Project Management Specialists
&
Creating New Development Capital Without Risk

This is an introductory article about impact finance and the various tools that we are using to fund projects that are bigger than the money we originally have to work with.  Everyone has to have some of their own skin in the game, but our banking specialists will show you how to access and grow that contribution significantly.

This is important because everybody has to start somewhere and everyone has limits on their finances.  And you will want to work with people that have already accomplished success along the path you are entering.

There are several principles or rules that we choose to follow that have made a big difference in what we have been able to accomplish.

First, and this might be rather hard to grasp at first, but most people think about making money from a utilitarian paradigm.  In that paradigm, the idea is to invest in something that you can either sell for more than the acquisition price or the idea that what you purchase with your capital will provide some productive capacity from which revenue is generated.  This is usually referred to as “making money” from an investment.

There are significant limits in this methodology.  The most profitable endeavors often carry significant risk.  Further, if the activity is profitable there is bound to be competition which tends to put downward pressure on margins.  All utilitarian businesses suffer from this malady and the solution is a continual search for new innovations that have bigger margin potential.   There is a continual disruptive destructive process inherent in Capitalism.   Greater productivity and efficiency results in expanded profitability… which attracts competition.   The old less efficient is gradually and continually replaced by the new more efficient offering.

But most people think that work is involved, that clients are required.   They are thinking about making money.

Through the bank marketplace we purchase leveraged contracts for money and then resell the asset for more than our purchase price.   As such, we are creating new money through a licensed activity, which is proprietary, exclusive, private and closed to the public.

So in the general course of our affairs, we are not involved in making money from a utilitarian perspective, we are creating money.  When you are creating money you then get to choose, within the limits of the tools you are using, how much you are going to create, how much you are going to invest to create that money and how much risk you want to embrace while magnifying or enhancing the involved asset’s value.  It’s all in the contracts.   We will get back to this later on.

When growing wealth risk is an important factor.  Throughout this site you will see how we deal with risk.  For the most part we attempt to eliminate it as much as possible.  But where we can not eliminate it we use a risk to reward formula.  The capital we are risking has to be balanced against the capital we are attempting to acquire.  If we want to create one million dollars maybe we only want to put ten thousand at risk to get that return.  That would be a one to one hundred risk ratio, or a risk reward ratio of 100. In other markets a R2R ratio of three is quite acceptable. Of course, once you already have a relationship with a performing provider, your risk is pretty much reduced to force majour.

There is another risk.  When we put up $1 million it is no longer available to spend so there is also an opportunity cost to tying up your money for gain.  So the risk of losing a purchase opportunity has to be offset by the potential of a healthy gain.

In this industry we are able to create so much new capital in a short period of time that the time value of money becomes very important.  If it takes you a month to create new seed capital using leveraged instruments, when your original funds could have been put to work generating several times its value, then perhaps it is not so efficient to use complicated systems just in order to get started.  This will be discussed more when we address monitization.

Leverage is another tool we use to get the most from our growth activity.  If you can purchase something for less than its intrinsic value then by all means do it, unless the risk is too high or the time value of money makes it less practical or the exit opportunity is not liquid.  For instance, in the private placement marketplace you can purchase a bank instrument for not only less than its face value but for less than its resale value.  This makes buying bank instruments a great investment.  This is the hidden revenue generator that banks use to make money.  If you look at any big publicly owned bank’s profit and loss statement you will see this activity hidden under the heading “derivatives”, far and away the most profitable entry on that ledger.

But there is another kind of leverage than many are not aware of.  It is the utilization of owned assets to create revenue streams.  For instance, Warren Buffet has said many times that he will not buy gold, because it does not generate any revenue.   Its intrinsic value is solely attached to the purchasing power of currency.  If dollars become worthless over time, then it takes more of them to buy gold.  Gold has always been a good hedge against inflation.

Just recently, banking accounting rules changed.   Central banks can now value gold on their books by its market value.   So now central banks are now buying gold to hedge against, the very inflation they are creating (by pumping new currency into just about every country’s economy).   This has resulted in the price of gold rising (which always happens when central banks behave irresponsibly).

But most everyone is missing the greatest value of gold.  If it can be valued and the value verified, then it can be used to create a sizable revenue stream by mirroring its value and then putting that asset to work in a trading platform.  If I told you that you could get 50% of the value of your gold returned to you every month in cash flow, without any risk whatsoever, while retaining 100% ownership, whom would be stupid enough to not take advantage of that opportunity.  That gold sitting in your secure trustworthy location (growing slowly in value due to inflation) could also be building a hotel chain or power plants in developing countries, while improving peoples lives.

These little known avenues to wealth are jewels in the right hands.

All of this new money we are able to create is best used for project financing and funding developing countries.

This secret banking money creation business started back in 1947, just after WWII. The history of bank debenture trading started back then as there was a need to create new money for development and to do it without debt.   All of that new money was mandated such that it was used to build countries ravaged by war.  At the same time the UN, the World Bank the IMF were created and given the task of keeping an eye on the activity.

So this is what our project management specialists are doing to make the world a better place.  All of these systems and tools can be used to grow countries while growing your own personal wealth.  Nothin’ wrong with helping people get wealthier, as the following article professes.

There is something important that a lot of people do not realize.  Helping people to grow their wealth causes a temporary greater equity disparity.   Some people get really wealthy as the new development takes place.  But then new jobs are created.  Infrastructure is built which allows greater efficiency and productivity in the marketplace.  Then spillover begins to take place as the flow of money into the community begins to spread to the less fortunate.  Community well being is a lagging indicator following growth.

The point I am not making to well is that it is not creating startups and hundreds of SMEs that causes a sustainable growth.  It is ramping up larger businesses and creating big infrastructure changes that causes a significantly improved sustainable economic livelihood in the community.   This is because infrastructure supports greater efficiency and productivity in every business, both big and small.

Not only that but proper project management of huge projects creates huge changes in upward mobility of the local community, as these large projects employ hundreds and even thousands of new job workers in the local.

Sovereign Trusteeship Inc with its small
team of project management specialists are
creating sustainable economic development.

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How Economic Freedom & Wealth Provides Better Social Outcomes for Everyone, Not Just the Rich

People living in freer societies live longer, have better health, have higher income, greater access to education and are better protectors of the environment. In general they have a better life than the rest of those living in less free societies.

Would this be because when people are free to choose what they want in life they will make better life changing decisions? Obviously making choices about your country’s governance plays a big role in policy that can effect your individual freedom.

High yield Investment Club is on a quest to improve peoples lives – not just our members but everybody’s living conditions.

It is somewhat an embarrassment that the United Nations does not value this reality and instead attempts to politically placate dictatorships and theocratic countries by ignoring fundamental freedom realities when attempting to define how poverty can be irradiated.

It is also somewhat of an embarrassment that the United States, the country that provided the impetus for the world to become free, has slipped out of the ranking as a free country ^a.

Self-governance is not the only factor that can affect a country’s freedom. When those selected by a democratic process begin to choose whom of their friends or business relationships deserves an easier go than others, then governance fails to deliver an even playing field for all of their citizenry.

Further, when governments spend in ways that are counterproductive to development and regulate in ways that impede free markets they also are intentionally denying the liberty of their own citizens to a better lifestyle. None of this is by mistake.

This has been happening in the United States over that last forty years as bigger government chooses to pay for even more programs that remove the liberty and the impetus for self improvement of their own citizens. This is intentional. A dependent society will always vote for governance that is paying their bills. It makes political slaves of all government funded recipients.

When you empower people to give up their agency (for votes), you are also disabling their capacity to choose the difference between right and wrong. It is therefore not surprising that the US is the number one country in the world having a higher percentage of their own citizens incarcerated than any other supposedly free country in the world.

In the international marketplace, countries that are most free to transact with other countries, move capital freely and do not impose regulatory burdens and tariffs on trade, find that their citizens have a greater pallet of choices, even in their local markets.

This liberty leads to better lifestyles for their citizens. Providing greater economic freedom is not a pro business inclination specifically, it is a pro everybody inclination.

Development, specifically the kind that provides the greatest choices for their citizenry and the greatest access to information, and then supports that information with the most freedom to act on that information, can result in the greatest benefits for their citizenry.

Data proves that those countries that are most free are also significantly more prosperous than those that are least free.

Income per capita, social progress, environmental responsibility and democratic governance are all impacted by economic freedom positively.

The bottom line in all of this is that economic freedom empowers people to make better choices, and those choices have consequences that positively impact the circumstances they are able to affect in their lives.

When politicians legislate minimum wages, impose interest rate caps on private banks, manipulate currency valuations, and use taxpayer subsidies to bail out politically well-connected “too-big-to-fail” companies and powerful labor unions, a comparatively lucky few benefit. The rest of us, however, face the prospect of living with (and paying for) the consequences of these errant policies.

Economically freer countries and communities that open their culture to new ideas, products, and innovations have largely achieved high levels of social progress. It is not massive redistributions of wealth or government dictates that produce the most positive social outcomes. Instead, mobility and progress require lower barriers to market entry, freedom to engage with the world, and less government intrusion.

As President Ronald Reagan said in 1983: “Put simply, increased trade spells more jobs, higher earnings, better products, less inflation, and cooperation over confrontation. The freer the flow of world trade, the stronger the tides for economic progress and peace among nations.”

So now that we have clearly established that a freer and better life is contingent on economic freedom, now we can more clearly understand the importance of growing wealth.

Growing your wealth creates economic freedom;
the two go hand in hand.

This is the impetus behind Sovereign Trusteeship. Growing your wealth is not just about you, it is about everyone surrounding you, whom also experiences a better more prosperous life.

Growing your wealth is not just better for you, it is better for everybody because it delivers freedom.

Let our impact finance specialists help.

Message from Sovereign Trusteeship’s Founders