Hundreds of Billions For the Global Economy: The South American MOJO Plan

This plan shows how “Many opportunities justify others” – hence the MOJO plan. The following recipe for the economic development of South America aims as a mere (quite adjustable) template to bless not only our Southern friends with “quite emerging” markets – an upgrade from merely “emerging markets” – but also the other economies to which it will connect across the Pan-American landscape.

Trans-national legal and Infrastructural, developmental progress is the key to what we want — stability, efficiency and predictability – the main geo-political and economic ingredients of long-term profitability.

These lessons come from the US colonies in their early stages of development. Today’s hint? Guide up.  Here is the list of recommendations.

1. SA should do what Europe did in formulating a single currency, this time across the South American national borders – creating a new “Euro” for SA. This provides a redundancy (safety measure) in the economic system emerging across the continent. Retain the currencies in use at present, but add the new American currency – ESA (Euro De Sudamerica). I would name it after the Euro, which would lend a kind of instant credibility to it, increasing the liquidity of SA markets, goods and services going forward.

2. Create an international body, like the ICC (International Commerce Commission) in the United States, a trans-border referee that seeks a uniform legal code for the following at minimum:

a. The transfers of good and services across borders, including tax rates – one sales tax rate only please. Simpler is better – Mind Ockham’s razor.

b. Airspace regulations must be uniform so that cargo pilots have the same rules to follow in every country – more or less.

c. Uniform inspection codes are needed at cargo stops and ports to provide security.

d. Some of the sales taxes collected must be placed into an irrevocable trust, which in turn invests in the global markets, and reinvests in the trust (50%). The trust should be used to help pay for all international infrastructure development projects from roads to airports, etc

e. Shipping laws must be uniform throughout SA. Although shipping – meaning transportation of goods and services by ships along the coastlines – should play a relatively minor role compared with other forms of shipping, it is still worth billions in the long run.

3. The national railways should connect into One SA railway system and then connect to the NA railway system through Mexico, with corporations binding together to build profitable cities along that railway – excellent cities from cheap land (buy low, sell high) – and with cargo airports built along important stops that bring the crops and other goods to the global markets — across longer distances.

4. Some of the irrevocable trust money should be used to collateralize the SA Euro at least with a 20% collateralization rate (see Switzerland’s recent attempts) – using shares of a mutual fund held in the SA trust, which fund is comprised of best-of-breed diversified commonstock shares from the global markets. This will insure its long-term integrity and give it immediate credibility world-wide, as well as significant PPP, or “comparative buying power” on the foreign exchange market.

5.  The Power Grid.  The best way to develop a power-grid is not to develop a power grid.  Each city can and should have its own self-contained power-generation and (ethanol) back up unit.  The power station — hydro-electric or solar-panel field generated power is best — can be housed inside a large “Geodesic Dome.”  This housing unit was developed in 1951 by R. Buckminster Fuller.  It can withstand hurricane winds to 200 mph, has a super-low center of gravity, making it earthquake and “seismic proof,” and can be constructed cheaply with great durability from a wide variety of materials.  It easily conforms to all environmental topographies also.  If each city has its own local grid, no enemy or insurgent can wipe out the power grid, or cause cascading or rolling black out problems.  Decentralized power-generation is by far the wisest, so long a back-up redundancies are built into the system at the local level.  This also allows any one city to replace its grid part independently of the others, so as to cause very little disruption of service for maintenance or repair work.

These steps would both create the highly efficient, smooth and profitable movement of goods and services across national borders in SA, enabling all these countries to have more efficient access to global markets. Trans-national uniformity and simplicity (as opposed to entangling complexity) are the keys here. And one should always try to develop redundant fail-safety features when possible — without adding “complicating overlap” problems.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s