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ELPAS-USA FOUNDATION, INC

“jjjj We are going there to find solutions; we do not waiting for them to arrive!

ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!

INDEX

Page:

1. Summary………………………………….……………………………….……….2

2. Techno-political platform ELPAS………………………..………………......2-3

3. Platform Applications ……………………….………………………………...3-4

4. Key errors of the public financial system…………………………………..4-6

5. Revolutionary methodology to cover budget deficits …………………...6-7

6. Objectives of the DSEF-CQE system………………….…………………........7

7. Reconstruction of the “Political Tripe” ………………...……………………..8

8. Requirements for an up-dated monetary and financial system …………..9

9. Expected Results………………………………………………….………….….10

10. Social, Economic and Political consequences…..…………………….…...10

11. Implementation Plan……………………………..………………………….10-11

12. Integral Legal Framework for ELPAS………..……….…………….……......12

13. Comments, Recommendations, Conclusion…….……………………...12-14

14. Frequently Asked Questions…………………………………..………......14-16

ANNEX:

Bills for the ELPAS project…………………………………………………………17- 41

ELPAS = SECURITY + CONFIDENCE + CONTROL + GROWTH + ESTABILITY Page 1


1. Summary

The ELPAS Foundation and its founder-president, Friedrich W Siegel, spent over three (3) decades researching and developing new methodologies and systems for the monetary, banking-financial and economic system. The result of this long research is currently embodied in new proposals for an innovative and revolutionary monetary and financial system, called "Dual Sectoral Electronic Financial System with electronic Cryptographic Quantitative Easing program, DSEFS-CQE", with anti-inflationary and anti-cyclical character. This new financial system represents the backbone of a new alternative economic model, called: “Economics of Productivity for Development and Social Inclusion, EPDSI" with eQE Program, which marks a before and after the global financial crisis.

To achieve the financial structural changes announced in this project, I had to resort to a reengineering of State policies, which I explain with more details in this essay.

2. Techno-political platform ELPAS

In the ELPAS project were considered the technological irreversible banking innovation tendencies from Europe, U.S.A. and Japan. Among other things, the European Union has taken an important step in its plans to release wireless broadband of 700 Mhm that allows deployment of 5G mobile technology. The Commission of the European Union had long expressed its desire to release the 700 MHz band to give way to 5G, and finally the European Parliament has taken an important step, voting in favor of a plan for deploy this wireless band and thus improve the reach of telephony networks when implanting the 5G mobile technology. 2022 has been set as the deadline for all European member countries to use it. Although the deadline may be extended up to 2 years more in case of incidents with neighboring countries or lack of time in reallocation of the spectrum of broadcasting services.

So, the technological platform "DSEFS-CQE" is integrated by the following technological instruments:

2.1. Electronic debit - credit cards, rechargeable, multifunctional, and protected by a novel Insurance policy.

2.2. Personal Identification Card (ID-Card) that allows access to the techno-political platform ELPAS o similar.

2.3. i-Phones as instrument of electronic data-value transfer (Tele-payment).

2.4. Electronic Fund Transfer Check, EFT-check, multifunctional.



2.5. ELPAS-Workstation, equipment to processing all type of electronic financing instruments

2.6. Sectoral Electronic Bonds or Sectoral e-Bonds (World News!) for financing of public services, such as Education, Health, Safety, Justice, Programs for Social Assistance, among others, without resorting public indebtedness or tax increase.

Note: The ELPAS-Workstation will also works as Point of Sale (POS) and On-line banking for Micro-, Small and Middle Enterprises, Cooperatives and Entrepreneurs. This multifunctional equipment in addition would be compatible with operating systems Windows and Apple, allowing data-value transfer by networks.

3. Platform Applications

In the very first stage the ELPAS platform is integrated by the following applications:

3.1. Electronic Government with Interactive Democracy 24/7 (ELPAS-GOV).

3.2. Dual Sectorial Electronic Financing with Cryptographic Quantitative Easing system, DSEF-CQE system.

3.3. ELPAS-MSME Program: To finance Micro-, Small- and Medium Enterprises, Cooperatives and Entrepreneurs, with “electronic credits” at low cost and without financial risk.

3.4. Electronic and automated Tax collection (EATC) for "Zero evasion".

3.5. Trans-Economic Program; Transformation of informal economy into formal economy, with automatic insertion in the public Social Security system.

3.6. Alternative economic model: "Economic of Productivity for Development and Social Inclusion, EPDSI with CQE”.

3.7. Smart City Network (City Network).

3.8. Smart Country Network (Country Network).

3.9. Latin American Network with "Constitution of the "Latin American and Caribbean State of Rights (LACSR) - Integration through Technological Innovation -

3.10. Integral Legal Framework for ELPAS.



Technological Innovation trends: The future Automatic Teller Machine´s (ATM´s) only processes electronic funds transfer instruments, recharging financial Smart-Cards and i-Phones as electronic payment means, in addition to processing "Electronic Fund Transfer checks, EFT-checks" for natural and juridical person. ATM´s only will deliver bearer money in small amounts (up to US $ 100.0) to contribute to increase personal and public security. The Cash will be gradually replaced by encrypted electronic money (see: Announcements from the Central Bank of Europe, 2016).

4. Key errors of the current public financial system

Through investigation about the international state financial system I came to realize that the designing of the international monetary and financial system (from International Monetary Fund, IMF) in 1945, decisive structural errors were committed. Although they was recognized by experts, never were been eliminated. Thus, the greatest mistake was to finance social spending with a debt system, which was originally used to finance the reconstruction of European countries after Second World War. This international debt system was endowed with a legal upper limit (60% from G.D.P.) and would have to be abolished after reconstruction of Germany and other European countries (1958 at the latest).

It was obviously easier for politicians to maintain a (yet) functioning and rentable financial concept, instead of researching new financial methods and structures that could replace the time-limited debt system. Thus, the present generation of workers is the one who has to pay high taxes on rising debt and interest charges, although the present generation was not at all involved in causing this problem. Note: Germany is the second country in Europe with the highest tax burden after Belgium (See: Statistics).

On the other hand, this IMF debt system was only sustainable by so-called "post-war baby-boom" (later taxpayers) and by constant economic growth, but it was useless for periods of economic recession or stagnation. So, in economic boom times there was enough money for all planned social programs, but it was not so in recession times. But, the right to social security is laid down in the National Constitution and the subordinate laws, and insolvency of State is not legalized. However, economically weak countries (including U.S.A.) are facing now this exceptional condition of insolvency (See: US$ 20.0 Trillion of unpayable debt). The U.S. Congress has to raise the debt ceiling all the time in order to sustain financing of public services, or the government must declare the temporary "state bankruptcy" (default) as occurred in 2013. How much of the United States' debt is growing steadily is the so-called "National Debt Clock" or "U.S. National Debt Clock "(see http://www.usdebtclock.org/). To stop and reverse this tendency it will be indispensable a restructuring or structural reform (reengineering) of the American and European monetary and financial system.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined! 4.1. Sectorialization of the public financial system

To prevent economic and financial crisis and to eliminate fiscal and budget deficits social area it is necessary to create an electronic monetary system for two (2) independent financial systems, called:

A- Financial system for SOCIAL investment to finance wages, salaries, pensions, unemployment support, and other contractual employer obligations for public employees and workers in social area, such as education, health, security, social help programs, civil protection, justice administration, etc. whose performance represents intangible, not visible and not measurable values, but they are guaranteed by Law (National Constitution, Labor law, social law, etc...) as indispensable state obligations and necessary for healthy social development, and

B- Financial system for CAPITAL investment that finances infrastructures and its maintenance, equipment, materials etc., which represents tangible, visible and measurable values and will be financed through a new "electronic Sectorial financial instrument, named Sectorial e-Bond. It is to finance infrastructure and equipment for Education, Health, Justice, Security, etc.. (See: Figure 1)

The specified system name is: "Dual Sectoral Financial System with electronic Quantitative Easing (DSF/e-QE). It is very similar to the “Quantitative Easing Program” from U.S. Central Bank (Fed), but with an important difference: Both part-systems will be financed with anti-inflationary, controlled, monitored and digital electronic currency, managed by electronic banking instruments only.

In this way, governments always dispose enough financial resources to comply with its legal obligations to pay social spending, regardless of the economic situation, stagnation or recession. The financing can be achieved through new "Sectoral Electronic Bonds" (Sectoral e-Bonds) coming from "Electronic Social Investment Fund” (Social Trust Fund), which will be supported by Tax Income and a specific legal framework (See: Legal framework for ELPAS)

Important: With ELPAS, the power of Law becomes endorsement for electronic currency. Therefore, it will be no longer necessary for governments to endorse its Currency with gold, international currency, and/or mineral resources. The power of LAW will replace the today´s importance of non-renewable resources.

So we can see in the near future international electronic currencies such as: e-Dollar, e-Euro, e-Latin, e- Asiat, e- African….

So, any State with Information and Communication Technologies (ICT´s) can have a financial and monetary system like ´ELPAS-CQE´ or similar.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!Graphic 1: Dual Sectorial Financial System with cryptographic Quantitative Easing (DSF/c-QE)

The "Sectoralization " of the public financial system in two (2) independent financial sectors is to ensure that in times of economic and/or financial crisis, the financing of Education, Health, Civil Security and Social Programs will not be affected. With this strategically change governments will always have enough own financial resources to comply with social spending, regardless of different economic situations: stagnation, boom or recession. This can be achieved through the implementation of new "Sectoral Electronic Bonds" (Sectoral e-Bonds) coming from an "Electronic Social Investment Fund” (Social Trust Fund) that will be supported by Tax revenues and a specific legal framework based on Constitutional Rights and Guarantees.

Note: The integral legal framework for ELPAS includes bills for re-structuring, reform and up-grade of the current monetary and banking-financial system. Due of its great political potential it should be declared by high indebted governments as an urgent priority to leave behind its financial difficulties.

5. Revolutionary methodology to cover fiscal and budget deficit

During the research on the current public financial system I discovered that it was a very serious error of governments to finance Education, Health and Social Assistance Programs with public indebtedness. First, indebtedness has a limit by Law.


e-Bondsfor SOCIAL Investment

Payroll financing forEducation, Health, Security, Justice,

Environmental Protection

e-Bonds

for CAPITAL Investment

For infrastructure

construction, maintenance,

equipment, materials,…

DSF-eQE System

SOCIAL Sector

CAPITALSector


Second, because the state must pay high interest for debt service, and Third, because debt is reduced by INFLATION, which is the cause of the biggest social injustice, because inflation devalues working value and decreases purchasing power.

In order to eliminate this social injustice, the author designed and developed a Reengineering of the current monetary and financial system. These includes complementary and non-conventional techniques and methodologies, based of advanced Information, Communication and Knowledge Technologies (ICK-Tech). See Graphic 2.

Graphic 2: Revolutionary methodology to finance budget deficit in Social sector.

The back-up or endorsement of "Sectoral e-Bono" is guaranteed by:

I. Fiscal Income (State Endorsement) and, II. Specific legal framework (ELPAS) and Constitutional Rights and Guarantees.

6. Objectives of the new financial system DSFS-CQE

6.1. Allow financing of social services, without resorting to indebtedness and tax increase.


100

%

70 %

Example: New methology to finance payrolls in public “Education”

e-Bond for public spending

ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!6.2. Improve Security and Transparency of the monetary and financial system.

6.3. Improve Public, Financial and State SECURITY.

7. Re-establishment of the "Political Tripe"

To achieve this goal, governments have to adopt a "Financial Reengineering" (see ELPAS-CQE) that allows transformation of "Public Debt into Social Investment". This implies a re-definition and structural reform of public financial system and public accounting, including approval of an adequate legal framework (see. Integral Legal Framework for ELPAS System). These conduce to re-establish so sought and necessary Political Tripe that is showed in Graphic 3. The three (3) political pillars are:

a) Security (of monetary, financial and banking system).

b) Confidence (in financial, economic and governance policies)

c) Controls (of financial and banking management, protection and preventive controls).

Graphic 3: The 3 pillars of State Policies.

If one of these three (3) fundamental pillars fails, the entire political system will fail (see financial crisis 2008). To avoid repetition of these circumstances that affected the global financial system, governments must implement a financial and socio-economic banking system that allows for a thorough control and transparency in the issuance and destination of


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!all types of financial instruments, and the only way to guarantee is by application of a digital Currency that allows monitoring, control and systemic verification.

8. Requirements for a new monetary and financial system

The future monetary and financial system necessarily must be sustained in the following requirements and parameters:

8.1. Optimum Security and Reliability in its operating system.

8.2. Maximum Control and transparency in banking and financial transactions for all public administration levels and also the private sector.

8.3. Non-convertibility of electronic money in bearer money.

8.4. 8.4. Ability to transform "Public Debt into "Social Investment" (See: Graphic 4).

Graphic 4: Transformation of Social Debt into "Social Investment” - Financial Reengineering ELPAS -



9. Expected Results:

9.1. Replace obsolete and inadequate public debt system by a system of social investment with electronic Quantitative Easing.

Important: Public debt is limited by law (60% of G.D.P.), social investment is not. This allows financing social spending with abundant computerized digital currency, but controlled and transparent in its application. The limit of social investment will be given by available country technology level and also by education and capacity of people.

9.2. Repayment capacity of public debt at short term.

9.3. Recovery of national productive apparatus.

9.4. Replacement of interest for debt service by a banking commission for the administration of a new "Trust Social Investment”. 9.5. Have access to anti-inflationary and anti-cyclical financial platform.

10. Social and Political Consequences

The adoption of a revolutionary monetary and financial system as DSEFS-CQE generates indisputably very favorable social, economic and political changes for the development of civil society and state policies, just to mention:

10.1. Promotes and facilitates recovery and stability of global economy.10.2. Strengthens Security of individuals, commercial, financial and of the State.

10.3. Recovers confidence in state policies.10.4. Permits control about corruption, organized financial crime and narco- terrorism.10.5. Replaces the obsolete system of public indebtedness by Social Investment.10.6. Allows re-payment of public debts to relatively short term.

10.7. Eliminates inorganic money in circulation, therefore exist control over inflation.10.8. Restore the Faith in God.10.9. Leads to triumph of Good over Evil.

11. Implementation Plan:

I. Stage: - Government: Approval of the project.

- Congress: Study, Debate and Approval of legal framework for ELPAS.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined! - Government: Issue “Sovereign Banking Guarantee” to support investment of US$200.0 Million for ELPAS infrastructure (construction, equipment…).

II. Stage: - Banks: Distribute DEBIT CARDS (and i-phones, optional) to all person over 17 years old. Objective: To increase banking and promote electronic payment in national and international trade.

- Ensure financing for construction of the "University City with Technology Park ELPAS" see offer from financer Patrick Johnson, LLC Company, Georgia, USA.

III. Stage: - Define Sponsors for the ELPAS project (Technology Companies, Bankers, Universities, Others...). - Start university pilot project: "Festival of Ideas".

- International promotion of innovative ELPAS-CQE financial system.

Graphic 5: Non-conventional Programs and Methodologies to strengthen Public Security and Economic Stability (ELPAS System)


1 2DUAL SECTORAL ELECTRONIC FINANCIAL SYSTEM with Quantitative Easing , DSEF-eQE (Financial Reengineering)

Start

17

5

3

6

4

911

15

8

10

Electronic Online Banking,with e- credits for everyone

MUNICIPAL NETWORK

ELPAS-MSME Programa (e-credits to create employment )Electronic and automatic Tax collection (Zero Tax evasion. Interactive Democracy 24/7(Reengineering of the Democratic system )

Educative Program for ELPAS

COUNTRY

NETWORK

Trans-Economic Program: Transformation of informal to formal Economy.

16

13

12

14

Innovative Financial Program for

Social Security with ELPAS-eQE

Point ELPAS (e-Currency)

New immigration

Program with ELPAS-eQE

New Social politics with DEF-System.

Latin-American ELPAS-TUR Program

LATINAM & CARIBEAN NETWORK

e-LATINunique

currency

ELPAS-eQE System:independent monetary &

financial system

Constitution for EDLAC 18

ELPAS SYSTEM

for Latin-America and Caribbean

Economy of Productivity for Development and Social Inclusion, with DEF-System (Economic Reengineering)

Municipal Netwok = 1 a 9Country Network = 10 al 13LATINAM Network = 14 al 18

7


12. INTEGRAL LEGAL FRAMEWORK FOR ELPAS (more details on “Annex”):

12.1. BILL FOR SOCIAL SECTOR FINANCING WITH ELECTRONIC FINANCING INSTRUMENTS.

12.2. BILL FOR EMISSION, CONTROL AND REGULATION OF CUSTOMIZED ELECTRONIC MONEY AS FINANCIAL INSTRUMENT.

12.3. BILL FOR ELECTRONIC AND AUTOMATED TAX COLLECTION - Bill for Zero Evasion- Integral Plan "A" and Selective Plan "B"-

12.4. BILL FOR STRUCTURAL REFORM OF THE PUBLIC FINANCIAL SYSTEM.

12.5. BILL FOR "INTERACTIVE DEMOCRACY 24/7".

12.6. BILL FOR SYSTEMIC CONTROL OF INFLATION.

12.7. BILL FOR CONTROL OF MANUFACTURING AND DISTRIBUTION OF FIREARMS.

12.8. CONSTITUTION OF THE SUPRA-CONSTITUTIONAL STATE OF LATIN-AMERICAN AND CARIBBEAN STATES, LACS.

12.9. BILL FOR REFORM OF INTERNATONL IMMIGRATION POLICIES… ...to stimulate creation of a new economic and financial system (for example: DSEF-eQE.

12.10. REFORM AND MODERNIZATION OF THE "LETTER OF THE UNITED NATIONS (U.N.O.)

12.11. LETTER OF "UNIVERSAL DEMOCRACY".

13. COMMENTS, RECOMMENDATIONS, CONCLUSION

13.1. Comments:

At the XXIX Regional Seminar on Fiscal Policy, organized by Executive Secretariat of the Economic Commission for Latin America and the Caribbean (ECLAC, United Nations) in Santiago of Chile, on 23 and 24 March 2017, experts in macroeconomics pointed as obstacles for socio-economic development the following:



- Price reduction of commodities.

- Reduction of public and private investment.

- Stagnant productivity.

- Persistent inequality.

Low taxation and poverty affecting 175 million people in Latin America and the Caribbean,

and recommend to regional governments as corrective measures the following:

A- Preserve fiscal responsibility to promote growth and equality.

B- To seek a more efficient and transparent fiscal expenditure.

C- Promote public investment and the social protection policies.

13.2. Recommendations :

On presenting the ECLAC Report of 2016, ECLAC Executive Secretary Alicia Bárcena summarized, quote: "Social spending and public investment must be taken care of, reduce tax evasion and avoidance, increase the tax burden and change the structure of tax systems towards a greater participation of direct taxes, "end of quote.

To this type of recommendations, and as critic analyst of global socio-economic policies, I would like to do the following comments:

A- The ECLAC (CEPAL in Spanish words) and other intergovernmental organizations such as United Nations, OAS, United Nations Development Program (UNDP) and the “Latin American and Caribbean Economic System” (SELA in Spanish words), all them should set aside their demands and recipes - from International Monetary Fund (IMF) - to ask for tax increases, cuts in social programs and austerity, since these recipes have long been no longer benefits for economic growth and social stability. In addition to being NOT NECESSARY with application of the new and alternative monetary, financial and economic system, called: “Economy of Productivity for Development and Social Inclusion (EPDSI) with Dual Sectorial Electronic Financial System (DSEFS) and Electronic Quantitative Easing (EPDSI-DSEFS- eQE).

B- It will be feasible to increase STATE SECURITY and strengthen economy without adoption of a structural reform and paradigm shift of the current monetary and financial system, which obviously has given all its power. So, the ELPAS system is designed to replace it and could be an example to follow.

13.3. CONCLUSIÓN:



The current policy of the United States, with its tendency towards protectionism and confrontation, has caused great concern and anguish at the international political level,

including global re-armament. There is no doubt that today's financial and economic system is no longer convenient and sustainable, and governments are looking for Alternatives under pressure of time.

To these tendencies are being added growth of violence, international terrorism, growth of poverty, criminality, unemployment, fiscal and budget deficit, and stop counting. All this leading to increase public debt that has already reached status of "non-reimbursable", how is happen in the United States of America, Greece, among others.

No one believes that for all these problems there is a magic solution. However, I firmly believe that, with the applied technology in the ELPAS-CQE system, and God's help, can be resolved problems that in the current economic and political system they no longer find a solution.

A pastor of a Christian Church recently told me, when I talked him about my project that, quote: Sir, you already have the "No" to your project, now you have to seek for the "Yes". From this day on I began to write letters - in English, Spanish and German - to the most governments of the world.

I am sure that no president or minister of state would say "No" to proposals of "ELPAS" since politicians were elected to apply and enforce the commandments of the Constitution and its sub-ordinate Laws of its country. And the ELPAS project is perfectly aligned with any constitution of democratic countries, which makes it ideal and unique to solve most important socio-economic, financial and political problems. The highly indebted countries and with serious problems in Security, Poverty, Criminality, with ELPAS-CQE and its legal framework, would have a powerful tool at their disposal to solve these and other problems and difficulties.

Many experts, professionals and common people told me that "a system as ELPAS is going to come at any moment, you have to have patience." My thoughts and observations now indicate me that this moment is already present.

14. FREQUENTLY ASKED QUESTIONS :

14.1. How does ELPAS-MSME create economic growth and stability?

For this purpose, the "ELPAS-MIPYME Program" operates with "electronic credits" (e-credit) to finance creation and maintenance of Micro-, Small- and Medium- Enterprises (MSME) and Cooperatives. The e-credit only can be manipulated through electronic financial instruments, not convertible into money to the Bearer. This in order to reduce banking and financial risk and to guarantee credit repayment.



Technical Note: The future ATMs generation recharge Debit- card and i-Phone as electronic payment medium, in addition to processing Electronic Fund Transfer check (EFT-Check),

which only realize "debiting and crediting" at bank accounts. ATM´s distribute Paper Money only at small quantities (maximum '100´ or less). The implementation of these means of electronic Money transfer will enable the Central Bank to reduce the monetary and financial system risks and improve controls and monitoring of legal or illegally money in circulation. That also controls organized financial crime.

14.2. What will be the advantages of ELPAS for the banking system?

1. Banking up to 100%. 2. Minimization of Financial Risk of Creditors. 3. Optimization of banking and financial SECURITY. 4. Participation in economic growth and generating sustainable employment.

14.3. Who supports the novel monetary and financial system ELPAS?

According to interviewed students, bankers, journalists and common people in several countries of Latin America, more than 80% of them supports a system like ELPAS as a big solution for social and economic problems, but at the same time they indicate that corruption and the No political will would be the biggest obstacles that we have to combat. However, the Constitution and its laws of all democratic countries are in favor of our initiative. As for the reaction of politicians consulted in Venezuela, Dominican Republic, Peru and Miami (Florida) they did not respond or only wished to the Author "much success", with a laugh in the face.

14.4. How does the DSEF-CQE system finance education, health, security, justice, ambient protection and welfare programs without indebtedness?

The DSEF-CQE system proposes a new financial instrument to finance public social spending, called "Sectoral Electronic or Sectoral e-Bond". Based on the "National Budget Law" is created a "Social Electronic Fund" (e-Fund) that will be administered by a "Social Services Trust Program" which in turn will be distributed to the different social sectors through a "Sectoral Electronic Bond". These sectoral funds serve to pay wages and salaries of public employees for one anticipated fiscal year. The fund will be "Zero" at the end of the fiscal year when all employees have received their payroll, including their social benefits in accordance with the Social Law. The e-funds are "recyclable" and will be updated annually in accordance with the National Budget Law for the next fiscal year. The e-bonds will be backed by Tax Income and a special legal framework.

With this structural financial reform, taxes will no longer be needed to finance social spending. So, they become state SAVINGS and can be used for repayment of public debt and necessary and indispensable imports.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!Important: See proposal for re-payment of $20.0 Trillion Dollar U.S. debt, which can be paid in less than five (5) years.

14.5. What are the main obstacles that prevent implementation of a system as ELPAS?

According to my own professional experience gained in 41 years in Brazil (2), Venezuela (30), Dominican Republic (4), Peru (3.5 months) and United States (5, 2011 until today), I am sure that administrative corruption and absence of political will were the main obstacles that not allowed an approach to competent authorities of the Executive and Legislative.

Nor the Justice of Miami-Dade County (MDC) has contributed to make possible that this project was a reality in the State of Florida (see dismissed demands in 2014-15), neither the Miami- and Florida Ethics Commissions, in addition to the MDC State Prosecutor, had no interest in a hearing with the Author.

It is public knowledge that frustration and disappointment in people has its origin in this type of democratic participation rights violation, causing very often acts of violence or crimes against innocent people. And "impunity" guarantees actors not to be singled out and tried before ordinary justice. This will change with introduction of the ELPAS system o similar.

However, in the ELPAS Foundation we firmly believe that obstacles are overcome with Law in the hand and never with violence. In this sense, we are inviting all international Governments to evaluate and finally approve a monetary, financial and economic system with ELPAS characteristics and benefits, which with the help of God will lead to a future with better SAFETY and JUSTICE for All.

Note:

For more information please contact ELPAS-USA Foundation, Inc , Att.: Friedrich W. Siegel, President-Founder and Author of ELPAS projects; Email: [email protected]; www.elpasfoundationusa.org

If you like to collaborate with a Donation to finance our monthly spending, you can do it, writing us an email announcing your donation amount.


http://www.elpasfoundationusa.org/


ANNEX:

I. BILL FOR STRUCTURAL REFORM OF THE PUBLIC FINANCIAL SYSTEM of the Republic of…

The non-profit ELPAS-USA Foundation, legally registered in Florida, United States of America under Federal ID-number #46-29998673, also registered in Venezuela and Dominican Republic, represented by its president & founder Friedrich Wilhelm Siegel, German citizen, of legal age, with European passport number C4FOTMJF7-D and Green Card A#046-216-590, submit in this act a Bill to the Congress of ...................under the name: BILL FOR STRUCTURAL REFORM OF THE PUBLIC FINANCIAL SYSTEM of the Republic of …………….. with following characteristics and considerations:

Considering that the current public financial system for social expenditure no longer satisfies growing demands and legitimate needs of the constantly growing society.

Considering that chronic fiscal and budget deficit frequently must resort to increase public indebtedness, which is limited by Law.

Considering that payment of high interests for public indebtedness diminish State capacity to invest more resources in social services that are guaranteed in the Constitution of State of Law.

Considering that the national and international public financial system lacks of effective technological control instruments that guarantee security and trust in the global monetary and financial system.

Considering that in order to solve the serious problem of the budget deficit in the Social sector, the public financial system should be "sectorialized" in two (2) independent financial systems: One that finances public Payrolls for employees and workers in the SOCIAL sector (Health, Education, Justice, Security, ...), where non-tangible, invisible and non-measurable values are generated, and the Other that finances CAPITAL investment (infrastructure, construction of schools, hospitals, roads, products and equipment) that represent, in return, visible, tangible and measurable values. The values generate by both sectors will be


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!financed by abundant but controlled and monitored digital Electronic Currency. As a result of this restructuring and modernization of the public financial system, governments always have sufficient financial resources available to meet their obligations, regardless of the economic situation.

In this sense and under these considerations is presented a Bill with the following Articles:

Article 1: DEFINITIONS.

1.1. "Inflation" is a devaluation of the Labor Value that is reflected in the decrease in purchasing power, and only can be neutralized by indexation of prices and wages.Note: The ELPAS system leads to a new Paradigm that is: "Financing of the productive apparatus through "personalized electronic money" does not generate monetary inflation"; since there will be no inorganic money in circulation, in addition to systematic controls and monitoring about “productive electronic money” in circulation.

1.2. The state administration at all levels is obliged to apply a "Dual Sectoral Electronic Financial System" (DSEFS) to allow, on one hand, financing of SOCIAL investment (Payrolls) in Education, Health, Security, Justice Administration and Environmental Protection through a "Sectoral Electronic Bonds" (Sectoral e-Bond) and, on the other hand, a CAPITAL investment system that finance infrastructure, constructions, equipment, roads, products and Social Assistance Programs (Foot Stamps). Mobilization of electronic funds (e-Funds) should only be allowed through electronic D-C Cards, i-phones, Electronic Fund Transfer Checks and Electronic Bonds as only legal means of payment in the national market. Electronic funds for payroll payment and other social help programs should not be accounted as "Public Debt" (Passive) but as "Social Investment" (Active). Participating Banks in this program should not charge interest for social electronic funds management, only a "Banking Commission" for the "Social Trust administration” of electronic funds. The e-funds cannot be transferred to another activity that is not included in the same financial instrument. This system must operate independently of variations generated by economic activity. Social e-funds must be available independently of different economic levels of stagnation, boom or recession.

1.3. The "Sectorial cryptographic Bond" (Sectorial c-Bond) only can be managed by electronic fund transfer instruments such as: Debit Cards, i-phones and Electronic Fund Transfer Checks (EFT-Check). The e-Bono is backed by tax revenues and a specific legal framework, specifically Labor Law, Social Law and Constitutional Rights and Guarantees. This e-Bond is recyclable and updated in accordance with the National Budget Law of the next fiscal year.

Artícle 2: OBJECTIVE OF THE BILL

The objective of the present Bill is the following:


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!2.1. "Sectoralization" of the public financial system of two independent and strategic social sectors, such as:

Sector I: Financial system for SOCIAL public spending (Payroll payment), and

Sector II: Financial system for CAPITAL investment for infrastructure, construction, roads, products and equipment.

2.2. To create independence from economic situations like stagnation, recession and boom.

2.3. Establish a public financial system without national or international indebtedness, applying for that purpose a financial Reengineering that transforms "Public Debt to Social Investment" (see: Financial Reengineering ELPAS).2.4. Promote structural reform and modernization of public accounting, changing Debt as

Passive by Investment as Active, with the objective to eliminate banking interest payment for state debt, replacing by a much cheaper Banking Commission for Trust administration.

2.5. Establish control mechanisms, allowing that value of tax revenues are equal or greater than expenditures, achieving a positive public balance (surplus) and eliminating fiscal and budgetary deficit.

2.6. Enable re-payment of public debt without cuts in Social programs, tax increase or creation of new ones. For that purpose, government must apply a financial structural reform or Reengineering (see: ELPAS-EQE system).

2.7. Create "Sectoral Electronic Funds” for "Social Investment" in place of the current financial system of indebtedness in force.

2.8. Allow tax revenues to be converted into public savings and used for public debt cancellation and necessary imports.

2.9. Create a legal basis for establishing an anti-cyclical and anti-inflationary monetary, financial and economic system.

2.10. Promote and facilitate political, economic and cultural integration through Technological Innovation.

2.11. Control and verify all types of financial transactions and businesses, including international terrorism.

2.12. Foster the construction of international Peace and Justice through new social, economic and governance policies.

Artícle 2: Electronic Currency as Financial Instrument

Governments and Municipalities have to implement an electronic payment system for electronic transfer of payrolls of all public employees. The employer must instruct the


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!employee to open a bank account at a bank of their choice to deposit their payroll, as well as to provide access to a Debit card and/or i-phone to be able to mobilize their money electronically. That will improve the individual-l, commercial-, financial and state Security. The deadlines for gradual withdrawal of banknotes, from highest to lowest notes, will be announced by the Central Bank.

Artícle 3: Transformation of the Public Financial system.

3.1. The Central Government and regional governments are obliged to adopt electronic financing instruments at all administration levels, as indicated in Article 1, Paragraph 1.2 and 1.3 of this law.

3.2. The "Sectoralization" of the public system in two independent systems, one for CAPITAL investment and the other for SOCIAL investment must be applied in all public administration levels in order to improve and reorganize public finances.

A special Bill determines corresponding procedures and regulations.

Artícle 4: Procedures for Issuance and Processing of Sectoral cryptographic Bonds (Sectoral c-Bonds).

4.1. Issuance of cryptographic Bonds for the Social Sector,

The Government must create for each social area an "Electronic Fund for Sectoral Trust" (Sectoral e-Fund). The issuance of electronic funds is generated by the Ministry of Finance through issuance of Electronic Bonds for Social Investment. The sum of all Sectoral c-Bonds is reflected in the National Budget Law. The only issuer of electronic money for e-funds is the Central Bank. The support of e-funds is guaranteed by tax revenues and specific legal framework (see legal framework for the ELPAS system).

4.2. Administration of e-funds through Trust

2.1. The Central Government and Regional governments are obliged to create "Sectoral Electronic Funds” (Sectoral e-Funds) according provisions of the Law for National Budget. The e-Funds do not constitute a Public Debt but Social Investment, and have to be managed by a "Social Trust Program". The Social e-Funds do not generate active interest but a Banking commission for administration of banking Trust.

2.2. Back-up of “Social e-Bonds”

The back-up or endorsement of Social e-Bonds is guaranteed by a) Future Tax revenues; b) the Labor Law and c) Constitutional Rights and Guarantees. The government declares the Gross Domestic Product (GDP) as unique legal gauge to define Nation's Wealth.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!Artícle 5: Text of the new financial instrument, the "cryptographic Bond"

The text of the electronic financial instrument (e-Bono) for social services is as follows:

The amount of this Social e-BOND is intended to pay wages and salaries (payrolls) in addition to other contractual claims for employees in the public administration for the fiscal year 2019, in accordance with the approved National Budget Law No. -2018. The amount of the financial instrument represents the total amount of payrolls in Health, Education, Justice, Security and the public administration for the next fiscal year. Its mobilization only can be done through electronic fund transfer instruments such as Debit Cards combined with a i-phone system for electronic payment and Electronic Fund Transfer Checks (EFT-Checks). The electronic Funds cannot be exchanged in bearer money or cash. The technical processing of the electronic funds must be armored to an electronic banking platform for adequate monitoring, control and accounting. This financial instrument is renewable annually in accordance with the National Budget Law for the next fiscal year. Its value does not represent a public debt but Social Investment, therefore it pays no interests but Banking Commission, and cannot be traded in the secondary financial market. The instrument cannot be used for any other purpose not contemplated in this document.

Artícle 6: Transformation of informal Economy

All actors of the informal economy are obliged to register in the "Program for Transformation of Informal Economy in Formal Economy, Trans-Economy Program", with the purpose to insert informal actors into the Social Security system, with corresponding benefits. Financing for this program provides from the new electronic financial system DSEFS-CQE. All standards and regulations for this Program will be determined by a special Law.

Artícle 7: Electronic Financing for Small and Middle Enterprises and Cooperatives

7.1. In order to promote and stimulate economic growth and stability government have to provide a program for emission of low cost "electronic credit" (e-credit) to establish and maintenance of Micro-, Small and Medium-sized Enterprises (MSMS), Cooperatives and Entrepreneurs. The issuing bank for e-credits must have a technological platform that provides highest level of security, control and monitoring and guarantees low financial risk and guaranteed e-credit return.

7.2. To promote the economic growth and stability State and Parliament have legal obligation to create the platform for a secure and confinable monetary and financial system. For this proposal is recommended or adopt a system with Electronic Currency as financial


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!instrument, with access for MISMS and Cooperatives. A special legal framework will determine procedure and normative.

Artícle 8: Inflation ControlIn order to control monetary inflation, the Government must provide technical instruments that allow control, monitoring and transparency of the mass of electronic money that is and have to be in circulation in order to guarantee monetary, financial and economic system stability and security. The monetary inflation should be controlled by encrypted digital currency with a dynamic and rotating coding system (see: ´Elpas´ monetary system). The purpose of this ordinance is to establish effective methods and instruments to control and neutralize causes of monetary inflation.

Article 9: The CAPITAL investment to finance infrastructure, construction and equipment in Education, Health, Justice administration, Social programs, among others.

To improve and strengthen the public financial system and to eliminated public debt for CAPITAL investment, the State should provide an electronic financial instrument to finance infrastructure, construction, equipment for schools, universities, hospitals, and roads. With this intention the Ministry of Finance, coordinated with Central Bank, issue an "Electronic Bond for Capital Investment". This electronic instrument must be managed by a banking platform with electronic accounting to control and monitor destination of the electronic Bond. The mobilization of e-fund only is permitted by electronic fund transfer instruments, not changeable in Cash Money. The back-up of this e-Bono is guaranteed by future tax revenues (sovereign state guarantee) and a specific legal framework. Its amount does not represent a public Debt but

Social Investment, so it does not generate interest but "Banking Commission" for administration of "Social Capital Trust". Its acquisition must be done through a public tender and the State can negotiate it with the private sector.

Artícle 10: Procedures

All banks and general trade must accept electronic fund transfer instruments as legal payment. Issuance of electronic Funds only is permitted by Central Bank and authorized companies operating under control and supervision of legal banking system and Superintendence of Banks and Insurance companies. A special law will determine further procedures and regulations.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!Artícle 11: Security

All banks that operate with Programs and Systems promoted by this Law must implement Financial Cards with chip, combined with i-phone payment system and Electronic Funds Transfer Check (EFT-Check), in addition to a Reader-Processor for fingerprint identification, and camera for ATM´s. This provision has as goal to control and protect access to the banking platform and to optimize banking, financial and state security.

Artícle 12: Issuance and monitoring of "Sectoral cryptographic Bonds".

It is responsibility of the Ministry of Finance and the Central Bank in coordination with Superintendence of Banks and Insurance Companies. A special law determines extent of responsibility for issuance and regulations of electronic funds and its technological instruments.

Article 13: Transitional Measures

13.1. During transition period from current monetary-financial system to the new electronic fund system, government should promote and facilitate provision and delivery of electronic payment instruments for persons over seventeen (17) years, through authored banks and enterprises to this program. The purpose of this provision is to create awareness in all levels of civil society regarding essential need to innovate and improve the public financial, economic and political system.

13.2. Since approval of this Law ceases the manufacture of banknotes of greater to lesser determination, also the public indebtedness to finance social expenditure.

Unique disposition: This Bill, together with the proposals for a new monetary, financial and political system (ELPAS-CQE system) will be presented by the non-profit ELPAS-USA Foundation, Inc to all signatories’ governments of the Charter of the United Nations with the intention, to evaluate and consider a peaceful, democratic and constitutional solution for current circumstances and difficulties in the globalized financial, economic and political system.

Done and signed by the Congress of ........................ in the city of ............. on date ........... of the month ........................ on year 2019.

II. BILL FOR EMISSION, REGULATION AND CONTROL OF CUSTUMIZED ELECTRONIC MONEY AS FINANCIAL INSTRUMENT FOR THE PUBLIC AND PRIVATE SECTOR.

Considering that the government resorts to tax increases, reduces social assistance programs, increasing debt ceiling, to meet its obligation to pay social investment, wages and contractual rights of public sector employees, and these inconveniences can be solved by the innovative ELPAS-CQE financial platform.



Considering that public expenditure on education, health, civil security, environmental protection, and other social services should not be financed as public debt but as Social Investment with cryptographic Easing (CQE).

Considering that the current public financing system is being financed by a limited public debt system, which has already exceeded the limit allowed by law (60% of GDP).

Considering that government with its policy of austerity, cutting social investment spending, paying high cost for public debt service causing stagnation and delay in the necessary development of the nation, especially in education, health and economic growing.

Considering that a "Bill for Emission, Regulation and Control of customized electronic money as financial instrument for the public and private sector" stimulates and facilitates the necessary structural financial reform and paradigms changes that national and international financial sector is waiting for.

Considering that electronic money in function of economic productivity does not generates work value inflation.

Considering that for monetary, financial and economic stability is necessary existence of Control, Security and Confidence, called “Political tripod”.

Considering that under current rules and international economic policies is virtually impossible to establish a monetary parity (1 to 1) between different trading blocs, and to achieve the government should apply an "Equivalence work values system” for all occupational categories in regions that work with unique currency (c-US$, c-EURO, c-LATIN, etc.) that finally allows to pay a fair remuneration on the regional globalized market.

Considering that for the purpose to create an international sure, confinable and stable monetary and financial system, and to prevent or eliminate financial- and economic dilemmas is necessary an alternative financial system, like “Dual Sectoral Electronic Financial system”, DSEF system, or similar, a bill is presented with the following Articles:

Article 1: Definitions

1.1. “Customized electronic money as financial instrument” (e-money) is an encrypted digitalized money value managed by a computerized platform and networks, accessible for authorized person by with ID-card, fingerprint and image identification.

1.2. “Electronic financial instruments” are Debit-Credit-Saving cards, i-phones, Electronic Fund Transfer checks (EFT-checks) and “Sectorial electronic Bonds, e-Bonds.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!1.3. “Inflation” is the devaluation of work value reflected in the declination of purchasing power. Its control and correction is only possible through digital electronic currency, since electronic money in function of economical productivity does not generates inflation of work value.

1.4. "Equivalence system for work values” provides parity (1 to 1) of work values for all professional categories working in markets with unique currency (e-US$, e-EURO, e-LATIN, etc.). Therefore, a fair and equitable remuneration is established.

Article 2: Purpose of the Bill.2.1. This bill proposes a legal framework for issuance, control and monitoring of electronic, digitized and encrypted money, managed by advanced banking computer systems.

Besides, allow to the issuer of electronic currency (Central Bank) to take corrective action in real time about the mass of electronic money, legally or illegally in circulation.

2.2. To establish a monetary and financial system without the need to appeal to current public debt system. For such purpose the government has to implement a "Dual Sectorial Electronic Financial System with electronic Quantitative Easing, DSEFS-CQE".

2.3. Allow a structural reform and modernization of public accounting in order to enable the elimination of public debt as Passive, replacing by Social Investment as Active using the Gross Domestic Product (GDP) as the new Balance-Passive, and as the only mediator par excellence of economic growth variation of the nation.

2.4. Promote a structural reform and change of paradigms in State balance and public accounting, in order to allow substitution of Public Debt (Passive) by Social Investment (Active) using as new Passive the Gross Domestic Product (GDP).

2.5. Changing of debt interest to administrative fees of sectorial electronic Bonds (e-Trust).

2.6. Create a techno-political base for an anti-cyclical and anti-inflationary monetary system.

2.7. Promote and facilitate the implementation of international electronic currencies, such as “electronic Dollar” (e-Dollar), electronic Euro (e-EURO), electronic LATIN (e-Latin) US$, in order to promote international trade between the different economic blocks.

2.8. Encourage creation of a political tripod with three (3) factors: "Security - Control and Confidence" to ensure economic and political stability.

2.9. Stabilize a legal and techno-political platform to use methodologies for monitoring and verification of national and international financial dealings.



2.10. Upgrade basic economic elements, known as: Ground - Work - Capital, adding a 4th element: Technology (Cybernetics, Information and Communication Technologies (ICT), Electronic Money).

Article 3: Authorized issuers of electronic money

The electronic debit and credit card issuers are obligated to provide the required information in accordance with the provisions of this Bill. Furthermore, they are required to comply with the regulations issued on prevention of money laundering and terrorist financing, issued by Banking Superintendence, Insurance and Private Pension Fund, responsible for

implementing the rules established by this bill as the minimum necessary for users to be able to acquire and mobilize electronic money featured by authorized companies.

Article 4: Surplus of electronic social funds:

A surplus of electronic money in social sectorial funds can exist by two (2) reasons:1. - If the employee dies therefore payroll is removed, but is still valid in sectoral budget until

end of fiscal year.2. - If the employee changes from public to private sector, so payroll will be canceled. The remaining electronic funds will be put on "00.00" at end of the fiscal year, and Ministry of Finance and Parliament, in coordination with Central Bank updating and approve Sectorial social budget for the next fiscal year.

Article 5: User protection

5.1. Warranty resources. Issuers of electronic money must be trust in the amount of electronic money issued under the provisions dictated by the Central Bank. The control body may regulate other forms of alternative funding guarantee for electronic money issued.

5.2. Privacy Policy. The issuance of electronic money is a banking-financial service, and user protection and identification is regulated by Law on Personal Data Protection and the Constitution of State.

Article 6: Electronic digital currency as financial instrument.

To improve controls and transparency in the banking and financial system, governments have to apply an electronic, digital and countable monetary system, replacing gradually the use of paper money to the bearer. The deadlines for withdrawal high to low denomination banknotes will be announced by Central Bank.

Article 7: Use of paper money


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!The banknotes shall be deposited in Central Bank and put into circulation only in case of natural disasters or catastrophes and when networks are interrupted for data/value transmission by extended time.

Article 8: Control of inflation Government in coordination with Central Bank has to apply technological instruments that allow control and monitoring of electronic money in circulation, since electronic money in terms of economic productivity does not generate domestic inflation.

Article 9: Transitional measuresDuring the transition phase of financial Debt to productive social Investment, the government can use the electronic banking platform with its electronic payment instruments to cancel the public payroll and social investment. This to prevent social budget cuts in the current fiscal year.

Signed by the Congress of …………………on the day….………... in the year two thousand nineteen (2019).

III-A. BILL FOR ELECTRONIC AUTOMATIC TAX COLLECTION, Full Service Plan, PLAN "A".

Considering that the Fiscal Law of the Republic obliges citizens to pay all type of taxes under act, so that the state can fulfill its constitutional commitments and its national budget Law obligations.

Considering that an Electronic and Automated TAX Collection System, EATCS, ensures optimum tax collection, without tax evasion, which reduces effectively the public debt of the nation.

Considering that monetary inflation is a policy instrument unregulated by law to reduce the public debt value, representing a juridical vacuum.

Considering that an Electronic and Automated Revenue, RTEA, together with a "Financial Sector Electronic Dual System" (SIFESD) with Cryptographic Quantitative Easing (CQE) leads to increase to economic and financial stability and improves transparency and controls to the monetary, financial and economic system, a bill is proposed with the following Articles:

Article 1: Definitions.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!1.1. "Electronic and Automated Tax Collection" could be realized through the existing electronic banking platform. The platform access is only allowed through fingerprint and identification card (ID-card) of the authorized person. In compliance with this law, the tax collection must be automated through a "debit" at the taxpayer's account and a "credit" to the National Treasury account. The system should generate an "Electronic Tax Invoice, ETI", which reflects made tax payments.

The ETI will be recognized in the tax return at the end of the fiscal year. A specific operating software will be the guarantor of the transparency and control of the “Electronic and Automated Tax Collection”.

1.2. The "Dual Sectorial Electronic Financial System" (DSEFS) is an innovative electronic financial system that operates with electronic financial instruments, such as electronic sector Bonds, electronic debit cards, i-phones, electronic checks and “electronic sectoral bonds”. The system operates independently of the economic level. The electronic financial resources are backed by two factors: 1. The Tax income and 2. The Law (such as: Work law and the national budget law). Electronic Social Funds (e-Funds) are always available and renewable for each fiscal year, regardless of the economic situation.

Article 2: Objectives of the Law

2.1. To wean Social financing from CAPITAL financial system. In this way the economic ups and downs (Boom-Depression) does not affect the normal social development. 2.2. Guarantee an optimum tax collection, ensuring compliance with legal obligations and commitments.

2.3. Establish a tax system that allows taxpayers to democratically determine the use of their contributions (see: Public Comptroller through Interactive Democracy 24/7).

2.4. Promote systematic control tools to the Central Bank to enable them to take corrective measures in real-time effects of monetary inflation.

2.5. Encourage and facilitate the repatriation of capital deposited in "tax havens" (See: Amnesty for tax evaders and drug traffickers).

2.6. Promote and strengthen State Security, Peace and Justice, International, through the construction of a new Economic and Social Order.

2.7. Restrict to gradually eliminate bearer paper money in the hands of the public and national and international trade.

2.8. Create a scientific basis that allows structural reform and changing paradigms in the financial and tax system, and countries that operate with the US dollar as domestic payments.



2.9. Establish a legal framework allowing the creation of a technology platform that proposes the issuance, regulation and control of an encrypted electronic currency; e.g. e-Dollar, e-Latin, e-EURO EURO), etc...

2.10. Propose a legal framework for the development of a technology platform that enables the issuance, regulation and control of encryption and national cryptographic currency (c-LATIN, c-Dollar, c-Euro, c-African, c-Asiat, etc.).

2.11. Facilitate the issuance and control of a personalized electronic currency by central banks that accept the US dollar as payment in the domestic economy.

2.12. Involve the World Trade Organization (WTO) to establish regulations and standards (ISO) for processing and control means of banking-financial operations security with customized electronic currency.

2.13. Encourage and facilitate banking instruments for mobilization of custom electronic payment with fingerprint identification to control acquiring of firearms.

2.14. Eliminate re-changing of electronic money to paper money in the banking and commercial system.

2.15. Encourage and facilitate the transformation of informal economy to formal economy.

2.16. Prevent obstacles to the normal development of nations, and thus contribute to peace and justice, internationally.

Article 3: Fiscal TransparencyTo improve controls and transparency in the tax system, regional governments must implement in their region a social network that enables and facilitates Taxpayers meet their commitments to the National Treasury. A specific law determined this obligation.

Article 4: Transformation of the financial system

To balance the national budget, and to consolidate public finances, regional governments should implement a system that allows the transformation of public debt to Social Investment, to thereby eliminate the system of "public debt in the social area."

Artícle 5: Control tools for work value inflation.

To control inflation of work value, government should apply technological control instruments that allow to monitor and make transparent the mass of electronic money (e-money) legally in circulation, because electronic money based on economic productivity does not generate inflation of the work value in the domestic economy.

Article 6: Procedures and Supervision

Banks and trade can only operate with electronic money and electronic financial instruments through authorized companies operating under the control and supervision of the Central


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!Bank and Superintendence of Banks. A special organic law of Superintendence of Electronic Banking and Insurance will determine about this issue.

Article 7: Security System

Banks that operate with financial electronic tools such as e-Bonds, electronic financial debit and credit cards, i-phones and electronic checks (see: ELPAS System) should provide fingerprint and cameras to capture the user image in banking offices and ATMs to control and protect access to the operating system and the database of the bank.

Article 8: Transitory measures

8.1. During the transition from the current social financial system to the new for social investment, governments must use electronic payment instruments to pay public payrolls, especially in the area of education, health, civil security and other areas of social assistance. This measure aims primarily to cancel social spending only by electronic currency backed by Law.

8.2. From activation of this Law, ceases the public debt system to finance social spending.

Elaborated by the Congress of the Republic of……………...on the ………day of the month………………in the year two thousand nineteen (2019).

III- B. BILL FOR AUTOMATIC AND ELECTRONIC SELECTIVE TAX COLLECTION, PLAN "B".

Considering that the Constitution of a democratic and participatory State of Law recognizes that the maximum power of State resides in the "Sovereign" who decide democratically about its future, individually and jointly.

Considering that the government should be administered as a private company that proposes to the taxpayer’s public services for which they have to pay a tax rate (See: Selective Tax System, or STS Alternative "B").

Considering that a 'selective tax system, STS "proposes to define the taxpayers want to hire the services of the state, and not pay taxes for services they do not want from the state, which is a fairer and equitable tax system.

Considering that the tax system in force allows tax evasion which can be solved by an electronic, automated tax collection, shielded to a "Dual Sectorial Electronic Financial System" (DSEFS-cQE) with cryptographic Quantitative Easing (FCE), which reduces until finally eliminate the public debt of the nation.

Considering that a "selective tax system" encourages and greater social justice and consistently the State Security, a bill is proposed with the following Articles:




1.1. “Selective Tax System”

The "Selective Tax System, STS" is an alternative selective to the tax system "A" system. This alternative offers citizens a "catalog of public services" (Public education, public health, public transport, maintenance of streets, public parks, beaches, etc..). The taxpayer chooses the services he wants to hire for, and the Government gives to taxpayers a "tax invoice" (see: Selective tax system).

A specific operating software will be the guarantor of control and transparency of this tax system.

1.2. Tax administration system

To fulfill its duties and obligations, and to improve public management, the Alternative tax system "B" must be managed with the same efficiency and transparency that apply private companies (Inc.). This to restore the political tripod, consisting in: Security - Control and Confidence.

Article 2: Objectives of the Bill

2.1. Promote greater social justice and guarantee the democratic rights.

2.2. Establish a tax system that allows taxpayers to determine democratically their participation and contribution to the "State" as anonymous society company (Inc.) using for this purpose the platform "Democracy Interactive 24/7". 2.3. Promote and strengthen state security by building a new Economic and Social Order (Productive Economy for Development and Social Inclusion, PEDSI).

2.4. Create a scientific basis that allows a structural financial reform and shift of paradigms in the fiscal and financial system.

2.5. Promote a legal framework that allows the development of a technology platform for fair and equitable fiscal and tax system.

2.6. Involve the World Trade Organization (WTO) to establish regulations and standards (ISO) for processing and means of control and security of banking-financial operations with encrypted electronic currency.

2.7. Implement the use of electronic payment instruments with fingerprint identification for acquiring firearms.

2.8. Eliminate the re-change of electronic money into paper money to improve domestic and international banking and commerce security.

2.9. Encourage and facilitate transformation of informal to formal economy.



2.10. Prevent obstacles to the normal and balanced development of nations, and thus contribute to peace and justice worldwide.3

Article 3: Fiscal transparency

To improve controls and transparency in the tax system, regional governments must implement in their region a social network that enables and facilitates to Taxpayers meet

their commitments with the National Treasury. A specific law determined about this legal obligation.

Article 4: Substitution of the public debt system

To balance the national budget, and to consolidate public finances, regional governments should implement a system that allows the transformation of public debt to Social Investment, to thereby eliminate the system of "public debt in the social area."

Article 5: Technological tools for inflation control.

In order to control inflation of value work the government should apply technology control instruments, such as electronic financing instruments, to allow monitoring and transparent the quantity of electronic money (e-money) in circulation, also to control inflation, since electronic money based on economic productivity does not generate inflation of work value.

Article 6: Procedures and Supervision

Banks and trade can only operate with electronic money and electronic financial instruments through authorized companies operating under the control and supervision of Central Bank and Superintendence of Banks. A special law determined on this issue.

Article 7: System Security

Banks that operate with financial electronic tools such as e-Bonds, electronic financial debit and credit, i-phones and electronic checks should provide fingerprint captures and cameras to identify users of Automatic Teller Machine (ATM) and intern bank.

Article 8: Transitory measures

8.1. During the transition from the debt system to the Social investment system, governments have to use electronic payment instruments for public payroll payments, especially in the area of education, health, civil security and other areas of social assistance. This measure aims to pay social spending by electronic money, backed by law (work law, budget law, constitution law...)


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!8.2. Since approval of this law stops working borrowing to finance social spending, replaced by the Social investment system with sectoral e-bonds.

Elaborated by the Congress of the Republic……………. on the day…...of the month…….in the year two thousand nineteen (2019).

IV. BILL FOR MONETORED INFLATION CONTROL

1. Considering that inflation is also defined as "The reduction of value work that is reflected in the decrease in purchasing power," which is one of the greatest social injustices.

2. Considering that the current public financing system is financed by limited public debt system, which has already exceeded the allowed limit by law (60% of GDP).

3. Considering that Inflation originates from issuance of "inorganic money" by central banks, and speculation in the markets.

4. Considering that Considerations 1 and 2 are true scientifically correct and true, and can only be corrected through a techno-political system that allows control, transparency and monitoring based on an "electronic and encrypted digital currency", which replaces paper money to the bearer.

5. Considering that a "Dual Sectoral Electronic Financial system with electronic Quantitative Easing, DSEF-eQE system" makes fundable fundamental constitutional rights and

guarantees, without resorting to new borrowing, which is not possible with the current financial system in force.

6. Considering that a system like “electronic Quantitative Easing, eQE” can manage the money supply (M0 to M4) with highest security and confidence, using to get this objective the innovative electronic financial instruments (for example: Elpas), which is considered as an irreversible trend.

7. Considering that the monetary and financial Alternative DSEF-eQE is a unique, unrepeatable, also very safe and reliable proposal, even accelerates and facilitates the elimination of causes of cyclical financial and economic crisis.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!8. Considering that since 2008 there is a global financial and economic crisis that is handled through a dangerous lifting-up of the public debt that is not feasible indefinitely, we proposing a bill with the following Articles:

ARTICLE 1: Purpose of the Bill:

1.1. To control and finally eliminate the different causes of monetary inflation.

1.2. Create independence between SOCIAL financial sector (Education, Health and other social service programs) and CAPITAL investment sector (real economy). This is done to protect the social sector if economic recession.

1.3. Establish a techno-political platform in accordance with ISO standards (9000, Total Quality) that allows an effective control and monitoring of legal monetary, and to neutralize effects of monetary inflation and its causes.

1.4. Create data base for an "Indexing prices and wages system" which proposes greater social justice in the definition of wages and prices in the open market.

1.5. Establish an "Equivalency Work Values List" of the different occupational categories to establish a fair and equitable remuneration in member countries of the future “State of Latin American and Caribbean” (EDLAC).

1.6. To allow reform and modernization of public accounting in order to enable the elimination of debt as Passive, by replacing the debt by investment as the new Active, thus achieving the elimination of banking interest, while investing just pays bank fee for Trust administration.

1.7. To establish control mechanisms that allow the total tax revenue (taxes) is equal to or greater than the value of the mass of "productive electronic money" in circulation, making this as the elimination of the fiscal deficit and budget.

1.8. To ensure the re-payment of the public debt without cuts in social spending or increasing existing taxes or creating new ones, applying for such purpose financial reengineering applied, already available in the market.

1.9. To create Electronic Funds Sectorial e-mobilized through bonds to finance public spending on education, health, civil security, etc.

1.10. To allow tax revenues (cash) can be used to cancel the external debt / domestic, imports, and investment in productive capital.

1.11. Create structural basis for an anti-cyclical and anti-inflationary financial system.



1.12. Promote and facilitate the global social, economic and political through technological innovation .

1.13. Control and monitor illicit financial dealings, including international terrorism financial transactions.

1.14. Promote international peace and justice through construction of a new social, economic and governance order.

Article 2: Electronic digital money as financial instrument.

To improve controls and transparency in the banking and financial system, the regional governments have to implement a system of "electronic digital and accounting money", managed by an adequate technological platform (see: ELPAS-eQE).

Article 3: Financial system reform.

To balance the national budget and consolidate public finances the government has to apply a methodology that allows to transform public debt into productive social investment. For this purpose, the government must apply a structural financial reform (for example: ELPAS-eQE) that allows to remove the top of public debt limit (60% of GDP).

Article 4: Control of inflation

To control monetary inflation, the government should apply technological control instruments that allow monitoring and transparency of the electronic money in circulation, since electronic money in terms of economic productivity does not generate domestic inflation.

Article 5: Electronic Funds for Social investment.

5.1. The regional governments are empowered to create: "Electronic Social Sectorial Funds” or “Social e-Funds", based on the national budget law. These e-funds are not considering

as debt but as Social Investment instrument, to be administered by a Trust (Fideicomiso). Therefore, these social electronic funds no assets active interests, but a bank fee.

5.2. Creation of Electronic Funds (e-Bonds)

The government can create for each social area electronic funds. The distribution of e-funds to the social sector will be through "Electronic Funds for Social Investment" (e-Social Funds),while the productive capital investment will be through "e-Funds for productive Capital investment". The total value of all funds is represented by the national budget. The social e-funds will aim to fund payroll and other contractual claims in social sectors.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!5.3: The support of Social Fund (e-Bond):The support or endorsement of "e-Social Fund" is guaranteed by:

a) Tax revenues, and b) The Law (Constitutional Rights, Labor Law, Public Budget Law…)

This definition of the support of electronic currency is applicable both in the social sector (education, health, etc.) and in the economic productivity field. With this determination the Gross Domestic Product (G.D.P.) is declared as the unique and legal instrument to define the variation of nation wealth.

Article 6: Legal text of Social e-Funds:

Example: Text of social electronic Funds for Education sector:

The amount of this Educational e-Fund is intended to pay the payroll (wages and salaries), furthermore social benefits and contractual claims of the educational sector (teachers, administrative staff and other higher education sector in fiscal year 2019, in accordance with the National Budget Law No. xxxxxxxx-2013. The amount of the financial instrument represents the annualized fiscal budget allocation for the education sector (6%). The release of the e-Fund must be made through electronic payment instruments such as Debit- and Saving Cards) combined with a T-payment system (i-Phone, GSM/CDMA) and electronic fund transfer checks (EFT-checks). There is no way to change these e-funds in paper money. The technical processing of the fund is shielded to a technology platform to monitoring, accounting, control and verification of the use and allocation of e-Funds. The instrument is renewable annually in accordance with the Sectorial budget law for the next fiscal year. Its value not presents a public debt but a social investment, therefore cannot be traded in the secondary financial market, nor can be used for other purposes that were not covered in this document.

Article 7: Financial Capital investment in the productive sector(Higher Education and Public Health)

The e-Fund for productive capital investment is to finance infrastructure (for example: Building schools, universities, access roads, urbanization, etc.) The e-Fund can be purchased by the Government or be transferred to the private sector. The amount includes investment in infrastructure and equipment of a building (Key in hand). The management of the financial title is shielded to a banking technology platform that uses an electronic funds accounting system approved in the budget, administrated by a Trust system (Fideicomiso). Mobilization of social e-funds can only be made by electronic funds transfer. The back of the e-Fund is secured by future tax revenues and the LAW. The amount of public e-Fund is not debt but social investment, therefore cannot be traded in the secondary financial market, and no interest assets.



Article 8: Transitional measures

8.1. During the transition phase of financial Debt to productive social Investment, the government can use the electronic payment instruments (Debit Card) to cancel the public payroll. This to prevent social budget cuts in the current year.

Elaborated by the Congress of the Republic of…………the day……..on the month…………in the year two thousand nineteen (2019).

V. BILL FOR INTERACTIVE DEMOCRACY 24/7.

Considering that all state's power lies in the power of the sovereign, especially of the taxpayers and voters.

Considering that is a yearning for the society of a Democratic State in Law to perfect and modernize the current democratic system.

Considering that the Constitution of a democratic State of law guarantees to the Sovereign a leading role in the design and implementation of roles for coexistence in peace and justice.

Considering that to establish and maintain trust and confidence in government and to ensure the safety of state must exist and prevail a permanent interaction between government and citizens.

Considering that to uproot administrative corruption, embezzlement of public funds and other illicit financial dealings there must be a "Citizen Oversight" that acts as a controller for excellence to ensure transparency and good faith in public administration.


1.1. "Democracy Interactive 24/7" is an innovative and revolutionary democratic system, integrated into an accessible technological platform for 24 hours in 7 days a week, that encourages and facilitates the ongoing participation of society in the design, implementation and monitoring of rules, regulations and laws proposed by executive and legislative power, and organized society, affecting the healthy development of minority or majority communities.

1.2. "Active participation" is the leadership that assumes a person or a group of people to promote projects for the benefit of society.

Article 2: Objectives of the bill


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!2.1. Apply in practice the Democratic rights referred in political Constitutions of State of law.

2.2. Create a legal framework that allows to Taxpayers and Voters to: Opine, vote, choose, decide in favor or against laws, rules or regulations proposed by the executive and / or legislative, using for this purpose an adequate technological platform, accessible through ID chip-cards for members of EDLAC. The chip must contain fingerprint and other personal data of members duly registered on the electoral system of EDLAC.

2.3. Ensure transparency and good faith at all levels of public management.

2.4. Create the scientific basis that allows political reforms and the modernization of state.

2.5. Contribute to the operating costs reduction in elections, popular votes and referendums.

2.6. Optimize controls and transparency in the governance system.

2.7. Contribute to peace and justice in the country.

Article 3: Procedures

The National Electoral Council must allow and facilitate the adoption of the technological "Democracy Interactive 24/7" platform. The government should provide the financial resources needed to install the system.

Article 4: This new democratic system has to be subject to a Consultative Referendum. The approval should not be less than seventy-five (75%) percent of all cast votes.

Article 5: Security System.

The operating system platform "Democracy Interactive 24/7" must be reliable, transparent and protected from hacking. The Electoral Council has to allow the veracity of incoming votes from the polling stations. The results must be accepted by authorized persons before being published.

Article 6: Transitional measures

6.1. Government and Electoral Council have to allow an evidentiary phase of the new democratic system so that voters can know and review it.

6.2. Since approval of this bill, preparations should be taken to adopt the new democratic system.

Done and signed in the Congress of ............ the month ..................on the year Two Thousand nineteen (2019).


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!VI. Bill for Firearm Acquisition.

Considering that ensure security, control and confidence in the national security system is mandatory: a) Installation of fingerprint sensors in retail outlets of firearms and, b) Presentation of personal identification card (Chip-ID-Card) and other ability tests.

Considering that for self-defense must be offered arms with rubber bullets, electro-shock, or other technologies.

Considering that in view of the uncontrollable use of arms, the government must create the social, economic and political conditions in order to build a society of XXI century WITHOUT FIRE ARMS in the hands of civil society.

Considering that the use of sporting weapons the government should consider installing the OLYMPICS for the Armed Forces of National Peace.

Considering that reduction until elimination of the manufacture of firearms will create unemployment, the government must establish a system for creating jobs, also education and training programs for unemployed (see example: ELPAS-MSME Program).


1.1. "Firearm" is a self-defense device capable to neutralize an enemy.

1.2. "Captures-fingerprint" is a device that allows identification of a person through fingerprints.

Article 2: Purpose of the Bill.

2.1. Establish a control- and monitoring system that allows verifying obtaining and use of firearms.

2.2. Promote and strengthen union and social integration through technological innovation and suitable strategies.

2.3. To educate and guide the civil society towards coexistence with tolerance, harmony and mutual respect.

2.4. Promote peace and justice, building a new social, cultural and governance system, at national and international level.

Article 3: Paying firearms in retail outlets.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!To improve control and transparency for selling of firearms is mandatory the use of electronic payment instruments, such as electronic debit and credit cards, i-phones (T-payment) and electronic check. The sale of firearms with Cash Money is prohibited.

Article 4: Manufacturing of firearms.

The manufacturer of firearms must have a Government and Parliament permission to sell weapons domestically and also for export.

Article 5: Financing for unemployment and re-education.

The government must create an appropriate financial instrument to finance unemployment caused by firearm manufacture reduction and its exportation, and also for re-education of unemployment. It is recommended the application of a "Sectoral electronic Bond". The Social e-Bonds do not constitute a public debt, but rather a Social investment. Therefore, they must be administered through a social Trust system. The electronic social investment funds assets do not generate interest, but a bank fee for the Trust administration. Further procedures for sectoral electronic Bonds are exposed in the "BILL FOR ISSUANCE, CONTROL AND REGULATION OF ELECTRONIC FINANCIAL INSTRUMENTS FOR SOCIAL INVESTMENT".

Paragraph: Financial instrument text:

The text of the innovative financial instrument (e-Bond) for re-education and re-location of unemployed of firearms manufacturing sector, is as following:"The amount of e-BONO for Re-education and Re-location of unemployed is destined to "payment for forced unemployment", social security and other contractual claims in the fiscal year (2016), in accordance with the National Budget Law Adjustment No. xxxxxxxx-2018. The mobilization of e-Bono only could be done through electronic payment instruments such as: Debit card, combined with an i-phone payment system and Electronic Checks (EFT-checks).

There is no way to change these e-funds in paper money. The technical processing of electronic funds must be shielded to a banking technology platform to monitor and verify the use and allocation of these funds. This financial instrument is renewable annually in accordance with the National Budget law for the next fiscal year. Its value does not represent a public debt but social investment, and therefore cannot be traded in the secondary financial market, and it cannot be used for any other purpose that was not referred in this document”.

Article 6: Financial instrument for capital investment.

The amount of e-BONO for productive capital investment is intended to finance infrastructure development (for example: construction of schools, Educational programs, access roads, urbanization, etc.) The Sectoral e-Bond can be purchased by Government or to be


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!transferred to the private sector. The Bond-amount includes investment in infrastructure and equipment of the project. The management of this financial instrument is shielded to a banking technology platform. Mobilization of funds can only be done through electronic funds transfer instruments. The support of e-Bono is guaranteed by tax revenues and the Law (Labor law; Budget law, Constitutional obligations and rights). This e-bond acquisition is generated through a public tender.

Article 7: Procedures

Banks and trade can only operate with electronic money and electronic instruments through authorized companies operating under the control and supervision of the Issuing Bank and the Superintendence of Banks. A special Organic Law of the Superintendence of Banking and Insurance determined on this procedure.

Article 8: Characteristics of sectoral e-Bonds.

8.1. The sectoral e-Bonds are financial instruments to cover public social spending in sectors as: Education, health, civil security, civil defense, justice system, and other social and welfare programs.

8.2. The social investment funds are managed through each social sector. The value of e-Bonds is a Social Investment (Trust) but not a public debt. Consequently, the government don´t pay interests but fees (commission) for Trust administration.

8.3. The e-Bonds are backed and guaranteed by tax revenues and by law (Labor law, Social law, Budget law and constitutional guarantees). This is to create independence between Social sector and Economic sector.

8.4. The total sum of all sectoral e-Bonds is represented in the national social budget and accounted for as "social investment". That does not generate new national debt or fiscal or budget deficit.

8.5. Sectoral e-Bonds are recyclable and updated annually in accordance with the national social budget for the next fiscal year.

Article 9: Security System..Banks that operate with electronic financial instruments, such as e-Bonds, debit and credit cards, i-phones and electronic checks, they should provide fingerprint readers and cameras installed in his offices and ATM-machines, to protect bank users and to establish an absolute protected control and verification system for database access and all type of financial transactions, at national and international level.


ELPAS-USA FOUNDATION, INCWe are a “WHAT” and “HOW” well defined!Article 10: Issuance and control of sectoral e-Bonds.

The issuance and control of sectoral e-Bonds is in charge and responsibility of Ministry of Finance in coordination with the Central Bank. A specific law determines the extent and scope of responsibility of these institutions.

Article 11: TRANSITIONAL MEASURES

11.1. During the transition phase from the current financial system to the new social investment system, government could massively use electronic payment instruments to cancel payrolls and other public financial transactions. This measure aims to cancel social public spending by new financial instruments, backed by Law (Labor Law, National Budget Law and Constitutional Rights). Consequently, government does not need taxes to pay its social spending, which become SAVINGS and can be used for public debt payment and necessary imports.

11.2. Since the adoption of the new public social spending system (ELPAS-cQE) will stop forever the public borrowing system for social spending.

Elaborated by National Congress of...........................................on the ………..day on the month..............of the year Two Thousand nineteen (2019).


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