Mandala Universal Bank, an Integrated Economics Theory

No scientists would agree that Economics is a "fixed science". The economy is a fundamentally a capitalist by nature, any savings and valuable assets are resources for instrumentation of capital investment in business infrastructure. The other well-noted assets are the intellectual property and skilled workers. The latter's absence in the economic development will render the productivity sluggish and costly based on importation of technology and recruitment of foreign expertise.

Overview

The modern trend of capital fundraising for business start-ups through the channels of public crowdfunding must be institutionalized and legalized in the form of Equity Banking and working-out at levels of equity crowdfunding. A bank with multiple function serving as buy-sell shares transaction for existing and new business endeavors, its clients are business-owners/entrepreneurs offering equity share for other clients and initial investors for the Mandala Business Line of Products, business consultancy for start-up either in franchise and new SME business development, human resources training for career management and business operational systems, scientific research and development in business and product development category, media and social media marketing management of product and business information and peer-reviewed scientific validation for product line and services.

Today’s risk in banking sector is real and potent, the savings account, minimal and large deposits are funding the banking credit operation, it is the bloodline of the bank and the risk-health factor of the bank is an imbalance cash-flow or less generating cash-inflow, as an unnoticed bank regulation that limits the withdrawal transaction of savings account in order to maintain certain target of cash-outflow, while maintaining another cash-outflow in the form of loans to clients.

The health of the economy lies in the money-supply and sustainable capital reserve which should guarantee a minimal of 6-month operational cost and expenses, and during the process would be able to generate cash-inflow. The risk in late payments and non-payments of loans would reduce the credit operation of the bank and its profiteering opportunities. Other instrumental tools in banking and finance, as a company would sell its assets and shares or swap its debt, in order to balance the negative cash-flow and continue fulfilling its commitment to its clients.

What is wrong with GDP? In a credit growth system type of economy, the country’s GDP would report the Income per Capita, a distribution of fictitious wealth on low-income, non taxable wages and unemployed citizens and Debt per Capita, an equal distribution of share of the sovereign debt per citizen. Despite of the appreciable assets of any country, it is not allowed to represent the GDP. Instead, foreign investment are encouraged with the aid of International Monetary Fund, mediating the privatization of national and state companies, sales of shares of private corporations to foreign investors before the approval of loan application by a government. The appreciable assets are monetized by the IMF and sold as shares to foreign investment that will be reported in the GDP.

Capital Flight Draining the Money Supply

A foreign capital through investment and loan must be paid by productivity. The government gets the tax and the workers get their wages. The wages are spent on household consumption, either purchasing local goods and import product in cash or credit.

Individuals with credit card pay their monthly debt with incurring interest, corporations and the government pay their debts depending on the credit agreement.

The total annual capital flight (overseas remittance, corporate nett profit and government payments) are not reported as the main causes of the money supply drainage which is all related to inflation and deflation of currency value in the import-export macro-economy and purchasing power in domestic economy.

The Merger of Bank, Business and Market

In the digital era, any information is at the click of your fingers. A third-world economy status of the Philippines must rely on intellectual property and skilled workers to be the VOICE OF CHANGE. The so-called "intellectual property" should be clearly identified in "High-Frequency and High-Energy" vision and raised its platform to upgrade and framed the mind-set of the Filipino people of their potentials in art, literature, science and technology.

An equity bank for people, a business for the people and the market for the people. The money supply circulates in these three areas, with additional potential of exporting the products, program (financial scheme) and people (expertise). All it takes is a digital network, it is truly in the level of High-Frequency and High-Energy operations. This is possible with the local genius and "intellectual property".

The Business Start-Up

Capital Required for Investment on Mandala Water/Total Target of Investors

Sources of Income for Mandala Water

1. Pump Water Treatment Plant

2. Water Sewage Treatment Plant

3. Desalination Water Treatment Plant

4. Irrigation in Agriculture

5. Bottled Drinking Water

6. Pure Water Ingredient Supply

7. Swimming Pool Treatment

8. Other Products & Services

Clients/Customers:

1. Government

2. Private Businesses

3. Household

Individual Shareholder Earnings: (Total Sales & Contracts - Production Cost - Operating Cost & Expenses - Tax)/Total Individual Shareholder or Bank Account Holder

The individual nett profit will be debited to the savings account to avail of the following the debit-credit financial transaction.

Individual Shareholder Benefits:

* Business Opportunity: Open your own business

* Career Opportunity: Job Market

* Investment Opportunity: Invest in new business, (food, energy, electronics, transportation, etc.)

* Special Discounts for Products and Services

Digital Economy and High-Level Security:

This is the digital economy, less paper money. A digital economy requires high-level security against hackers and DDoS attackers. The solution is HIGH-FREQUENCY internet wave.