Francisco Montaner Farré Graduate in Law Mercantile Professor



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Constitution of the WORKERS’ PARTY
The time for protagonism of the syndicates has arrived

S.O.S. ARGENTINA. Emergency
Social Doctrine of the Church
Partnership Contract (3)
New fiscal system for the European Union
YES to the European Constitution!

- Commentary and denunciation
- Globalization and antiglobalization
Preliminary observation. Method. Guarantees
- Globalize housing
Description of the Project
Example for 500 houses, with ZERO COST
Confirmation: Construct houses in unlimited numbers.
- Amortization tables 1 and 2
Formation of ordinary reserves destined for education.
Evidence: No indebtedness.
- Amortization tables 3, 4 and 5
New creation of financial reserves destined for Research and Development and fight against poverty.
No indebtedness.
- Bonds issued by the European Union
Unsurpassable advantages over U.S. Bonds or any other fixed-rate Bond. Better return.
ONLY ONES with amortization premium of 50% or more.
No indebtedness.
- Concept and Analysis of "remainders"
Mass of liquid capital, available with ZERO COST, destined for national infrastructures and real help in developing poor countries.
- Capacity and response of the financial markets to the issue of BONDS FROM THE EUROPEAN UNION
Commentary difficult to refute and even less to contradict.
The Project is not exclusive for the European Union: it can be executed by any country on any continent
The interventions by local NGOs should be decisive.

- Final challenge
The support of the communications media should be conclusive


This Website is a call to all the NGO organizations and to their willingness to serve. There exists an organization whose objectives are to achieve the establishment of a tax on financial transactions. It is an aspiration for an indefinite time and almost impossible to unify persons willing to accept it. On the contrary, here, right now, an immediate percentage is offered of the Reserves that are formed in my Project for the unlimited construction of self-financed housing, that is, with ZERO COST. It is a Project fully described and reasoned in my two books, which are sold out, published in 1984 and 1999. In this last edition I suggest a minimum percentage of 2 to 5 percent of the Reserves that are obtained from the construction programs be used in the fight against poverty. In the example that I develop to verify and affirm what I explain, with a small Program of 500 houses, 2 percent of such reserves would be 209,830 euros. With the same number of houses in each of the fifteen countries of the European Union, the 2% of the reserves would be 3,147,450 euros. I ask: What is the deficit of housing in the European Union including the countries pending integration? Answer: Calculate for yourself the immediate resources available that can be destined to development, if the Project that I define is studied, accepted and executed by the European Commission. Therefore, the first action by the NGOs, united with a single resolve, is to get the Commission to receive the project in order to analyze it seriously.
The special financial dynamics that I describe generate sufficient reserves to create mass employment, a condition necessary to eradicate poverty.
The immediate results of this Project are: Globalization of housing, permanent work and education for all, without exceptions.

Reasons for this Website
The reason is simple. Since 1984, I have been trying for 17 years, fruitlessly, for attention to be paid to this Project. I have presented it to the power sources, Governments and their ministers, congressmen and senators, political and union directors, employers and bankers, the European Commission and the European Parliament, with the unanimous and joint result: apart from scarce acknowledgements of receipt, I have not received a single commentary. The conclusions that I reach in this Project are rigorously correct. If the personages cited have not understood my explanations and calculations, their pride keeps them from asking me, or perhaps they do not want to be found out. It also could be that, for partisan principles, they consider outside projects unacceptable.
Another frustration experienced is having believed that the organization that aspires to establish a tax on financial transactions, to which on October 8, 2001, I sent a copy of this Project, to 50 of their main headquarters in France, Belgium and Switzerland, has not had, as a minimum, the courtesy of acknowledging its receipt. After all, it is one more case to add to the long list already cited.
After 17 years of attempting what has turned into an impossible mission, I am going to use the means that the Globalization of communications provides me to call on all persons of good will, without distinction of age, ethnic group, color, political preference or religious belief, to fight against poverty in the world, because I offer tools in the economic order that let us have the sufficient resources to achieve it without prejudice. For this I believe that the NGOs are the preferred group to take on the compromise of leading the Project.
To achieve that in Europe this Project gets started with the slogan "For your own home, employment and education", it is a priority to move the consciences of the fifteen nations that form the community, plus all the countries that aspire to form part of it, to awaken the European Commission and the Commissioners of economic issues from their apathy to accept open discussion of the Project and to issue a reasoned decision. A Project cannot be ignored without knowing and analyzing it.
We want a Europe that has a common economic unit which favors everyone equally, without being conditioned by any political pressure or individual or partisan interests. This Project does not interfere in the rights or preferences of any country nor does it ask for particular sacrifices by anyone, because each nation will tend to its own needs within the common Project.


Preliminary observation
Any Research and Development project requires elevated sums of money. Without money everything remains in good intentions. The Project that I present resolves this problem through self-financing, with the particularity that the more ambitious are the development programs, funds are generated in a similar proportion without indebtedness, free and immediately available.

Through the expression of ideas, commentaries and financial calculations subject to the most exhaustive verification, I suggest that the form of supporting antiglobalization is proposing the globalization of housing, employment, education, health services, development and achieve the effective fight against poverty in the world.

The execution of the Project that I describe guarantees:
- Construction, stimulated by the States, of houses in unlimited numbers at a fair and accessible price. The only limitation would be the saturation of demand.
- Zero investment by coinciding, in amount and time period, the right to receive payment for the sale of houses with the obligations to pay the cost of the construction.
- The Project creates mass employment.
- Between the sale price and the cost of the housing remains an important positive differential, free and available for concrete investments. These are the so-called ordinary reserves preferentially destined for
- Education, first national requirement. Health and Social Security.
- Financial combinations, properly described, allow the formation of financial reserves which are much higher than the ordinary reserves, free, available, and destined for
- Research and Development.
- Emergency funds for the Third World so that with their own work they conquer poverty and do not have to depend on humanitarian aid. With housing and employment, these people will aspire to development with their own efforts and will get out of their miserable existence.
- The Capitalization of the remainders that appear in the execution of the system, without indebtedness of any type and of an unsuspected amount, are destined for
- Execution of large infrastructural projects
- Amortization of the different Bond issues (details in the amortization tables), with a net premium of 50% of the nominal value

In synthesis, this is my contribution to the activists attending and not attending the concentration in Geneva. An alternative to antiglobalization, by understanding that globalization is not bad in itself, but rather that it is suspicious by being exclusionary. Suspicious and untimely; but its presence and its drive cannot be ignored. Globalization is an expression of ambiguous content, capable of awakening the most justified but impractical intentions to combat it.
If globalization is considered as the universal expansion of multinational companies, with absorbing economic potential directed to creating markets which generate succulent dividends, it is evident that globalization does not take into account the human factor nor its needs. It is also correct that the voracity of the speculators move enormous amounts of money instantly throughout the globe, attacking companies, manipulating foreign currency and market values with money, news and rumors. Equally certain is the affirmation that uncontrolled globalization, motivated only by a desire for wealth, leads inexorably to deepening the inequalities between rich countries and poor countries, in the most rigorous sense of wealth and poverty.
Antiglobalization actions, also called anti-system, have their effects. A human avalanche managed to scare the attendants of the G-8 meeting in Geneva into dealing with "their" economic policy. The most striking, and at the same time doubtful, achievement is that the "Tobin case" has been unearthed, concerning the movements of capital to form an aid fund for the development of the Third World. From this idea only opposing positions will emerge with no practical results.
If we want an antiglobalization that defends the main principles of survival, it should be creative. The convocation capacity of the demonstrators of Geneva opens the road for future similar acts, but they should be based on concrete plans for creating massive employment, because with employment comes income and with this income, poverty and hunger are conquered. It is not sufficient to demonstrate in favor of employment, abstractly. The adoption of a Project to create jobs in quantity and right now should be insisted upon. We accept the reality of the expansion of the multinational companies, stock market speculations, massive financial importation and exportation and the instantaneous movement of capital throughout the entire world with a simple click of the computer mouse. These are written and unwritten laws imposed by the market through free commerce, and this reality, undeniable, is irreversible.


It is not profitable to attack globalization in the abstract. The phenomenon of globalization is an episode in the progress of humanity; it is one more facet in the process of human development initiated with the industrial revolution that has taken us, step by step, from the steam engine to the marvels of electronics, being this latter the efficient cause of the society's evolution, with Globalization as the last link in development. We should accept it with all its defects and decide how we can take advantage of it in looking for immediate solutions to urgent needs. We, the ones on the bottom, must do it, because the ones on top are busy with politics and finances, and the interest of the collective are not always a priority.


We can achieve it with a Project that begins with the construction of sufficient houses to cover the entire housing deficit, with ZERO investment costs. The immediate consequence is the creation of mass employment and ends with the freeing of resources destined for education. A valid system for any country on any continent, but here we are expressly addressing the European Union to execute the Project together among the fifteen member countries, expandable to all the countries aspiring to form part of the EU. Stable and continuous work provides income to acquire a house at accessible prices, cover daily necessities and, like a chain reaction, poverty disappears, illnesses are attended, education is accessible, and intelligence, condemned to ostracism, will be made use of. The system frees up sufficient resources to send real help to the countries of the Third World, rescuing human beings submitted to the humiliation of being born and dying in hunger without the minimum opportunity to feel alive, to contemplate and to think.
In summary, these are the objectives that are proposed by the Globalization of housing.



To explain how it is possible to construct any number of houses with ZERO COST, I must present the description of the Project in two forms: a simple one in which I use easily understandable figures for persons not accustomed to financial mathematics, and another more detailed as support for the affirmations contained in the simple form. The components of the first group must accept as correct my affirmations for incredible as they may seem and look for help in persons who are experts in the mechanics of the calculations to confirm for them that my conclusions are correct. Therefore, all the results that serve as a basis for the commentaries, are true. They can be verified by experts in financial calculations by analyzing the details of the total development contained in the amortization tables.
The figures that are shown in the calculations that follow are not absolute but relative. This means that among them exists a total proportionality and variations can be admitted in the interest rate, time table and costs and selling prices, the latter having great variations depending on the areas in which the houses are constructed.

Resources available without indebtedness

- Let us suppose there are 500 persons who want 100-m2 houses and we provide these at a price of 1200 euros per m2 to be paid with a down payment of 15% and the rest in 30 years at 6.75% fixed interest, with life insurance and some terms of family aid included. Each quarter they pay the amount of 1,988 euros that represent 663 euros per month. If each person pays 1,988 euros, under the heading of amortizations, we will receive 994,000 euros each quarter.

- In these conditions we can symbolically go into debt by issuing Bonds at 7% fixed interest during 30 years, which we will cancel with quarterly payments of 994,000 euros, the amount corresponding to what we receive from the 500 buyers. The total of the issue would be 49,720,596 euros.

- The selling price of the m2 is calculated on an average of 1,200 euros and the 500 houses in 60,000,000 euros. The cost of the 500 houses at 1,056 euros per m2 (selling price minus 12%) would cost 52,800,000 plus an estimated 2% over the selling price as administration costs, or, 1,200,000 euros. Therefore: the cost of construction of 52,800,000, plus administration costs of 1,200,000, minus 9,000,000 that we will have available from the 15% down payments, (15% of the selling value of 60,000,000), results in necessary expenditures of the total investment of 45,000,000 euros to construct the 500 programmed houses.

- The selling price is fixed by the sum of three values: price of the land, cost of construction and industrial benefit of 30 to 40 percent over the land and construction. Of this 30 to 40 percent benefit of the constructor, the State participates with the 12 percent of the selling price. The loss to the constructor is more than compensated for from the volume of contracts that will be assigned to him.

- If we consider that the income we will have for the issued Bonds will be 49,720,596 euros and the total investment is 45,000,000, we are left with a remainder immediately available of 49,720,596 - 45,000,000 = 4,720,596 euros as ordinary reserves. These results are obtained with the construction of just 500 houses with ZERO COST (see page 13).

Besides these ordinary reserves the Program admits various projections for obtaining funds, among them, two of financial reserves that greatly surpass the ordinary reserves, (page 14); a third projection called remainders with which we can obtain income sufficient to amortize the Bonds issued for 30 years, with a net premium of 50% of the nominal value. This circumstance guarantees the investments in fixed yield, in profitability as well as in stability (see page 16); and lastly, the reserves from a fourth projection that permits the issuance of a special type of Bonds, with variable maturity, without amortization premiums and cheaper currency, destined to the construction of rental homes for families with fewer resources, with deliverance of property title in 20 years. The explanation, details and results of this fourth projection, I leave in suspense while there is no real willingness to execute the Project, shown through concrete actions. I think that it would be untimely to go too far ahead.
The previous figures are the result of construction programs for 500 houses. Calculate the flow of money that could accumulate from 15 countries in the European Union with a first program of 500,000 houses per country (which do not cover the real needs), after creating jobs in mass. They are resources destined for Research and Development and to eradicate poverty without turning to humanitarian aids that are received with humility, gratitude and also with private humiliation.

Complete development of the accumulation of resources that are attained in a simple construction program of 500 houses with ZERO COST

Construction of 500 houses in multifamily buildings
Costs. Sales. Necessary resources.

General specifications

Construction of multifamily housing 500
Area in m2 100
Selling price per m2 1.200
Cost, 88% of the selling price 1.056
Down payment, % 15
Amortization period in years 30
Mortgage interests on balance owed in % 6,75 
Amortization of Bonds, in years 30
Annual interest on Bonds, in percent 7
Quarterly income per financed EURO 0,01949161
Quarter payment per EURO of issued Bonds 0,01999316
Administration costs over selling price in % 2

Selling price of a 100-m2 house

Selling price 120.000
Down payment of 15% 18.000
Deferred payments at 6.75% for 30 years 102.000
Quarterly payment 102,000 x 0.01949161 1.988
Monthly equivalent 663

Overall operation

500 100-m2 houses at 1,056 euros/m2 52.800.000


500 100-m2 houses at 1,200 euros/m2 60.000.000
Income from down payments 9.000.000
Financing for 30 years at 6,75% 51.000.000
Quarterly collection (see page 8) 994.072

Total costs

Construction costs 52.800.000
Administration costs 2% 1.200.000
Costs to cover 54.000.000
Available from down payments 9.000.000


Amortization table No. 1 shows that buyers pay quarterly 994.072
This same amount will serve to cancel the Bonds issued at 7% by the amount of the quotient: 994.072

994.072 amount available

_____________________________ = 49.720.596
0,0199931675 unitary amortization  

By establishing the equality between the active right to payment and the passive obligations of Bond amortization, UNLIMITED CONSTRUCTION OF HOUSES WITH ZERO COST is shown.


Table 1. Quarterly amortization of buyers' mortgages. In EUROS
Quarter Down Payment Amort. quota 994.072 Interest at 6,75% Amortized capital Capital pending amortization
1 51.000.000 994.072 860.625 133.447 50.866.553
2 50.866.553 994.072 858.373 135.699 50.730.854
3 50.730.854 994.072 856.083 137.989 50.592.865
4 50.592.865 994.072 853.755 140.318 50.452.547
5 50.452.547 994.072 851.387 142.685 50.309.862
6 50.309.862 994.072 848.979 145.093 50.164.768
7 50.164.768 994.072 846.530 147.542 50.017.226
8 50.017.226 994.072 844.041 150.032 49.867.195
9 49.867.195 994.072 841.509 152.563 49.714.632
10 49.714.632 994.072 838.934 155.138 49.559.494
107 12.303.449 994.072 207.621 786.452 11.516.998
108 11.516.998 994.072 194.349 799.723 10.717.275
109 10.717.275 994.072 180.854 813.218 9.904.056
110 9.904.056 994.072 167.131 826.941 9.077.115
111 9.077.115 994.072 153.176 840.896 8.236.219
112 8.236.219 994.072 138.986 855.086 7.381.133
113 7.381.133 994.072 124.557 869.516 6.511.618
114 6.511.618 994.072 109.884 884.189 5.627.429
115 5.627.429 994.072 94.963 899.109 4.728.320
116 4.728.320 994.072 79.790 914.282 3.814.038
117 3.814.038 994.072 64.362 929.710 2.884.328
118 2.884.328 994.072 48.673 945.399 1.938.928
119 1.938.928 994.072 32.719 961.353 977.576
120 977.576 994.072 16.496 977.576 0

Table 2. Quarterly amortization of BONDS. In EUROS
Quarter Capital 49.720.596 Amort. quota 994.072 Interest at 7% Amortized capital Capital pending amortization
1 49.720.596 994.072 870.110 123.962 49.596.635
2 49.596.635 994.072 867.941 126.131 49.470.503
3 49.470.503 994.072 865.734 128.338 49.342.165
4 49.342.165 994.072 863.488 130.584 49.211.581
5 49.211.581 994.072 861.203 132.870 49.078.711
6 49.078.711 994.072 858.877 135.195 48.943.516
7 48.943.516 994.072 856.512 137.561 48.805.956
8 48.805.956 994.072 854.104 139.968 48.665.988
9 48.665.988 994.072 851.655 142.417 48.523.570
10 48.523.570 994.072 849.162 144.910 48.378.661
111 9.047.273 994.072 158.327 835.745 8.211.528
112 8.211.528 994.072 143.702 850.370 7.361.157
113 7.361.157 994.072 128.820 865.252 6.495.905
114 6.495.905 994.072 113.678 880.394 5.615.512
115 5.615.512 994.072 98.271 895.801 4.719.711
116 4.719.711 994.072 82.595 911.477 3.808.234
117 3.808.234 994.072 66.644 927.428 2.880.805
118 2.880.805 994.072 50.414 943.658 1.937.147
119 1.937.147 994.072 33.900 960.172 976.975
120 976.975 994.072 17.097 976.975 0

Table 1 means that by paying 994,072 euros quarterly, the buyers cancel their mortgage debt with a total of 51,000,000 euros.
At the same time Table 2 shows that with the amount of 994,072 euros received from the buyers each quarter, we amortize the Bonds issued for a value of 49,720,596 euros, with the following liquidation according to the general specifications
Received from the issue of Bonds 49.720.596 euros
Investment in the construction of 500 houses 45.000.000 euros
"Ordinary reserves" with free disposal 4.720.596 euros

With the two preceding amortization tables and the liquidation of results, not only the reality of the proclaimed unlimited construction of housing with ZERO COST for the State, but in addition, nearly 5 million euros are generated in ordinary reserves, destined for, preferentially, education. The system is integrally proportional from the construction of one house up to the number of units that are needed.

If we limit ourselves to coordinate the active rights with passive obligations, with no investment, houses are constructed, unemployment is attacked and there remains a benefit. But this is not the only objective of the Project. It goes much further because we can have available a strong tool to create in addition the "financial reserves" that greatly surpass the "ordinary reserves" (See link 6), and also the so-called "remainders", of great importance for their volume.


In the previous Tables 1 and 2, we see that the periodical amortization quotas are made up of two parts: the first are the interests on the unpaid balances and the second is a portion destined to the return of capital. On the other hand, we know that the accrued interest, considered as capital yields, are subject to the payment of a tax with withholding at origin. As for the amortization periods, as issuers of the Bonds, we can fix them monthly, quarterly, annually or even opt for a single amortization at the end of the period, for which the interest would be fixed, also the withholding for taxes would be fixed and, besides, there would remain some constant remainders formed by the part of the amortization quota destined to the return of capital, that we retain with discretional destination.
Therefore, if we choose the method of a single amortization at the end of the period and constant payments of quarterly interest, the previous amortization table 2 would be modified by introducing two new columns of "withholding" and "remainders". As for the withholding for taxes on the capital yield, I should warn that in the EU the harmonization of rates has still not been agreed upon. In Spain it is 18 percent, but to follow the development of the subject, we are going to suppose a single withholding rate of 12% in the EU territory. Thus, table No. 3 would be:

Table 3. BOND amortization in EUROS. FINAL amortization, at 30 years
FIRST ISSUE. Payment of quarterly interest
Quarter Capital 49.720.596 Amort. quota 994.072 Interest 7% Withholding 12% Remainders
1 49.720.596 994.072 870.110 104.413 123.962
2 49.720.596 994.072 870.110 104.413 123.962
3 49.720.596 994.072 870.110 104.413 123.962
4 49.720.596 994.072 870.110 104.413 123.962
5 49.720.596 994.072 870.110 104.413 123.962
6 49.720.596 994.072 870.110 104.413 123.962
7 49.720.596 994.072 870.110 104.413 123.962
8 49.720.596 994.072 870.110 104.413 123.962
9 49.720.596 994.072 870.110 104.413 123.962
10 49.720.596 994.072 870.110 104.413 123.962
11 49.720.596 994.072 870.110 104.413 123.962
12 49.720.596 994.072 870.110 104.413 123.962
13 49.720.596 994.072 870.110 104.413 123.962
14 49.720.596 994.072 870.110 104.413 123.962
15 49.720.596 994.072 870.110 104.413 123.962
106 49.720.596 994.072 870.110 104.413 123.962
107 49.720.596 994.072 870.110 104.413 123.962
108 49.720.596 994.072 870.110 104.413 123.962
109 49.720.596 994.072 870.110 104.413 123.962
110 49.720.596 994.072 870.110 104.413 123.962
111 49.720.596 994.072 870.110 104.413 123.962
112 49.720.596 994.072 870.110 104.413 123.962
113 49.720.596 994.072 870.110 104.413 123.962
114 49.720.596 994.072 870.110 104.413 123.962
115 49.720.596 994.072 870.110 104.413 123.962
116 49.720.596 994.072 870.110 104.413 123.962
117 49.720.596 994.072 870.110 104.413 123.962
118 49.720.596 994.072 870.110 104.413 123.962
119 49.720.596 994.072 870.110 104.413 123.962
120 49.720.596 994.072 870.110 104.413 123.962
119.288.665 104.413.252 12.529.590 14.875.413
Possible SECOND ISSUE 5.222.447

This Table 3 indicates: 1. That in the course of the 30 years, interest will have been paid for a total of 104,413,252 euros. 2. Likewise, in the same period withholding has been made for taxes, 12% of the interest paid, or 12,529,590 euros. 3. In each quarter we receive 104,413 euros in withholding. This income is net, with no counterpart of indebtedness and therefore we can use it to amortize a SECOND ISSUE of Bonds whose quarterly amortization quota would be equal to 104,413 euros. The nominal value of the issue would be 5,222,447 euros (quotient between 104,413 quarterly collection and the unitary amortization quota 0,0199931675). See general specifications. The amortization table for the SECOND ISSUE would be:

Table 4. Amortization of BONDS in euros. FINAL amortization, at 30 years
SECOND ISSUE Quarterly interest
Quarter Capital 5.222.447 Amort. quota 104.413 Interest 7% Withholding 12% Remainder
1 5.222.447 104.413 91.393 10.967 13.020
2 5.222.447 104.413 91.393 10.967 13.020
3 5.222.447 104.413 91.393 10.967 13.020
4 5.222.447 104.413 91.393 10.967 13.020
5 5.222.447 104.413 91.393 10.967 13.020
6 5.222.447 104.413 91.393 10.967 13.020
7 5.222.447 104.413 91.393 10.967 13.020
8 5.222.447 104.413 91.393 10.967 13.020
9 5.222.447 104.413 91.393 10.967 13.020
10 5.222.447 104.413 91.393 10.967 13.020
11 5.222.447 104.413 91.393 10.967 13.020
12 5.222.447 104.413 91.393 10.967 13.020
13 5.222.447 104.413 91.393 10.967 13.020
14 5.222.447 104.413 91.393 10.967 13.020
15 5.222.447 104.413 91.393 10.967 13.020
106 5.222.447 104.413 91.393 10.967 13.020
107 5.222.447 104.413 91.393 10.967 13.020
108 5.222.447 104.413 91.393 10.967 13.020
109 5.222.447 104.413 91.393 10.967 13.020
110 5.222.447 104.413 91.393 10.967 13.020
111 5.222.447 104.413 91.393 10.967 13.020
112 5.222.447 104.413 91.393 10.967 13.020
113 5.222.447 104.413 91.393 10.967 13.020
114 5.222.447 104.413 91.393 10.967 13.020
115 5.222.447 104.413 91.393 10.967 13.020
116 5.222.447 104.413 91.393 10.967 13.020
117 5.222.447 104.413 91.393 10.967 13.020
118 5.222.447 104.413 91.393 10.967 13.020
119 5.222.447 104.413 91.393 10.967 13.020
120 5.222.447 104.413 91.393 10.967 13.020
12529590 10967138 1.316.057 1.562.452

With the same procedure, in the SECOND issue, in the concept of the tax withholding, each quarter we will have available income of 10,967 euros that can be used to amortize a THIRD issue with a nominal value equal to the quotient of 10,967/0.099931675, or 548,544 euros, with the following amortization table:

Table 5. Amortization of BONDS in EUROS. FINAL amortization at 30 years
Quarter Capital 548.544 Amort. quota 10.967 Interest 7% Withholding 12% Remainder
1 548.544 10.967 9.600 1.152 1.368
2 548.544 10.967 9.600 1.152 1.368
3 548.544 10.967 9.600 1.152 1.368
4 548.544 10.967 9.600 1.152 1.368
5 548.544 10.967 9.600 1.152 1.368
6 548.544 10.967 9.600 1.152 1.368
7 548.544 10.967 9.600 1.152 1.368
8 548.544 10.967 9.600 1.152 1.368
9 548.544 10.967 9.600 1.152 1.368
10 548.544 10.967 9.600 1.152 1.368
11 548.544 10.967 9.600 1.152 1.368
12 548.544 10.967 9.600 1.152 1.368
13 548.544 10.967 9.600 1.152 1.368
14 548.544 10.967 9.600 1.152 1.368
15 548.544 10.967 9.600 1.152 1.368
106 548.544 10.967 9.600 1.152 1.368
107 548.544 10.967 9.600 1.152 1.368
108 548.544 10.967 9.600 1.152 1.368
109 548.544 10.967 9.600 1.152 1.368
110 548.544 10.967 9.600 1.152 1.368
111 548.544 10.967 9.600 1.152 1.368
112 548.544 10.967 9.600 1.152 1.368
113 548.544 10.967 9.600 1.152 1.368
114 548.544 10.967 9.600 1.152 1.368
115 548.544 10.967 9.600 1.152 1.368
116 548.544 10.967 9.600 1.152 1.368
117 548.544 10.967 9.600 1.152 1.368
118 548.544 10.967 9.600 1.152 1.368
119 548.544 10.967 9.600 1.152 1.368
120 548.544 10.967 9.600 1.152 1.368
1.096.714 959.953 115.194 136.761

Below is a first summary of the results obtained
SUMMARY of the Program of constructing 500 100-m2 houses, FINAL amortization in 30 years, in EUROS
FIRST issue of Bonds 49.720.596
Investment in the construction of 500 houses 45.000.000
Ordinary reserves 4.720.596
SECOND issue 5.222.447
THIRD issue 548.544
Financial reserves 5.770.991
Total reserves for Program of 500 houses EUROS 10.491.587
They are resources free to be invested

The necessary condition for the Project to prosper is that the amounts withheld are not computed as income in the State Budgets. They should have their own administration for the simple reason that they originate through an aggressive Program of massive construction of housing whose costs are not expenditure items in the Budget nor are they included in the financing previsions. Under these conditions the State cannot absorb a direct source of atypical financing to attend their needs. Income for the State should be a result of its direct management. Benefits will be encountered when the Program brings in income generated by better jobs, less unemployment and more consumption. The consumption will be the motor of the sustained increase in economic activity. If the STATE does not invest, there is no reason for it to use the income arising from parallel activities. Its only function would be protective, supportive and of vigilance for a correct management of the system, but without the right of direct absorption of the results. From this comes the requirement for two general Budgets, one of Income and Expenditures of the State and the other of freedom of resources and continual investment.
The State should use two systems to administrate the parallel and independent resources: one that the General Budgets execute and the other in which it administers with autonomy the funds provided by the financial reserves derived from a special process of capitalization as a result of which a net worth is formed by the administrative separation of taxed concepts, not of taxes. A form of autonomous financing is being created that has nothing to do with the General Budgets of income and expenditures. We find ourselves in a particular case in which the withholding of taxes cannot be considered computable rights in the normal collection because they arise from a special activity not contemplated in the General Budgets. In the system of parallel administration, the State of the European Union will separate this special collection to use it as amortization quotas for Bond issues. On this point there cannot be any objections, first, because the State benefits from the investments of the reserves that are formed and achieves the creation of employment and, second, the Administrations, through ordinary channels, will increment their collections through the greater economic activity, motivated by the investments of the financial reserves in concrete community projects, independent of the General Budgets of the Member States.


It is obligatory to pause and deal with two aspects directly related to the Project: the volume that can be reached through successive Bond issues and the behavior and acceptance of the financial markets to such issues. To back up my opinion on both extremes, I will use the following summary of the three Bond issues that figure in the program of 500 houses.

EUROS Nominal Bonds Amortization quotas Interest Remainder
FIRST issue 49.720.596 994.072 870.110 123.962
SECOND issue 5.222.447 104.413 91.393 13.020
THIRD issue 548.544 10.967 9.600 1.368
Totals 55.491.587 1.109.452 971.103 138.350

The first item that stands out is that the construction of a small number of 500 houses, self-financed, that is to say, with ZERO cost for the State, three issues of Bonds have been programmed for a total of 55,491,587 euros and reserves or surpluses have been generated for a total of 10,491,587 euros (Page 13). These are important figures but they are insignificant if we think of the deficit of housing in the territory of the EU. Therefore, we should provide the European Bonds with some attractive characteristics in two key points: security and profitability. We will see this in the following analysis.

1. The Bonds in euros issued by the EU offer a real guarantee because they are linked to mortgage debts in force, that at the same time are guaranteed by employment in stable jobs, promoted and guaranteed by the same system. If this were not sufficient, as a complement they have another real guarantee that arises from an innovative system of financing and accumulation of economic resources. The FIRST issue is guaranteed by the mortgages of the buyers; the SECOND and THIRD issues are guaranteed by the sure collection of taxes on the capital income.

2. The Bonds that the European Union would issue are not debts, nor do they represent charges for capital or for interest. The State Bonds, U.S. Bonds or the Bonds issued by any nation whether medium or long term, are debts of the State and in their Budgets they must destine expense items such as "Debt Service".

3. As a refuge for savings, the Bonds from the European Union would offer greater advantages for their,
a) Stability. The interest rate is higher, fixed and is not subject to market fluctuations influenced by the fixed interest rates by the central banks. Due to the reserves that are formed, the interest can always be a point above the current price of currency.
b) Capitalization of savings. Each year the Bonds increase 1.66% in value due to the certain revaluation of the 50% net, at maturity. This circumstance prevails over any other fixed income investment. It also influences the premium of 50% that the Bonds will have upon amortization at the end of 30 years, with the possibility that this premium varies upwards, based on the "remainders", a mass of money destined for Research and Development, to industrial, agricultural, and infrastructural programs (Pages 16 & 17).

Evaluating the attitude of the financial markets towards the successive issues of Bonds in euros is a complex subject, and it is a good idea, perhaps, so that each one makes his own deliberations, to compare two blocs of great economic power, with different political characteristics. On one side we have the United States forming a single nation, one single political disposition, one language and one dominant currency. On the other side there is the European Union, to date 15 nations, with many languages and the hope that the euro will be consolidated as the only currency. Seen like this and in a simplistic form, we can affirm that the United States is a compact political bloc, with a currency heavily backed by the strength of its economy. On the other hand, the European Union, also with economic strength, is supported in the political disposition subject to the internal circumstances of each sovereign nation. This sovereignty, by free referendum, can modify the relations with the other nations, breaking or slowing the existing equilibrium and stability in a certain moment of time. For the European Union to form a political bloc similar to the United States, much time will have to pass, counted by many generations.
In this situation, the United States has no problems in issuing Debt Bonds, a refuge for savers who want security in their investment because they have confidence in the nation and in its economy, security for the persons and for the States as a means of consolidating their reserves. But there exists a basic difference between the U.S. Bonds and the European Union Bonds. The former have no real guarantee. The gold of long ago only exists in books. Credit has substituted the materialization of the guarantees. The European Union Bonds, on the contrary, would have a real guarantee, that would not be any percentage of precious metals but rather a physical guarantee, total, in the form of mortgages guaranteed by constant work, and periodic income materialized with the tax withholding on capital income. Arriving a this point, it is right to think that both the European Bonds as well as the euro would be reserve goods, accepted and desired by the financial markets, by the States and by individuals.
Europe does not form a homogeneous political bloc, which is a negative factor. Neither can we say that it forms a single economic body because it is the sum of the heterogeneous groups. The European cohesion must be found in the formation of a single economic bloc, that cannot be a general figure formed by industry, agriculture and fishing or by economic products from concrete geographic areas, because they denounce the exclusionary national differences. There must be a characteristic sectorial composition, newly created, with common pressure, in a branch of goods of general necessity, desired, of long duration, revalued and transmissible. This sectorial branch I consider should be the self-financing housing construction industry. It would be a economic sector financed with the issue of Bonds in euros, mixing the strength of 375 million Europeans and thus taking advantage of an economic similarity, consequence of a political will, to avoid discrepancies, thinking only in common objectives. A project to provide houses to those that want them and payable in 30 years. Of the capital obtained a predetermined part would be destined towards the construction of houses. Another very important part, earned in the process of construction by and for the Member States, will be of free disposal within the framework agreed upon with a view towards progress and internal and general well being… and with ZERO COST.
I insist on another difference, already pointed out, between the Bonds in euros and the Bonds in dollars issued by the United States. The Bonds in euros of the European Union will not constitute any debt and, consequently, neither will the interest paid be an expense. On the other hand, the U. S. Bonds are debts of the State and the interests constitute an important expense item. The European Bonds, such as I design, will always be able to pay interest a point higher than the market rates if it is considered necessary and, besides, the amortization at 30 years will be with a fixed premium of the net 50 percent of its nominal value, always susceptible to upward variations. In these conditions, the euro will stop being a currency with speculative problems provoked with certain frequency by external factors that dominate the financial markets, to become a solid currency, for reserves and refuges, like the dollar. And we Europeans will have available the means to shape an indestructible economic unit that will protect us from any political division.


We now pass to analyze the so-called "remainders" and their power of capitalization. The "remainders" are the difference between the amortization quota and the interest paid for the BONDS. In reality it is the portion of the quarterly amortization quota destined towards the amortization of capital, the portion that we reserve to capitalize it and reconstruct the nominal value of the Bonds.
The "remainders" only appear in the final amortizations.
In order to evaluate the potential for generating funds which is consubstantial to the system, we must group the remainders of the three issues of Bonds with FINAL amortization in the following table, already used previously to analyze the complex "financial reserves":

EUROS Nominal Bonds Quarterly Amort. quotas Interest Remainders
FIRST issue 49.720.596 994.072 870.110 123.962
SECOND issue 5.222.447 104.413 91.393 13.020
THIRD issue 548.544 10.967 9.600 1.368
Totals 55.491.587 1.109.452 971.103 138.350

The last column indicates that we will have available 138,350 euros every three months during 30 years destined towards investments and reinvestments that could yield a minimum of 7% to reproduce the nominal value of the issues. In these conditions, it is valid to consider these 138,350 euros as the constant term of a yield, post payable, at an annual interest rate of 7% in 120 capitalization periods.
Through financial tables we can find the final value of this yield, like this:
(l+i) - l
S = R*Sn, in which Sn = ----------- , whose symbols correspond to:
Sn = Sum of the unitary income
i = Unitary point of interest
n = Capitalization period
S = Value of the sum of the yield of term R
R = Term of yield
But it is simpler to use the spreadsheets that are provided by the computer programs S = @valfut(138,350;7/100/4;30*4)=55,491,587 = nominal value of issued Bonds.
We should consider that the 7% capitalization rate was established exclusively to show how the initial capital payable in 30 years is reproduced; but it is obvious that by having available 138,350 euros each quarter, it will permit us to execute projects of great perspectives of those that should have minimum yields, almost symbolic, of 12% annually. The capitalization value, taking into account that there are no dividend payments but rather reinvestments of benefits, would be:
S = @valfut(138.350;12/100/4;30*4) = 155.463.836 euros
As a conservative measure, conscious that the results will be inferior, we will use annual investments and capitalization, in which case the term R would be 138,350*4 = 553,400 and the final value available at the end of 30 years would be, according to the tables, 553,400 x 241.33268434 = 133,553,508 euros.
Nominal amortized Bonds 55.491.587
Amortization premium, net 27.745.793
Prevision for taxes, 12 % 3.783.517 87.020.897
more than 46 million euros would remain 46.532.611
as reserves to increase the amortization premiums, if necessary to capture capital. In consonance with its volume, a study is opened for any development project, counting beforehand on precise financing, without waiting the 30 years.
As a first allusive commentary to what is written here, I must point out that financial operations are being combined for millions of euros whose origin is in a simple construction program of 500 houses financed with 7% Bonds. The Program costs the public treasury ZERO.

Capacity and response of the financial markets to the issue of EUROPEAN UNION BONDS

At some moment I have asked what will be the response of the markets to the issue of European Union Bonds. Independently, they can become a decisive factor in the fight against poverty in the world. This affirmation is based on the fact that poverty originates from a lack of resources and the absence of these is from the lack of income and, by extension, the lack of work. With work life changes and poverty disappears. But these reasons are secondary for the investor and the Bonds will be accepted because they unite the requirement of security and yield.
I am not going to avoid analyzing the capacity of the financial markets to absorb the great quantity of Bonds susceptible to be put in circulation, if we take as reference the volume of the issue with a simple program of 500 houses. If we program a Project of 500,000 houses for each country of the EU, we multiply by 15,000 the sum of the ordinary reserves and the financial reserves that figure in the previous tables and we will see that both ascend to billions of euros. It is an unknown to be quantified between the mass of speculative capital that constantly moves in search of benefits, the portion that can correspond to the savings of a citizenry outside the use of its savings in a global credit system; but there is no doubt that its amount is important. Therefore, it can be affirmed that the savings accounts of the EU citizens are voluminous and have a privileged importance as an objective in its capture for investing in guaranteed and profitable European Bonds. Neither should the investment funds sheltered in fixed income with yields inferior to the 7% of the European Bonds be ignored, or the investments of the insurance companies to materialize their technical reserves, among other various latent possibilities of extraordinary importance. There is no problem if the Bond issue should be limited because the system stays intact. The first issue of Bonds will always be insured by being linked to the request for housing. With 500 houses per country it would be a Program of 7,500 houses and the ordinary reserves would surpass 70 million euros destined for education, later to help in the acquisition of houses and to create jobs without the 15 countries of the European Union having invested a single euro.
The Bonds, being fixed yield, ignore any speculation. What is important is that they offer security and high yield in their category. These are two features that savers look for. Here there can be neither surprises nor manipulation of the news. Nor intervention of brokers, nor privileged information, nor ups and downs in their quotations.
Another element to consider is the remainders that are not linked to any Bond issue, ready to be invested and which, for their volume, will encourage Research and Development. They also permit the execution of large projects of infrastructure based on the annual capitalization of the results to attend the amortization premiums of the 50% for all the Bond issues, with maturity at 30 years.
In the presentation of the Web page I write, referring to the European Commission: "Therefore, the first action by the NGOs, united with a single resolve, is to get the Commission to receive the project in order to analyze it seriously." But also in another part I have said and here I repeat, "that the system that I propose is proportional and autonomous and can be executed in any country on any continent." This means that preferentially it is directed to the European Union because it could be executed together and immediately by the 15 sovereign States plus those that are awaiting integration. There would be around 500 million citizens that would benefit from the economic potential that is generated with the construction of houses, but without this being an obstacle for one or various countries, individually or collectively, they could decide to accelerate the system without waiting for the bureaucracy of the fifteen to reach unanimity of criteria. But there is more. Any country, inside or outside the European Union, can make the project theirs and apply it in the intensity that is convenient for them. It can perfectly be limited to the simplest part: construct houses according to the internal demand and limit the Bond issue to the necessities of the construction. These Bonds will be placed, most assuredly, among the internal savings and employment will have been created, houses provided, economic growth stimulated, small reserves created for education and all of this with no investment by the States, without indebtedness, that is, with ZERO COST.
The immediate consequence is that the local NGOs should also have total autonomy to make decisions, without waiting for such actions to have a general character.

In summary: the first actions of the European NGOs, united with a single resolve, would be to have the Commission receive the project in order to analyze it seriously. The complementary actions correspond to the local NGOs who, with their autonomy to make decisions, should not wait for such actions to have a general character. They can promote the housing construction project in their own countries, with general acceptance.

I do not believe I am wrong in affirming that the EU Bonds would have an excellent acceptance, for their security and yield.


The support of the communication media should be decisive

This Web page is not designed to be exhibited in the Internet with a desire for protagonism. As the new generations say, that intention slides right off me. I have made a real proposal, as real as are poverty and starvation of millions of human beings. This Web cannot be looked at superficially because it is directly tied to defending the rights of survival of persons, I don't mean my fellow man, but rather my equals who have had the privilege to be born in countries where the state of poverty is relative and always determined by the lack of work. No extreme collective poverty. But looking at the countries in which it is endemic and forms an inseparable part of the characteristics of the persons as is breathing or the circulation of blood through their bodies, it is unacceptable to remain at the margin or simply look at the other part thinking that it is not your problem. It is a crime against humanity that, without asking for economic contributions from anyone, this Project is not studied and executed, which is sometimes what hurts the most. Contributions are not solicited; on the contrary, housing, work, development, humanity and love for our destitute fellow man are offered. The opportunity to attack poverty and for the human being to be born, eat, grow, be educated and have the awareness of existing and the opportunity for free fulfillment is offered.
I believe that here the communication media should intervene by promoting and supporting the international NGOs that fight against poverty. It is not enough to cry and rend your clothing informing that between a billion and two billion human beings survive with less than 1 dollar a day, and that many others abound without this miserable income, submerged in extreme poverty; it is not enough to present horrifying photographs of children who are practically skeletons, in the prelude to their death. More can be done. They have in their hands the information, the power to ask all the sectors I have cited, those that I have written to with detailed report and from whom I have not received a single commentary, as if they were gods on Olympus, about what are their reasons for maintaining this attitude. Demand that they pronounce for once and for all, through reasoned criteria, that the Project I present makes no sense whatever, that my calculations based on financial mathematics are erroneous. And if I am not wrong, then the communication media should take on the real fight against poverty in the world with the instrument that I am providing. They can awaken and make sensitive fibers vibrate in every human being. And even if in this way I do not get support, may God forgive them, but I will not throw in the towel or surrender.




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