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: THE 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 DEEDs as 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.
EXECUTIVE OFFICES, 6751 Ayala Avenue, Makati City, Philippines Tel 843-1698 Fax 843-1707