Friday, September 7, 2012

The Fund Managers and Bankers - Lakshmi and Kuber

Money as currency is a tool to exchange the produce of one against another and globally replaced the barter system after the advent of industrial age around the year 1770, when printing of currency came into vogue. Money is yet another form of energy and has no attributes except the value printed on it. But the way the money is created in the system or by an individual, gives it a karmic character. Lakshmi is the fund manager or banker of the money resulting from the karm of devta or positive attributes or attitudes of creative producers and Kuber is the fund manager or banker of the money resulting from the karm of asur or negative attribute or the attitude of exploiters, looters and moochers.

Like every human being has a name, body, face and energy, every country has to have a name, territory, flag and currency. All the 204 countries in the world continue to print currency and by a well-managed system, regulated by those who create the rules at global level de hors the national governments, these currency continue to fluctuate. Every person in India has to work harder by 55 times (I US $ = INR 55) than a person working in US and 70 times (1 Euro = INR70) more than a person working in Europe to keep him at par.

Technology and Infrastructure based on technological advancement brings about growth momentum of the economy in the country. Agriculture and housing and inter connectivity of human settlements led to water channels, water pipes and roads; electricity led to erection of generating systems and distribution network, Home TV led to satellites, cable network; mobile phones to erection of transmission towers and now Wi-Fi.  R & D must continue to take mankind towards harmonious, happy living and sustained relationship for that is what we all are looking for. After the advent of Industrial Age (1770 AD) and introduction of currency Banks came into existence and industrial growth and infrastructure projects have continued to be financed by Banks. After the World War II and formation of United Nations, the developing nations have been financed by the World Bank and other Development Banks and several Funds, existing globally and locally.
The source of all this Bank funding is fundamentally and basically in the nature of debt. All the currency that exists is minted by the 204 countries in exercise of its sovereign power either under a contract (Federal Reserve Fund for USA) or by an independent authority (RBI for India) against Bonds issued by Government, with promise to pay. These bonds are however never paid back, for more money is minted against more bonds when more is required and the bank debt fund continues to increase in the globe and continues to be circulated on fractional reserve basis. Fractional reserve base creates and circulates more money out of thin air, without actual currency in place. The accounting system at individual, state or national level reflects a limited picture. In the postmodern new age, when we the economic picture at global level, we find that the total global debt fund of all the countries in 2012 is about 40 trillion US $. This would simply mean that if on a single day, all persons decide to withdraw all the funds in their credit, the Banks will fall short 48 trillion US $ (1 trillion US $ = 55 Lakh Crore),
This money created by Governments has continued to change hands from person to person, for the products produced by individuals for corporations or companies (from MNCs to Proprietorship Firms) and services rendered by individuals (from those working in NASA to rag pickers). Monopoly, Trade, Vyapaar and Career were indoor children games played by us all, where the pre-existing currency was distributed by a Banker to all the players who continued to roll the dice and buy properties collect rentals or pursue their career with passion, ambition and diligence, till they were too tired and exhausted (after 4-5 hrs.) to play more and the money went back to the Bank to start all over the next time. The global economics draws a parallel and the Banks continue to dominate the life of every nation and every individual.
It is extremely difficult to comprehend and appreciate that those who matter in determining prudent financing policies in national interest in India are showing total ignorance and obliviousness about the crumbling world economic structures and the apparent changes which could be seen by every intellectually honest economist in India as the impact of the information age which is changing the social structure is demanding restructuring of economic and political structure from global to local level.
The (incorrectly) structured economic cycle continues to create more Kuber dhan and continues lead us all to disastrous consequences like corruption and civil disobedience movement for the whole system is fuelled by those very people who have first got the policies in place to receive the debt and thereafter landed the money to legally extract money out of the system. This is simply a global manifestation or a globally expanded form of the old Zamindari system which led to real deterioration of human values and the deep level of insecurity perpetrating deep in the soul of India. Money was lent for fertilizer and seed, to the farmer by mortgaging his land. The loan would never be paid because the crop was burnt or money was spent in rituals (dowry, mritubhoj etc.) and the debt and mortgage continued in perpetuity. The Zamindar would openly molest and rape the females in the house of the poor farmer and not only laugh it out but glorify his misdeeds, misdoings and misadventures at his post evening and late night daru (drink) and  tangri (chicken legs) parties followed by mujra (erotic dance).
The system was fully supported and fuelled in British Raj and the Privy Council said “Once a mortgage always a mortgage” and reiterated even after independence. All that was the reason for all the land reforms by giving khudkasht (self-tilling) rights to all the cultivating land less persons and abolition of Zamindari system at the dawn of independence.  This was the rise of the Lakshmi dhan once again after 947 years of eclipse. It is not difficult to understand that the supports by judiciary to land reforms led to the first amendment of the Constitution of India for the than leaders (members of Constitutional Assembly and Parliament) with their vast readings (free time spent in jail) and interactive global exposure were able to understand and appreciate the interplay of global economic forces.
Industrial age ended and e-age made its advent in 1955, making all information available to individuals leading to twitter, wikileaks and scams and exposing those who were amassing the Kuber dhan. After 1990 though there is a deep quest of making the world unipolar to enable minting of a global currency and amass the entire Kuber dhan, which only happened once in the history of civilization, when Ravan tilted the balance of the earth and should happen never again. This well-managed and well-connected conglomeration of (seemingly unconnected) Bankers, Fund and Asset Managers, Financial Consultants, MNC’s, Media called CP – GOD (Currency, Pharmacy – Gold, Oil and Diamond) have continued to control the affairs of the Governments and individuals on the basis of fluctuating markets (called market forces) and conflicts (ethnic, civil disobedience, terrorism, wars etc.) and amass the benefits sought to be created by 7 + billion human beings for themselves and their family. Governments and persons sees money only from the time it comes into their hand a leaves their accounts, but that is the miniscule visible part of money cycle and the mega part remains un-manifest to the commoner. But seers, economists and people who can think objectively and see beyond the veil, are now been able to decipher the real play of forces. It is time to see rise of Lakshmi dhan in the horizon, making the world multi polar and that the sham and phony regulation and management slipping out of the control of CP-GOD.
In 1998 India issued the Resurgent India Bonds (RIB) and in 2000 the India Millennium Deposits (IMD) for a tenure of five years to target channelizing NRI savings into India, which would have even otherwise reached India in due course of time. PIOs have moved out of India for over 1000 years now, working hard wherever they got a chance and showing their real mettle and have never lost their roots. To meet its challenges of growth, Government of India has created an Infrastructure Debt Fund of about 2 billion US $ and is further gearing up to create further funds by issuing long term 30 yrs. Government Bonds at about 9 % fixed income to the Bond Holders, which will certainly be purchased by the FIIs, which control Global Financial Institutions and economy, directly or indirectly.
In 2011 India created an Infrastructure Debt Fund (IDF) for about INR 10,000 Crores and now the State owned India Infrastructure Finance Corporation Ltd.(IIFCL) are finalizing broad contours for a multi-billion-dollar 30-year proxy sovereign bond that (as projected) will allow the Indian Government to raise funds from Foreign Institutional Investors (FII). It is expected that these Bonds would be floated with a guaranteed return of about 9 % in the expectation that, with the Europe shrinking the bonds will fully subscribed, in spite of the credit rating loaded against India (by global statistic holders), for dismal and slowed growth rate of 5.3 % in the last quarter of 2011–12, the slowest since 2003–04.  80 % of the money so sought to be raised is expected to provide some solace to the parched infrastructure, which India has continued to build since independence and the balance would go to Public Sector Banks to enable them to lend more money and obviously take it back by making book entries against unpaid debts (creating more NPA’s). It is also expected that the inflow will help prop up INR which in June 2012 hit a record low of 57.32 against US$. All this is expected against the widening of current account deficit gap export earnings and import payments and rising inflation in double digits and oil prices above 110 US $ a barrel, rising FDI repatriation and large external commercial borrowing redemptions.
Interestingly and amazingly nobody is asking the questions as to why India needs to pay hard earned tax payers money to repay 9 % interest to the Foreign Institutional Investors when money is said to be available at LIBOR + 2 % or the money lying with the FII’s does not belong to them but belongs to High Net-worth Individuals (HNI), Qualified Institutional buyers (QIBs) and Fixed Income Buyers (FIBs) who get only 3 % interest from FII’s and would be more than willing to fund any project in India @ 5 % interest and continue to roll it over. The other question which nobody wishes to ask is what will happen after a period of 30 years when a new generation of Indians will be hit by the tsunami of repayment.
In view of the real play of forces, interlocked in networked, the commitments sought to be made by the Government of India, such decisions would logically and certainly take the growth further down, as the objectives are not achievable from the debt fund (Kuber dhan) and will not increase production but will only increase inflation. Companies will reduce employee’s salaries budget or reduce number of employees (they can’t reduce travel, entertainment, marketing and gifts), leading to employees unrest (Maruti in Gurgaon) and will not be able to invest anything in R & D and continue to depend on utran (discarded technologies), for the companies will have to meet the direct and indirect tax demands (validated by Courts) made by the Government at every taxing event from excise to sales and service to wealth. Government has also no choice for it has to pay high rate of interest on the debt funding, choicelessly received by it.
For providing long-term debt to infrastructure projects Mr. Edward Fortin, President & CEO Global Operations of Fortin Financial Group (FFG) a BVI Company, has devised a proprietary funding mechanism primarily keeping in view the global melt down of existing banking structure and currency wars which will certainly change the balance in global economics in the new age. It is not only difficult but impossible for anyone to negate that the PIO’s are making their mark all over the globe not only in the field of IT, Astronomy, finances but also politics. It is not difficult to decipher the reason for all this and that is the deep rooted ancient heritage, profound culture, traditionally oriented family structures with simple and positive values, natural entrepreneurship skills, integrity, honesty and finally adherence to relationship above mere economics.
After long and deep search in existing economic structures managing the affair of the world for over 220 years (since 1791) it is necessary to shift from Banks Debt Funding to Insurance Credit Funding (ICF – Lakshmi dhan). ICF is a perfect solution to provide long-term funds without a baggage more particularly because the source of money is not a fund created on debt against Government Bonds but the hard work of individuals. ICF will be an extremely efficient method of providing loans, on very reasonable terms as to interest and repayment to Public Sector Undertakings and Private Entrepreneurs by fully collateralizing the project only and without seeking any personal guarantees as is prevalent with Banking Sector. ICF is not faced with the inherent risks involved with the project development investment and that is that the investment made may not be returned back with interest and penal interest.
ICF based on the expanded vision and faith and trust in the entrepreneur executing the project. The tacit understanding is that every project is able to achieve its object and purpose, if the money is spent on the project is not siphoned off in land banking, share markets or other projects not under the management of the entrepreneur and somebody provokes him and shows the possibilities of making some quick money, which is never made. The real objective of every project of job creation and sustainment of personal well-being, is always achieved and that in fact and in real terms adds to the Gross Domestic Product (GDP) or Gross Personal Happiness (GPH). The inherent insecurity (Zamindari system obsession) in every individual decision maker, makes it extremely difficult to appreciate, understand and realize that, why a Company would invest funds in another company without full security of its recovery and realization. But that is when they are looking at individual companies or corporations without looking at the larger picture, for the Company managing the ICF is finally always getting more even if there is a 10 % fall out.
The confidence that this system of funding permeates because of the inherent strength of the financial structure of Credit Funding raised against actually existing Insurance Funds from those who care for the world and have feelings for the mankind, as contradistinguished from the money raised against Government Bonds from those who do not care, how the money grows. The stake holders in creation of these funds are:

The stake holders in this creation of money are:
1.  Life Insurance Company – In USA
2.  Senior Citizens – in USA
3. Otkritie - Broker, Asset Manager, Financial Consultant and Investment Banker – Russia / UK (
4.  Fortin Financial Group (FFG)  – British Virgin Island (BVI)
5.  J.P. Morgan – in U.K.
6.  Insurance Company – AXA, ING and Allianz - in Europe
7.  High Net-worth Individuals (HNI), Qualified Institutional buyers (QIBs) and Fixed Income Buyers (FIBs) – All over the globe especially Europe
8.    Greenberg Traurig – US Law Firm ( )
9.    Law Consults – India Law Firm ( )
10.  State Government, PSUs and Private Entrepreneurs – in India
11.  Independent Engineering Consultants and Project Acessors– in India
12.  Financial Structuring and Techno Commercial Appraisal and Security of Documents in India
13.  PSUs and Projects – in India

Backdrop -

Insurance appeared simultaneously with the appearance of the human society. Since 1680, all over the world first marine insurance, then fire insurance and thereafter several other forms of insurance have continued to grow. Life Insurance Companies continue to provide and citizens continue to take Life Insurance Policies (LIP) or Senior Life Settlement (‘SLS’) to provide security to their families after their death. Citizens continue to pay premiums against these LIPs on monthly, quarterly, half yearly or yearly basis. In view of the judgement of Supreme Court of USA, in USA these LIPs are transferable and/or assignable to third party. Over the centuries, the insurance surplus fund has continued to accumulate all over the world. This wealth is in fact the fund generated by beings which existed on planet earth, had worked and had deposited premiums with the Insurance companies and the insurance companies even after paying the legitimate dues to the people have been left with legitimate profits, which they have continued to invest against securities including government securities on low interest rates.

These profits constitute about 40 % of actual cash deposits in the Bank as contradistinguished from digital money and freshly minted currency and is to the tune of about US $ 23 trillion in US and Europe with an premium of 4.3 trillion US $ coming in every year, for it is inherent in the human functionality, that nobody consumes more than he produces. The only exceptions are those who do not produce anything but live as looters and moochers (CP-GOD) on the wealth produced by other private entrepreneurs. All the currency printed in the world does not get destroyed except when burnt in wars, attack by terrorists or natural disasters.

The Process -

Senior Citizens in US, who are holder of LIP and are in need of immediate funds, look forward to surrender the LIPs to the Insurance companies. However, in view of their assignable nature, the senior citizens can assign the same on a higher premium. Fortin Financial Group (‘FFG’) has got in its fold policies of senior citizens preferably above the age of 72 years (life expectancy in USA is 76.2 years)
( and have paid surrender value of the LIPs along with a premium amount to the senior citizen, who is more than satisfied as having received more value, than the surrender value they would have got from the Insurance Company. FFG continues to pay the premium, from year to year to the Insurance Company, for the rest of the life of the person, whose policy they have assigned to themselves. FFG will be entitled to receive the insured value of the LIP at the time of death of the policy holder. A simple calculation of the surrender value paid to the policy holder with premium and the payment of annual premium to the Insurance companies vis a vis the insured value to which FFG would be entitled, reveal that FFG is conveniently left with a substantial surplus amount as their profit. 

Having purchased the policies of senior citizens for a premium, FFG has retained  the services of  J.P. Morgan Trusteeship Services U.K. an Investment Banker to keep the policies in their trust and continue to pay the premium to insurance companies and to collect the insured value as and when it becomes due and payable by the insurance companies. The surplus amount left after payment of surrender value and premium amount takes care of the total value of the insurance amount to which FFG would be entitled from the insurance companies and a surplus fund. This surplus fund is sufficient to secure 5 % annual simple interest for a period of 10 years for any investor who subscribes to the Bonds issued by FFG and is totally secured by the J.P. Morgan Trusteeship U.K. A totally secured annual return of 5 % for 10 years is a perfect, lucrative and flawless investment for High Net-worth Individuals (HNI), Qualified Institutional buyers (QIBs) and Fixed Income Buyers (FIBs) all over USA and Europe, when LIBOR (London Inter-Bank Offered Rate) is about 1.35 % for 12 months and continues to vary at 11.45 am (London Time) every day at the behest of BBA (Britain Bankers Association) – and extension arm of CP-GOD. The maximum amount that the assured fixed return that the investment Banker or Asset Managers provide to the HNI, QIBs and FIBs are against long term investment is LIBOR + 1 % i.e. 2.35 %.

The exponential and phenomenal growth of  quantum and nature of data and easy access to information from all directions, brought about a clear awareness with the High Net-worth Individuals (HNI), Fixed Income Buyers (FIBs) and Qualified Institutional buyers (QIBs) of the link between men made atrocities, violence, terrorism and wars and their money. These HNI, FIB and QIB are now able to trace the use of the funds and are feeling the true impact and effect of the cancerous growth of Kuber dhan.  These HNI, FIB and QIB in the new age fully wish to disassociate and severe all connections, either indirectly or even remotely of being privy to any form of return from corrupt funds or blood or money used for exploiting the commoners around the globe, with whom they now feel connected. These HNI, FIB and QIB are now actually and genuinely wish to be a part of the development of the world and not contributing or underwriting the corrupt funds. India with its attributes, is the only country in the world to be able to touch and shake the deep dormant conscious and becomes the most preferred parking place for these funds.

In that view of the matter, FFG is simultaneously executing MoUs with Public Sector and Private Sectors undertaking for their infrastructure projects in India by creating an SPV or equity participation or granting loans to make these funds put to use. With the formal commitment made for projects in India, FFG will load the Mid Term Notes (‘MTN’) or Bonds from its SLS portfolio and instruct J.P. Morgan Trusteeship U.K, its Investment Banker to provide the HNI, QIBs and FIBs with information required to enable them to access the MTN or Bonds offered via the Bloomberg Terminal in order to perform due diligence of the projects to be executed in India. With the due diligence accomplished, the sale of MTN or Bonds can be completed with the MTN sold @ par to HNI, QIBs and FIBs all over USA and Europe assuring return of principal and a 50% fixed return (5 % per annum), both payable at the end of year ten (10). The Investor purchases these MTN, for such investment eliminates the inherent risk of any loss of principal and interest which is associated with project investment and also gives him a sense of contribution to actual genuine development and not contributing to blood money or corrupt funds.

The fluctuation of currency has no effect, implication or influence on these transactions as the entire money in India is coming as capital of BFIL from the profits earned by FFG. The repayment that will have to be made to HNI, FIB and QIB on maturity of the Bonds after 10 years shall be settled by J.P. Morgan Trusteeship, UK from the money received by them from the insurance company after the maturity of SLS. The Bonds floated by FFG have, with their international contacts with HNI, FIB and QIB, are more than acceptable.

The investor (HNI, FIB and QIB) receives:
               * MTN ownership, backed with ‘A’ rated or better SLS with a non-lapse
                   premium contingency.
·                             * Principal reimbursement at maturity
·                             * 50 % fixed return, payable at maturity
·                             * SPV security where ever applicable
·                             * Equity stake where ever applicable
·                              *Additional windfall where ever applicable

Funding in India –

Having secured the principle and interest payable to the investors, FFG has to ensure use of the funds raised against these MTN or Bonds be financed for Public Sector Undertakings and Private Entrepreneurs in projects in India, that would be actually executed or lying dormant and can be executed forthwith. This funding could be provided on long term basis of 7 years at interest rate of 6.5 % for PSUs and 7.5 % for Private Sector or to be decided on case to case basis. This interest amount received by FFG would cover the expenditure that FFG has to make in maintaining the MTNs, marketing and selling the Bonds, fees and expenditures of the Investment Bankers, professionals associated with the entire project, travel and other organizational expenditure and some profit.

Experience has established that most of the projects in India have an immediate need of a bridging finance or a seed capital. In a typical Real Estate, Hotel or other Infrastructure project, persons have invested the available capital in the land and basic infrastructure and are looking for finances to complete the project to bring it to a take-off stage (in several cases the funding received from FIs has led them to courts) or have huge lands as securities and are looking for finances to develop and complete the project before they market it to the consumer. With most Indian Entrepreneur’s having burnt their fingers and lost total trust in their effort of raising finances through the Big Four (4) and in deep debt with Banks and other Financial Institutions all over the country, not only find it difficult but impossible to pay any advance or up front to bring in fresh funds.

Bridging Finance using a Credit Default Swap (CDS) –

Both Public Sector Undertakings (PSU) and Private Entrepreneur (PE) are in dire needs of funds to give fillip to the infrastructure development and industrial growth in the country.  All these PSU’s and PE’s need bridging finance to initiate the process of the Project before the real project fund arrives, which would normally take 6 months. This need to bridge the gap between the submission, sanction and approval of the Project and receiving the funds through MTNs and Bonds, spreading over a period of 6 months can be met by raising finance by issuance of a CDS by a nationalized Indian Bank. BFIL can submit the approved project and the valuable securities of the Public Sector or Private Entrepreneur to the Bank, which can issue a CDS. Against the CDS the BFIL can raise the bridging finances from its Credit Line existing overseas for its associate companies and provide it to the PSU or PE. As soon as the project fund is received, the CDS can be released and utilized according to the project cash flow analysis. The amount can be rolled over if the need so arise.

The entire fund which comes to India comes as Capital of BFIL, with no strings and shall continue to be rolled over in India alone with no movement of funds outside India again. Reorientation of the family structures, coming up of new entrepreneurs and modernization of technology shall continue to need fresh finances, which can continue to be provided as the total Insurance funds lying overseas are to the tune of 23 trillion US $ and 4.3 trillion US $ coming in yearly. India neither lacks entrepreneurship nor does it lack commitment to the cause, but needs correct thinking and execution with determination and will. India only needs the necessary momentum to break the existing inertia, which can be provided by FFG and BFIL by resourcing funds through Insurance Credit Funds or Lakshmi Dhan and work as a consortium with nationalized Banks.

         Reorientation of the family structures, coming up of new entrepreneurs and modernization of technology shall continue to need fresh funding ad infinitum. The quest and the will of every human being to create world anew and a will to create a better human society or natural disasters will continue to take the infrastructure and the world around to the next level year after year, whether it is basic like bijli (electricity), pani (water), sarak (road) or real estate and housing, telecommunication, sports, old homes, education or heavy, medium and small industry, to next level and continued reconstruction. The time has come now for the Laksmi Dhan flow to India in its purest form and help India to take a quantum leap.