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HOW TO REVERSE WORLD RECESSION IN MATTER OF DAYS

A Method to Address Economic Recession, Remove Poverty, Terrorism, Improve Law and Order, Reduce Drug Abuse, Inflation And Taxes in an Interest Free Based Economy.
By: Dr. Niaz Ahmed Khan, FRCS, PhD

ABSTRACT:
I have developed a new financial instrument which will be much more valuable than the bonds or the treasury bills government sells in the open market to raise much needed funds to run the country. These are all interest based instruments and can only be used by institutions. The instrument I am proposing is without interest and will be used by everybody to purchase goods and services in the government and private sector resulting in up to 60% discounts. This is why these will be massively bought up front in large amounts in the shortest period of time of one month to run the country for at least a year and much more by the end of the year.

SUMMARY OF THE BOOK:
The world is facing many challenges with no solution in sight.
The main cause of all these ills is the POVERTY. Float bonds which can be used by everybody rich or poor and are not debt to the state so there is no question of interest.
How: Take the example of USA which is going through a great recession.
USA borrows money by selling treasury bills and the interest based bonds. The suggestion is to sell these bonds on non interest basis.

1. Buy all goods and services under govt control with these bonds and these bonds will replace dollar with bonds.
2.10 million duty waved off.
3.100 million dollars prize draw from the bonds held by the public every day.
EXAMPLE: ONE dollar buys 5 bonds on the condition that the amount should be $100,000 or multiple of it. Fewer amounts will get the rate of four and three. This massive discount period is only for first month at the start of the implementation of this system. In the second month the rate will be 4 but the rate of 3 will apply to subsequent months for the same amount.

WHERE THESE BONDS WILL BE USED?
1. All state controlled services and commodities.
EXAMPLE: A bill of (any service or Commodity) $100 can be paid with 200 bonds and there will be no exception to this rule. A NET DISCOUNT OF 60%.
A simple formula will apply: Total bill in dollars x2 is the number of bonds surrendered. Price in bonds will not be less than the cost price but without the direct indirect taxes and the duties which are added to the present cost to make it very expensive.
It will attract at least 50 million people to take this opportunity as early as possible. And if one is sure of making 100% profit within 30 days there will be many more that will help themselves.
RESULT: Government gets at least $5 trillion within a very short period of time of few days and much more in the rest of the year. THIS IS NOT A DEBT AS STATE HAS SOLD BONDS (Commodity) WHICH IS AN ALTERNATE CURRENCY AND DO NOT CARRY ANY INTEREST. One immediately thinks who will bear the loss and this loss to the state will not be more than total year budget of $2.5 trillion which it collects in one year with all the taxes and the duties but the bond price is simply a cost price without any kind of tax or duty. So there is a net gain of approximately 2.5 trillion within a short period of time. First floodgate of money has been opened.

WHO WILL SELL THESE BONDS?
State will float tenders to select a private agency (USMF) UNITED STATES MONITORY FUND JUST A NAME GIVEN TO THIS ORGANIZATION with the lowest bid WHERE AS second, third and fourth bidders will be auditors of USMF. This agency will employ at least 20 million unemployed on 10% commission basis and without any salary. These agents will have to pay $500 as an annual fee to USMF in order to build the infrastructure for the sale of bonds. Agents’ quota will be $300,000 per month or they will be allowed to sell their whole year quota in one day or in a month. This will only materialize if the agent shares his commission with the buyer. Greater the share of commission quicker the sale. The investor or a buyer will sell these bonds at the same rate of 5 per dollar and his bonds will sell like hot cakes every day as there is no condition of the amount of money to purchase the bonds. In this way even the poorest person will get the same or near the same rate as the investor earns a profit from the commission which he takes from the agent and makes almost 100% profit by only investing $100,000. He will sell these bonds repeatedly and will keep almost 6% profit every day till the demand lasts. NOW THINK HOW MUCH FUNDS STATE HAS ACCUMULATED Much more than few years budget in matter of only one month.

FLOOD GATES OF MONEY AND TURNING POINT
This is the second flood gate of money and there are still four more floodgates of money yet to open. So at the end of 30 days or even much earlier the government declares tax free country for ever. With the removal of all kinds of direct and indirect taxes and duties the price of oil electricity telephone and of all other services under government control is now almost 60% less than before as these are being purchased by bonds (which is the cost price) and not with dollars. The production cost of everything has come down tremendously.

SECOND OPTION
STATE ALSO OFFERS 10 MILLION DUTY FREE IF ONE DEPOSITS $100,000 NON REFUNDABLE. THIS BRINGS OUT ALL THE BLACK AND SPARE MONEY WHICH STATE WAS NOT ABLE TO GET BEFORE AND AS THERE IS NO TAX AND HENCE NO TAX EVASION SO ALL THE MONEY IS WHITE AS IT IS BEING GIVEN TO GOVERNMENT.
This was the third floodgate of money which is even bigger than the first one and the exact amount is impossible to asses unless the system is implemented.
In order to provide cheap bonds throughout the year government offers three types of registration fees.

1. Pay $100,000 in the start of the year and get the rate of 5 for the rest of the year and this will suit the professional’s and salaried person’
2. Pay $10,000 yearly and get 20,000 new bonds at the rate 5 every month but one has to collect 10,000 bonds (equal to fee) to get this cheap rate throughout the year. Higher the registration fee more the entitlement of cheap bonds. This registration will suit any small time business who will sell his product cheaper provided 15% bonds are also paid with rest of cash money by the customer SEE THE NEXT REGISTRATION FOR FURTHER EXPLANATION OF15%BONDS. This will apply to all goods in private sector and does not apply to the government sector. This is a big incentive to accept bonds in the private sector as the business accepting more bonds will have more business than the trader not accepting the bonds so the bonds market will multiply and there will be a constant need for bonds in the open market.
3. Third type of registration will be of $100,000 which will entitle the business to sell its products through USMF. The value of merchandise sold through this source will help the business to get the 5 bond per dollar rate or opt for the duty free option equal the amount sold. But with one condition of surrendering 15% bonds at each sale in dollars.

EXAMPLE:
MERCHANDISED SOLD THROUGH USMF $1000. BONDS SURRENDERED 150 ARE DEPOSITED IN STATE ACCOUNT TO BE SOLD AGAIN SO THE CYCLE OF BONDS IS ESTABLISHED .A receipt of bonds surrendered is obtained from USMF for evidence of sale of merchandise and this receipt will entitle the traders to get cheap bonds or the duty free option throughout the year BUT THE SAME RECEIPT CAN BE USED ONCE ONLY.
WHAT IS THE BENEFIT TO BUSINESS?
1. CHEAP BONDS THROUGH OUT THE YEAR
2. DUTY FREE OPTION WILL HELP INDUSTRY.
3. The quota which can be sold is ten times the amount of Registration but not more unless the registration fee is increased. Now all the business will opt for this registration in order to reduce the cost of production. These 15% bonds the business will get back through a chain of dealers sub dealers and ultimately the customer will pay this bond portion as he will get the end product very cheap because of tremendous cut in the cost of production by the factors already mentioned. This will replace the GST or the VAT or the two price system seen all over USA. Almost everybody will sell their product through this channel as it will be much costlier to sell the product outside this system as cheap bonds are not available otherwise.
According to rough estimate at least $10 trillion transactions are carried out every day in US and at each transaction 15% bonds are being surrendered, the price 15 bonds is $3. So 3% of 10 trillion will be $300 billion which goes into government account without any compulsion every day (UNBELIEVABLE). This is the fourth floodgate of money AND IS CALLED THE GOLD MINE. Now the state is sitting in the driving seat and all the money in banks of private sector has been transferred into government account and banks are no more the lenders but are borrower from the state which is the only source left and will invest in business with sound feasibility study checked by the state bank. The state will offer to invest 80% and the bank will bring investor who is willing to pool rest 20%. This 20% will be deposited in the bank and the bank will oversee the running the business, running expenses will be given to the investor from its share of 20%. There will be no collateral and share of the profit and loss will be shared in the ratio of 60 and 40. The bank will share the 60% with the investor and 40% will go to state funds and the state will provide everything under its control below cost which will farther reduce the cost of production and at the same time will MARKEDLY improve the profit margins OF ALL THE BUSINESSES. No major business can refuse this offer. Any bank showing repeated loss will go out of business as there will be no more funds available from the government source and all other interest based sources are not available any more. Interest based banking is gone forever or it may be at a very small scale and the state will not offer loans on interest as these are not any more profitable and risk free as there is no collateral. The amount of profit government will share will be unimaginable and this is the 5th flood gate opened.

THEN WHY NOT INVEST ON PROFIT AND LOSS SHARING BASIS
Last but not the least government will acquire all the land on lease without any force and will provide all the needs to the formers THROUGH CORPORATE FARMING SECTOR HIRED BY THE STATE below cost and will become the shareholder according to the mutual contract with the land owner this is the 6th flood gate of money opened.

DRUG ABUSE ELIMINATED
When all the possible land is being cultivated by best agriculture engineers there will be much better yield and much more profit to land owner then who will not join hands with the government.
THE OBVIOUS BENEFIT WILL BE NO MORE POPPY CULTIVATION IN COUNTRIES WHICH ARE POOR AND LARGELY DEPEND ON THE POPPY CROP. NOW THERE IS NO MORE POPPY AND NO MORE DRUGS.
All the above claims have been proved to be true except the terrorism.

HOW TERRORISM WILL BE ELIMINATED?
We have to look at root cause and it is POVERTY and NOT the religion which is being falsely blamed. The going rate for a suicide bomber is $1,000 in Pakistan, Iraq and in Afghanistan. Can one believe that anyone having at least two meals a day will blow himself? Never the areas of the countries where these attacks are happening are extremely poor and the extremist elements who themselves are or were poor exploit these very poor people to carry out attacks for money to save their families dying from hunger and this is an open secret. Extreme elements has large force that is recruited from poor areas as there in no job anywhere and they provide these raw recruits with only food and shelter and at same time brainwash them and train some of them to carry out these attacks by giving them enough money in their lives to support their dependents. You might mention few isolated cases of being well to do and still carried out these attacks. Once the poverty is removed in these areas by implementing this system these attacks will come to an end immediately. This system is not only meant for USA but will be easily applicable to every country.

By Ali Al-Samadi
(An interview with Dr.Niaz Ahmad Khan published in Daily Al Bayan UAE 20 January 2010)

Emirates first to use electronic cards for the payment of fees

According to Dr. Niaz Khan, an economist who specializes in finance and business management system that the implementation of vouchers or instruments of mutual benefit is a revolutionary solution for the recovery and fight recession at a time of widespread benefits all segments of society.
Khan says in a dialogue with “the economic statement that” this system compatible with Islamic Sharia has an effective mechanism to provide liquidity in different world markets including the UAE, especially in such difficult economic circumstances facing the economies of the world.
Khan explains the advantages of this system where from which to provide consumers of all goods and services under the supervision of the state for two types of prices first type is the current price or the prevailing market includes all types of taxes and duties collected by the government to meet the requirements of the budget and these prices over the type proposed voucher system mutual benefit. The second type of price is much lower than the price prevailing in the market and that the goods and services provided by the government offers at cost in the case of buying a coupon or instruments of mutual benefit, at my encouragement and less (for example: five vouchers or five instruments denominated one), depending also on the price of a coupon of mutual benefit and this is the low price as an incentive for consumers to participate in the coupon system of mutual benefit.
He adds that he and Khan, in order to get this discounted price the buyer must pay a certain number of coupons or instruments of mutual benefit match the product or service provided under the supervision of the State. Will be included in the invoice submitted by the government as well as the number of vouchers and the price currently prevailing, where the buyer can know the total value of a calculation easy as always equal to twice the value of the coupons in Dirhams prevailing price. For example, if the current price is AED would be able buyer to pay the weakness in the form of coupons, vouchers, where the price is greater than twice the price in dirhams. In this case, the consumer will pay AED or weakness of coupons. The method uses a tiered system of mutual benefit and vouchers Khan said he and reduced prices in addition to the mutual benefit coupon system encourages buyers to participate in the discounts offered by the coupons on large purchases. On this basis, the buyer can determine the price of the product or service dates of purchase vouchers are to benefit from these discounts, which also includes a deduction for the import of duty-free instead of discounts in the first three months of the fiscal year following the expiration of the period and discounts these prices are stabilized for the rest of the year.

With regard to how the implementation of this project “says Khan said the government can assign one of the institutions or companies for the sale of government changed these instruments or vouchers. And these companies make their offers for the right to sell the coupons and the body that was selected by the appointment of agents are paid 10% of the total sales coupons deposit. Lanka and the author of the tender offer price and at least that is committed to manage the project within the shortest possible period of time. The docks of the author’s second or third or fourth lowest bidding price by the government to audit the accounts of the IMF is carrying out their work independently peer a fixed amount paid to it by the company in addition to the 50% of the fine imposed on the IMF of the violations committed on the UAE, which is equivalent to ten times the amount of output of any irregularity or fraud. And go fifty percent of the remaining proportion of the government. He pointed out that, in the introduction of these instruments in the market for sale will be individuals, institutions and businesses to buy large quantities of which could be proposed purchase of the operations during the first quarter of the year to take advantage of discounts season so that these vouchers to purchase a variety of purposes not only to pay the bills, but include, for example, savings coupons and speculation in sales in the later times of the year and own vouchers for incidentals are used in various areas of selling to reduce the cost of producing goods and services from government revenue through point of sale and the end consumer.
Security benefits that accrue to the government of this system confirms Khan said the system represents a viable solution to the Governments that have problems in revenue collection shows each year, where the IMF or the company responsible for selling coupons on all goods and services under the supervision of the State in different economic sectors and the funds collected go from the sale of those coupons directly to the government. In many developing countries, the initial sales of the vouchers generate funds sufficient to meet the financial needs of the Government for several years.
In this project the government takes the lead in reducing prices and the prices of fuel, electricity, phones and other, which in turn will pay to reduce the cost of household goods and agricultural and industrial. For such an important step and positive impact on economic activity because the reduction of prices of basic commodities and services with the wills are exempt from the fees would then lead to reduced production costs and increase profitability, would be an incentive to attract new investments to the country, thereby increasing the size and liquidity of investments and economic activity. This is a new type of economy is attractive to all parties so that the practices of the black market will disappear, where will be able to compete in this atmosphere.
The coupon system of mutual benefit, a unique, risk-free for the collection of revenue for governments. This system does not mean that the Government abandons its tax in force until the new system demonstrated its ability to raise sufficient funds to meet all the needs of the State. Once the new system occupies the position he would convert inefficient economies, which are found mostly in the developing countries to open markets and transparent governments join together with citizens to reduce prices and the development of surplus budgets and increase investment. And come together with the government funds more than cover all their needs to manage the affairs of the country for a year, they announce the full tax exemption which would not be possible to impose the additional income tax on any person or business which will serve to attract more investments and businesses will be attracted to that environment free of taxes and fees.

UAE a model for the application
The United Arab Emirates United Arab of the first countries that were not only using e-cards of different categories, “the e-Dirham” The compulsory payment via electronic cards to all government services with no incentive to buy a lot of cards even up to millions a result of this lack of revenues barely affect increasing the liquidity of funds in the State. But when the cards are purchased electronic value in the form of a huge discount vouchers packed into the same card will be rewarded with the government a tremendous amount of cash within days and will not be in need of funds to spending oil revenues. E-cards that charge vouchers will not be a deposit, but will be used for expenditure for the services provided by the government.

Economic attractiveness of the vouchers
Under this system, there is no need to buy one legally coupons, so that the project depends clearly rights innate instinct to get the best deals for the amount paid from the money. In contrast to the existing tax system, the system of vouchers mutual benefit in the UAE will attract people because it is offering discounts on certain goods and services. Prices are low offered by this system will attract at least 25% of the population of the State as without it they will have to pay more for their purchases. Perhaps this system to attract a sufficient number of participants will make the UAE at the end of Alomrghaderp to get rid of the current tax system. Since these coupons offered for sale each year, Mali, the government will be able to identify precisely the size of the sums required to meet its obligations during the year.

Coupons of mutual benefit and micro-economies
Would be to mutual benefit coupon system has several positive effects on the economy part of any State, including all transactions involving the use of money or credit cards to purchase items and services that could be done within the system and order can be circulated to benefit from different economic sectors and non-profit organizations, a key factor in reduce the cost of household goods and business expenses, which will lead to the increase in net personal income for the maintenance and increase the profitability of the enterprises and the growth of state revenues, affecting this system in both the supply (imports, industry, agriculture and services) and demand (of individuals, families and businesses) to the economy and remove prejudice to the supply-demand curve . Coupon system would reflect the income of mutual benefit, level of activity in the economies of the system and will grow in direct proportion to GDP growth and will lead the incentives provided by mutual benefit coupon system to reduce the need for the black market and encourage more people to contribute to an open economy. Under the system of vouchers can be of mutual benefit to any consumer to buy any commodity or service using a prepaid voucher (in the form of a plastic card and the right for the consumer who uses the coupon to obtain significant reductions in the selling prices of services listed in the invoices as well as other purchases. While this system requires the government in some cases, direct tax cuts Guy commodity prices to those who use vouchers mutual benefit, it will cause at the same time to increase net income and income tax paid in advance, the cash proceeds and cash flows in the state treasury.

Application of mutual benefit coupon system

the success of the coupon system of mutual benefit depends on the government initiative, first and foremost with their full support and should enact laws necessary to implement the coupon system of mutual benefit, as well as the establishment of a system for distributing coupons and revenue collection and project monitoring and management. The government should play an important role in policy development for the system. The Ministry of Finance each year determine the total value of the vouchers and categories as well as terms and conditions of using coupons, taking into account the number of coupons in circulation. It will be a nominal value of the vouchers in dirhams. It is also necessary to impose monetary control to avoid inflation and to maintain the quantities of coupons in circulation within reasonable limits so as not to hinder economic activity and cause a fall in the nominal value of the vouchers. A procedure which is common in fiscal policy.
In principle, the government allows the issuance of vouchers worth about the same needs of the state budget and the expected level of economic activity. Since the prediction is not an art and it is essential to control the surplus and the budget deficit resulting from the profits or losses are expected in the medium term and long-term (i.e., through the coming year’s budget or through the emergency budgets in the medium term). The Government will have to monitor the policy and strategy of mutual benefit coupon system as a system of revenue for the state. They must also ensure that non-completion of the system concepts and objectives.
And can be willing to assume the expenses in the management of the collection of revenue from the sale of vouchers and cards collected in one account for the government. And gives the bank that administers the proportion of income. This does not pose any financial burden on the government. It may be wise to entrust the management of such expenses, provided that the voucher system to have a network of branches through which access to sources of income and strengthening the system of control and transparency. To ensure availability of vouchers for as much as possible from citizens, it is necessary to use the vendors of the vouchers. In order for the system covers all residents of the state is set so that each agent vouchers on a commission basis of 10% and therefore vouchers worth AED 100 sold at 90 dirhams. Will be registering those agents to the agency of cash and each of them paying 5 thousand dirhams in the year, for use by the Monetary Agency to establish a network of offices and communication technologies throughout the State.
Vendors get coupons on a percentage of total sales. This is all that they earn for their services. It is a means based on the motivation and the advantage of being more effective than traditional government, where salaries are motivated to make a greater effort to reap more money. The selection of vendors based on the recommendations of reference and educational qualifications (access to secondary school certificate or its equivalent) and bank guarantees will ensure that attract capable and qualified cadres. The cash deposits Designee to the requirements of the stage where most sellers will be from students or graduates unemployed. There is no doubt that simplicity is an important element of success, but it is necessary to establish a supervisory system due to the large number of wholesalers cards / coupons involved in the coupon system of mutual benefit. And in favor of minimizing the number of supervisors so as not to be affected by the effectiveness of the system and to prevent the exploitation of some of the system. It seems that the most appropriate way to establish an administrative framework of the system are taking advantage of existing organizational structures in banks.
The coupon system of mutual benefit, providing an opportunity for any country escapes the spiral of decline in the value of its currency and tax revenues. Can any country’s economy moving in the right direction if the improve ability of the State to reap the proceeds and spend them wisely. In addition, coupons will contribute to income mutual benefit in the growth of gross domestic product. The state can make their way again without the need for any foreign loans need to be pulled out of the United Arab Emirates Doamtha political, economic and achieve the aspirations of its citizens.

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This is one of the seven biggest flood gates of money which the state will receive . There are total of three registrations two of which work hand in hand in making the gold mine so attractive that no retailer business man or a factory owner will refuse . The first registration is of 100000 Rs which will entitle the owner to sell its end product through PMF will entitle him cheap coupons at the rate 6 per rupee through out the year . This is needed as the mega sale of coupons has ended in the first thirty days and the factory owner can not buy millions of coupons up front in this short period .So he purchases this registration and now he can buy the cheap coupons equal the amount sold through PMF but one can not sell more than ten times of his registration fee which( unless the registration fee is increased which will be multiple of !00000 Rs) will be !2 millions in a year or one million every month and is entitled to 72 millions coupons for 12 million Rupees or 12 million duty free option But the condition is of surrendering 15 % coupons at each sale to PMF and PMF will issue a receipt of sale which the seller can avail himself or can sell it in the open market over and above his needs at a margin to recover his registration fee amount . The 15 coupons the price which is only two and half Rs paid to PMF will recover from the dealer whom the end product is beimg sold at a much cheaper rate and this may vary in different deals at different times depending upon the mutual agreement and the open market rate of the coupons. Ultimately this15 % of coupons will be recovered from the end retailor who has a another registration the amount of which varies from 10000 Rs or multiple of it per year .This end retailor will collect these coupons from the customers by offering them much lower price if some percentage of coupons are also payed with the cash price which will also depend upon the custmmer and the retailor . The retailor if collects 10000( equal to the amopunt of registration fee) coupons per month will entitle him 20000 coupons at the cheapest rate throughout the year . These collected coupons are excanged with new coupons from PMF so that these collected coupons are not used again .Now the retailor has a tremendous incentive to collect the coupons from custommers
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Dear All Pakistan is in deep recession in every way a near perfact solution is given below. This is the summary of the book already published in UK and USA titled ISLAMIC ECONOMIC REVOLUTION OF THE CENTURY. A MILLION DOLLAR IS THE REWARD WHO CAN PROVE THIS THEORY WRONG.

A Method to Address Economic Recession,
Remove Poverty, Terrorism, Improve Law and Order,
Reduce Drug Abuse, Inflation
And Taxes in an Interest Based Economy.

By Dr. Niaz Ahmed Khan
Bedar Pakistan , www.bedarpakistan.com.pk

Abstract

I have developed a new financial instrument which will be much more valuable than the bonds or the treasury bills government sells in the open market to raise much needed funds to run the country .These are all interest based instruments and can only be used by institutions. The instrument I am proposing is without interest and will be used by every body to purchased goods and services in the government and private sector resulting in up to 66% discounts .This is why these will be massively bought up front in massive amounts in the shortest period of time of one month to run the country for at a year and much more by the end of the year.

Introduction

The world is facing many challenges with no solution in sight.
The main cause of all these ills is the POVERTY.
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