10 IMPLEMENTATION

COMMISSION OF ENQUIRY

World-wide

A new structure for financial stability

Proposed Agenda 2013

Drafted in Collaboration with
Graham D Hollick FCIS FIBSA CeMAP and others
By The Proposer And Chief Researcher

Edward C D Ingram


DISCUSSION TOPIC G

IMPLEMENTATION

1.1. Questions have been asked about how these proposals can be implemented because they represent a profound change in the way many things are done. Graham Hollick, a member of the IngramSure (UK) Ltd Board of Directors and a past President of the International Union for Housing Finance, recently emailed Edward “A new era?” when he learned of the level of attention these ideas are now getting, all in the right quarters. Many believe it will be the dawn of a new era. It was written as a ‘New Era’ in a feedback report at one university presentation, and the head of Business Management, MJ Ndlovu at THE University of Science and Technology (NUST), suggested that Edward be offered a professorship, subject to the work being published – a work still in progress. There are many supporters begging Edward never to give up. 

1.2. The good news is that if one looks back 20 years or more and sees how the world has changed, it has probably changed a lot more than the changes that are proposed herein. 

1.3. The reason why the world has changed so much is because people bought into those changes. 

1.4. Today: 1.1.      
1.1.1.    People will buy into safer wealth.
1.1.2.    They will buy into safer borrowing.
1.1.3.    They will buy into safer investments from defined cost and defined benefit pensions and annuities, to safer unit trusts and mutual funds with a more measured wealth risk exposure. All of these new products are an essential part of the plan.
1.1.4.   Institutions will buy into products that give them a significant edge over the competition and which remove their own operational risk exposure and reduce costs.
1.1.5.    People and businesses will buy into a smaller wealth effect, and more sustained economic growth.
1.1.6.    They will buy into a more stable exchange rate and less exposure to imported recessions.
1.1.7.    They will buy into the idea that they can keep a grip on the wealth that they have earned and not see it end up in the hands of the banks or the speculators which are taking advantage when the less well educated people are invited to buy over-priced equities, properties and bonds and then forced to sell when the bubble collapses.
1.1.8.   The media will buy into the idea of having a huge role to play in helping people to get their heads around the new economic model. The media will raise advertising revenue as the financial institutions place advertisements to tell the world that they are on top of this and that their new investments and loans are the safest yet.
1.2.     Edward will help, and may present a television series to ‘Make Money Make Sense’ and so educate the public and the media. He has done that kind of thing before.
1.3.     The format adopted when VAT was introduced will be used to educate the financial institutions and the business schools who will run lucrative seminars.

WHERE IT STARTS
1.4.     The government will make a Big Policy Statement to set the ‘show in motion’, explaining the merits of the new economic model and giving an outline of how it will work and how people will learn to adapt to it and what it will mean to them and to their future employment, their future prospects, and their wealth.
1.5.     A good place to start would be with the introduction of AAA rated wealth bonds issued by the government. It will be explained that these will give a guaranteed return that incorporates the real rate of economic growth, tax free, and a small bonus, or coupon on top. It costs nothing to provide such wealth protection - it maintains the share of GDP that has been lent to the government and so preserves it for the lender.

A FAST WAY TO SUPPORT PROPERTY VALUES AND AVOID AN IMMINENT BANKING CRISIS:
1.6.     People wanting to stay with the current mortgage model will be offered that but with an ‘escape clause’: in the event that interest rates rise, this will enable them to smooth out future repayment increases on the ILS Mortgage model, or to switch to a rent-to-buy version of the ILS model. Their payments will fall every year relative to average incomes instead of jumping up and giving them a fright.



LEADERSHIP 

1. The chief researcher, Edward C D Ingram, has had a career in the UK that made him famous as an expert in mortgage finance (see PRESS CUTTINGS) AND as an investment manager – his investment portfolio rose throughout the 1970s, a time when inflation went almost to hyper-inflation levels, and the stock market 30 share index plunged 75%. See graph at right. 

In the 1990s, he set up the unit trust industry in Zimbabwe in a way that made his group into the leading unit trust group in the country. 

His proposals on fraud prevention in the 1990s in the UK were well liked by the media and the Department of Trade and Industry but fell through as Edward departed for Africa. However, the same basic arrangements now exist in South Africa and they work very well. 

In short, he is understands the marketability of new products and he is capable of setting up new systems in the financial services industry and is able to guide the whole proposed reform process if given membership at any level of the right team at government level. 

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As a bank manager said after a trial presentation and after asking a considerable series of relevant questions, “It can work”. 


ALL READERS AND COLLABORATORS


Your feedback is important. You may email Edward Ingram with suggestions on the anything...whatever comes to mind.
eingram@ingramsure.com




You may also like to join the LinkedIn Group named MACRO-ECONOMIC DESIGN where you can discuss issues with other interested persons.

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