Financial Wisdom – By Kalidas

Radical Solution for Credit Crisis from Kalidas

Ignored Letter to the President Bush Causes $15 Trillion Blow Out

with 9 comments

The letter was received by White House through FEDEX on 25-August-2008. It was neither acted upon nor acknowledged. When the matter of utmost national importance and urgency was received at the White House, they chose to ignore. It shows how bureaucratic and unimaginative the White House officials are. When the nation was sinking, even a small life line was worth taking a chance. But Nay, George W Bush was destined to go down as the worst ever President of the United States in its history, a man who completely ruined and destroyed every fabric of America

Ref: 08-012 of 31-Oct-2008
That’s right. I had the perfect solution to the present problems facing the United States and the world. I sent a letter to the President of the United States of America, Mr. George W Bush, suggesting my complete plan to resolve the problem of not only Sub Prime crisis but also to offer the complete blue print in no uncertain terms to solve the most of the problems that you are hearing day in and out on CNBC, BBC, NBC, ABC , CBS and host of finance specific newspapers around the country and the world.

  

I also wrote that it was time for action for the President Bush, that his last 60 days of Presidency were the most important part of his career, and that he could change the face of America in just under 60 days. It was not the time for relaxation but action. I warned that if he did not take the swift action, the worse days would follow.


I also sent a copy of this letter to the Consul General of United States in Hong Kong for his information so that in case, some bureaucrat ignored the letter, he could have filled in the gap to alert the appropriate authorities. I also gave my full identity.


And the result was disastrous. Within 16 days, the worst things started happening in United States in quick succession. Trillions of dollars were lost in worst ever shake up on Wall Street and Nasdaq, $700 billions package was designed by Paulson and Bernanke who do not know even today, what are the real problems facing the United States, and they go on printing and guaranteeing the bad debts running into trillions of dollars.

 

Here is the full text of my letter (Last two pages of my profile and cover page of my new book are omitted here).

 

Tell me, If you were the President of United States of America, if you were facing the enormous problems, and you got a letter that claimed to redress all vital problems facing the country, what would you have done? Read the letter and acted, at least deliberated, or just ignored and dumped into the dustbin? Vote for it at the end of this article:

 

All Paulson and Bernanke’s Bail Out plan of US$ 700 billions were really not necessary. This plan is not working nor will work in future. It will simply give rise to massive rise in inflation that may see the interest rates climbing to 24% to 30% in less than 18 months.

 

Both Paulson and Bernanke are hell bent upon printing the dollars as way out for current massive problem. They do not know the problem at all – where is the question of looking forward to them for solution. Why Should American Tax payers bear the cost of over US$ 1.5 trillions spent so far and hand over the blank checkbook to these two guys who have run out of common sense and wielding monetary weapons in complete darkness?

 

A copy of My Letter dated 18-Aug-2008 (Received by White House on 25 Aug 2008) is reproduced below with a copy of my letter to addressed to Consul General of United States in Hong Kong.
 

Mr. George W Bush,

The President of the United States of America,
The White House , 1600 Pennsylvania Avenue NW
Washington, DC 20500 USA

Dear Mr. President,
 
  Sub Prime Resolved

The Bible for Recovery of the United States of America

I have solution for not only the sub-prime crisis, but also the most comprehensive economic and political solution for other troubles like falling dollar, rising crude and commodity prices, gold and geo-political crisis in the Middle East. So far as I know from the public knowledge, I am at this point of time, the only person in the world to have complete and speediest solution for the current range of crisis engulfing the United States.

 

First thing first. Who am I? Kalidas is a nickname – my real name is mentioned in the enclosed profile. Briefly, I am a Hindu by religion, borne in Mumbai (India), grew up for 36 years there, currently a Permanent Resident of Hong Kong for over 24 years, a full British Citizen (my sole nationality), and a friend of the United States of America. I have 40 years of combined experience in banking, as stock broker, bond trader, in capital markets, business and finance. I have clean record in all countries of my residence.

Sub Prime Resolved

Sub Prime Resolved

You stand excellent chance to make your last 90 days of Presidency the most memorable event of your political career. What could not be achieved in the past 2700 days of Presidency, would be achieved in just 90 days. Your approval rating could rise to over 90 by the time you would give up your Presidency.


The chances for success will be between 70% to 95% if you implement the suggestions with full conviction. Within next 90 days, before November 4, 2008, the United States will be up and running on all cylinders if you appreciate the solution and take the line of actions suggested.

 
Kindly do not write off the remaining 90 days as a social exercise bidding farewell to old buddies or resign to the fate of helplessness that nothing else can be done anymore. Unlike Katrina, this is a man made crisis and can be resolved by human efforts alone. Your time for action starts now.
 

Ask any member of your cabinet or even great investors. They are all searching for the two ends in highly complex intertwined ball of ropes. No one will come close within 1000 yards to the solution that I have outlined after almost 6 months of day and night efforts.

 

Let me tell you briefly how my entire work is organized in almost 260 pages.
 

Modular design…
My work consists of 18 chapters on each subject of current economic or political troubles. It is in modular design. Each chapter is independent of the other in most cases, except where some correlation exists. Each chapter contains the problem identification, its origin, extent, size and seriousness of the problem, and most importantly, the Solution that is eluding the most. The solution is accompanied separately by Action Plan, Time Line and extent of qualitative and quantitative benefits that can be derived in prescribed time frame. Nothing is left to chance. Everything is target specific. Nothing vague. The report is written in very simple language without any technical cliché – even a person of ordinary intellect can understand it very clearly.

 

Assign each Chapter/Task to concerned Cabinet member or Department for target specific actions within definite time frame. All departments are given specific leads how to proceed so that details could be worked out by them in shortest possible time.

 

No.

Chapter Contents

No. of Pages

For Notes and Comments

01

Sub  Prime  Crisis

·         Need  of  the  hour…  to  diffuse  the  financial  bomb

·         Identification,  Origin  and  the  size  of  the  problem

·         Crux  of  the  problems  to  fix    Foreclosure  and  Collapse  of  Derivatives

·         Suggested  Measures  to  stop  the  creation  of  further  bad  sub-prim e  loans

·         Legality  of  the  foreclosures,  and  how  the  borrowers  exploit  the  lenders.

·         Solution  for  Credit  Crisis  hurting  large  banks  and  brokers…Action  Plan

30

 

02

Reversing  Dollar  Flow

  • Full  range  of  target  specific  measures  to  reverse  the  dollar  flow      
  • There  are  two  m ore  chapters  one  has  to  read  with    Chapter  5,10,  14

06

 

03

Growth  &  Consumer Spending

·         Obsolete    theory  of  consumer  spending  leading  to  growth  in  GDP    

·         Spoilt  consumers  and  excessive  protectionism         

·         Consumers’  exploitation  by  Banks       

06

 

04

Using  Business   Immigration

12

 

05

US Dollar, Euro and Eurodollar

·         Understanding  complex  inter-relationship

·         How US financial system is attacked by a group of nations without even US knowing it

·         Relationship  with  Oil  prices,  how  to  cause  crash  in  oil  prices?

·         How  to  address  trillion  dollar  industry  with  ease  and  effect

·         One more  Parallel  economy and  how  to make the billions  out of it?

12

 

06

FED is not GOD

·         Excessive  reliance  on  FED  for  growth

·         Where the FED fails..?  Role of FED vs.  Treasury

·         FED Chairmanship vs.  American  Presidency

·         How FED creates unemployment?

·         Monetary Policy vs.  Fiscal  Policy

·         $  Carry  trades  in  low  interest  environment

22

 

07

Inflation  &  Growth    Misdirected  policies

·         Inflation, Stagflation, Growth and Expectation

·         Demand, Wage and never  recognized  Derivative induced  inflation

·         Correcting  the  policies

12

 

08

Non-inflationary  growth

·         Absurd  concept and misdirected policies as result

·         Creative  containment  of  inflationary  numbers

6

 

09

Long  Term  Interest  Rate  Policy

·         Ad  hoc  short  term  policy  on  Interest  rates  do  not  work

·         How to make LT Interest Rate policy dynamic?

·         How  to  contain  $  carry  trades  and  derivatives  with  LT  Interest  Policy

10

 

10

Humpty  Dumpty  Dollar  Down

·         How dollar drowns?

·         Dow vs. Dollar    before  10  years  and  now

·         Political  reasons  for  dumping  dollar

·         Political  actions  to  reverse  the  dollar  flow

8

 

11

Off shore to On shore

8

 

12

Introducing  Dynamic  Taxation

·         Americans’  flight  from  on  shore  to  off  shore.

·         Parabola  Structure  of  Taxation.

·         Current  Taxation  and  Rate  Structure    big  negative .

·         How  to  reward  efficiency  in  taxation  to  make  it  more  rewarding

·         How  to  increase  Corporate  tax  revenue  by  reducing  taxes

·         Dynamic  Taxation  policy  with  automatic  adjustment

·         Revising  Individuals  and  Corporate  tax  structure  with  full  tables (32 pages)

·         How US to benefit using Convertible Bonds of troubled borrowers?

·         How to reduce the tax rate and earn the billions more

·         Pro-Active  Taxation  policy

22

Plus 32 pages of Taxation schedule for Corporate and Individuals

13

Reviving  Auto  Industry

·         Funding  Auto industry to retain and increase jobs

·         Funding  Auto sector  via innovative  financing

·         Making  billions of Tax payers’ money  by helping Auto sector

·         Similar policy for Airlines as well

8

 

14

Oil Price

·         Who rockets the oil prices and how?

·         How to contain oil prices?  Relationship  between  ICE  and  NYMEX

·         Relationship  between  Oil  Prices  and  Dollar  at  various  centers

·         Comprehensive  plan  to  manage  and  control  oil  prices

14 

 

15

Where is McKenna’s Gold?

·         Does US have 8134 tons of Gold as claimed?

·         Where the Gold has disappeared? Physical holding does not mean ownership. It is only a custodial holding.

·         Strong  dollar  policy and Gold – Dollar’s downfall

·         How to rebuild real gold reserve on dynamic basis to lend  strength to $

20

 

16

Dealing  with  Islam

·         Understanding  Islam

·         Peace  with  four  “I”    Islam, Iraq, Iran and Israel

·         Difference between Nationalist and Terrorist

·         Complete re-thinking of policy and bringing Islam within the realm of modern era

·         Policy of engagement vs. Confrontation

·         Dealing with Palestine, Lebanon and Israel – possible Action Plan.

·         Retreating from Iraq and engaging in its development.

·         Dealing with Iran and Islam

·         Dealing with Afghanistan and Osama  Bin  Laden

·         How Islamist will surrender terrorism?

·         Ending a war on terror and starting war for peace

16

 

17

US  Should  ….itself 

(Using defense technology for peaceful purpose)

·         Facing natural disasters like flooding, tornado, wild fires using defense technology

·         Converting  killing  machines into most modern weapons for  peaceful use

·         Converting passive military technology into $300 Billions a year export industry using US Army Corp

·         Better read this article in full rather than discussing it here

12

 

18

Misc

 

 

As you can see, the entire plan is very comprehensive. Full facts, figures, data are given in simple yet effective manner. It offers solution and tells the administration what to do rather than what others criticize what should not have been done. It is more directional. Written in the first person style, it is more interactive and evocative. No more beating around the bush – straight talk.

 

If you have interest, please contact me by email. I may not be available in Hong Kong for a few days due to family wedding which will be over by 26August, 2008.. I will provide you full contact details once I see firm interest in the above proposal. I will be in USA for a few days.

 

All the proposed actions can be taken within 45 days, allowing sufficient time for deliberation and discussion. It will be understood by all within minutes.

 

Terms of Engagement
I will disclose my terms of engagement, once I see the interest. If no proposal is received, I will publish my work in the form of a book after a few months. However, in that case, the US will lose first strike advantage, and some erring nations will go scot free. The trillions of dollars inflow and income will be lost. US will never be able to recover from present economic mess in which it is. The worst days will come if no actions are taken now to address the challenge.

 

My fees will be mostly performance based, except certain minimum. It will be based on simple formula.

 

Since this is an unsolicited offer, I do not expect any reply in case there is no interest. However, those who are handling this letter are requested to at least inform the President of the contents.

 

Kalidas
Hong Kong,
18 August, 2008

 

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9 Responses

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  1. Dear kalidas sir,

    It is said “Vinash Kale Vipreet Buddhi” same thing has happened with Mr. Bush..

    Regards

    hani a
    Ahmedabad, India

    hani a

    November 1, 2008 at 4:17 pm

  2. Would love to see the reaction of the general public and the Pundits when this Book hits the market particularly American. This book will provide any reader great insights on how the Policies had worked in past with every possible detail.

    Should be a MASTERPIECE as per Kalidas standards. Eagerly Waiting for it to be released in India.

    One comment: Sir the content does not talks about direction the world is moving in future if America continues its journey on the same path. If possible, try to include it.

    Vivek, Gurgaon, India

    Vivek Dhariwal

    November 1, 2008 at 6:30 pm

  3. Dear Sir,
    There is one more minor thing, I feel need to be included in the book. Once you make book public all countries /authorities refer and try to implement them . Especially the oil manipulating countries including US. They may stop their manipulation. So Volatility may stop. Similarly Gold may start shooting up because whole world will know US doesn’t have what it says. So US may start buying GOLD to prove that it is still King. So please dedicate a one chapter which gives indicators of the would be changed world because of your book. I am not sure if am making it clear. I think you might have already indicated such indicators in each chapter itself.

    Shiva
    Bangalore India

    Shiva

    November 1, 2008 at 7:39 pm

  4. You have covered all important topics & solutions ,best wishes for your book.
    Regards
    Ketan ,Hongkong .

    ketan

    November 1, 2008 at 10:21 pm

  5. Sir, The topics covered reads interesting. The book should be well-received. Away from the US economy, there is some thinking that India is not facing THAT MUCH heat since it has a parallel economy which is far greater than number one economy, and the US and other economies are not so. Your opinion on this and also whether India should come out with any amnesty scheme to unearth black money NOW which can ease liquidity pressure, will be of great interest to people like me.

    0811-001 Kalidas Replies to Sekar (Sunday, November 2, 2008)
    The parallel economy is generally 2% to 5% of overall economy. In a way, it is self balancing. Often, interest rates in No.2 market is lower than official interest rates in main street. The volume of black money has come down significantly. There are many other local schemes which white washes the black to white at very low cost. for instance, one shows purchase of stocks and reports sales after 12 months, so there is no capital gain tax. India is relatively free of black money menace now. No amnesty scheme is necessary.

    sekar

    November 2, 2008 at 9:59 am

  6. Dear Sir,

    Why don’t’ you send one more letter to Obama? Chances are there that his new staff will be more interested /proactive to ignore such letters. I have some how feeling that it would reach Obama.

    Shiva
    Bangalore India

    0811-047 Kalidas Replies to Shiva (Monday, November 10, 2008)
    I am sending it tomorrow to him as well as Vice President elect, President Clinton and Hillary Clinton and about 18 more senators. At least some one will listen to it.

    Shiva

    November 9, 2008 at 5:54 am

  7. Sir,

    Can I have your email id.

    Subhash

    November 10, 2008 at 5:19 am

  8. Dear Kalidas Sir,

    I think Clinton is arranging meeting in Hong Kong on 1st Dec 2008 – 3rd Dec 2008. Its part of Clinton Global Initiatives meetings, if you try, you will definitely get appointment to meet Clinton in Hong Kong itself, So that it will be more effective, he will also have very much confident after listening from you than reading on paper. I think taking new ideas and implementing is part of “Clinton Global Initiatives”. Below is the URL Please try this sir, it may helpful.

    http://www.clintonglobalinitiative.org/NETCOMMUNITY/Page.aspx?pid=2437&srcid=2356

    Thanks & Regards
    G Sankar, Hong Kong.

    gs_2007

    November 11, 2008 at 2:39 pm

  9. Hello Dear Sir,
    You are amazing and most knowledgeble person in World economy I have come across

    Best,
    Saurabh

    Saurabh

    January 27, 2012 at 7:43 am


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