The document describes ELPAS, a proposed monetary and financial system with electronic quantitative easing (eQE). Key points:
1. ELPAS would replace public debt financing with "electronic social sectoral investment funds" (e-Funds) to fund education, health, justice and social programs without debt.
2. It proposes a "Dual Sectoral Electronic Financial System" (DSEF) using eQE similar to the US Federal Reserve but with electronic currency control.
3. Implementation would occur in two stages - stage one establishing the DSEF/eQE system over 7 months, stage two integrating it globally.
2. 1
INDEX
Page:
1. WHAT IS ELPAS?.....................................................................2
2. WHAT IS IT GOOD FOR?.........................................................2
3. ESTRATEGIC APPLICATIONS (STAGE I)…………………...2-7
4. INTEGRATION AND GLOBALIZATION (STAGE II)………..7-8
5. CURRENT PROJECT STATUS…………………………………8
6. IMPLEMENTATION PLAN…………………….………………….9
7. FREQUENTLY ASKED QUESTIONS….…………………..10-12
8. CONCLUSION…………………………………………………...12
Copyright Registration Number TX 8-006-440
Effective Data of Registration: October 21, 2014
3. 2
Descriptive Resume
1. WHAT IS CYBERNETIC STATE?
The ELPAS Cybernetic State is a technological platform which
includes electronic Government with Interactive Democracy 24/7
and innovative Dual Sectoral financing with electronic
Quantitative Easing (eQE), toward a secure and trustworthy
administration of our planet Earth.
2. WHAT IS IT GOOD FOR?
The intention is to develop a new national and international
State Security system, with optimal collective-, commercial-,
financial and economic security. For that reason, ELPAS
provides a technological platform with latest technological
instruments such as: Electronic ID-smart-cards, Debit-Credit-
Saving banking-cards, combined with i-phones (T-payment) and
electronic fund transfer checks (EFT-checks).
3. ESTRATÉGIC APPLICATIONS: (STAGE I)
3.1. DUAL SECTORAL ELECTRONIC FINANCIAL SYSTEM
with electronic Quantitative Easing, DSEF-eQE
The versatile platform (ELPAS) serves also as infrastructure for
the new and alternative and financial system, ELPAS-eQE,
which operates with electronic Bonds for social investment
(e-Funds) to fund education, health, judicial system and social
welfare programs, without debt system. The ELPAS-Workstation
equipment facilitates and controls the access to ELPAS data
basis platform.
This system is the result of an applied financial reengineering,
which proposes paradigm shift and structural reforms in the
present financial and monetary system. Consist on finance the
public expenditure in education, health, judicial and other social
care services through "electronic social sectoral INVESTMENT
funds”, supported by tax revenues and the labor law and
constitutional guarantees.
In consequence of the application of the ELPAS-eQE system or
similar, the social sector (education, health, justice, and other
social assistance programs) may be funded through new
SOCIAL INVESTMENT financial instruments (Sectoral e-Bonds)
which replace the public debt titles.
With this structural financial reform, the Tax Income become
savings and will be free for re-payment of public debts (70%)
4. 3
and the remaining of 30% for imports of essential products not
produced in the country, and technology transfers.
In this way social spending will not be accounted as debt (limited
by law), but as unlimited "Social investment" controlled and
monitored by ELPAS-technological platform or similar. The
monetary and financial system eQE is similar to the Federal
Reserve System (Fed-program) but with an important difference:
ELPAS-eQE works with anti-inflationary and very secure
accounting electronic currency (e-Dollar); as long as the U.S.
Fed system works with insecure, violable and non-controlled
Paper money, which decreases State Security.
In consequence of the application of ELPAS-eQE system or
similar the social sector (education, health, justice, and social
assistance programs may be funded through new SOCIAL
INVESTMENT financial instruments (Social e-Bonds) which
replace the public debt titles.
With this structural financial reform, the Tax Income become
savings and endorsement of electronic money circulating, and
will be free for re-payment of public debts (70%) and the
remaining 30% for imports of essential products not produced in
the country, and technology transfers.
3.1.1. Advantages: ELPAS-eQE is a unique and true solution to cancel public debt
without raising taxes, without cutting social benefits, and to
establish a true Social Justice.
The highly indebted countries (Greece, USA, etc.) will be the
major beneficiaries of the structural financial reform ELPAS-
eQE, allowing them to invest unlimited public funds, but by
means of a financial platform (eQE) which allows control and
monitoring of electronic Funds through electronic instruments
(see: ELPAS).
3.1.2. Expected results: Education, Health and welfare programs may be funded through
a revolutionary "e-Fund Investment system", and no longer by
an obsolete and unsustainable system of public indebtedness.
Any size of public debt could be paid (Greece, USA..) some
faster than others. The International Monetary Fund (IMF),
European Central Bank (ECB) and other financial groups must
become "Social Investment Banking", without charging interest
assets but a unique banking fee for the "Fund administration" of
the Trust. Otherwise they will lose their customers!
Legal References: Financial Law and fundamental constitutional guarantees.
For more information see the book: SIEGEL-ELPAS System....
5. 4
3.2. ELPAS-MSMS PROGRAM:
It is an innovative financial banking platform that provides
custom electronic credits (e-credits) to establish and
maintenance Micro-, Small and Medium Enterprises. The e-
credit only will be mobilized between bank accounts, using for
this proposal the ELPAS electronic banking instruments such as
smart ID cards with fingerprint identification, Debit-Cards,
combined with a system for i-phone payment and electronic
checks (EFT- check); see Elpas. The small enterprises and
private users will have available the ELPAS-Workstation to have
direct access to the affiliate banking-platform and get approval a
"customized electronic credit" in real-time, without collateral
guarantees.
3.2.1. Benefits: The e-Credit will not be convertible into Cash money, which will
gradually be replaced by before mentioned electronic payment
instruments. The Debit smart cards and i-phones can be
"recharged" with electronic money through ELPAS-Workstation
by online-home banking or offices. Including, ATMs of the future
generation will be equipped with Readers-processors to deliver
the service to recharge Debit-cards and e-Phones by direct debt
on banking accounts.
3.2.2. Credit security: An attempt to misuse of e-credit can mean blocking electronic
credit. Thus, the use of ELPAS pay-instruments are ineffective
and access to e-credit is denied. In severe cases, the client will
be "blacklist" in the national and international banking system.
3.2.3. Services: Debit-Credit-Saving Cards (ELPAS-DCS Cards) shall be
protected with an Insurance Policy for the protection and
recovery of electronic money. Electronic money once canceled
in the banking system (00.00) definitely exits of the market of e-
money circulation. This allows Central Banks optimum control
and monitoring about all type of financial transactions, and
effective control about inflation. Ultimately, illegal currencies and
transactions may not exist.
3.2.4. Security: Electronic currency and electronic credit will be protected by the
best encryption system with dynamic code and rotary, which
decreases financial risk and significantly increases control and
security of global trading and financial system, and finally State
Security.
ELPAS goal: Banquisation of ninety-three percent (93%), from
12 years on with Debit-Saving Cards.
6. 5
3.2.5. Objectives: a) Reduce the unemployment to 3 at 4%.
b) Reduce poverty by 50%.
c) Comply constitutional promises (dignified life, the Right to work,
the Right to life, etc…).
d) Reduce financial organized crime.
e) Train entrepreneurs through specific educational programs,
financed by a "Special Educational e-Bond". A specific law
shall regulate the application and use of this Special Fund.
3.3. ELECTRONIC AUTOMATED TAX COLLECTION SYSTEM (AETC-system)
It consists of automated tax collection through direct debit, as
required by tax law, by severe penalties for disobedience. The
system generates a "Tax Invoice" for automated bank debit for
taxpayers. Tax-evasion" cannot exist. The payment of the tax-
bill means a tax prepaid. At the end of the fiscal year, taking into
account pre-payments, the system decides "who owes whom",
the taxpayer to the Treasury or vice-versa.
This allows governments a better budget planification, with more
accurate information of real revenues and expenses. With the
revenue increase (towards 100%) governments may finance
more social projects, including all or part of the ELPAS
development and implementation.
The ELPAS platform proposes two (2) plans to finance public
social spending:
Plan "A": Integral Tax Revenue Service (ITRS), and
Plan "B": Selective Tax Revenue Service (STRS).
The Plan "A" serves to Taxpayers which requesting from
government all social services that he provides, for example:
health, education, and different social welfare programs.
The Plan "B" allows Taxpayers to select only the Services that
he wishes to hire from government and for which he like to pay
taxes.
In the latter case, the Government operates as a mixed
private/public enterprise. With the implementation of the ELPAS-
eQE system the state finances social spending with recyclable e-
Bonds (e-Funds), and no needs for more time the taxes revenues
that serve the same function. Thus taxes will be free and become
Savings, also as endorsement (1 to 1) for the electronic money in
circulation.
This revolutionary structural reform allows governments to use
taxes for the re-payment of their debts. Once canceled the debts,
the State may do a reform and modernization in the State
7. 6
Balance (Public accounting), replacing "public debt" (Passive) by
"Social Investment Trusts" (Active). The new "Passive" in the
State Balance will be the Gross Domestic Product, GDP as
measurer par excellence for the variation of economic growth.
3.3.1. Funding: This comes from the bidding of the innovative "electronic
CAPITAL Investment Bonds" (see: Dual Sectoral Electronic
Financing with eQE, DSEF-eQE system).
Note: The separation (duality) of the public financial system
aims to wean the SOCIAL financial sector investment capital.
3.3.2. Advantage: When the economic is on recession (crisis), this does not affect
the financing of social sector. So, public wages are always
available in so-called "electronic social funds" (e-Funds), and for
the full fiscal year in advance. The funding of public spending
with "Social e-Funds" will replace funding through taxes, which
will be" free "to be used for the re-payment of public debts and
necessary imports. Taxes also serves as Backup (Aval) of e-
Funds in circulation in the national economy.
Once canceled the debts, the State may implement a reform in
the "public accounting" and replace "public debt" (liabilities) by
"Social Investment" (new assets). The new "Liabilities" in the
state balance shall be then the "Gross Domestic Product, GDP"
as a unique variation measure of the economic growth.
3.3.3. Innovation aspect: The “Dual Sectoral Electronic Financial System with electronic
Quantitative Easing", DSEF-eQE system represents also the
techno-political infrastructure of a new and modern
macroeconomic system, entitled: Economy of Productivity for
Development and Social Inclusion, EPDSI-model.
For more information see book: “SIEGEL-ELPAS System, a new
monetary, financial and economic system, marking the before and
after to the global financial crisis”.
3.4. INTERACTIVE DEMOCRACY 24/7:
The same ELPAS platform it lends to integrate a real democratic
system, called "Democracy Interactive 24/7". This application is
accessible via the same "ELPAS-Workstation" and a Smart
identification card (ID-Card) that carries personal user data, such
as fingerprint, number of personal documents and user photo.
This application allows the user (Taxpayers and voters) to
participate, vote and decide via internet in socio-political
decisions that affect personal and/or collective development.
8. 7
3.4.1. Benefits: The high costs in democratic elections will decrease enormously
(less than 70%) because no paper use, no high personal costs,
etc.)
In addition, the judicial system will be the winner par excellence
of this TECHNOLOGICAL INNOVATION, since banking-financial
transactions in state administration will leave a "footprint", which
provides irrefutable evidences. In logical consequence,
administrative corruption will be transparent and monitored, thus
it becomes fruitless business and disappears. The same will
happen with drug trafficking, laundering of assets and
international terrorism: "Will pass its fashion".
For more information see book: SIEGEL-ELPAS System
ISBN-978-9945-489-48-4, Dominican Republic, 2012.
3.4.1. Expected results: Education, Health and welfare programs may be funded through
a revolutionary "e-Fund Investment system", and no longer by an
obsolete and unsustainable system of public indebtedness. Any
size of public debt could be paid (Greece, USA….) some faster
than others. The International Monetary Fund (IMF), European
Central Bank (ECB) and other financial groups must become
"Social Investment Banking", without charging interest assets but
a unique banking fee for the "Fund administration" of the Trust;
otherwise they will lose customers!
4. INTEGRATION AND GLOBALIZATION (STAGE II)
According researches and studies conducted by the ELPAS
Foundation, the unique way to integrate nations and to resolve
social, economic and political problems in the XXI. Century is by
Technological Innovation, applying TIC´s. The ELPAS-eQE
system is evidence for this allegation. The integration that is
looking at the political level must necessarily include the global
market where competition plays a fundamental role.
The financing system through debt has already peaked, and
continues raising the debt limit cannot be the solution of the deep
financial crisis.
Ideally will then be a system that does not use indebtedness, that
does not raise taxes to generate more tax revenue; which does
not require cutting social programs to generate savings for the re-
payment of debts; that does not condemn future generations to
pay debts for which they do not respond, and this Alternative
system already exist and is named: ELPAS-eQE.
9. 8
To facilitate and accelerate the economic, financial and political
integration of nations, a techno-political system like ELPAS-FCe
must be taken into account, in compliance with constitutional
rights and guarantees of democratic State of Law, and even more
when it comes to implement in a country like the United States,
that is unique in the world which promote in its currency the
motto: "In God we trust", and the spirit of the ELPAS system
counts with the will of God, as we will shown in the adequate
moment.
The economic globalization, with Social including aspects,
necessarily must have the institutional and logistical support from
governmental institutions and inter-governmental organizations
such as the United Nations, European Union and Asian and
African blocs.
5. CURRENT PROJECT STATUS:
The ELPAS foundation has received financial offers from
Switzerland, Dubai, England and China, up to US$ 500.0 Million,
under the requirement to provide a Bank Guarantee (BG) or an
Insurance Policy issued by a international insurance company,
such as Lloyd of England.
The ELPAS project has been described as very attractive for
investment, high performance, and low financial risk.
5.1. Governments and organizations that have received the ELPAS project:
Germany, Spain, Portugal, Greece, Cyprian, England,
France, Italy, Russia, China, India, Japan, South Africa,
Saudi Arabia, Brazil, Argentina, Uruguay, Paraguay, Chile,
Peru, Ecuador, Colombia, Venezuela, México, Costa Rica,
Nicaragua, Honduras, Panamá, Cuba, Haiti,
Dominican Republic, EE.UU, U.S. Congress; Canada, Vatican
State, United Nations (U.N.O.); Organization of American
States O.A.S); European Commission (EC); SELA, CEPAL,
and the Juridical Power from Germany, Venezuela,
Dominican Republic, EE.UU (Miami-Dade County), a.o.,……
5.2. Governments that have responded to the ELPAS proposal:
Alemania, España, Colombia, Brasil, Chile, Ecuador, Costa
Rica, Estados Unidos, México, Perú, República Dominicana,
Cuba, and Judical Power of Germany, Venezuela, República
Dominicana and EE.UU (Miami-Dade County), a. o.
10. 9
6. IMPLEMENTATION PLAN:
It is performed in two (2) Stages:
STAGE I: 6.1. Dual Sectoral Electronic Financing with electronic
Quantitative Easing DSEF/ELPAS-eQE.
6.1.1. Application time: 7 month.
6.1.2. Objective: To replace the public borrowing system by a Social Investment
system with electronic Bonds, backed by Tax revenues and
Constitutional guarantees (Labor law).
6.1.3. Advantages: a) Elimination of debt system worldwide, and forever.
b) Ability to repay international loans, without any type of social
sacrifices and without requesting new loans.
c) Replacement of active interests for social Investment by "Trust
Commission for administration of Social e-Funds".
d) Social e-Funds will be recycled and updated annually in
accordance with the new national budget.
e) Embezzlement and corruption will be controlled, monitored and
transparent.
f) Could be applied in any country with Internet and Information and
Communication Technologies, ICTs.
6.1.4. Implementation procedure:
6.1.4.1. Government and Parliament approve the different "Electronic
Funds of Social Investment" for Education, Health, Judicial
system and Social Assistance Programs.
6.1.4.2. In coordination with the Central Bank, Ministry of Finance issue
"electronic sectoral Bonds" to deposit in banks that participate in
the "Program for social e-Trust".
6.1.4.3. Public Employees of different sectors like education, health, etc.
receive their payroll as bank deposit from the specific sectoral e-
Bono. This deposit can only be mobilized by Debit Card (not in
Cash) with access to all commerce, on- and offline..
6.1.4.3. When Sectorial e-Bono is "zero” at the end of the fiscal year, the
Finance Ministry and Parliament will update the amount for the
next fiscal year. Note: December 31, each year: e-Bond =
00.00).
11. 10
7. FREQUENTLY ASKED QUESTIONS:
7.1. How reduces the financial system ELPAS-eQE the unemployment and poverty?
For this purpose it was designed and developed the ELPAS-MSME
application. It consists of the issuance of "productive e-Credits" aimed
at entrepreneurs with an economic interest project and for job
creation. Once approved the project for Bank entrepreneurial receive
a Bank affiliate software that allows you to mobilize ELPAS credit
through debit cards, electronic check and i-phones (see Elpas
system). The electronic credit (e-credit) will not be redeemable in
cash. ATMs of future they become on "Electronic Money Recharge
Stations" for Debit cards and i-phones. This new banking services
would allow the Bankers to reduce substantially the cost of credit
(active interest). Experts in the field estimate that active bank rates
could fall between 45 to 55% depending on the macro-economic level
where the country is.
7.2. What would be the advantage of the new financial system for banks?
7.2.1. Create new products and services for Electronic Banking on-
line / off-line applications from twelve (12) years on forward; market
new insurance products, and Trust services, such as:
7.2.2. Multifunctional Savings-Debit Cards (+12 years) and Savings-
Debit-Credit (+17 years), combined with T-payment and CTF-check,
accompanied by a new insurance policy for the protection and
recovery of customized electronic money.
7.2.3. Marketing the ELPAS-Workstation" with Online-Home-Banking
and Electronic State) World first !
7.2.4. Management of Electronic Trust Funds for different social
sectors.
7.2.5. New products for MSME, Cooperatives, organized society, and
in this way become a true "middleman" between producers and
economic apparatus.
7.2.6. Reduce the banking-financial risk to "zero" with the issuance of
customized electronic money. With the technological platform (or
similar) the banks are protected against fraudulent use, hacking, etc.
(See: Elpas security system).
2.2.7. Re-payment of electronic loans will be automated systemically,
so it is very sure. The bank always has access to the borrower's bank
deposits, initially at national level, and by globalization of this system,
internationally, which increase the banking and commercial Security,
finally State Security.
12. 11
2.2.8. When the borrower defaults on the completion of its project, still
available electronic credit will be blocked by the bank, so electronic
instruments like debit cards, i-phones and electronic check are invalid
in local and international commerce. Note: Optima security in national
and international banking-system.
7.3. Who supports the new monetary-financial system ELPAS-eQE?
Until now ELPAS Foundation presents this macro-project of systems
to more than 60 governments, internationally. The ELPAS proposals
were presented in Academic conferences, TV and Radio programs,
Daily in different Latin American and European countries. The popular
approval was not less than 92%. This indicates that ideas and
proposals of the ELPAS macro-project are aligned to the perspectives
and aspirations of the international community.
7.4. How to finance the education, health, and social programs with ELPAS-eQE
system?
The ELPAS-eQE financial system proposes paying public payrolls
and public investment through "electronic digital currency" backed by
tax revenue and fundamental constitutional guarantee and the labor
law. Taxes, deposited in the Central Bank, will have a new role in the
modern economy as they serve as endorsement of electronic money
(e-money) in circulation, while public spending is financed by
"computerized digital currency" processed by electronic payment
instruments and electronic Social Investment Bonds. Since taxes will
no longer be used to finance social spending, they can be used for re-
payment of public debts and financing of imports. This revolutionary
financial methology could be the unique solution to resolve the global
financial crisis.
7.5. What are the obstacles to the implementation of the financial system ELPAS-eQE?
7.5.1. The most notable obstacles are inadequate economic interests,
primarily corruption, which become a culture! The governments want
to control but do not want to be controlled; they want to investigate,
but do not want to be investigated, and the monetary and financial
system ELPAS-eQE is CONTROL and TRANSPARENY. No doubt,
governments which don´t like transparency and systematic controls,
never will implement a system like ELPAS-eQE.
7.5.2. The ELPAS foundation and Its founder Investigated Have
Studied and country clubs since 1974 to today like Germany, Brazil,
Venezuela, Colombia, Dominican Republic, Peru, Costa Rica, the
United States, among others.
In each of these countries we found the same or similar attitude of
the Executive, Legislative and Judiciary Power, opposite the ELPAS
proposals, namely: Cloaking, tacit Administrative silence, negligence,
abuse of power, and violation of constitutional democratic rights.
13. 12
7.5.3. The Author had to understand that government authorities they
abuse their power and cause violent outcomes, for later to become
the victim. In the ELPAS Foundation we are absolutely convinced that
the best way to overcome is taking the democratic and legal Rout, is
longer and needs more TIME, but finally overcome. Real democratic
governments CAN NOT reject a system like ELPAS, because it
makes fundable the pledged rights and guarantees in democratic
constitution of the State of Law, and also resolve the most social-
economic problems, without debt.
7.5.4. The output of the financial and economic crisis, necessarily
have to pass by the electronic currency system and the massive use
of Technologies Information, Communication and Knowledge
(TICC's), which are considered as irreversible trends.
7.5.5. THE POLITICAL WILL of both legislative and executive power it
is of fundamental importance to launch an innovative financial and
economic system like ELPAS-eQE.
8. CONCLUSIÓN:
To implement a monetary, financial and economic system like ELPAS-eQE is necessary the
full support of the three government branches: Executive, Legislative and Judicial. If one of
them fails in its functions, will be necessarily intervene the fourth and real power of the state:
The Sovereign Power, have to decide through its vote in an advisory referendum, about
the application or not of a new Social, Monetary, Financial, Fiscal, Economic and
Governmental Order, ELPAS-eQE, who proposes the changes expected by 93% of the
international society. This democratic route is the most viable to introduce a system of this
nature.
The “Dual Sectoral Electronic Financing System with electronic Quantitative Easing, DSEF-
eQE System, will be like a "catalyst" to drive this necessary transformation process, without
direct intervention in it, to direct a process longed by international society.
The Statutes of the ELPAS Foundation say: To implement a system like ELPAS, the electoral
society must vote in a minimum of 75% in favor of a proposal like ELPAS-eQE or similar,
because a twenty five percent (25%) of this society don´t like order, nor systematic prevention
controls and transparency.
The “Dual Sectoral Electronic Financial System with electronic Quantitative Easing, DSEF-eQE
System, will be a "catalyst" to drive this necessary political transformation process, a process
longed for world society.
Note: For more information please contact the ELPAS-USA Foundation through our email:
elpas3000@gmail.com or visit our WEB-site: www.elpasinternational.org