mayfair

From: malcolm baker <contacts>
Subject: Economics
To: p.dunne@ministers.govt.nz
Date: Wednesday, 25, January, 2012, 5:15 AM

Malcolm Baker, Baker Publishing, 42-44 Spencer Avenue Maketu 3189 http://www.rainierbank.biz Dear Sir, I'm hoping you will read and consider some of the ideas from a book about Economics I am preparing for a Nobel Prize I hope to win. There is a link from my web page. As you know the situation is serious, both nationally and internationally. The book is in an early stage of preparation because I'm also writing a thesis about nuclear physics, or quantum mechanics, if you prefer, but there are some problems economically, not the least of which is the increasing concentration of wealth amongst the wealthy. If you accept that wages create demand, and the economy is stagnant, the answer is to increase wages to create demand but this cannot be done because it would cause inflation and possibly create unemployment. The other problem is global warming, and with temperature increases predicted by serious scientists, as .5 degrees one year, with a 2 degree increase the following year,  5 degrees the next, and over double or 10 degrees in the fourth year, you will se a predicted increase of 17 degrees in just four years. This is a lot more serious than most scientists think, but once it starts it will be too late to stop it. In purely economic terms, oceans will rise, whether immediately or over the next 200 years, and cities like London will flood, and have to be rebuilt elsewhere, as will all the ports of the world. The solution is relatively simple, a 10% on motor spirit, with the money raised being used to install solar electric panels, which will pay for themselves (at $90 for every 10 units a day generated) (economies of scale must reduce prices), an average roof generating between $500 and $1,000 per year. Also an increase in the amount of alcohol being sold in petrol is needed, to save another 10% of oil. Keeping relativity in wages, and paying only public servants (nurses, school teachers etc), a $2 per hour increase is needed immediately, ($6 for those on three times the minimum). Wages must be increased before petrol prices are (can be) increased, even if the money is paid back as vouchers to buy solar panels. with tax revenue at about 48 to 50 billion, and the Bank of England- which is owned by the people of Great Britain,and indirectly, the Commonwealth can lend money to Finance Ministers at 5%, by buying currency in their countries with pounds, and then lending it to them. It will not need to be repaid (for 20 or 30 years), as long as interest is paid, and even this can be deferred for a year or two as long as it is paid eventually. This way 20 billion will cost 1 billion. This could be sustained for three years, long enough to stimulate the economy by paying people to create assets (wealth) for the government. I have some ideas how this could be done, public (state) housing for example. Many European countries also need help, but cutting out welfare, and cutting government spending will only shrink the economy even more. People do have the right to work, or an income if there is no work for them to do. They have to buy food and pay the rent. Business will flourish if people have money to spend, but real wages have been shrinking for many years. This is not the whole answer, and part of my solution is to increase bank interest rates by 1%, (ultimately to 8%), and the reasons are on my web site. I hope you consider this. I know it is logical, and my work will contain some simple formulas to get a flat tax of about 30%, plus GST, and to get the government onto a balanced budget with a falling deficit of below 8% of GDP. It is my hope that you find something of interest here, and something which resonates with your own ideas. (I'm no longer seeking a permanent relationship with Sladja, who I wrote to you about earlier. She still works as a private tax consultant, and we now share a software business called Dragon Systems. Thank for your previous response, and have a happy and prosperous new year. Yours sincerely, Malcolm Baker.