george_mensah at nhsnyc.o
01-19-2001, 07:20 AM
I did not finish reading the entire piece, but there are a few errors in the
basic assumptions.
-Mortgage rates are not above 8%. As a matter of fact, they are below 7%.
-There are affordable home financing with 0% down. 3% mortgage products
have been in the marketplace since 1992.
The description of Equity Sharing looks like a credit union without the
regulatory safety nets built into credit unions. The entire piece looks
like a recipe for someone to get very rich.
Of course, I stand to be corrected.
----- Original Message -----
From: "Michael O. Patterson" <Michael_O._Patterson@HUD.GOV>
To: <communitydevelopmentbanking-l@cornell.edu>
Sent: Thursday, January 18, 2001 4:57 PM
Subject: request for advice
>
>
> a friend of mine sent me the below writeup. It's above my head. I am
> interested in finding cooperative approaches to community development,
esp. the
> financial side. Is this real? Would it work? What other outfits are out
there
> doing similar things? I share this because I ask these questions.
Sharing in
> no way implies any kind of endorsement or "sole source" status, nor does
this
> reflect any aspect of my employer's position or views. I cannot endorse
this
> for another reason, I don't really understand the economics of it.
>
>
> Every Family can make more than $100,000 tax-free profit when buying a
home
> using equity sheltering.
>
>
> MONROBEY CAPITAL NETWORK MANAGEMENT CORPORATION
> P.O.Box 15656
> ANN ARBOR, Ml 48106-5656
> INTERNET: http,//monrobey.com
>
>
> WHAT IS EQUITY SHELTERING?
>
> When we use the term "Equity Sheltering"' several questions typically come
up:
>
>
----------------------------------------------------------------------------
----
· "What is Equity Sheltering'?"
· "Where does the $100,000.00 tax-free profit come from when I use
Equity
Sheltering'?"
· "How can I buy a home using Equity Sheltering*?"
Before we show you how every family can make easily more than
$100,000.00
tax-free profit by saving on their housing costs, let us look at
the
conventional way of buying a house with the help of a mortgage. Then we
will
make an inventory of the economic tools available to avoid all financing
costs
for the purchase of a new home, business real estate, a car, a
computer or
anything else with an economic life time of more than four years. You will
see
how Equity Sheltering is a logical and very profitable way to buy long
term
needs for which consumers or businesses don't have enough money in their
bank
accounts.
FINANCING A HOME THE OLD-FASHIONED WAY
When you finance your home conventionally, you have to answer two
major
questions:
· "Where can I get the IO% or 20% down payment?"
· "Can I afford the monthly mortgage payments?"
The difficulty in finding affordable housing is not finding a house
with an
affordable price. The real problem is finding a means of financing
with an
affordable price. Even when you get a low interest rate, like 7% per annum
over
30 years, you are still stuck. However, not one bank will give you an
interest
rate of 7%. It is more likely that you have to pay at least 81/4%. This
means
that you have to pay $676.14 per month. You have still to find the
$10,000.00
down payment if the bank turns 10% down on a $100,000.00 home.
THE COSTS OF CONVENTIONAL FINANCING
If you can find that $ 10,000.00 the next question is, can I afford a
monthly
payment of $676.14? But suppose you can't find that $10,000.00 and
decided to
borrow it on your credit card. That would cost you another $200.00 per
month,
even paying only the minimum amount. Your total monthly payment would
then be
$876.14.
With an interest rate of 18% it would take you seven years and nine
months to
pay off your credit card debt. You would pay $8,600.00 in interest. The
total
amount of interest that you would pay for your house is $153,4 10 plus
$8,600
credit card interest. When you added the $100,000.00 principal to it, you
would
pay a total of $262,010. It is quite clear that you would pay for nearly
three
houses, to get only one house. The question is again, can you afford a
monthly
payment of $876.14, thus nearly nine hundred dollars, for housing alone?
For
more than half of the United States the answer is NO. You can find on
our
Website the answer to the question why more than half of the United
States
cannot afford to pay such a amount. http:llmonrobeyconilangryOOO.htm
THE NEED FOR AN ALTERNATIVE
Do you think that it is very likely that bankers and other sources o
financing
will give up their very profitable business of lending money. Why should
they?
It is completely legal and they have been doing it for years. It is highly
unlikely that they will reduce the interest rates to a more affordable
level.
Those families which cannot afford to buy a house will have to pay eve more
for
their housing. They will have to rent housing facilities from landlords.
Those landlords have to pay those same interest rates for th money when
they
buy their rental apartments or houses. Because landlords have to make a
profit, they have to charge even more than $900.00 a month to rent a
$100,000
house. Therefore, if someone cannot afford to buy a house, he or she has
to
find a smaller or less desirable house to have affordable rental price.
They have educated us to believe that this is the way the economy works.
Therefore, very few people think to look for an alternative way financing.
Very few people realize that modern technology has given the opportunity to
create a very attractive alternative for the problem of long term
financing.
THE ONLY POSSIBLE ALTERNATIVE
The United States Government has given the banking community monopoly in
the
creation of money. It is not very likely that the cost of money, the
interest
rates, will go down. This fact leaves us with only one conclusion.
We have to make better use of the money that we earn and spend.
Notice that we did not say that we have to spend less and save more.
That is
the conventional answer, and for most of us already burdened by debt
it is
virtually impossible.
Making better use of the money we earn and spend is the only base for
finding an
alternative. Every dollar received by consumers for their work and every
dollar
received by businesses for their products, have one important quality.
That
money is interest free to the receiver. Technically it is true that
someone
somewhere in the world pays interest for it. However, the receiver of
money
from income has the freedom to do what he or she likes with that money. As
long
as it is in the possession or under control of the receiver, it stays
free of
interest. Every dollar, a consumer or business receives as income, is in
this
sense interest-free.
The dollars that we receive as income are very precious dollars. We seldom
get
another opportunity to get our hands on money for which we don't have to
pay
interest. Therefore it is essential not to use those dollars when they are
not
needed. We have to delay using those dollars. When we put those dollars
in a
bank account, we will receive income from it for every day that we are not
using
those dollars.
Overall, we have only one possibility to keep those dollars as long as
possible
in a bank account.
Avoid spending them.
This may seem like sheer nonsense and leads to the question:
"How can I keep the dollars that I need to pay for food or clothing, and
the
dollars that I need for my daily needs, safely in a bank account? How
can I
pay for my purchases, when I have to leave them in a bank account?"
The answer is startlingly simple. You use centuries old bookkeeping
knowledge,
combined with advanced technologies. That allows you to keep your dollars
in a
bank account where they continue to work for you. However, applying
that
centuries old knowledge will nevertheless allow you to make your
normal
purchases.
Here comes the Equity Sheitert in for the first time. When you receive
your
income check, you put a part of that income in an Equity Shelter . The
part
deposited in the Equity Shelter' stays in a bank account. However, you can
use
the value of the deposited money nevertheless to make your purchases. You
can
do that without any problems when you begin using Economic Technology'.
Now, you cannot do this alone as a single consumer. You need to make
certain
that the few dollars that you bring into the market, get a chance t develop
optimum economic power. You must find other consumers an businesses who
discovered the economic power of Equity Sheltering.
Therefore, you must become a member of a network of consumers an businesses
who
apply that unique knowledge of Economic Technology' have created an
effective
Equity Shelter. Such a network easily develops hundreds of thousands of
dollars
tax-free profit for every single member. Tax-free profit is profit
resulting
from SAVINGS.
You have to join a professional network that makes certain that your income
dollars do not lose their unique interest-free power, but continue to work
for
you after you have spend them.
THE MEANING OF "EQUITY"
The word "Equity" is a unique expression mainly used in North America to
indicate the residual value of a property or business beyond a mortgage
thereon
and liability therein. Within the sphere of "Equity Sheltering"' use the
word
equity in a less known, but very original meaning of the word equity.
Equity has within the sphere of Equity Sheltering' the meaning of equitable
right, a claim. The original English meaning of equity is: just impartial
and
fair. When we apply Equity Sheltering, we shelter your economic claim and
its
related rights.
Accountants particularly excite when they see the enormous pro possibilities
and
economic advantages of Long Term Equity Sheltering using Economic
Technology.
Accountants suddenly discover that they can do effectively something about
the
eternal nightmare of most their business clients: Lack of Capital. Equity
Sheltering adds a whole new dimension to their professional capabilities.
Read on and you will soon understand why Equity Sheltering will make every
family at least one hundred thousand dollars richer, when they manage the
spending of their dollars in a proper scientifically sound manner.
INTRODUCING ECONOMIC TECHNOLOGY
Using a combination of five different scientific applications together, we
can
make far better use of every dollar that you earn and spend in the market
for
everyday needs. We call this exciting technology: Economic Technology.
One of the first questions on our Website (http.-Ilmonrobey.com) is: "Have
you
ever seen someone who threw away more than $100,000 for no good
reason?" A
simple statement follows that question immediately: "Look in the mirror and
you
see someone who can throw away $100,000 for no good reason."
One of the most difficult tasks for Monrobey Capital Network
Management
Corporation (Monrobey Corp.) is to convince the readers of our printed and
Web
material that this statement is true. Everyone needs a house to live in.
Less
than 10% of the population has enough money to pay cash for that house.
At
least 80% of the population has to borrow the money if they want to buy a
home.
If they cannot find a lender, they must pay rent. This means that they
will
actually pay more for their house, even though they will never own it. We
go to
a lender or rent a home, because we don't know any other way. We have
simply
been educated to think this way. They never taught us a way out of
that
economic trap.
It is the task of Monrobey Corp. to show that anyone using Long Term
Equity
Shelterinf can own a house, avoid all financing costs and avoid the
down
payment. Incidentally the down payment is for most renters the
biggest
stumbling block toward building or buying their own home. Long Term
Equity
Sheltering' ends the problem of affordable housing. Long Term Equity
Sheltering
enables anyone to buy a home with a value of $100,000,00 without down
payment
for only $324 per month for 30 years. You have to make only one
decision to
make it happen. You must join an international network of consumers
and
businesses who share this common goal:
Making better use of money using Long Term Equity Sheltering and
Economic
Technology.
The enormous advantages are immediately recognizable. Using Long Term
Equity
Sheltering avoids all financing. Consequently the costs of interest
disappear.
They don't exist anymore. The consumer can use the savings from his or
her
lower housing costs for other purchases. A business can decrease its
operating
costs, because it does not have to pay interest for financing its inventory
and
building. Economic Technology also eliminates the financing costs for all
the
businesses in the supply line. As a result prices reduce with no loss of
profit
for the business.
It quickly becomes obvious that every business using Long Term
Equity
Sheltering! becomes extremely competitive. These businesses can charge
lower
prices to their customers resulting in a chain of positive
economic
developments. The most important of these are:
0 Greater purchasing power for consumers, as a result of lower prices.
0 More profit for businesses, as a result of higher sales volumes with the
same
or greater margins.
NOT ONLY HOUSING BECOMES CHEAPER
Still, that is not all. Did you know that accumulated interest forms
between
35% and 50% of the price of consumer products? This means that
significant
percentage of the conventional price paid for a house consists of interest,
paid
by the builder and the manufacturers of every part of the house. The
consumer
ultimately pays every dollar of interest that the builder pays for financing
the
labor payments and all the costs of materials he puts in a new
home.
Eliminating these interest costs, will eventually bring price of a new home
down
by more than 30%. That cost reduction will cause any loss of income for
the
builder or his suppliers. To the contrary, the builder and his suppliers
will
do far more business.
It is also worth noting that if interest costs contribute 35 to 50% of the
pr of
consumer products, an increase in interest rates will have a significant
impact
on prices. If interest rates go up, then labor costs will have to down
or we
will experience inflation. Yet the Federal Reserve raises interest
rates in
order to reduce inflation. This clearly forces businesses to reduce labor
costs
typically by layoffs. Or reducing wages in order to remain
competitive.
Raising interest rates are a far bigger cause of inflation than a
deterrent to
inflation, and yet economists commonly focus on wage rates as the
cause of
inflation.
MAKING BETTER USE OF OUR MONEY.
According to the 1994 census the average annual income of an American
household
is $32,264.00. There are nearly 100 million households earning a
total of
$422.9 billion, an incredibly important economic power.
That power, until now, has been unused, because we did not have
the
technological means to do so. With the introduction of the computer, and
the
rapid development of modem communication technology over the past thirty
years,
the average American family can finally use that economic power in a
profitable
manner. Today we can use Long Term Equity Sheltering and Economic
Technology.
USING CONSUMER POWEREFFECTIVELY
All of the advanced computer and communication technologies now
have a
sufficiently low price to enable using them for the development of
extremely
effective consumer power. Equity Sheltering and Economic Technology
enable us
to apply that consumer power effectively in small local environments.
Consumers can now make certain that every dollar they earn will be used in
the
most efficient way. The consumers can insure that those dollars will
ONLY
LEAVE THE EQUITY SHELTERING when it is absolutely necessary.
MONEY AND FAMILIES.
Every person, everywhere in the world, uses money only to pay for
products or
services that he or she purchases from someone else. You don't pay
yourself.
No one moves money from the left pocket into the right pocket, to pay
him or
herself.
As a part of a family, a husband doesn't pay his wife for the meal she
has
cooked. Neither does the wife pay her husband when he mows the lawn. We
use
money in the family only when we have to pay someone outside the family.
This
principle is essential for understanding Equity Sheltering. When we
want to
make better use of our money, we must become members of a larger
family of
consumers and businesses. A family of families that has decided to make
better
use of its money by keeping it within the Equity Sheltering for as
long as
possible. We make here use of the word family in an economic
sense,
identifying a large group of people or businesses acting as a family.
A COUNTY OR TOWN BECOMES AN ECONOMIC FAMILY.
Each resident of a town, is in a sense a member of a "town family" and
has an
important interest in the overall well being of the town. The town or
county
family needs to insure that for as long as possible their money stays
within
that family. You will soon see how badly each town needs a Equity Shelter.
Let us assume that your town has 25,000 families. The average annual
income of
all the families in town is $30,000.00, thus the monthly income is
$2,500.00.
The total amount of consumer money in circulation in your town is
thus
$62,500,000.00.
Now let's assume that those 25,000 families decide to use America
Express
Traveler Checks for doing business with each other. What will happen when
they
begin paying their daily bills with American Express traveler checks?
Nothing
would change. The town operates as usual because American Express
Traveler
Checks are as good as money. The only difference will be that American
Express
checks go from hand to hand with the same effects as passing normal
bank
checks. Everyone knows that American Express will pay a dollar for
every
dollar of traveler checks.
WHO WOULD BE THE REAL WINNER?
American Express, of course, because it would have $62,500,000 in its
bank
account. American Express received that money totally interest-free. It
can
use that money in any way it likes, as long as American Express makes
certain
that it will exchange every returned traveler check money. In addition,
every
month American Express will earn at least:
1/12 * 7.2% * $62,500,000 = $375,000 that is $4,500,000 per year
in interest simply for holding the money as a reserve against the
checks.
However, it is more likely that they would find ways to use the
$62,500,000 to
earn far more than 7.2%.
THE DYNAMIC CAPITAL NETWORK AS EQUITY SHELTER
Now, imagine that network of consumer and business members applying the
same
idea, using Equity Sheltering. Consumer members agree spend their money
only
in the stores of business members who also agree to keep the consumer's
money
in the Equity Shelter' for as long as possible. The consumers or
the
businesses deposit that money into the bank account of the Equity Shelter.
The
Equity Shelter has the form of a trust corporation. Neither the
individual
consumers, nor the individual businesses can use that money. Only the
Board of
Directors of the Equity Shelter can decide how and when to use that
money.
There are only two possibilities:
I. for trading outside the network (See Reserve Trading),
II. for the elimination of interest bearing loans of consumer members.
The total amount in the bank account of the Equity Shelter represents the
total
amount of money, being held as a Trading Reserve for trading outside
the
network. The management of the Trust Corporation enters the
prepurchase
payments of each consumer into the trust corporation as assets in the
double
entry bookkeeping system of the trust. This booking simultaneously
creates an
amount of trading capital equal to the amount deposited. The DCN reduces
the
trading account of a member for the amount purchased.
The consumer and business members of the trust can only use their
trading
capital for purchases from business members, thus for trading within
the
network. The capital circulates between the members and creating savings
and
profit for every participant while the money of the consumers stays in
the
trust account in the bank.
USING ECONOMIC TECHNOLOGY
Economic Technology defines the method used to transfer the capital from
one
member account to another member account. The capital can only move when
the
transfer is related to a purchase transaction. Economic Technology'
indicates
the use of five different scientific developments:
I .Basic Computer Technology,
2. Communication Technology,
3. Intemet/Intranet technology,
4. Universal Accounting (see page 19,)
5. Total (economic) Integration structures (See page 19.)
Using Economic Technology' within a growing economic family makes certain
that
the money that you spent with the members of that family, stays as
long as
possible within that large family. The DCN is a network of such families
using
Long Term Equity Sheltering' and Economic Technology'. Those local
families
are divisions of the DCN. We call them Liquid Capital Circuits' (LCC.)
The
name Liquid Capital Circuit' tells exactly what they are, circuits filled
with
liquid capital. We derived the name from the element CAPITAL as used in
double
entry bookkeeping.
By becoming a member of the DCN, you also automatically become a part
owner of
the DCN. Monrobey Capital Network Management Corporation will supply you
free
of charge with a Certificate of ownership for one share in the Dynamic
Capital
Network' Corporation. The share participation becomes automatically void
when
your membership ends either at the end of your life or when you
decide to
terminate the membership. A third possibility is that the Board of
Directors
of the DCN decides to end the membership because your membership in
damaging
the interests of the consumer members of the DCN. The shares are personal
and
not transferable.
The Monrobey Corporation, the international manager of the DCN, will
set up
local LCCs to make better use of money anywhere local citizens request a
local
LCC.
The local LCCs are owned by the DCN, and the DCN is owned by the members.
Each
local LCC is locally controlled by a locally elected Board of
Directors
consisting of local members. The Board of Directors of the DCN is
elected by
the Presidents of the Board of Directors of the local LCCS. Only
Presidents of
the local LCCs can be nominated as candidates for Board Membership of the
DCN.
The Presidents of the local LCCs meet annually as participants of the
annual
DCN-Congress.
Monrobey Corporation manages the DCN and provides a consultation and
auditing
service to the local LCCS. Monrobey Corporation generates its income
from
normal service fees for consulting, auditing and training.
THE EQUITY SHELTER
Each local LCC consists of two different corporations:
* A local LCC Trust Corporation which functions as the Equity Shelter.
Each DCN member has an equity account in the local LCC Trust
Corporation.
* A local LCC Trading Corporation which functions as the operational
part,
using network capital for the settlement of trading activities between
members.
Each DCN member has a trading capital account in the LCC Trade
Corporation.
The combination of the LCC as the Equity Shelter' and the
application of
Economic Technology' insures that the entire supply chain within the
Dynamic
Capital Network' will become fully interest-free. The results are obvious.
The elimination of interest from the supply chain will reduce the prices
paid by
the consumer members on purchases made within the DCN. Consumers will
also
enjoy significant rebates from the operations of the local LCC.
LONG TERM EQUITY SHELTERING
When a member wants to buy assets with an economic life of more than four
years,
he or she will make an arrangement, either with the Trade Coordinator'
employed
by the business, or with the Network Coordinator' employed by the local
LCC
Trading Corporation. The local LCC Trust Corporation buys the assets from
the
supplier by crediting the Trading account of the supplier for the total
amount
of the purchase. The assets are legally placed in an assets account of
the
local LCC Trust Corporation for Long Term Equity Sheltering.
The local LCC will only purchase any assets if the consumer member enters
into
an agreement with the local LCC Trust Corporation to buy the assets within
the
economic life time of the assets.
The local LCC Trust Corporation charges a one time standard Equity
Sheltering!
fee for all transactions. This fee includes a 10% risk premium fee and 6.6%
for
administration costs. The local LCC automatically includes this amount in
the
purchasing price. The monthly payment by the consumer is determined by
dividing
the total amount due by the number of months in the payment period.
Every month the local LCC Trust Corporation increases the Equity
Sheltering
account of the buyer by the monthly amount paid, less the 16.6%
Equity
Sheltering' fee portion. As a result, the equity of the buyer increases
much
more rapidly than with conventional mortgage financing, while the
monthly
payments are far lower.
The formation of a local LCC within the DCN network can bring
hundreds of
thousands of dollars tax-free savings and profits for its members. It
brings
scores of new business activities to the town.
THE DCN AND ITS LCCs CAN MAKE THE AMERICAN DREAM COME TRUE: FOR ITS MEMBERS
LCCs use Economic Technology, electronic payment systems, advanced debit
cards
and advanced multi-layer accounting, to facilitate their economic
interests.
They make an optimum use of the solid economic power of the local
consumer
members.
DEVELOPING RESERVE TRADING
The money in the LCC-Trust Corporation's bank account has become a
Trading
Reserve for the local LCC and has two major purposes. One purpose is
for
trading with businesses outside the local LCC family.
However, since every local LCC is a part of the DCN, they only nee money
for
doing business with businesses which have not become member of the DCN. The
DCN
will build local LCCs anywhere in the world where people who want to make
better
use of their money can be found. Eventually, the LCCs will need only a
small
amount of the Trading Reserve in the bank account for trading outside the
DCN.
As a result, the LCC will use the Trading Reserves that an LCC does not
need to
use for trading outside the DCN, for eliminating the expensive long term
debt of
members, on a first-come-first-served base. This is the second purpose of
the
Trading Reserve.
Monrobey Corporation insures that every business member can become totally
debt
free within 6-9 months. This allows those businesses to further decrease
their
prices without sacrificing profits. It enables them to become
highly
competitive with respect to non-DCN businesses.
Consumer members will pay lower prices and will also be able to remove the
costs
of debt from their lives. Over time consumer members will gradually
increase
their purchasing power by more than 200% without paying any more taxes. On
the
contrary. Even local taxes will go down, as the local town or
county
governments learn how to use the powerful tools of Economic
Technology.
Economic Technology" works for local government agencies as well as
consumers
and businesses.
FOUNDING AN LCC IN YOUR TOWN
To establish an effective local LCC, the DCN needs local consumer
members
including a minimum number of business members. That number must be enough
for
the LCC to function well from the day it begins operations.
The building industry is typically a major economic activity in every
city.
Therefore, Monrobey Corporation brings the local LCC into operation
with a
sufficient large volume of local building activities.
A building volume of $10,000,000.00 will not only make between 50 and
125
families happy with an interest-free new home, without paying any down
payment.
It will stimulate the economy of every business in town.
Therefore, Monrobey Corporation will set up a local LCC as soon as
sufficient
charter members of the local DCN have registered their intent to purchase
new
homes. The exact number of charter members of an LCC depends on the
number it
takes to generate $10,000,000.00 firm building commitments.
While the DCN is owned by all members, every local LCC is established
as a
standard independent corporation owned by the DCN and controlled by the
local
DCN members. The Board of Directors will consist entirely of local DCN
members.
The Monrobey Corporation does not influence the financial decisions of the
local
LCCS, but acts exclusively as manager of the DCN and as consultant and
auditor
to the local LCCS. One member of the seven member local LCC board of
directors
will represent the Monrobey Corporation to insure that each local LCC
operates
with the same basic principles.
LIFELONG MEMBERSHIP WITHOUT ANY ANNUALFEES.
DCN-Members will never pay any additional membership fees beyond the one
time
$187 registration fee that every new member incurs. As a corporation each
LCC
will make sufficient profit to cover its own costs. The profit will
also
provide members with attractive rebates for every dollar spent by
consumer
members. The local LCC can also set up retirement fund accounts for
their
members and provide capital to finance community projects like community
and
daycare centers.
The income of the local LCCs is greatly defined by charging a Transaction
Fee of
2% on every credit operation resulting from a sales transaction within
the
network. Eighty percent of the income of the Transaction fee is added to
the
capital reserves and 20% is used for covering the operating costs of
the
network. This Transaction fee is similar to the fee stores pay every time
you
use your credit card. However, since the Equity Shelter is member owned you
get
a piece of the profit. This profit returns finally to the DCN-Business
Members,
because the members have to spend all profit resulting from DCN Operations
with
the network.
The network reaches a guaranteed velocity of 26 times per annum for the
total of
its circulating capital resulting in extensive capital reserves.
REACTIVATING THE ECONOMY IN YOUR TOWN
The DCN is a very sophisticated structure based on sound business, economic
and
accounting principles. Each local LCC has the economic power to create
hundreds
of well paying new jobs within the production, distribution and service
sectors
of the local economy. There is even the potential for covering the
transfer of
welfare case loads to the working environment and providing gainful
employment
for the long term unemployed.
DECIDE NOW, DON'T WAIT
Think about owning your own home for a monthly cost of less than half of
what
you would pay for conventional financing and with no down payment. Think
about
what you can do with that additional purchasing power your lower housing
costs
will provide. Think about the advantages of debt-free living. Decide
now to
become a charter member of the DCN in your community.
ADDITIONALBONUS
In addition to low monthly housing costs and no down payment, your local
LCC
will provide charter members with $3,000.00 charter member rebate to be
paid
from its income. That $3,000.00 will cover a number of the initial
monthly
payments on your house.
DON?TDELAY
As we have made clear, nothing happens until Monrobey Corp.
registers a
sufficient number of new house purchase commitments from charter DCN
members to
fulfil this $10,000,000.00 initial building project. We need from 50 to
125
charter DCN members (actual members depends on the value of the home
being
purchased.) Your participation really counts for everyone.
----------------------------------------------------------------------------
----
> Don't forget, only as a charter member you will be able to live in
your new
> house without paying anything for several months in the first year.
>
> SEVEN BASIC QUESTIONS AND THEIR ANSWERS
> 1. What is: "Long Term Equity Sheltering (LTES)?"
>
> Long Term Equity Sheltering' is the 21' Century Method to buy homes,
business
> real estate, cars, computers etc. without financing and without making
any down
> payment. It uses capital instead of cash and Economic Technology in a
closed
> circuit trading network.
>
> 2. When Long Term Equity Sheltering eliminates the need of financing
how do
> the members of the DCN pay for their purchases?
>
> Members can only apply Long Term Equity Sheltering' in a closed
environment with
> a self-contained accounting structure. The DCN/LCC is a closed, for
members
> only, trading domain. The profits made in this domain are available
only to
> members. The closed trading domain has the legal form of a for
profit
> corporation and uses an advanced form of multi layer accounting. Each
member of
> the DCNALCC has an equity account in the local Trust corporation and a
capital
> account in the local Trading Corporation. The payment of business
transactions
> is settled within the closed domain of the Trading Corporation by the
transfer
> of capital. The transfer of capital between members is only
possible as a
> result of a trading transaction.
>
> 3. When the DCN/LCC members use only corporate capital for the
settlement of
> their mutual business affairs, how do they pay for purchase outside
their own
> DCNALCC domain?
>
> DCN members have two types of customers and suppliers, members of the
DCN and
> NON-Members of the DCN. All NON Members of the DCN and the consumer
members of
> the DCN pay with normal legal tender, thus in cash. However, there is a
small
> difference. The payments of the consumer members of the DCN are
deposited into
> the bank account of the local LCC Trust Corporation. Consequently, the
normal
> cash inflow at the bottom of the DCN structure creates more than
sufficient
> reserves in bank capital for the settlement of purchases of the DCN
outside the
> DCN domain at the top of the DCN structure. Some readers could draw the
wrong
> conclusion that the members in the DCN/LCC will trade exclusively
through the
> DCN/LCC.
>
> Actually, they will all maintain regular bank accounts and credit
cards with
> which they can handle trading outside the network. It is obviously
advantageous
> to go through the network because of the rebate structure. There is the
further
> point that consumers will also be spending capital which they
receive as
> rebates. Furthermore the consumers are obliged to spend the
profit/savings
> resulting from their DCN membership exclusively in DCN stores or
businesses.
> When a DCN member finances his or her home with the help of Equity
Sheltering,
> the consumer pays monthly only $324 per month for a $100,000 home.
However, tie
> consumer is obliged to spend monthly also the difference between
conventional
> financing and Equity Shelterine for purchases from local DCN-business
members.
> This results in the case of a $100,000.00 home and based on 8 1/4%
interest in a
> guaranteed monthly additional spending in the network of about
> $751.27 - $324 = $427.27
>
> for every home financed by the local LCC with the help of Equity
Sheltering.
> Those $427.27 purchasing power did not exist before the existence of
Equity
> Sheltering', therefore they form a totally unique additional sales
possibility
> for DCN-business members. The homes could become paid with the help of
Equity
> Sheltering! because of the cooperation with the DCN-business members.
Therefore
> only the DCN-Business Members can profit from the increased purchasing
power of
> consumer members.
>
> 4. How can I use Long Term Equity Sheltering! for the payment o my
home,
> business real estate, a car, a computer etc. without paying any
interest or a
> down payment?
>
> Consumers and businesses using Long Term Equity Sheltering don't
finance real
> estate, cars, computers etc. in the conventional manner by borrowing
money.
> They make use of Economic Technology, allowing them to buy any assets
with an
> economic life time greater than four years depositing those assets in the
Equity
> Sheltet' and paying those assets within the economic lifetime of the
assets.
> The Equity Shelter' (The Trust Corporation) charges for its services a
single
> not time related Equity Sheltering' fee rolled into the purchasing
price
> consisting of only two parts:
>
> * a risk premium of 10%and
> * an administration fee of 6.6%.
>
> 5. What is Economic Technology*?
>
> Economic Technology' is the application of five different technical and
economic
> developments in the solution of economic problems:
>
> 1. Basic Computer Technology,
> 2. Communication Technology,
> 3. Intemet/Intranet technology,
> 4. Universal Accounting' *,
> 5. Total (economic) Integration structures**.
>
> Universal accounting is a double entry bookkeeping application adapted
by Hank
> Monrobey for multilayer accounting applications.
>
> Total Integration represents a form of total economic integration,
conserving
> the individual economic freedom of the users, based on a the work
of Hank
> Monrobey, published in 1962 in a book titled: "Total Integration
and Its
> Applications."
>
> 6. What is the function of the Dynamic Capital Network' and the Liquid
Capital
> Circuit?
>
> The Dynamic Capital Network and the Liquid Capital Circuits
are the
> organizational and legal structures needed for a successful
application of
> Equity Sheltering and Economic Technology'.
>
> 7. What is Monrobey Capital Network Management Corporation (Monrobey
Corp.)?
>
> Monrobey Corporation has been founded specifically for only one
purpose:
> Managing a Dynamic Capital Network (DCN) of locally controlled LCC
trust
> corporations and locally controlled LCC trading corporations.
>
> Monrobey Corp. has no other side activities and is therefore
exclusively
> dedicated to one goal:
>
> Decreasing the operating costs of the consumer and business members of
the DCN,
> resulting in tax-free additional profit for its members, by using
Long Term
> Equity Sheltering' and Dynamic Capital Networking'.
>
> For more information contact:
>
> MONROBEY CAPITAL NETWORK
> MANAGEMENT CORPORATION
> POB 15656
> ANN ARBOR, Ml 48106-5656
> 1 535 BAKER ROAD
> DEXTER, Ml 48130-1552
> PHONE: 313-426-6929 FAX: 313-426-6929
> E-MAIL: INFO@MONROBEY.CDM
> INTERNET: http,//monrobey.com
>
>
This post transferred from the cdb-l mailing list
Michael_O._Patterson at H
01-19-2001, 07:21 AM
I regret posting this message, it is apparently a scam.
Please post an immediate notice to the list serves you posted this to that
it is a scam.
oig_hotline@hud.gov <oig_hotline@hud.gov>
----- Original Message -----
From: "Michael O. Patterson" <Michael_O._Patterson@HUD.GOV>
To: <communitydevelopmentbanking-l@cornell.edu>
Sent: Thursday, January 18, 2001 3:57 PM
Subject: request for advice
I very much regret posting the request for advice. I did not in any way intend
to promote it, neither I nor my employer have any connection with them.
I am very interested in LETS systems, and similar cooperative financial
ventures. I don't understand the economics of them very well, and had hoped
there might be some similar ideas out there, that I could compare with. I have
no idea if this stuff is for real or not, it sounds too good to be true, but
then so do many LETS systems, and some work well.
I do not- I say again I do not- in any way shape or form- wish to promote that
scheme, or to in any way imply any kind of endorsement, sole source status, or
anything, beyond an example of a possible LETS scheme, and said so in the first
paragraph of what I sent.. I sought advice only, which is something I sometimes
depend on listservers for. I guess I can't do that.
Let me say again: I have no interest in that outfit, no connection with them,
what I shared is out of date anyway. I regret the appearance of SPAM, that's
something I despise myself. Please accept my apologies, and my desire to recall
that message.
>
>
This post transferred from the cdb-l mailing list
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