The need for project funding has generally been growing by leaps and bounds, as major Infrastructure, Environment and Job Creation projects demand more and more scarce resources.
The old method of raising taxes or selling bonds to pay for these isn't working as well as it used to. Reaching out to find new ways of paying for vital projects is essential, and requires a new mind-set: Out-of-the-box thinking.
The program we are going to describe is a self-enclosed mechanism that requires no tax dollars, does not have to be repaid, and can raise funding from 200 Million USD into the tens of Billions.
By virtue of a decades-old system which has virtually been in existence since the end of World War II, this funding program has been creating money to pay for roadways, bridges, hospitals, environmentally-beneficial and humanitarian (e.g. jobs creation), projects get done without reaching deep into the taxpayer's pockets.
WHY THIS PROGRAM? WHY NOW?
For every Dollar, be it tax or bond money, it is estimated that 10 times that amount needs to be spent on vital projects to get and keep a country going. In other words, there will never be a way to pay for needed projects with these Dollars. They simply would not be enough, even if tax rates were to hit 75%.
Here is where the Infrastructure, Humanitarian and Environmental (IHEP) project funding program comes into play.
THE HISTORY
Reach back to 1947. For most of us, we may not remember the devastation of World War II and how it left war-torn countries, and Allies with the United States, with more to fix than could be afforded. Much of Eastern Europe was demolished both physically and economically. America had spent an exhaustive amount of money and lives, and was left with its own problems.
A gathering of 730 delegates from all 44 Allied nations met in Bretton Woods, New Hampshire, to regulate the international monetary and financial order after the conclusion of World War II.
"The economic health of every country is a proper matter of concern to all its neighbors, near and far." - U.S. President Franklin D. Roosevelt at the opening of Bretton Woods
The need for postwar Western economic order was resolved with the agreements made on monetary order and open system of trade at the 1944 Bretton Woods Conference. These allowed for the synthesis of Britain's desire for full employment and economic stability and the United States' desire for free trade.
One of the outcomes of this Conference was the creation of a trade mechanism that would allow the generation of profits as the result of international trading. Later, a modification to the trading system would result in the issuance of highly regulated bank instruments, of which the bank-issued paper would be sold in a two or three step process which would generate cash for projects, and then ultimately go on to be bought and held by pension funds seeking fixed rate investments.
The effect of this was to encourage and incentivize private investors to allow their cash to be safely used, while a buying/selling process utilizing MTN's would create profits to be used to fund projects, be they Public, Private, and Public/Private Partnerships.
This system is used today to fund projects worldwide, including disaster areas such as Haiti, and economically poor countries such as several of the African nations, among others.
ACTION
As an Authorized Introducer to this IMF and US Treasury- supervised IHE, PreConstruction Catalysts, Inc. is briefing local, state and national government officials in the US. These officials have great needs within their communities, counties, states and nationally. The interest in learning more has been high, and if YOU are a Project Developer with a qualifying project, you are invited to contact us for a presentation about the IHEP and how it can be applied to pay for your projects. It is also available on our website under Useful Documents.