World Legislative Act Number Eleven

 

EARTH FINANCIAL CREDIT CORPORATION



WHEREAS:

The success of the movement to establish a Federal World Government under The Constitution for the Federation of Earthh, and to implement the World Legislative Measures enacted by the Provisional World Parliament, depends on adequate financing;

The countries and peoples of the world must by freed quickly from the disruptions to their economies and livelihoods by repeated devaluations, inflations, and manipulations of monetary values, exchange rates and interest rates, both in world trade and for peaceful development;

The financial, credit, money and banking system under the Federation of Earth must be based on virtually unlimited financial credit, which can be extended wherever there are people to work, resources available, technology available, and viable plans for the use of the credit, without being dependent on or limited by prior savings or prior capital formation;

Financial credit must be available in sufficient quantity to carry out unlimited and life-saving peaceful development projects in all countries and all parts of Earth, as well as to implement fully the World Disarmament Agency, the Emergency Earth Rescue Administration, the World Economic Development Organization, and all other World Legislative Measures adopted by the Provisional World Parliament and subsequently to be adopted by the fully constituted World Parliamentt;

The Constitution for the Federation of Earth, under Article 8, Section G, sub-items (e) and (f), specifies a new "Planetary Monetary and Credit System based on useful productive capacity and performance... within the Planetary Banking System for the financing of the activities and projects of the World Government, and for all other financial purposes approved by the World Parliament.";

To launch such a Planetary Finance, Credit, Money, and Banking System, it is desirable that the National Governments of a sufficient number of countries (sufficient to establish full credibility and operative acceptance of the new global financial system) shall ratify or give provisional ratification to The Constitution for the Federation of Earth, and agree to use and make the transition to the new global financial system.


THEREFORE

Article One • As soon as ten national governments have given provisional ratification to the Constitution for the Federation of Earth, and have also ratified World Legislative Bills #1, #2, #6, #7, and #11 (this act), then an Earth Financial Credit Corporation shall be organized and activated as a division of the World Economic Development Organization, for the purpose of introducing the new Earth finance, credit, money and banking system.


Article Two • The method of introducing and making the transition to the new Earth finance, credit, money and banking system, shall be by extending multi-billion dollar revolving lines of credit in Earth Dollars to all developing countries, and to other countries, willing to accept the terms defined herein.


Article Three • Initial revolving lines of credit in Earth Dollars shall be calculated on the basis of $1 billion dollars for each million of population for countries having natural population increase rates by birth of more than 2% annually, $1.5 billion dollars per million of population for countries having natural population increase rates of between 1% and 2%, $2 billion dollars per million of population for countries having natural population increase rates of between 0% and 1%, and $2.5 billion dollars per million of population for countries having zero or less population growth.


Article Four • The capacity and ability of the Earth Financial Credit Corporation to extend Lines of Credit shall be based simply on facts of people available to work, resources available, and technology available, whether within a country or by transfer, and shall not be dependent on nor limited by prior savings.

The extension of financial credit by the EFCC is further backed by the value of all the resources in the oceans and seabeds beyond 20 km. offshore, which is claimed as World Territory and as the Common Heritage of Humanity under World Legislative Act #3; and is further backed by the claim of humanity as a whole (as represented by the Provisional World Parliament during this transition period to the Ten Trillion Dollars (U.S. currency) plus, which the separate nations of Earth currently propose to obtain from their citizens and spend for genocidal military equipment, preparations, and operations during the next ten years.


Article Five • The manner of extending the revolving Lines of Credit shall be in the form of an offer to each country defining the total amount of the Line of Credit per Article 3, to be activated under the following terms:

  1. Provisional ratification of the Constitution for the Federation of Earth is a prerequisite to activating the Line of Credit.

  2. Ratification of World Legislative Acts #1 for disarmament, #2 for a World Economic Development Organization, #6 for an Emergency Earth Rescue Administration to save the environment, #7 for a World Government Funding Corporation, and #11 for the Earth Financial Credit Corporation, is also required to activate the Line of Credit.

  3. Specific proposals and projects for the use of credit or funds advanced per the Line of Credit must be submitted for approval by the Earth Financial Credit Corporation.

  4. Criteria for approval of such proposals and projects shall include:


    1. No military related proposals or projects will be accepted;

    2. Projects and proposals must serve peaceful human needs;

    3. Projects and proposals must meet specifed human values of decent working conditions, adequate living wages to all employees, no excessive salaries or profits to owners, administrators or managers;

    4. Projects and proposals must meet specified ecological and environmental standards;

    5. Other applicable criteria set forth in World Legislative Act #2.


  5. Financial credit and funds, as parts of the Line of Credit, may be given to the national government, public corporations, private corporations, cooperatives, ccommunities, universities, individuals, and to other entities whose projects or proposals receive approval.

  6. Multi-national corporations may obtain credit under the terms of the Line of Credit, provided that the credit is obtained within a country whose government has given provisional ratification to the Constitution for the Federation of Earth and of the World Legislative Acts specified above, and may use or spend the credit for development of projects only within countries whose national governments have ratified or given provisional ratification to the Earth Constitution and specified World legislative Acts.

  7. The Line of Credit will be accounted in terms of Earth Dollars, which shall at no time have a lower value than U.S.A. Dollars or international SDRs(Special Drawing Rights), whichever is higher in value at the time of exchange.

  8. Each country accepting a Line of Credit under the conditions specified herein may turn over current external debts for repayment to creditors by the Earth Financial Credit Corporation, under the following procedure:


    1. Announce to creditors that the country is accepting the Line of Credit from EFCC, and is assigning its approved external debts for repayment to creditors by the EFCC.

    2. Approved current external debts are defined as the balance due on original amounts of loans for valid projects, excluding loans for military projects or purposes, and excluding re-cycled interest and interest currently due.

    3. No further external debts may be contracted except through the EFCC, or other agencies of the World Economic Development Organization (WEDO) or of the emerging World Government under the Constitution for the Federation of Earth.

    4. The debts assumed by the EFCC shall be repaid to creditors in Earth Dollars, which shall never be valued below par with U.S. Dollars, and shall be paid on an installment basis during the next 20 years after assumption of the debts by the EFCC.

    5. All subsequent interest on debts assumed by the EFCC shall be at no more than 2% of the assumed principal.


  9. Administrative and financing fees to be charged on credit or funds advanced under the Line of Credit shall be limited to no more than 2% per annum on the principal amounts advanced and shall be uniform to all those receiving credit advances. Repayment shall be in Earth Dollars.

  10. The original Line of Credit shall be subject to increase or decrease in direct relation to the decrease or increase in the rate of population growth.

  11. Acceptance of the terms of the Line of Credit means the elimination of any further differentials or fluctuations in exchange rates because there will be only one universal Earth Dollar system.

Article Six • In addition to countries which qualify for Lines of Credit from the EFCC, the EFCC shall also extend Lines of Credit in Earth Dollars to the various global agencies established under World Legislation adopted by the Provisional World Parliament, as well as for the functioning of the Provisional World, itself, and of the Provisional World Executive Cabinet. The Lines of Credit extended to global agencies shall be based on budget projections of each agency, work to be accomplished by each agency, and wealth in goods and services to be produced by each agency; but not to exceed a combined total of more than two trillion Earth Dollars for any single fiscal year, unless this limit is altered by act of Parliament.


Article Seven • The Board of Directors for the EFCC shall be composed as follows:

Part A • The first 25 national governments to accept Revolving Lines of Credit extended by the Earth Financial Credit Corporation may each name one representative to the Board of Directors of the EFCC each to serve a five year term. After more than 25 countries have accepted Lines of Credit, then for the election of successive terms for Directors, each national government shall nominate one candidate and the total of 25 Directors shall be elected by a combined vote of the national governments.

Part B • Thirty additional members of the Board of Directors of the EFCC shall be elected as follows:

  • 10 elected by the Provisional World Cabinet;

  • 5 elected by the Board of Directors of the World Economic Development Organization;

  • 5 elected by the Board of Directors of the World Government Funding Corporation;

  • 5 elected by the Board of Directors of the Emergency Earth Rescue Administration;

  • 5 elected by the Board of Trustees of the World Disarmament Agency.

The Directors to be elected under Part B of Article 7, may be elected in whole or in part prior to the naming of members of the Board of Directors by participating national governments.



Article Eight • The Board of Directors of the EFCC shall elect its own officers from among their own number, and shall appoint an Executive Director and other administrative personnel as needed.



Article Nine • The Board of Directors of the EFCC shall formulate and adopt all rules and regulations necessary for the effective and efficient operation of the EFCC, in accordance with the provisions specified herein, and subject to approval by the Board of Directors of the World Economic Development Organization, or by the Provisional World Cabinet if WEDO is not yet functional.



Article Ten • To expedite the inauguration and successful and rapid development of the EFCC, a Procurement Department may be established under separate legislation by the Provisional World Parliament. When established, the Procurement Department shall work in close co-operation with the EFCC in order to expedite widespread and general acceptance of the Lines of Credit and of all financial procedures being introduced by the Earth Financial Credit Corporation, as well as by other financial agencies established by the Provisional World Parliament.



Article Eleven • Under the following specified circumstances, the Earth Financial Credit Corporation may be initiated without the participation of national governments at the outset:

Part A • In the event that within 12 months from the adoption of this World legislative Bill #11, ten national governments have not accepted the plan for the EFCC, inclusive of Provisional Ratification of the Constitution for the Federation of Earth, together with ratification of the world legislative measures specified as a prerequisite to receiving Lines of Credit, then the Board of Directors of the Earth Financial Credit Corporation, serving through election by agencies other than national governments, may devise ways and means to begin operation of the EFCC without waiting for the official participation of national governments.

Part B • If the Board of Directors of the Earth Financial Credit Corporation, after prudent and careful consideration and preparation, shall determine that it is feasible to make the EFCC operative before the elapse of 12 months from the date of adoption of World Legislative Bill #11, then the Board of Directors of EFCC may take the necessary steps to do so.



Article Twelve • The possibility shall be explored by the Board of Directors of EFCC for introducing and developing Earth Dollars as global legal tender, Earth Dollar Lines of Credit, and Earth Dollar accounting procedures, etc. from a global financial base established in an offshore World Territory or in a zone of an existing country where the zone is granted legal extra- territorial status for this purpose. The Board of Directors of EFCC shall be empowered to implement this procedure as found feasible.


Article Thirteen • The more fundamental changes defined by World Legislative Act #11, shall be developed in conjunction with the transitional financial procedures defined under World Legislative Acts #2 and #7.


Article Fourteen • To encourage the cooperation of existing banks and financial institutions in making the transition to the new financial system, which is not based on prior savings and does not require prior savings to extend Lines of Credit or make loans, recognition shall be given to the net cash assets of cooperating banks and financial institutions in the following manner:

The net cash assets of those banks and financial institutions which agree by contract to join in and co-operate with the new financial system within 2 years from the date of operative launching of the EFCC, shall be integrated with the new system on the basis of 100% valuation of their net cash assets in terms of Earth Dollars, together with interest to be paid at 10% for 10 years on such net cash assets integrated and used in the new system. The net cash assets of those banks and financial institutions which agree to join during the 3rd year of operation of EFCC shall be accounted at 90% of valuation, together with 9% interest for 9 years. The net cash assets of those which agree to join during the 4th year shall be accounted at 80% of valuation together with interest at 8% for 8 years. And so on, until the 12th year, when the old system will have no transfer value to the new system.



Go to Act #10Go to Top 
< Click here to view the list of Acts >