5.30 pm GMT - Thursday January 19th 2012

I’m a lot calmer, which is nice; I’ve decided not to go back to Cape Town, which was the thing I dreaded most. Oliver, Mike and I are going to work towards hiring a few Villas in Ko Samui in May, this is an acceptable future, my job will simply be to socialize and impress those that need to be impressed. It will be like starting Cape Villas all over again, but in the country I always wished to work in. I can be happy doing this, as will Oliver and Mike.

Having this kind of backup plan takes the pressure of, as does having two extra months to not only complete my work on the Global economy but equally get some travel companies interested in what we are doing.

I’ve swopped computers, my love, my friend “e-machines D620” is not well, I need to give my new Dell a name, hmmm. As he/she will be the one to complete “American Butterfly” there can only be one name: “God”.

I’ve loaded up Football Manager 2005 on D620 and have them both running, this was an exercise I did on the winter of 2004, when I needed to work my ass off and be isolated from the world.

“American Butterfly” introduction is going so well it has now become “American Butterfly” the website just supporting data, I have created it without the customary links, we’re at about 25 pages at the moment, I’ve just finished the Tax section of the final part (where I restore profit). However I’m reading and amending from the start, I got to the part that whizzes over POP and it needs more, a nice graphic, one page long and a few paragraphs of text. To kill 2 birds with one stone, I will tailor it to a pharmaceutical company. We will use Johnson & Johnson as we are about to contact their CEO Mary Sue Coleman.

I’m going to write down some ideas then make a professional piece to put on the website.

Johnson & Johnson is an annoyingly long name; we will need to shorten it to either Johnson or JJ – JJE can work for now “Johnson and Johnson Ecology.

I’ve been giving this some thought on my last walk, the first consideration is weather they should incorporate or start a new company.

There is an awful lot of variables, and we are entering the world off “applied’ not “pure”, as such whatever I come up with will be able to be improved by the academics.

My first consideration is this, as share options are extremely limited, the only way to create new companies is via POP, add to this we will be limiting the amount of companies allowed within individual industries, example “only 4 maybe 8 within travel” it may well be better off for JJE to incorporate JJE within EEE, as such with $12.3B in profit they will create $6.25B for new companies in the first year, and accelerated growth from then on.

I can see the start of EEE being similar to a land grab, everyone desperate to grab new “franchises”. Example in travel, first wave we have the big companies, JJE will partner with a consortium of big travel companies. All will immediately start looking to recruit reps and agents (see facebook travel) JJE will be immediately popular as it will make certain patent concessions, drugs that can really help impoverished nations that can’t afford them anyway, and a few token offerings to the USA Gov. A deal will be struck, where as soon as JJE is making more profit and dividends than JJ, they will make most of their pharmaceuticals open source, as such if you book with JJE Travel you will be saving the world.

Add this to the other half of the consortium, being experienced travel companies and tour operators, JJE Travel will have great demand. JJE Travel has no costs unless they feel they should advertise. JJE Travel has the clients, the new fb (we will call them that for now) fb reps and agents deal with the clients and look after them. All is run via the system.

It would be good to only accept travel companies that incorporate, what we mean by incorporate is, their entire company as it stands becomes a part of the new EEE Company (Block) the exact method will vary, they will still have to pay the entrance fee, this can be raided by a loan, or maybe they already have the money, this needs some thought.

A point that needs to be stressed is the first companies will be the strongest as they have first pick of EEE partners and fb reps and agents alike. The majority of the first wave of the reps will be from the travel industry, people already working solo or in small groups that will be overjoyed by the new technology and additional client base. This first set will be the most experienced and as such are more likely to excel.

How long it will take after the USA has “kicked off” before Europe and the rest of the world follows, is a difficult question to answer.

In the facebook travel example we looked at $70 Billion by 2017, +/-23% market share. This however only takes into example one company, if we have 4 companies in the USA that’s $16B if we have 8 its $32B, $32B is a lot for one country to sustain. Let’s consider how many different companies will be created in the first round 64x4= 256 different franchises. /8= 32. If we limit USA to 8 travel franchises we are not being restrictive.

We need to consider, the make up 50% JJE 50% Large Travel companies, or 50% JJE 25% large Travel Agencies and 25% SME’s. This route would see the first order of business being recruiting the 25% of SME’s

The question is, how long will it take to make over $4B profit, if it takes over 2 years by the time they are ready to create a second franchise, a lot of other countries may have already done so, where as if JJ was incorporated, with over $6B a year if each company (franchise) they co founded was done on a 25% ownership basis, they would be off to a flying start. For now however I think it best if we look at the investment model only.

Our target is to make sure JJE makes as much profit and dividends as it does currently. Profit last year was $12.3 Billion.

We need to do this as quickly as possible as for pharmaceutical companies this un-chaotic economic formula will be quite the opposite.

Not only do we have to consider, the new drugs made my EEE companies that are free, we also have to consider the drugs that the existing pharmaceutical companies make open source as a part of the deal. For instance if another drug company has say, a drug for arthritis which is as effective as one the JJ makes, but as its not been marketed as well, it makes little profit, as such said “other drug company” may well give up the formula. This would result in an equally good drug (or nearly) being available for free, and it does not matter how well JJ market and advertises their existing drug, no one is going to buy it, if they can get an alternate for free.

Hmm, this is going to cause quite a mess, it’s a good mess for the citizens of earth but not for the pharmaceutical companies. I think we need to make a strong regulatory body to make sure there is some resemblance of order and consider a timeline. I think we also need to consider some “Give Half Back” assistance for any company that is in trouble. Unless of course they don’t wish to help the earth, then….. but that simply will not happen, as soon as one has signed up, there will be a run on shares of all the others, it may take less than a day after JJE or whoever is first for the rest to make a “Agreement in principal”

Ok, so how are we going to make JJE and friends successful, the big advantage they all have is PR, and the will of the public to buy associated products knowing the more they buy the more formulas etc they will make open source.

One thing to note here is the patent problem, I do not know this for certain, my source a comment on Boston Legal but it makes sense.

It conserved HIV drugs, it seems one can take out a patent of certain research, thus blocking others from using their method, is it possible that there are 20 or so companies trying to find a cure, all of whom can’t use each other’s work, as such, none can make an effective cure as one would need all parts of the jigsaw to complete the puzzle?

I think we will find, without the patents, with work being open source, not only will the drugs be free they will be better.

First we need to consider the investment, how much will we allow them to invest, with banks only being allowed to invest 1$ for every $40,000 that they have, we are not looking for money, rather our intent is to give them the opportunity to stay as profitable as they are now.

I have considered them investing double their profit yield, but for JJ we will work on $16 Billion
How to split this, 50% USA 50% Europe, we will only concern ourselves with the USA so $8B, let’s consider 4 50%
holdings

Travel
Realty
businessbook

10.06 am GMT - Friday January 20th 2012

Having started to make the graphic and sleeping on the problem, I have come up with a rather clever idea.
Instead of having 4 separate companies, connect them all into one, conglomerate, so as all four feed each other until all four are full, ($16B) then expand, no dividends or Give Half Back until full.

As such we can add the loss leader energy, plus we can include property development to Real Estate

Travel
Realty & Development
Businessbook
Energy

The excellent part of this story is that in time businessbook will make all four unbreakable.

We could also consider, loaning money to JJE, each year so as to top up its profits, i.e

We guarantee JJE

2013 – 4 Billion
2014 – 6 Billion
2015 – 8 Billion
2016 – 10 Billion

In exchange for a 4 year plan of patent releases, then as soon as JJE is independently making +$12B in dividends we will recoup the money.

Note: we need to work out exactly what the current JJE dividend payout is, it says its 3.5% at the moment, which I presume is 3.5% of its share value, it does not tell me total payout. It is mentioned that they are buying up a lot of other companies.

It is worth noting that 5 of JJ’s blockbuster drugs will loose their patent protection by 2014. This may turn out to be a blessing in disguise for JJ. They make $7.1B (before tax) from pharmaceuticals, $8.3B from medical devises and diagnostics and $2.3B from customer care.

Indeed I do believe for JJ pharmaceuticals, this is something that will excite them,

Businessbook: how to begin.

I like the idea of businessbook being one of four companies from the beginning, but how will it immediately make money?

The first consideration is that is has no costs, development and staff operate from the universities.

I think we need to consider, revenue for companies, in terms of which company engaged the client and which one set up the connection, and which one monitors.

For instance, say JJ has a branch in Australia, and they use their own strength and ingenuity to send some of their staff (half paid by EEE) over to Sydney to start recruiting local and large businesses onto the system, they should for ever more see a commission, from an EEE perspective it matters little who makes the money as it all contributes to “Give Half Back”

However we do have to consider efficiency, if two years down the line, there is a university in Sydney and JJ are not doing any work, it stifles the process, so maybe we look at a 4 year cut off.

This said, the general idea with businessbook, is that every company benefits, as such every company wants to use it; it would make a lot of sense for JJE to look to expand to the areas it has recruited. 75%owned by new businesses and owned 25% by JJE for recruiting the new businesses.

11.59 am GMT - Friday January 20th 2012

This work has proved to be a very useful exercise, it has highlighted that much of the first phase for all companies will be to create the network, this may affect the share split, as individual people not in business owning shares is useful from a “they will love and wish to buy from the network” perspective. However we can always perform this exercise on the global model, if we exchange that 4T block for start ups and SME’s, the network will grow quicker and the money will come sooner.

Yes I think we have to change the share options, however I’d like to consider that 4T block not as an investment block, or not fully at least rather as a start up block, in a similar way to the C-Agency example.

It goes like this:

John smith likes what he knows about the system, plays the tutorial game and proves adept at travel; he has no money to invest, so he starts as an affiliate to JJE Travel. He is a sole trader and has a $28,802 profit ceiling (in one year) the first year he does not make it, the second year he makes $38,802 and $10,000 is put in his bucket, the next year he makes $50,000 his bucket is full and is exchanged for a part of the main JJE Town. Thus each year he receives $7,451 in dividends, his excess becomes the start of his next bucket, which by the following year (given the same degree of success) will be full the following year. As such he will receive $14.901. By this time he will have contributed $59,605 which will be enough for either a dedicated office, or a share of a hotel or villa. He can sell these at any time, work from or just gather rental money.

Having become successful in his initial field, most likely inbound travel to his local area or outbound from his local area to a country or continent abroad, he can now add new territories, example: John had concentrated on Safaris in Africa, now he adds Hotels and Villas, in places like Cape Town, Mauritius etc. As such he now has two sources of $28,802 profit and his dividends, office or fractional ownership of a Hotel or Villa. John smith is off to a flying start and will become a Travel tycoon in no time at all, and remember he invested no capital.

Yes, I think we have to include this is the shares block, it encourages start up’s and becomes the recruiting tool for companies like JJE, as such the job of JJE, in Travel is primarily to pick their partners, on advice from those at the university, and game results.

As for businessbook, we do not have a 40 page business plan as we do for travel, it stands to reason however that businessbook will eventually be the all powerful company. I like the idea of connecting 4 company blocks together to make a $16 Billion investment and having one of the 4 businessbook, if the company block at the beginning is strong, no business can fail, as it has the profit of businessbook running through it, businessbook can be adjusted between 1% and 10% commission depending what is needed. It is the heart of the PQS.

It makes sense for businessbook companies to be the smallest blocks, the $1Billion, as such the job of all at the new sites will be to canvas the area and add people to the network. As with the travel example, should the locals wish to fully incorporate not just use the tools, they can be set a target, and once beaten, and their bucket full, the local site can either expand or satellites sites can be created, or the property acquisition could simply be that they buy the shop or office that they are currently working from, all be it the latter does not stimulate the economy.

Let’s have a quick look at the 4 JJ companies again

JJ Energy.
JJ Businessbook
JJ Developments
JJ Travel

It may well be better instead of 4 half towns (2Billion each), having 16 at $500M each

This way they can have a head office in one of the big Cities ($2B) (4km2) and 12 individual half districts ($500M x 12 = $6B) (1km2 x12) the balance for all the half districts being made up by businesses within the county) not only can they start work on businessbook, so by over time increasing the land acquisitions in the area, they can also leverage of their other company franchises.

They can recruit all local businesses to businessbook and the financial software, where many businesses will incorporate, so over time increasing the size from a district to a small town.
They can create travel agencies and organize the travel to their new resorts.
They can do all the building, set up and incorporate Real Estate agencies.
They can create all the energy sources, and continually use some of the “Special Projects” money to add to these.

Note: if alternate energy was a profitable business we would not be using oil, whether alternate energy is an out and out loss maker or weather it does not make that much profit is not currently known, however it is probably the most important factor, as such, if we follow this split company route in future, I will suggest that not only do all companies have to have a Energy company, they also have to build a certain amount to apparatus each year, once in profit.

Obviously some places are better than others, The Nevada desert for example is an obvious choice for solar panels, Mountainous regions for Dams, and windy regions for wind turbines, all be it we are not keen on wind turbines as they are harmful to birds, on the same topic, Dams in rivers are frowned upon due to the fish.

In business terms this will mean little to most, however following nature is the science, without the science no EEE.
We have little knowledge about the transference of Energy, for example, if JJE had a base near San Francisco could it add to the solar station in Nevada and draw energy from there?

Note: Without doubt, over time, alternate energy projects will become profitable, if we consider that over 8 years, JJE & Partners will have spent $4Billion on solar energy, they will have created a significant output, which will be making a fair amount of profit, maybe $250 Million a year. We need to factor in improvements in technology, with millions on the project; I would find it hard to believe that energy efficiency and output would not have doubled twofold, as such it would be generating $1Billion a year.

It has already been mentioned that clean energy should be considered in the same light as free range chickens, as such charging $1.50 as opposed to $1.00 per unit will be acceptable by some, further, all EEE residences will be mandated to use clean energy, however the houses and offices and municipal services will have been constructed in such a fashion to reduce energy usage as such, there will be no loss.

Electric Cars.

The New Sparta plan, called for a complete ban on fossil fuel vehicles except good vehicles, this has seemed an impossible objective in the USA; it is however looking more possible. President Obama has called for a new initiative to boost the USA car industry and this could be just the ticket.

One could start of course by simply encouraging electric cars in the cities and districts, with a view to a tax in two to four years, with an outright ban in four to eight years.

All the time, laying the infrastructure for eclectic cars (electric points on the roads, in garages etc) and working with the rest of the world to make them more efficient.

New Consideration.

Considering we are looking at 25% of shares immediately to big companies, we may need to consider splitting the companies further. As such, companies get ¼ of all planed territories, thus speeding up the creation of the network. In most cases it would take less than a year to raze the next quarter from existing businesses in the areas, and then the last 50% can come from developing business into EEE, more local businesses and strategic foreign partners.

This needs carful thought as to who is the most important, we may have to consider, literally doubling the size, not from the initial offering, rather the size of expansion as local businesses and start ups wish to either invest incorporate or build up to. Excluding any local business or start up that wished to join would stifle progress.

5.51 pm GMT - Thursday January 20th 2011

This exercise is bearing fruit, to the point that an argument that we can create not $16 Trillion but $32 Trillion.
If we consider JJ as a 25% owner of the smallest block ($1B 2sq km) (they pay $250M) they will be assigned a county. Within that country there will be enough companies to double up, in investment alone. It makes sense to save a ($250M) share block for the global market (individual citizens by themselves or 50/50 with their governments) and the last quarter to businesses that start up and use their profit to buy in.

After the full block is accounted for, we need to consider expansion, it’s only fair to offer JJE another ¼ option, and the same would apply for the local businesses, the remaining 50% available to other local businesses that have worked the system to profit. As such we are now looking at $32 Trillion in the USA.

This of course significantly improves all economic factors for USA Gov, double the jobs, and double everything.
This is a significant improvement on the model, however It may be best as a counter rather than a presentation, i.e. if someone says, you will never get such and such by this date, we can throw in, “well please remember we are working on half expectations in the first place!”

I need a graphic.

JJ invest $8B

They get 16 half B’s or 32 ¼ B’s

Let’s consider 16 ¼ B’s = $4B

Let’s add a corporate office $2B

If we consider the idea that we wish every territory to duplicate itself, we need to reassess this model.
More like this

This will be closer to 2 territories per county. Adjust again

Once more

1Km would cost $500 Million, $125M for infrastructure, thus $2.5M for a hospital is well within budget.

Let’s have a look at the “Give Half Back”: GHB will need to equal $125M (1/4 GHB, 1/4 Dividends, 1/2 company expansion.

$125 = 50% for University/businessbook and 50% City upkeep

City upkeep 1/4 Social security, 1/4 Municipality, 1/4 Improvements, 1/4 Acquisitions $31.25M each

Plenty to run the hospital, when we consider the staff are part of the university.

This means we are creating 11,874 new hospitals in the USA, same for schools and Universities.

This becomes a part of the PR, local businesses and citizens will love EEE. With 11874, we have about one EEE presence per 2 to 3 “places”

So……………

1KM2 costs $500M, I wish to do a double check, double checked: 1KM2 costs $500M

As such, we are looking for 4 partners per 1km2 ASAP and the balance over 4 years.

1. Corporate partner
2. Big businesses (operating in the area)
3. SME’s
4. Independent contractors and sole traders
5. New Enterprises.
6. General public (local)
7. General public (international)
8. International businesses

Cost each, $125Million.

(Note we are looking to make 2KM2)

As such JJ, invest $125M in each new territory

So $8 Billion = 32 units

16 Mini suburbs ($125) =$2Billion
4 Mini+ suburbs ($250) =$1Billion
2 Mini++ suburbs ($500) =$1Billion
2 Town ($2B) =$2Billion
1 City ($2B) =$2Billion

11.57 am GMT - Saturday January 21th 2011

It will be best if I make the diagram for JJE in the standard $4Billion not $8Billlion, further it may be better not to make it for JJE rather a generic name

We will work in units of $125 Million, and use the category numbers
So $4 Billion = 32 units