DRAFTING LETTERS


This is another failed attempt to summarise 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.



















4th July - new covering letter -

Dear Mr Gates,

I hope this finds you well. 

We are a hugely excited group of financial experts, professors and bankers even up to central banking level. We think we have something to interest you very much as it would fulfil some of your dreams to help mankind. And only someone in your kind of position can act fast enough and with enough ‘clout’ to get things done and save the world a lot of agony.

Two one page letters are attached. One is from a group member who excels at salesmanship. The other is from our CEO who prefers a scientific and rigorous approach.

We hope to get a favourable response.

Best wishes,


Etc
Attach both letters below

I will post the combination of all three shortly to save readers searching this page. I have also made some small edits to correct grammar or reduce the words.

3rd July 2015 I will now add the current draft which combines Gilberto's one slightly modified by Edward with Additional pages written by Edward.

After that you can read the previous letter drafts and how they appear on letterhead.


Dear Mr. Gates. 
We hope this finds you well.

Imagine you could press CTRL-ALT-DEL and restart/reset all crashes, stalls, and conflicting processes in the World Economy. Imagine that this restart includes an operating system upgrade which will eliminate not only future crashes for the rest of this century, but is fully compatible with all current hardware and software in use, making the transition transparent to most and making the existing resources more productive and efficient. Well, that is exactly what Edward and our network of multidisciplinary intellectuals and visionaries have been creating, developing and refining for over 20 years, especially thanks to your contributions to the state of technology and global communications today. This group has contributed voluntarily without any compensation except for the hope that it will help humankind to overcome the unmanageable global economic crisis.

Our efforts are focused not on technology but on Macroeconomic Design on a global scale. An examination of the financial and management framework of the world’s economies reveals that some core principles of economics and management sciences are being overridden. The result is an entirely predictable instability, unmanageable complexity and exponentially increased risk throughout the world economic system.

We’ve designed a group of innovative and compliant (with basic principles) ideas and stabilization mechanisms to reset the way we do financial transactions – savings, investing, real estate, banking, government financing and foreign exchange – which we believe will provide flexibility and inherent stability and which are entirely compatible with current economic, trade, banking, financial, and government systems. This is not a political or any sort of radical movement. We have just found a way to build a new macroeconomic system to do the same and better job than the current one, which will maintain the basic principles of freedom, opportunity, capitalism, wealth preservation and maximization of real capital and productivity worldwide.

In the documentation included with this letter, you will find an outline of the substance and some limited detail of our core work, and the positive feedback from knowledgeable experts from every continent. We’ve come to the point where we need a group of selected people dedicated to formalize a decade of research and promote these ideas to those with the power to implement them. For this, we need financial support from people like you or your philanthropic foundation.

We firmly believe that the implementation of this work can and will benefit everybody everywhere and stabilize the world economy in less than a decade, setting the basis for another century of human progress. I exhort you to evaluate this proposal with your team and contact our group to discuss it further so you can decide to be part again in the realization of this wonderful dream.
Kind Regards,

The Marketing Team from Prosperity Renaissance @ LinkedIn, the Macro-Economic Design Group @ LinkedIn, Firstsource Money affiliated to Positive Money, and we are supported through a column granted to our head of research, Edward C D Ingram @ www.fin24.com – a leading news journal and financial magazine in South Africa.

END OF ONE PAGE LETTER   -  NOW THE OTHER PAGES ATTACHED: -


PAGE 2
ADDENDUM
THE SUBSTANCE
Achieving economic stability does not mean fixed or anchored in concrete. It means being adjustable so that all of the inevitable variables can carry on without disturbing the economic balances of spending, nor taking down confidence levels, nor destroying savings, businesses, or governments in the process of adjustment. If the financial framework is tweaked correctly, all prices, costs and values will adjust smoothly, unlike now, as in housing, debt values, quantity of credit, (boom and bust), and currency values. All of these things are constantly getting out of balance. The problem is very basic – if the text books were correct in saying that prices adjust in a free market to bring about a balance, then none of this extreme instability would occur.

The tweaking needed comes in three sections.

#1. The respected Project Syndicate Group has just published a paper which shows housing finance Is the largest boom and bust problem area, capable of taking down economic output for many years and by far more than any other sector. Five years after such an event economies normally have 9% lower output than would otherwise be expected. The research work covers the whole area of the structure of savings, housing finance, government, and commercial finance. Reforming the wording of these savings and lending contracts would stabilise all of these sectors, and end mass repossessions and huge distress for millions of families, businesses, and government finances. It would enable central banks to raise interest rates without worrying. It makes banking more sustainable and lowers all costs significantly. This alone might add 1% p.a. to sustainable world output.

#2. Another area has a great deal in common with the findings of Firstsource Money, and the increasingly effective ‘Positive Money Campaign’, which is also supported by the Financial Times. Integrating these jointly held findings on credit management with the other proposed changes in sections #1 and #3, will significantly increase their effectiveness.

#3. Finally, between half and two thirds of world business is suffering from instability in the price of foreign currency. This is a major new problem area. It was not always like this – see chart on page 3. It is a contributing factor in slowing business plans, confusing interest rates, and threatening the whole benefit of growing world trade. The source of the problem is clear: one currency price cannot cope with two separate fields of operation.

SUPPORT GROUPS
The ideas, originating from the Macro-Economic Design Group at LinkedIn and the connected IngramSure team, are shared with other research groups to which we are linked including the Prosperity Renaissance Group leaders at LinkedIn. We get a lot of page views from the Rethinking Economics Group. Total page views from all sources now exceed 90,000. The editors of www.fin24.com provide us with a column of our own which is highly regarded. Our combined groups probably lead other researchers in all areas, especially on the manner of implementation which in some cases can be fast and smooth.

PAGE 3
FACTS

One third of global output is exported. One third is imported. Approaching half or two thirds of global business planning depends upon the forecast currency price which is very unsafe and unstable.




PAGE 4
ILLUSTRATIONS OF OUT-OF BALANCE
INSTABILITY IN HOUSING
The Housing Sector and the Bond Sectors are over-sensitive to interest rate changes:
Lost wealth? Why was it there in the first place? Supply and demand were not in balance.





PAGE 5
There is plenty of instability (out of balance) there.


And this is the reason why:

The table illustrates the effect of an attempt to return to normalised interest rates on the cost of housing finance. It is just about impossible.
PAGE 6

A longer term view shows that housing is still over-priced. Interest rates are still too low. The bubble has burst and confidence in buying, together with a stock over-hang, has slowed demand. But the market is still over-priced. Houses are still too affordable because the cost of repayments is too low.


INSTABILITY IN BOND VALUES
USA Treasuries. The chart shows the % change in each year in the true value of bonds as seen on the stock market and adjusted for rising incomes – essentially how much % more income you can buy with the proceeds of a stock sale than the previous year. Period: 1980 – 2005. It varies from +27% in a single year to around -12% in a single year. Multiply that by a GDP of debt to get a feel of how costly this is to the nation. These are often defined as risk free assets...



PAGE 7
This cost the US Treasury some 9% p.a. more than would be needed to preserve the value of the debt, falling to around nothing by the end of the period. The value index used is units of National Average Earnings / Income, NAE, which is a benchmark for pension savings growth.

With Bond Values now inflated the potential for losses is similarly dramatic.

The Share Market has always been volatile and it reflects a lot of different things including the herd instinct, confidence levels, interest rates, and inflation expectations.

In the face of all this Central Banks keep trying and failing to raise interest rates:
The difficulty is the inflated bond and property values and the super-low cost of borrowing together with the sensitivity of these values to interest rates. There is also a currency factor – as interest rates rise currency tends to rise, hurting export businesses which account for a third of global output.

BALANCE OF TRADE
Having the cost of the currency not reflecting the balance of trade is a big problem.

BOOM AND BUST CYCLES
There is an increasing realisation that credit cycles are involved in creating booms and busts. There are two reasons for excessive credit and the resulting bubble in spending.
One is all of the above.

PAGE 8
The other is the way in which credit availability and demand for credit are managed. Interest rates are a price and a price is supposed to balance supply with demand. But if the supply is not limited to what the nation can afford, then the price is not able to balance supply with demand. The management system is demand driven and demand is subject to sentiment which follows rising assets values upwards and leads to panic buying alongside a feeling of strong economic growth and job security. Then the bubble bursts and sentiment crashes. Demand ends and debt pay-down begins.
Engineers would describe this as a loose control system. If the steering of a car was as loose as this then it would veer to the left and then veer to the right. It is the same with credit management.


AFTER-THOUGHT
One of our team wants to add this:

"We are keenly aware that economic instabilities can cause havoc in countries which need help the most. We believe that our system can smooth the economies of all countries; but this will have the most impact in places where an unstable economy can be the difference between life and death for thousands of people. A stable economy is a prerequisite for a good infrastructure; and a good infrastructure is the single most helpful thing when solving a crisis - be it in mortgages, a malaria outbreak, or an HIV vaccine. A more stable economy can and will save lives and can help organisations like yours deliver help far more efficiently and effectively. We believe that we have a system which does just this, and which will pay for itself many times over."

IMPLEMENTATION
The big question which needs an answer and which is expected to come out of discussions with the proposed study group is what changes to make, when, and how. The already existing team of researchers has some of the answers but needs assistance with others. In turn, policy makers are not going to do anything that looks too risky.  A careful joint appraisal at sub-policy-making level needs to draw on the expert analyses and knowledgeable suggestions which took a decade to arrive at. Writing a book, or writing endless papers cannot do this. It has to be teamwork. It has to be now.


END
--------------------------

PREVIOUS SCRIPTS TILL TODAY
This draft is from Gilberto Emilio Hernandez Negron

Dear Mr. Gates. 

Imagine you could press CTRL-ALT-DEL and restart/reset all crashes, stalls, and conflicting processes in the World. Imagine that this restart includes an operating system upgrade which will eliminate not only future crashes for the rest of this century, but is fully compatible with all current hardware and software in use, making the transition transparent to most and making the existing resources more productive and efficient. Well, that is exactly what me and my network of multidisciplinary intellectuals and visionaries have been creating, developing and refining for over 20 years, especially thanks to your contributions to the state of technology and global communications today. This group has contributed voluntarily without any compensation except for the hope that it will help humankind to overcome the unmanageable global economic crisis.

Our efforts are focused not on technology but in Macroeconomic Design on a global scale. Also due to the globalization of all areas of human interactions because of the current state of technology and global communications, an examination of the financial and management framework of the world’s economies reveals that some core principles of economics are being overridden. The result is an entirely predictable instability, unmanageable complexity and exponentially increased risk throughout the system.

We’ve designed a group of innovative ideas and stabilization mechanisms to reset the way we do financial transactions – savings, investing, real estate, banking, government financing and foreign exchange – which we believe will provide flexibility and inherent stability and which are entirely compatible with current economic, trade, banking, financial, and government systems. This is not a political or any sort of radical movement. We have just found a way to build a new macroeconomic system to do the same and better job than the current one, which will maintain the basic principles of freedom, opportunity, capitalism, wealth preservation and maximization of real capital and productivity worldwide.

In the documentation included with this letter, you will find the substance and detail of our core work, and the positive feedback from knowledgeable experts from every continent. We’ve come to the point where I need a group of selected people dedicated to formalize a decade of research and promote these ideas to those with the power to implement them. For this, we need financial support from people like you or your philanthropic foundation.

We firmly believe that the implementation of this work can and will benefit everybody everywhere and stabilize the world economy in less than a decade setting the basis for another century of human progress. I exhort you to evaluate this proposal with your team and contact me to discuss further so you can decide to be part again in the realization of this wonderful dream.


Kind Regards



This draft is from Edward Ingram:

Dear Mr. Gates,

An examination of the financial and management framework of the world’s economies reveals that some core principles of economics and management systems which are being over-ridden. The results are entirely predictable instability throughout the system.

The purpose of writing to you is to ask for assistance in putting together a well paid group of sufficiently influential people to go through our research teams’ work with us on what changes are needed. The peer reviews are highly encouraging. The support is widespread (see page 2). One professor says that the ideas will become prescribed reading at universities. It is virtually ready for implementation.

After a decade and more of work, some of the researches are already 99% completed. They just need to be finalised at government policy-making level and implemented. It is believed that the stage has been reached now where their immediate application can speed world economic recovery faster than anyone previously imagined.

The same conclusion was reached in 2008 by an actuarial analyst at one of the world’s big four consultancies as may be seen on the PEER REVIEWS page of our main website.
Perhaps you would like to pass the website links to someone to read and come back to us with any questions he/she may have on this proposal? A short summary of all of the areas covered is attached.

Kind Regards,

Edward Ingram on behalf of
·        The IngramSure Research Group for Macro-economic Design
·        The Prosperity Renaissance Group, which has been reading my essays and discussions for years,
·        The Firstsource Money Group which is affiliated to the Positive Money Group and
·        The editors of www.fin24.com – South Africa’s leading Financial News Magazine online where I am a columnist, having written 43 essays for them on this subject already. They can be found by searching on site for ‘edward ingram’.

page 2

THE SUBSTANCE
Achieving economic stability does not mean fixed or anchored in concrete. It means being adjustable so that all of the inevitable variables can carry on without disturbing the economic balances of spending, nor taking down confidence levels, nor destroying savings, businesses, or governments. All prices, costs and values will adjust smoothly, unlike now, as in housing, debt values, quantity of credit, (boom and bust), and currency values.
 
#1. The respected Project Syndicate Group has just published
a paper which shows housing finance as the largest boom and bust problem area, capable of taking down economic output for many years and by far more than any other sector. Five years after such an event economies normally have 9% lower output than would otherwise be expected. Our work covers the whole area of the structure of savings, housing finance, government, and commercial finance. Reforming these contracts would stabilise all of these sectors, and end mass repossessions and huge distress for millions of families, businesses, and government finances. It would enable central banks to raise interest rates without worrying. It makes banking more sustainable and lowers all costs significantly. This might add 1% p.a. to sustainable world output.

#2. Another idea of ours is shared by other research groups to which we are linked including Firstsource Money, and the increasingly effective ‘Positive Money Campaign’, which is also supported by the Financial Time. Integrating their findings on credit management with the other proposed changes, #1 and #3, will significantly increase their effectiveness.

#3. Finally, between half and two thirds of world business is suffering from instability in the price of foreign currency. This is also a major new problem area. It was not always like this – see chart. It is a contributing factor in slowing business plans, confusing interest rates, and threatening the whole benefit of world trade. The source of the problem is clear: one price cannot cope with two separate fields of operation.

SUPPORT GROUPS
Our ideas are shared with other research groups to which we are linked including Firstsource Money which in turn is partnered to the increasingly effective ‘Positive Money Campaign’, which is also supported by the Financial Times, the Prosperity Renaissance Group at LinkedIn has come out in support, and we get a lot of page views from Rethinking Economics Group. The editors of www.fin24.com provide us with a column of our own which is highly regarded. Our combined groups probably lead other researchers in all areas, especially on the manner of implementation which in some cases can be fast and smooth. 

This is the proposed letterhead. The Page Header reads:


IngramSure (UK) Ltd
Reply address: eingram@ingramsure.com

The Bottom Reads:

Directors: E C D Ingram CEO, G DH Hollick FCI S FIBSA CeMAP; A Pampallis FIBSA, M C F Harrison B Sc Econ (Hons); A F France MA(Cantab) FInstSMM. Registered in England and Wales, no. 07944609 Registered Office: 9a High Street, Woburn Sands, Milton Keynes, MK17 8RF.

The full results:
1. Gilberto Version



2. Edward Version both pages




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