUNDING: KEY TO GOLD-BASED CURRENCY
A. OBSERVATIONS
1. In an IMF/World Bank dominated society, which describes the societies of all nations having received loans from those institutions, dishonesty, corruption, "pork", "grease", brokers and facilitators, lobbyists, and "crooked" bureaucrats and politicians run rampant. Only in those few nations not yet brought under the yoke of the International Banking Cartel (IBC) is there a sense of normalcy and pride in integrity.
2. The dominated nations, having received the benefit of IMF/WB counsel, management and control, also seem to suffer the very worst poverty, while many of them contain huge stores of natural wealth within their borders. Perhaps from where we are, in Southeast Asia, it is easier to recognize the rape and plunder going on in Africa (for instance, even though only one of many places) so that we can better recognize the symptoms here.
3. When the pay-scales of (especially government) employees are determined by the IMF/WB (as they are, through the rationing of funds), employees will not be able to make a living for a family if there is only one job available to the family. Pressed to the wall, creative people will find ways to make extra money, whether the ways are legal or illegal. And soon the difference is so blurred that nearly everyone is breaking the law. The society becomes dysfunctional and is accused of corruption when the real culprit is not the people but the colonial-type rationing of money to maintain control.
4. The IMF/WB makes loans to, primarily, governments, which can be described as pouring money in the top of the bureaucratic funnel, most of which has leaked out before it reaches the poor people. Men of means, with their cadres of attorneys and accountants, find dozens of ways of working together to "legally" capture most of what comes in that way. We mention this to provide a contrast with the way GAIA does business.
B. THE GAIA PROGRAM
1. Let us first review the origin of the debt held by GAIA, and then get to the mechanics of using that debt. It is a debt of the U.S. Treasury (by assumpsit of Peruvian debt in 1906) guaranteed by the Federal Reserve System (pursuant to the Federal Reserve Act of 1913), and payable in gold (per the original Peruvian Bearer Bond, Bonus 3392-181), all of which has been finally established per the election of the UST and FED to accept a default to the GAIA Uniform Commercial Code procedure completed February 16, 1999, from which there is no further appeal possible. The owners of the Federal Reserve System (FED) are the major banks of the US and Europe that claim assets of more than $100 trillion. The debt to GAIA is much greater than that but, in the interest of not disturbing the world economy, GAIA does not expect to issue more than $5 trillion per year, beginning in 1996.
2. In contrast with the IMF/WB method, sometimes characterized as from-top-down, the GAIA method is more from-bottom-up, in that GAIA, to the extent possible, provides its DEEDs to Project Proponents, people with dreams turned into concrete project proposals by hard work, creativity, and imagination, who are willing to use the GAIA DEEDsas additional collateral to gain funding for their Project.
3. Recognizing that achieving the funding for a Project is often more difficult than doing the Project itself, GAIA has turned the task of obtaining funding into a very profitable Venture, actually a Joint Venture, between itself and the Project Proponent. It is not easy for the Project Proponent/Joint Venture Partner (JVP), but is very profitable and very much worth the effort to accomplish.
4. The mechanics of using the DEEDs are really quite simple. Similar to the subdividing of a real estate lot, GAIA issues a DEED OF ASSIGNMENT FOR CONSIDERATION to subtract a given amount of the debt to be assigned to the DEEDholder. At this point the DEED is not yet convertible to money; it is still referred to as collateral, the same as would be any other US Treasury debt.
5. The DEEDholder must be a legal entity qualified to have its own bank account, and to establish a bank account for GAIA. The DEEDholder must also have a viable project that will, after a normal start-up period, earn enough to pay the interest on money borrowed to complete the project. These items provide a bank with the fundamentals for making a loan; the collateral furnished via the GAIA DEED turn even a marginal loan into a very attractive loan.
6. The DEEDholder should immediately convene a board of directors meeting for the purpose of formally accepting the DEED as an asset of the corporation (or entity). A new balance sheet for the entity should then be prepared and certified in the normal way (whether by board resolution or accountant or CPA endorsement).
7. Selecting a bank for the funding should consider the size of the DEED and the size of the bank. Large banks can fund small DEEDs but small banks cannot fund large DEEDs. If a good banking relationship exists with a smaller bank, a "mobilization" DEED can be made with the intent of paying back the smaller bank with a small part of the larger DEED's funding.
8. The Project of the DEEDholder is submitted to the funding bank for evaluation; the DEED is an "add-on" collateral for the project and is never intended to justify a loan or line-of-credit by itself. If the bank accepts the Project as viable, the DEED can then make the loan extremely attractive and profitable to the bank.
9. To justify the line-of-credit (loan) the bank will need to have liens on Project properties, special equipment (such as cranes, bull dozers, or fishing boats), and sometimes even finished inventory. These requirements will decrease as banks become more familiar with the DEEDs. Banks will frequently ask for a "performance bond" guaranteeing completion of the Project or a return of the money loaned.
10. When implemented properly, the GAIA program does much more than provide a performance bond, while also providing an opportunity for profit. Performance bonds never are profitable to the buyer, and seldom to the bank. One of the objectives of the GAIA program is to strengthen banks and banking systems. In the MOA the JVP is obligated, along with the bank, to purchase gold for GAIA with 50% of the funds emitted pursuant to the use of the DEED, at least 80% of which will be left on deposit with the bank to strengthen its reserves. If the JVP also has the bank purchase gold with its 50%, and thereafter bases its line-of-credit upon its gold, both the JVP and the bank will come out far ahead.
11. The bank has far more collateral (assets) than it needs to secure its loans (lines-of-credit) to the JVP and GAIA. In banking language, that means that it has a lot of unencumbered reserves upon which to base additional "unsecured" loans (the most profitable kind). A CPA-banker quickly calculated that the bank could easily make more interest in one year from those unsecured loans than it had loaned to both the JVP and GAIA. Further, if the Project fails or is somehow destroyed in some uninsurable manner, the bank has no worry or concern about collecting on a performance bond; it can foreclose upon the JVP gold, leaving whatever is left of the Project to the JVP.
12. The JVP is also in a strong position. If its Project goes as planned and pays off the loan, it has the Project and its 50% of the gold. If the project fails or is destroyed, the JVP is debt-free and can salvage whatever is left of the Project. There is also a good chance that some of the debt has been paid or that gold has gone up in price, in which event the bank would not take all of the gold to satisfy its lien. If the price of gold should double, or more, it can sell enough of its gold to pay off the line-of-credit and be free of further interest cost.
13. What if the price of gold goes down? We should examine the risk of that happening. Some of the larger companies producing gold have analysts on staff to evaluate that risk, as well as the likelihood increasing prices to help them decide when to sell their product. At this time it would seem that a price of $240 per ounce will put several large and prestigious central banks in danger of failure. The price did fall nearly to $250 in 1999 but rebounded very quickly. The production of gold has fallen from some 2500 metric tons to 2000 MT in the past three years, at the same time as demand has risen from 3000 MT to 4000 MT. The cost of mining is well above $350 per ounce for many mines. The "experts" are predicting that gold has to go to $600 per ounce to reestablish the supply-demand equilibrium.
14. An even more important safety feature, however, is the fact that Projects do not draw all of their line-of-credit until the Project is completed, or very nearly so. That provides a safety cushion for the bank. Even at the last minute, with the Project nearly complete and all of the line-of-credit used up, the bank still has the extra value of the Project to provide nearly twice the collateral it might need if gold declined as much as, say, the 12% required to take it to $240 per ounce. These risks are no greater than that the insurance company writing the performance bond will fail and there is absolutely no chance for profit with the bond approach.
15. To return to the "nuts and bolts" of exactly what to do to make the program work, let us review a bit. The bank has been selected and has agreed to use gold instead of a performance bond. The loan documents are prepared and signed and the various collaterals are pledged, including the DEED. The bank enters the collaterals in its Reserve Ledger in the usual way, showing the DEED as US Treasury debt. The DEED has been made at least 2.5 times the amount needed for the Project so that there will be room for the discount of 20% of the line-of-credit from the value of the gold. The bank should "rediscount" the new reserves enough to draw sufficient funds from the central bank (BSP) equal to the amount of the DEED, with which it buys gold. (The typical commercial bank will probably buy its gold from BSP, using warehouse receipts, which is much easier than storing the physical gold. If warehouse receipts are used, two of equal size should be obtained, one each for the JVP and GAIA.)
16. The line-of-credit to the JVP will be based upon all of its collateral plus its half of the gold; GAIA's line-of-credit will be based upon its gold only. The maximum amount of its line-of-credit drawn for use offshore by GAIA will be 20% of the value of its gold; the balance will be undrawn, or a portion may be used to assist Projects within the nation. So as not to weaken the banking system, GAIA does not expect to move any of its gold before gold has doubled in price. After that there will be no further obligation or need to leave its gold "inactive".
17. If the collaterals, all taken together, are not sufficient (when "rediscounted" by the BSP) to afford funds to purchase an amount of gold equal to the face amount of the DEED, one of two solutions are possible: 1) Accept the lower amount in the expectation that gold will go up in price during the life of the loan, or 2) GAIA can provide a DEED directly to the bank to shore up its own reserves. Of course, after the bank has completed its first GAIA-type transaction, it will likely never experience the "low reserve" problem again.
18. As soon as the bank has possession of the gold which it has purchased for the JVP and for GAIA, using the reserves created by the DEED and the Project, it can issue a line-of-credit to the JVP and another to GAIA, using the gold as its collateral for the lines-of-credit. As a last service to GAIA, the JVP will establish, in the same bank, checking and/or checking accounts (if needed--sometimes lines-of-credit create a checking account). If the nation has a restriction against a non-domiciled corporation having a checking account, then the JVP should establish a sub-account with officers of GAIA as the signatories.
19. The accomplishment of funding to buy gold, the establishment of the lines-of-credit and bank accounts satisfy the requirements of the MOA and thus the formal Joint Venture Partnership is completed and the Partners have no further obligation to each other. That means that the gold of the JVP is the unrestricted property of the JVP and can be used again or removed by the JVP as soon as its line-of-credit with the bank is paid. The JVP does not owe GAIA anything; it has earned its gold by facilitating the funding; it would have been very well paid for whatever time and effort was expended and, no matter how long it takes or how many people join in the effort, the pride of accomplishment and the benefit will be uplifting to all.
20. Above, even though we detailed many of the benefits to the bank, we should summarize them here. The enhancement of the bank's reserves, just from one loan, is significant in both quality and amount. When both lines-of-credit are fully drawn down, the bank will still have two pesos of gold for every one "at risk", and will have several multiples of the loans available for unsecured loans. The gold is acting as insurance or a performance bond so the loan to the Project has become virtually riskless and should require very little service, enhancing its profitability. As the banks accumulate gold in their reserve portfolios it becomes increasingly easier for the nation to adopt a gold standard for its currency, which is the solution to almost all of the nation's economic problems.
SUMMARY
The most important success story takes place a bit later, as the line-of-credit for the Project is drawn upon to do the Project and the people are employed with good wages and other Projects are also moving ahead, changing the entire complexion of the Provinces. As employment becomes available in the Provinces the people who have gone to the cities for employment can return to better jobs than are available in the cities, siphoning off the excess people who have been overcrowding the cities. This alone will allow the cities to solve their traffic problems and greatly reduce pollution. Even the garbage problem may become manageable, especially if some of the Projects are designed to deal with it. Soon there will be a shortage of skilled labor, leading to successful technical training schools, higher wages, and the return of Overseas Contract Workers. Anyone who wants to work will be able to find a satisfactory job; anyone who wants a better job can work harder and get one.
Thus the long-held Filipino Dream of abundance and happiness can and will be realized because the wealth of The Philippine Islands can be brought forth, leading the other people-rich nations of Southeast Asia also to abundance, using the key brought here by Global Alliance Investment Association.
Questions should be addressed to:
GLOBAL ALLIANCE INVESTMENT ASSOCIATION
email: Info@GlobalAllianceAssn.com
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