1.- SOLUTIONS TO THE CURRENT CRISIS
Amado Lorenzo Martínez – President -Club de Tesoreros de España

We often organize "Brain Storming" conferences in order that the participants, normally young students, express freely their doubts and alternatives they think might be used to solve the different “case studies” in order to improve their democratic level.

Let review their diagnoses and alternatives solutions.

The students have chosen their experience in computer science to find an environment similar to the crisis.

When a computer becomes slow or blocked, we usually restart it and if the problems continue we apply the "re-setting". This solution restores the operating system to a previous date, in which it was working correctly.
Henry Kissinger claims that solutions in the academic environment are easy because .... there is nothing to loose. However, it is possible true that because they are free of prejudices the students ideas could be !REALLY EFFECTIVE SOLUTIONS IF THEY ARE APPLIED!
2.- Revaluations only became profit if speculators and owners sold the properties before the explosion of the bubble. Those who did not sell the propierties, found that the amount due of their mortgages were higher than the new market values of the properties they had acquired. Many of them decided to pass the problem to the banks, the financial institutions and those who acquired the financial instruments created to finance the mortgages.

3.- The beneficiaries of these revaluations include the builders, " real estate brockers", bankers, "rating agencies”, bankers board members and “stock brokers" in the USA and other countries.

The graphic shows the estimated distribution of these benefits, although many of them were not realized. In some countries these profits were used to bribe corrupt politicians and swindlers who were using the real-estate business to invest the benefits of the drug traffic in legal companies, dealers of semi slaves (illegal immigrants), the mafias of the prostitution and other groups.

4 .- The governments of the affected countries applied temporary solutions financed by public debt that will have to be “paid" in the future, because they are not an effective solution. Another mistake is to treat the problem as a crisis when they are indeed a series of "FRAUDS AND SWINDLES THAT MUST BE TREATED ALSO FROM A JUDICIAL AND LEGAL POINT OF VIEW "

5.- Due to the magnitude of the problem, the politicians, partly due to theirs lack of knowledge, decided during the fourth quarter of 2008 to apply political provisional solutions, leaving in the case of the USA the problem to the next presidential team.

Other countries, decided to defer the problem with "window dressing" procedures to the balance sheets of the banks and financial institutions and wait for the solutions to be implemented in the USA

6.- This solution will only have a temporary effect, since the governments will have to increase the public debt to finance the funds granted to the financial institutions and to sell this debt to the same investors who sold the shares of the banks, most of them sovereign funds of the countries that have accumulated huge profits as a result of the price increase of the oil (Gulf States) and some financial Chinese and Russian groups, among others.

There exists the danger, when the stock market recovers, that sovereign funds of hostile countries, speculators and groups of doubtful origin could acquire the control of many of the industrial and financial companies whose shares now have very low prices as well as emblematic real-estate properties.

7.- The participants in the conference were astonished when they knew that a father with wife and three children spent three years in jail because he withhold the funds that a company was owing him for profesional services On the contrary, corrupt politicians, owners of financial institutions who had obtained millions of dollars of armored and incentive contracts during periods of losses and frauds to their companies were getting away themselves from jail and it was not possible to recover the result of their thefts, prevarications and swindles hidden in tax havens.

8.- When Henry Ford became " The King " of the industry, they asked him when the users might choose the color of their cars. Mr. Ford answered that ... they can now choose any color ... provided it is black ... giving a clear sign of the slowness of the sector in anticipating the needs of the users. He only changed when other competitors offered alternatives colors and Ford sales declined.

As it happens with the financial sectors, the car and transport industry has committed many mistakes and it is not fare to ask all citizens to pay their huge losses, executive incentives, unfare fringe benefits, parachute contracts, private planes and labor agreements higher than other business sectors with higher profits.

9.- It is not necessary to reinvent the wheel. After the second world war the Japanese car industry was reborn from the ashes sharing the I + D of the most important components - engines, transmissions, etc-, in spite of different body designs.

Use of robots in manufacturing, effective “just in time” inventory control and low cost distribution networks increased far east countries market shares beyond USA and Europeans manufacturers.

10.- Since the 70s the USA and UE car manufacturers received a very clear message that
they did not follow. It is necessary to design cars with lower fuel consumption or renewable fuels, as well as highly efficient companies, with low cost in distribution, administration and manufacturing to preserve the employment in the countries they are sold, Globalization should only be used in I + D and the manufacturing of key components.

11.- The allies in the wars of Iraq and Afghanistan had to finance the cost of both wars and the oil price increases increasing their public debt, subscribed by the same countries that they benefited with the war.

12.- "Re-setting" means to restore the system to a previous date in which it was working, at least acceptably, therefore it would be fare to use the profits obtained by those who benefited from a situation and economic model that allowed the fraud, the speculation and defraud to happen.

This measure will reduce the expenses of some oil tycons in dangerous lustful and funding of terrorist activities.

13.- It is not possible to win a war against civilians controlled by religious fanatics leaders who offer them, in the name of God, the promise of a lustful life in the paradise.

The experts repeat it again and again.

This war was a mistake, already recognized by those that created it. Incorrect management increased its cost, as well as, a lost of prestige that is necessary to correct.

The USA eliminated a potential allied in the difficult war against other much more dangerous terrorrists.

We must not continue with the same mistakes and demand a solution from those who know to solve it.

14.- Afghanistan has a long history of wars, as the experiences of the United Kingdom and more recent the Soviet Union, whose failures in this country were one of the reasons that contributed to its disappearance.

The recent problems of the allied should make us find better alternatives with lower financial cost and less damage to the population.

Dividing the territory and granting the control to other neighboring Islamic countries might be " the best of the available solutions".

It is necessary to assure that the countries in charge of its control and development offer at least minimum Human Rights, reduce drug trafficking and insist on the rights of the women, girls and other minority groups.

15.- The wars between the Israelis and the neighboring countries have benefited the oil exporting countries of the zone and the multinational companies that distribute the black gold.
The profit from the oil price increases as a result of the wars has financed the countries involved in the war as well as the terrorist groups, but the oil price increase and the subsequent increase in raw materials and food affected poor countries in Africa, Latin American and other areas as one of the reasons of the death of million children.

16.- There is no military solution to this problem due to religious fundamentalism, from all sides.

Only high level diplomatic negotiations to avoid the actions from all parties to reactive the war to obtain financial ressources or votes from political extremist can be effective.

The students think that the best solution might need the application of the best techniques explained in Karl Von Clausewitz's and Sun Tzu books.

17.- The danger of the financial war will force us to identify the owners of the sovereign funds and other groups of investors before giving them away our industrial and financial resources. They are too important to our way of life.

18.- - Identify weapons, territories and objectives of the enemy.
- Identify the members of the dark forces; sovereign funds of the Gulf States, Chinese, Russian, Iranian, Philippines groups, bolivarianos, etc.
- Organise task forces, training them in the art of this new type of war.
- To create sovereign investment funds in the allied countries to be protected from the assault of the funds of the " dark forces ".
- Establish new legislation similar to "Nuremberg" that will allows to judge retroactively the crimes committed by the fifth column of the dark forces, getting back the profits they obtained. The actions taken by the Chinese govern with sentences imposed on some of their citizens accused of corruption during the Olympic games, which were condemned to death – changed to life imprisonment if they offer information of the conspiracy, objectives, participants and where their resources have been hidden.
- To control the immigration that generates business of prostitution, drug trafficker - terrorism, computer and audio-visual piracy with huge benefits that do not pay taxes and downgrade the system.
- To establish new rules for the globalisation that could contributes to the development of the countries of the third world without creating unemployment in other countries.

19.- The politicians influenced by the lobby of multinational companies have not used globalization effectively. The benefits of globalization have only reached an small group of businessmen, financial companies and the dictators and mafia groups of underdeveloped
countries.

20.- Incorrect implementation of the globalization is damaging the same multinational companies that promoted it. Building factories in underdeveloped countries to reduce cost in the car, textile and other business had many SIDE EFFECTS due to the lack of effective management in those business.

Millions of workers being employed as semi slaves have eliminated millions of jobs in other countries, without a real benefit for them.

In the European Union many companies have changed the locations of their factories to the new member countries with lower labor cost to save a few cents in the cost of the labor, but also to obtain fiscal, financial and real-estate benefits, affecting the economy of the euro zone as a whole.

The import of products without quality and sanitary controls and the use of workers not covered by labor contracts export labor without any benefits to the foreign employees.

21.- THE BEST SOLUTION IS A BETTER APPROACH TO GLOBALIZATION, ITS OBJECTIVES AND THE CONTROL OF THE RESULTS.

22.- It is an academic case study and should be considered in that way. However, it would not be correct to reject the suggestions of young students who will be in a not very far future top managers and political leaders.

23.- Both webs will allow you to have a better understanding of this conference.