OrionPlan

Investment Based Economy: 

Investment Based Economy If it is better to invest the dollar than just spend it? It is therefore better for the government to invest the tax dollar Given the reach that Wall Street has in the world markets The government can be the client of the burgeoning 21st Century Economy with limited risk. The People The US Government Wall Street THE ORION PLAN

Partnership in the Foundation of the 21st Century Economy: 

Partnership in the Foundation of the 21st Century Economy Government Citizen/ Taxpayer Institution

Potential Benefits for Participating Institutions: 

Potential Benefits for Participating Institutions Opportunity to increase asset portfolios (2A) Enabling a proactive role in the economy as a leader, and not just a participant (2B) Enhances ability to demonstrate confidence in the capital markets and improve credit worthiness (2C) Provides additional vehicles to improve overall profitability of institutions (2A) Offers opportunity to reduce overall tax exposure of institutions (2D) Leads to new vehicles of investment New sources of liquidity

Potential Benefits for the Government: 

Potential Benefits for the Government Ability to avoid perception of tax and spend - or - spend then tax (3A) Ability to reinforce national security through economic security (3B) Enable unrealized sources of liquidity to pay down interest and stabilize dept. (3C) Ability to stabilize economic cycle (3D) Demonstrate confidence in the capital markets (3E) Enable planning of expenditures within a range of gains expectations (2A) Ability to restore surpluses while lowering overall tax requirements (3F) The ability to afford more programs More efficient now-partisan legislation - reducing cost of government The ability to give back to the people

Potential Benefits for the People: 

Potential Benefits for the People To empower the taxpayer as an investor in the economy (4A) To enable indirect participation and developing a vested interest in the economy To re-instill confidence in the capital markets, and in the government (4B) To be an overall beneficiary thereby reducing overall personal tax burden by having an ROI which can be re-invested (4C) The ability to ensure a sense of confidence in their retirement income (4D) To become more familiar and receptive to investment opportunities (4E)

Perpetual Investment Engine General Functional Summary : 

Perpetual Investment Engine General Functional Summary

Perpetual Investment Engine General Functional Summary: 

Perpetual Investment Engine General Functional Summary Consists of layers of segregated operation (5B) Maintained by referential integrity of operations audit groups in each layer US Treasury Management Services (5B) Structured management interface with in the US Treasury Dept., to the participating financial institution. Institutional Management Services (5C) Provides transparency and segregation between the US Treasury and the specifics of a unique institution. Market Momentum System (5D) Functional interface into the businesses of the respective institutional participant

Perpetual Investment Engine: 

Perpetual Investment Engine JP Morgan Goldman Sachs Morgan Stanley UBS/Warburg Citi/Salomon Fidelity CSFirst Boston Barclays Lehman Bros. Schwab Market Makers Dept. of Allocations Audit Dept. of Investment US Treasury Management Services Earnings Audit Dept. of Investment Institutional Management Services Market Report Systems Audit Firm Market Making Business Economic Power Economic Power Re-investment ROI Investment Power to Pay Costs Power to Pay off Debt ROI Tax Dollars Interest Rate Adjustment

PIE Management Services: 

PIE Management Services Functions as a plenum into and out of the market momentum system Consists of two distinct and segregated layers US Treasury management services Institutional management services, (unique and separate to each institution) Consists of peer to peer functional areas with each layer, in terms of funds flow Enables the government side to communicate to the institutional side Enables the institutional side to communicate to the government side

Market Momentum Services: 

Market Momentum Services A co-operative layer between the institutional investment momentum services and the world markets Consists of accredited institutions (5A) Banks, brokerages, market makers Performing business as normal counter-party relationships (5B) Regulated and monitored by a unique audit department that is separate and distinct from the normal Counter Party Relationship. (5C) Each institutions invests funds depending on the scope and posture of their market makers business (5D) Cleared by audit within the market momentum system Each institution maintains a market reporting system (5E) Conduit of all ROI derived from funds invested via the market making business interface. Returns all ROI to earnings peer in the respective institutional market service group Reports to audit within the market momentum system

Mobilization for Legislation of the Plan: 

Mobilization for Legislation of the Plan Institutions Brokers Banks Exchanges Feasibility Studies Designs, co-operative, normalization 6 months United We Stand 3-6 months 2 months ? Wall Street Joint Venture Task Force Council Non Partisan Lobbyist Legislation

Orion Karl Daley: 

Orion Karl Daley Founder and CEO of The Trading Systems Network, Inc. Visionary - Anticipating Market Needs Consulting services 1984 - 1999 included: Provided professional consulting services to WDR/Union Bank of Switzerland, Smith Barney Shearson, J.P. Morgan, Salomon Brothers, Reuters, and other Wall Street firms.

Slide13: 

Notes 1A - Government is able to provide various credit instruments in addition to tax dollars. Hence U.S. Treasury Bonds may be used if at fixed rate of interest. - This would be considered separate and segregated from normal money market deals. 2A - Similar to how the GSA bid process works, accredited institutions are viewed in a similar to vendor contract allocation. - The Treasury has a % of tax dollars split into a number of tranches in decreasing amounts. - Institutions could place bids on the tranches. - Contract award is based on amount of performance promised by the use of the funds for period of duration. 2B - Structured paradigms of all investment vehicles planned or intended for use are to be pre-approved by the U.S. Treasury. This is to be based on such criteria as: demand of conscious v. market demand; historical basis v. new vehicle, levels of risk assessed by certified analysts v. credit worthiness of institutions; past performance of institution in previous contracts. 2C - Institutions are to provide collateral for assurance of performance commitment. - Institutions may provide tolerance of +/- percent of gain without affecting collateral. - If performance falls within negative range of gain estimate, the negative if carried forward to next contract allocation. - If performance is over and above range of gain estimate, the amount is treated as a credit against the next contract allocation performance estimate.

Slide14: 

2D - Profits to institution, fees, etc. on pie deals are considered tax exempt. - Participating institutions are not permitted to write off losses or offset losses via indirect write-offs. - Provide incentive to institutions to avoid relocation of their place of business during tax reporting times. - In other words, business lines such as securities lending can be international, where actual business can be relocated to another country to avoid tax consequences. 3A - Creating New Economic Indicators - Economic indicators are generally after the fact, by about a month and can be misleading, as GDP on CPI with or without associated debt can imply the same thing but have significant differences as real indicators. - New indicators can emerge based on projection of returns. - This enables a more accurate commitment in terms of “read my lips,” based on forecasted tax burdens with respect to national costs and national debt. - Budgets on the floor can be proposed and debated more effectively based on such indicators and public sentiment in terms of overall ROI. Notes

Slide15: 

3B - To buy back debt from foreign owners could mean that U.S. Is less compromised by foreign owners. - Consider, the Constitution states that no government official can accept titles by foreign powers. - Removal or limitation of foreign ownership of national debt could limit claims of influence from foreign powers. - Enables a cap on escalating debt. Debt which is bought back enables the new debt to be financed. - By limiting the window of debt exposure for a particular issue of debt reassures credit worthiness while lowering the sphere of influence associated with the ownership of that issue of debt. - Extends the reach of interests to additional buyers. 3C - Provides incentives based on near term returns of debt owners to take on and finance new debt issues. 3D - The economic cycle is perceived ideally as a perfect circle where structured debt and leveraged liquidity are its points of balance, if viewed as a gyroscope in effect to balance the economy. - Reality is that if a gyroscope is over compensated at one point or another, similar to excessively leveraged liquidity, then the cycle must rebound to conservative debt structure to maintain balance. - Compromised by deficit spending, this re-balancing cannot momentarily be readily achieved. - By being able to cap debt escalation, the cycle can be re-balanced. Notes

Slide16: 

Notes 3E - In war, confidence and moral are obtained by having the opposing force on the run or retreat. - A strong economic foundation puts recessions and depression in retreat. - Confidence is returned to the investor as confidence is demonstrated by the leader, which is the U.S. Government. 3F - Restoring Surpluses can be accomplished by: - Scheduled payment toward the lockbox and can be made based on the % ROI which lowers the overall tax burden to make up for a dwindling lockbox. - Breaking out a % of ROI would be based on the overall ROI from an investment contract cycle (see note 2A). - Dealing with a deficit based economy in a recession is comparable to a race condition with hopes as historical evidence that a defense industry will aid to the recovery. But this is antiquated when the investment based economy is at hand.

Slide17: 

4A - As an investor in the economy the tax payer is expected to have more incentives based on a sense of interest to: - Vote more often and consistently, and seek to be informed as the basis of their vote. - Overcome complacency in the “system” and seek greater involvement; hence yielding a sense of accountability while expecting accountability from their elected officials. - Seek reform where determined as need through which groups the tax payer associates him/herself with. - Gain a sense of momentum in values, while most cases tax withholding is automatic via withholding/income from an employer. 4B - Confidence in the capital markets is obtained by observing the leadership’s confidence, and observing this through the demonstration of accountability through checks and balances such as in accountant/SEC oversight groups and councils that are legislated subsequent to Enron to assure the SEC’s effectiveness. - In demonstrating accountability and oversight guidance the government demonstrates such virtues as purpose for trust and goodwill toward the tax payer. - Goodwill normally begets goodwill. Notes

Slide18: 

Notes 4C - Consistent with the idea of tax returns, interest and penalties as well as fines the investment based economy provides alternatives. - ROI - The tax payer should expect ROI less than that which is allocated by the Treasury Dept. Hence tax avoidance means less if not any ROI. - ROI can be applied as credit toward outstanding interest and penalties. - Interest is fair interest based on market interest rates. - Penalties should be nominal as to promote investors and not tax cheats. - ROI provides also a mutual insurance policy to avoid outstanding burdens by the tax payer while assuring the treasury of an amount guaranteed by the tax payer. - Hence, other investments such as in government debt can be construed as ROI. - ROI itself is neither considered nor construed to be taxable income. - Outstanding burdens can be borrowed against from the treasury based on normal treasury debt interest rates, i.e. The Bank of the United States. - ROI in this case does not apply.

Slide19: 

Notes 4D - Work harder is to imply working smarter for one’s future retirement assurance. - Currently this incentive does not exist. - Working harder implies no win. - Working smarter implies shortcuts. - Social security can be construed as a separate entity or a component of the investments (burden) by the tax payer. - In either case the people are assured by Treasury financial statements that such surpluses are regarded and assured. - Such surpluses likewise can aid in medical benefits as well as living income, rental/mortgage assistance, etc. - Moreover, hostile loans and predator loans can be outdated as a vehicle; if such surpluses are available to borrow against one’s future for one’s present. 4E - Disposable income is a luxury which today is only for a few. - Pension funds are a reality. 401Ks and IRAs or self directed IRAs are within reach given a liquid economy by being invested with confidence. - Investment incentives can be provided to apply ROI as principle in these vehicles and borrow against if need be without penalty as they are themselves ROI. - Taxable interest can be treated as interest as in note 4C.

Slide20: 

Notes 5A1 - Contract layers are those layers of investment management that are responsible to manage an investment contract as described in note 2A. 5A2 - Referential integrity is intended to mean that each layer of audit (at a minimum): - Reports to an external layer of audit. - If not the lowest layer, it has a layer below it which reports to it. - That through technology a view of the layer below is accessible. - That such a view be based on a contract view (see note 2A), or view as defined as necessary. - Has external counterparts that are separate and independent from it; generally for the purposes of oversight, and for access by the SEC. - That expertise is adequately provided in each layer of audit to carry out and maintain observance of audit controls and the observance of materiality for the business at hand. - That each layer of audit is to be accountable for the checks and balances of contract funds that are coming in from an upper layer, and return of funds, and related ROI to the upper layer. - That each layer of audit is to be accountable for the checks and balances of contract funds that are going to a lower layer and for return of funds and ROI from a lower layer. - That a schedule be established per contract, that does not inhibit the contract from preceding from layer to layer but that it insures the integrity of a contract before migrating to another layer.

Slide21: 

Notes 5A2 Chart AUDIT AUDIT AUDIT CONTRACT CONTRACT CONTRACT CONTRACT/ROI CONTRACT/ROI CONTRACT/ROI MMS U.S. Treasury Institutional Investment Management Institutional Market Momentum System

Slide22: 

Notes 5B - USTMS is to be a unique department in the U.S. Treasury, that is responsible for the operational interface from the standpoint of the U.S. Treasury into the perpetual investment engine (contract management systems). - It is to consist solely of government employees which are not permitted to have a conflict of interest with the business of the USTMS. - The scope and focus of conflict of interest is to be defined, and where laws that do not exist are legislated to maintain the standards of conflict of interest observance. - It is to provide the contract bid/award system as described in note 2A. - It is to receive prescribed funds from the U.S. Treasury Dept. as is determined by the Federal Reserve as necessary. - Such funds can represent initially a fraction of a percent of available funds, such as in the case of a pilot program. - Such funds can be furthered in volume and scope as time proves a refined and effective investment engine model that best meets the needs of the government. - See note ____ on minimum components within the USTMS.

Slide23: 

Notes 5C - Each institution maintains a separate institutional services layer which functions as a cooperative interface between contract layers and to provide: - Transparency - to provide full transparency on behalf of the institution with respect to the U.S. Treasury management services layer (USTMS). - Complete audit accessibility. - Maintain controls in observance of securities fraud legislation. - Performance observance. - Segregation - to separate the detailed business of the institution from the institutions. Obligations to USTMS through well defined interface components. - Dept of investment. - Audit. - Dept of earnings. - Each interface component is to functionally receive, manage, and hand off funds between its upper layer, the USTIMS, and the market momentum system - In each case there is a higher and subordinate peer.

Slide24: 

Notes 5C Chart U.S. Treasury Dept. USTMS Contract Layer IMS Contract Layer Institution 1 IMS Contract Layer Institution 2 IMS Contract Layer Institution 3 IMS Contract Layer Institution 4 unique contracts unique contracts unique contracts unique contracts

Slide25: 

Notes 5D - Market maker businesses are to consist of any form of lucrative investment management business that complies with (note 2B) any regulatory requirements that are set forth by the Treasury Department for managing a contract. 6 - For illustrative purposes only the perpetual investment engine appears in similar fashion as the combustion engine. This could easily be depicted as an electric motor. The principles to be observed are: - source of fuel - application of the fuel - power derived from that application - the notion of momentum - the notion of torque - the result is a metric of power for fuel used