APPENDIX

This is another failed attempt to write the book

Please forgive any inconvenience caused.

The way forward has proved to be the creation of a course in the subject.

The scripts for that are far superior

Please go to this link for that.












ADDITIONAL INFORMATION
This page gives some of the same information as well as more.
Recommended: Read belowabout Grandpa
and his lost wealth.



OUR RESEARCH GROUP ONLINE
The Macro-economic Design Group’ was founded by Edward Ingram a few years ago.  - the home page of the main macro-economic-design website summarises the book. The remainder of that wwebsite esxplains in detail a lot of the book one topic at a time. Our core members are on page 3 of that site.

HOWW TO JOIN US - scroll down to the end of this page.

DEFINITION
Macro-economic Design is the study of macro-economic structure, framework, foundations, or architecture - how it affects the stability of the economy and how that can be managed.


The economic Architecture is the way we do things – how we borrow, lend, create money, and manage currencies, interest rates, and taxation. 

Based upon well understood pricing, economic, and engineering principles, whichever viewpoint you take, we have got it all wrong.

This unbalances economies and in the pocess creates mayhem and exploitation of the masses by those that can. They are paid to be ahead of the game. It is not their fault. "It is the economy, stupid" - A well known quote fom election time..
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ENDING EXPLOITATION OF THE MASSES
All of these proposals could be said to be aimed at
 ending exploitation of the masses by the financial institutions.

 What is not generally known is that Parts 1 and 3 of the 
forthcoming  book will consolidate the proposal
made in Part 2 and being discussed in the UK Parliament. 

The book is said to be the most comprehensive 'concept book' on the subject of economic stability and finance yet seen.

This page (below) gives readers a clear taste of the book. 
The front and back cover and the preface pages can be viewed HERE
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REMINDER
BULL POINT NUMBER 8
PROTECTING WEALTH AND BORROWERS

Part 1 of the book prepares the ground for Part 2 (money creation) by describing how to create a self-adjusting economy that can adapt and protect (adjust) if too much new money is created. Inflation will be created but everything, all prices and incomes, will adjust.


WHAT MAKES FINANCIAL STABILITY?
Financial stability is not a matter of preventing change. It comes from the ability to adapt without harm.

The proposals will enable lenders and borrowers to protect themselves from volatility of mortgage and other debt repayments as interest rates aand the value of money changes. At the same time the wealth of lenders and investors in government and private debt will be protected. The value of government debt will be stable, no matter what. This will reduce the cost of borrowing and help to stabilise the whole economy.

WHY HAS THIS NEVER BEEN DONE BEFORE?

One reason is that the mathematics that under-pins this research has never been done before.

Another reason is that economists have always thought of wealth protection as protecting purchasing power. This is wrong.

DEFINING WEALTH
The book starts with an example:

Grandpa
The purchasing power of 100 years ago is not going to provide any useful sum. For example, if your grandpa had been exceedingly wealthy he might have set up a trust fund to be invested in bonds whose capital value was index-linked to prices, a process that increases the money in the fund at the same pace as prices - if that had been possible.

If Grandpa had placed 20 National Average Incomes' worth of money into that trust fund, (that is around half an average person’s lifetime income), by now there would only be one National Average Income left. That is because incomes usually rise faster than prices.

The assumption here is that incomes generally rise by around 3% p.a. faster than prices making us all wealthier. That is with the exception of those whose savings are index-linked to prices. Everyone else benefits at the expense of Grandpa's savings.

The same applies when interest on savings is taxed on that part of the interest which would preserve wealth. It is a wealth tax.

The book goes on to explain that this kind of mistake is preventing lenders from protecting wealth, as is tax on interest. 

WHY SAVINGS AND HOUSING AND
EVERYTHING TO DO WITH DEBT IS UNSTABLE
The book explains how the way that nominal rates of interest are used to determine how much can be lent and what the level of repayments should be is a wrong way of doing these things. The to main parts of the interest rate, wealth preservation and wealth transfer from borrower to lender are not given separate roles in lending and repayment ratee.
This means that

  • Interests rate changes needed to restore the lost value of money are distorted,
  • The housing sector is distorted, 
  • Government borrowing costs are much higher than necessary because their fixed interest and index-linked Bonds are risky to the lenders' wealth,
  • Risk levels in the whole of the private sector are higher than they should be,
  • Everything costs more...the list is endless.
HOW TO SOLVE COMPLEX PROBLEMS
One thing that is well known to engineers, doctors, and social workers  is that if anything is not done 'by the book' everything in a complex system like an economy, a human body, a social group, a productions line, is at risk of being badly affected. One problem creates another and another and another.

So by correcting this one mistake 
WE CAN REMOVE ALL OF THE ABOVE PROBLEMS AT A STROKE. We can make everyone feel safer, be safer, saving money, saving time, saving resources, and generally boosting the economy.

In effect we are currently mis-pricing mortgages, repayments, property values, government and other bonds, and thereby distorting the whole economy. 

These distortions are preventing the central banks from raising interest rates – confusing everyone in the process.

If these prices are allowed to be right and not distorted by the incorrect financial architecture, (the way we do these things),then the MSA will not need to worry about 'getting it right'. Any imbalances, any problems caused by excess money creation, will self-adjust.

Financial stability is not about fixing the prices of things. It is about adjusting them in a smooth and painless way. If everything in the economy, the price of mortgages, of interest rates, of currencies and so forth was not distorted, then the whole economy would no longer be at risk from any of these things.

People would be safe financially and the instabilities that provide the means for the 'scams' that rob people of their wealth and business plans and their homes, would end.


THE ADVANTAGE FOR THE MSA

Precision and enormous amounts of data and analysis will not be needed by the Central Bank / MSA before they decide how much new money to create. Wealth, debts, borrowers, lenders and investors will automatically adjust without confusion or hardship.

BULL POINT NUMBER 9
PROTECTING THE CURRENCY 
Another way of explaining what has been written on the previous page

Part 3 of this book explains how the proposed new money creation method will assist economies to create a new currency management system. 

END OF CURRENCY WARS
This will protect the domestic economy of nations from currency wars that currently are enabled as unwanted money comes in and out from foreign investors. Forex Reserves will not be able to get in and out - leaving the price of currencies to balance trade. Trillions of dollars held as Forex Reserves and other international investors and speculators in currencies will not also be affecting the price of the currency, mis-pricing a third of the global economic goods and services.

Currency risk will be insurabel but it will be much cheaper and it will be done in the local currency like any other insurance.

Without this additional arrangement in place some of the good work in Part 2 (the new money creation method) may be wasted. Money supply will still be variable.

A draft of the book is available to MPs and academics willing to assist with finailising it on request by SMS or telephone to:
+263 772 900000
OR contact Chris Lindesay
whose email MPs may have revieved this morning.

Because of Spammers...
...it is a bad idea to give email addresses on websites.

OBTAINING THE BOOK
The date of publication can be sent to you by email. Contact the author by SMS giving your name, counntry and email address.

The author can be contacted by text message or by telephone - on +263 772 900000.

--------------------------

FURTHER READING IF INTERESTED
MORE ABOUT THE BOOK AND US
There is some repetition.


The book comes highly recommended from university professors and a senior member of the Reserve Bank of India, Dr. R N Mishra. It is written in simple English for all interested people to understand.

More testimonials can be seen on the back cover of the book as currently drafted.

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The book, ISBN 978-0-7974-9556-2, is due to be published very soon. A lot of extracts and ideas that are contained in the book as well as research results are already published either on the following website:

or in Edward Ingram’s Column at the main financial online magazine in South Africa, www.fin24.com

Here is an index to those essays.

JOINING US
GoogleSearch these words to find our Discussion Group and apply. We are nearly all financial people and media.

"MACRO-ECONOMIC DESIGN at LinkedIn"




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