ELPAS-USA Foundation, Inc

Descriptive Resume:

ELPAS-eQE System

A revolutionary techno-political platform to address the global financial crisis

The non-profit ELPAS-USA Foundation, Inc as developer of ELPAS systems, was created in 1999 in Venezuela by the German economic-engineer, Friedrich Wilhelm Siegel, who had been developing since 1984 an innovative and revolutionary banking and financial system with digital electronic currency, which was subsequently inserted into a new economic model, called.. "The Latin American Economy for Development and Social Participation, with electronic Quantitative Easing, ELPAS-eQE" (translated from Spanish).

Actually, this new economic model includes a structural reform and paradigms shift in the monetary, financial, fiscal and economic politics, also offers a modern alternative for the obsolete and inadequate indebtedness system promoted by International Monetary Fund (IMF). It is common knowledge that IMF prescriptions: Increasing taxes, reducing social spending and renegotiation of public debts, are no longer sustainable and even unless accepted by constantly growing demands and needs of societies; furthermore enshrined in the guarantees and rights of any democratic constitution. Governments that facing severe fiscal and financing problems only are buying TIME when they are forced to restructure its public debt. The Politicians know that the public debt system has a top limit in law, where more and more industrialized and emerging countries are coming on, or they have already passed ( see: Greece, EE.UU, Japan, Italy, Spain, Portugal,…).

The mistake that governments have committed and continue committing is to finance education, health and welfare programs through "indebtedness", rather than innovative "Trust system with electronic currency for social Investment, e-Trust", backed by the Labor Law, Budget Law and the Constitutional Guarantees.

The "electronic Trust system" operates with the new and revolutionary financial instruments called “electronic Bonds” to finance social public spending, for example in education, health, the Executive, Legislative and Juridical system, police, firefighters, soldiers, civil defense, environmental protection, among others. Each public sector will have a budget allocation that is reflected in the sectorial "e-Fund" or e-Bond amount". The sum of all sectorial e-Bonds represents the National Social Budget. This sectorial e-Funds will be issued by the Central Bank in coordination With the Ministry of Finance (or Secretary of Treasury).Each public employee or worker of the different public sectors have or will have a Debit-Card combined with an i-phone payment system to mobilize its banking account where is deposited its salary, deducted from e-Trust funds and backed by the LAW. At the end of the fiscal year the sectorial e-Trust (e-Funds) will be on "Zero" when all public employees

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have received its monthly payroll and other benefits guaranteed by law. The e-Trusts for each public sector are recyclable annually and updated for each subsequent fiscal year. A surplus of electronic Trust funds (e-funds) will be canceled in the informatics system and set to "zero" (00.00), since it is not necessary to use specific sectorial e-funds for other budget purposes. This transformation from Debt to e-Trust social investment means a revolutionary innovation of the policies of state. The IMF has to change its debt system to an investment system to not losing its customers.

The revolutionary of this innovative system of electronic finance of public spending is that electronic funds (e-Trust) do not represent Debt but a Social Investment, do not pay interest but a bank fee for the administration of electronic Trust. In addition, the e-Trust funds are only manageable through electronic banking instruments such as Debit-cards, i-phones and electronic checks. Cash money will be used only for small personal transactions. This innovation process is conducting to a 100%- bankization, with Debit-Savings cards from 12 years on.

With this structural reform of the public financial system is automatically solved the problem of the top limit of public debt. There will be electronic money in abundance to finance social spending, but through an electronic currency, controlled and transparent in its use and destination. The ELPAS-eQE system proposes in essence practically the same policy of the Federal Reserve System (Fed), but with controlled, transparent, anti-inflationary and anti-cyclic digital electronic currency. This to establish the necessary political triangle: Security, Control and Confidence. When one of them fails, the political system fails.

Also is to prove that electronic currency in terms of economic productivity does not generates inflation to the work value in a free market economy.

In Figure 1 it can be seen that, when growing "public debt" decreases the benefit and quality of life of a society, whereas when applies e-Trust for Social Investment these magnify social benefits and quality of life. However, this transformation or reengineering is only sustainable with an applied monetary and financial structural reform.

The author and developer of this new monetary and financial system had to resort to the most advanced technologies of Information, Communication and Knowledge (TICC's) to give technological, social, economic and legal feasibility to the new monetary and financial system ELPAS-eQE, whose technical characteristics are the following:

a- Operates with an ELPAS-Workstation equipment, connectable to any PC or Laptop, which operates with ELPAS platform to process Debit-Credit cards, i-phones and electronic checks.

b- Access to bank accounts is controlled by fingerprint, image and user ID-card to control and make transparent all data/value transfers making with this platform in Internet.

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About this advanced banking system was built the new financial platform with "electronic Trust for social Investment" which eliminates, among others, public debt, fiscal and budget deficit, inflation, tax evasion, and on the other hand, stimulates and makes possible sustainable employment, stimulate investment, and last but not least, controls and transpires all kinds of illicit financial dealings.

The most relevant innovation of the ELPAS-eQE monetary-financial system is the new back-up of the electronic currency. Besides the main support of the currency in circulation, the tax revenues (ideal: Tax income = public spending), the electronic currency will have a backup that all countries, rich and poor alike possess: The LAW, specifically: a) the Labor Law, b) National Public Budget Law, c) Social Law, and d) the Constitutional Guarantees.

The principal support for electronic currency in the public employment sector will be the Labor Law, that requires the Employer to pay wages after a working day, and if the productive economy does not produce sufficient revenue, the government (employer) must resort to borrowing. This policy comes to end with the application of the structural financial reform, showing in ELPAS-eQE, which defines the payment of public salaries as Social Investment (not as public debt) and whose funding is made through the before mentioned "e-Trust for social Investment", supported by the above-mentioned Laws.

So, with ELPAS-eQE, the LAW will have a new politic role: Guarantee and back-up of electronic currency. This allow Central Banks of all poor and emergent countries to apply the same monetary policies that practiced the Federal Reserve System (Fed) since 1945 in advance, to become the first economy in the world, but with an important difference: There is not inorganic money in circulation, and economic growth will be financed with e-Trust (not with debt system) to establish better control, transparency and to monitoring currencies in circulation.

These structural reform and changes in the monetary and financial system will have a very positive impact on the poor and emerging countries, as their economies can grow with a national, independent, and controlled electronic currency. That make global trading more stable, more sure and more reliable; finally incorporated into a global monetary system with digital electronic currencies, for example: e-Dollar, e-Euro, e-Latin, e-Asiat and e-African, in order to overcome obstacles and errors that remain in the current global monetary, financial and economic system.

How to pay public debt with ELPAS-eQE system? Traditionally governments finance social spending (education, health, public payroll, etc.) with taxes. With the new system ELPAS-eQE is possible to finance public payrolls and other social expenditures by e-Trust backed by Laws. Thus taxes would be free and as SAVINGS, and so may be used for payment of public debt and necessary imports (e.g. in relation 70/30).The taxes will be deposited in Central Bank as collateral for electronic money in circulation. Once all debts paid, the State may modernize or upgrade public accounting: Debt position

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(Passive) will be replaced by "Investment" (Active). The new "Passive" in the public balance is the "Gross Domestic Product (GDP) as measurer par excellence of national economic growth. This structural financial reform permits to close the gap between rich and poor countries, since all countries have the same possibility to generate so much electronic money as necessary to cover the national social budget, without the need to borrow money.To prevent future crises in the financial and economic system the author also proposes the independence of the Social investment sector from Capital Investment sector (see: Figure 2). This “sectoralization” is to avoid that in times of economic rescission not will be affected the social sector. So, the “electronic Trust for Social Investment” guarantees the availability of funds to pay public spending, regardless of the economic situation (boom or recession).

Other ELPAS-platform applications:

A. Transformation program for informal economy.

By the same ELPAS platform the informal economy is transformed into formal economy through the Trans-Economic Program (to buy the ELPAS book see: www.elpasfoundation.org). Small and Middle Enterprises (SME´s) and Cooperatives will receive "electronic credits" (e-credits) at a very affordable cost to create, maintain and expand its business. This aims to create sustainable employment and meet the demand a new economic model, called: "Economic of Productivity for Development and Social Inclusion". The access to "productive electronic credit" will be very useful and of great encouragement to cooperatives and SME's, finally to become more competitive in the domestic and international markets.

B. Social Security insertion.

Under this innovative logistical and financial concept, informal traders and entrepreneurs will have an excellent opportunity to join the benefits of "Social Security", becoming new "Taxpayers" entitled to Social Security benefits, including decent retirement. This process will be automated because all private and public payments will be through electronic transfers between banking accounts, and that will collects all taxes automatically. Tax avoidance by this route not may exist. Finally, the electronic banking system creates an automatic link to Social Security. The reform and modernization of the Social Security system generates the sought and necessary security and confidence in government policies, and also contribute and strengthen justice and social peace.

C. Democratic Innovation.

The ELPAS platform also includes an innovation- and modernization process of the contemporary Democracy, here defined as "Interactive Democracy 24/7". The focus is on stimulus and facilitation to a better interaction between "Citizen and Government", and to create more participation and cooperation to build a country of welfare for all.

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D. Integration. The today's path for social and political integration only could be through Technological Innovation. In addition that Latin America and the Caribbean have a unique and unrepeatable advantage compared to other international societies, its unique language: Spanish. This facilitates and strengthens the trade exchange between the different commercial blocks, including the implementation of a single and common currency. Its name could be: Sucre or Latin, which should arise as an electronic currency (e-Latin; e-Dollar; e-EURO, e-Asiat, e-African,..).

E. Financing.

The ELPAS-USA Foundation, Inc has access to international financing for development and implementation of the technological platform ELPAS-eQE. Interested governments in this macro-project of systems should provide a “Sovereign guarantee" or "Sovereign Bonds”, certified by the Central Bank.

In Figure 3 you can see the most important applications of the ELPAS platform, which includes an innovative and revolutionary monetary, financial and economic system, from Latin America to the world.

For more information about this project, you can visit our web site: www.elpasfoundation.org, or write us to our email: elpas@elpasfoundation.org

Yours faithfully, Friedrich W. Siegel Founder & President of ELPAS-USA Foundation, Inc; Project owner

Note:We worked for more than 10 years with private resources to advance in our ELPAS project. Now we need your donations to meet our goal to benefit all humanity. To donate, please contact our webpage: www.elpasfoundation.org.FOR YOUR DONATION WE THANK YOU IN ADVANCE!

_________________________________________________________________________________Headquarter: 1161 West 59th Pl Hialeah, Miami, Fl 33012, U.S.A, Cell: 305-345-3970 - Cell. 786-367.7847

Email: elpas@elpasfoundation.org - http://www.elpasfoundation.org - Fed-ID #46-2998673, with status 501(c)(3)

ATTACHMENTS:

Graphic 1:

Graphic 2:

Structural Financial Reform Transformation of Public DEBT into Social INVESTMENT

Social

DEBT

Public Debt is limited by Law: 60% to G.D.P.

Social

INVESTMENT

100% of Investment vs. P.I.B.

0% Public Debt

Beneficio Social ¹ Social

Investment could be passed at 100% vs. P.I.B.

¹ Financing limitations:a) Lack of skilled Manpower.b) Fiscal deficit (Revenue less than 100%).c) Imbalance in economic growth.d) Very high Imports (goods and services).The Social Investment could passed the 100% vs. G.D.P.

Transformation

30% Debt

15% Debt 30%

Investment 60%

Investment

0% Investment

15%

Beneficio Social

ActualPublic

financial system:

Innovative DEF-eQE System

60% Top of Debt Social

Benefits = 0%

Beneficio Social

≥60%30%

0%

100%

Dual Sectoral Electronic Financial System with electronic Quantitative Easing, DSEFS-eQE

SOCIAL SECTOR

FINANCING Methology:TRUST WITH E-MONEY

FOR SOCIAL INVESTMEN

T

Back-up of e-Currency:

Fiscal Income, Labor law,

National Budget Law , Social law

and, Constitucional

Guarantees

e-Currency back-up = The LAW

PRODUCTIVE

ECONOMY FINANCING Methology:CAPITAL INVESTM

ENTwith e –MONEY

(Capital Economy)

Back-up of e-Currency:

PRODUCTIVE ECONOMY

DSEF-eQE

e-Money back-up = ECONOMIC PRODUCTIVITY Note: e-Currency = electronic Currency

Graphic 3:

YOUR DECISION:

ELPAS- eQE A REVOLUTIONARY MONETARY, FINANCIAL, FISCAL

AND ECONOMIC SYSTEM

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2 DUAL SECTORAL ELECTRONIC FINANCIAL System , with electronic Quantitative Easing, DSEF-eQE.

Start

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5

3

6

4

911

7

15

810

ELPAS-MSME Program with ELPAS

MUNICIPAL-NETWORK

ELPAS Social Welfare Program with e-Trust

Electronic Automated Tax Collection System, EATC (Fiscal Reform)

Interactive Democracy 24/7 (Democratic Reengineering )

ELPAS Educational Program

STATE-NETWORK

Trans-Economic Program:Transformation of informal to formal economy!

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13

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New public financing policy:e-Trust instead of

public Debt

ELPAS-point

(e-Currency)

New global immigration policy

New Social Security System with DSEF-eQE

ELPAS-TOURISM

(ELPAS franchise)

NATION-NETWORK

U.S. currency: e-Dollar

DSEF-eQE systemfor EDLAC

US political Constitution,with DSEF-eQE

system18

ELPAS-eQE

System

Economy of Productivity for Development and Social Inclusion (Economic Reengineering)