Fiscal Policy and the Challenging Economic Environment

In the face of the increasingly alarming global economic crisis, the Philippine government, as the institutional embodiment of the sovereign authority of the Filipino people, is challenged to fulfill its constitutional mandate to protect the general welfare.

Debates over what government must do to save the economy are happening almost everywhere, from public offices and school classrooms to wet markets and barber shops. It is argued that it is through its fiscal administrative power that government attempts to resuscitate the dying economy.

Public fiscal administration generally refers to the formulation, implementation and evaluation of policies and decisions on taxation and revenue administration; resource allocation, budgeting and public expenditure; public borrowings and debt management; and accounting and auditing (Briones 1983: 2).

The hope of seeing real economic progress seems to be dependent on the success of the whole fiscal policy process. Fiscal policy derives its meaning and direction from the people's aspirations and goals which are said to be embodied in the Medium Term Philippine Development Plan.

"The basic task of the Medium Term Philippine Development Plan … is to fight poverty and build prosperity for the greatest number of the Filipino people. We must open up economic opportunities, maintain socio-political stability, and promote good stewardship-all to ensure a better quality of life for all our citizens. We will focus on strategic measures and activities that will spur economic growth and create jobs. This can only be done with a common purpose to put our economic house back in working order "(Arroyo 2004 ).

But the big question is: how does government carry out its fiscal administrative function to really cushion the Filipinos from the adverse effects of the onrushing global financial crisis?

The Fiscal Policy as a Political Process

Lying at the heart of public fiscal administration are the fiscal policies shaped by the socio-economic and political interaction of internal and external policy environment. Internal policy environment includes the decision-making agencies of government such as Congress, the Office of the President and its support agencies, the National Economic and Development Authority, the Department of Budget and Management, the Department of Finance, and the Commission on Audit, among others. Internal environment also includes the private sector, interest groups, non-government organizations and people's organizations in the society.

The external policy environment, on the other hand, encompasses foreign interest groups composed of international financial institutions like the World Bank (WB), the International Monetary Fund (IMF), and the Asian Development Bank, among others. Moreover, external policy environment includes the international agreements and economic cooperation such as the General Agreement on Tariffs and Trade (GATT), World Trade Organization (WTO), Asia and the Pacific Economic Cooperation (APEC), the Association of Southeast Asian Nations (ASEAN ), the Organization of Petroleum Exporting Countries (OPEC), and institutions that extend Official Development Assistance (ODA), among others (Cuaresma 1996: 46).

Professor Leonor Briones of the UP National College of Public Administration and Governance claims that "these foreign interest groups prefer to maintain a low profile in local fiscal politics. They do not have to come out in the open anyway-the WB-IMF has regular consultations with Philippine officials due to the enormity of the Philippine public debt; the MNC's [multinational corporations] are represented by local dummies, and the foreign creditors by their Filipino proxies. In the open political contest, these foreign interest groups express their preferences by financially supporting their politicians. Where the local technocrats and bureaucrats are more significant in fiscal policy administration, they attempt to influence their nomination and appointment. " (Briones 1983: 97)

This only means that the financial health of the country is at the mercy of the international financial creditors and policy bodies that issue our fiscal prescription. While it is often argued by scholars that the field of public administration must not be political in its very nature, fiscal administration as its sub-field is not free from political maneuvering as it is operating within the political system.

From the scholarly view of Professor Briones, fiscal policy has four major functions: (1) the allocation function, (2) the distribution function, (3) the stabilization function, and (4) the development function.

The major fiscal instrument in the allocation function of fiscal policy is the national budget. In general, a national budget is the financial plan of the government for a given fiscal year, which shows what its resources are, and how they will be generated and used over the fiscal period. The budget is the government's key instrument for promoting its socio-economic objectives. The government budget also refers to the income, expenditures and sources of borrowings of the national government that are used to achieve national objectives, strategies and programs.

In developing countries like the Philippines, gaps between the rich and the poor are insurmountable. Thus, distribution of income and wealth is a serious problem. The distribution function might have serious implications for tax and expenditure policies. Recently, a report came out saying that the Department of Finance (DOF) planned to jack up the sales tax or value added tax (VAT) to 15 percent from the current level of 12 percent to raise much-needed revenue to plug the country's ballooning budget deficit which hit a record P298.5 billion last year (Agcaoili 2010).

The report makes the fiscal debates even more heated as the issue of stability, another function of fiscal policy, is now the subject of concern. Often, government resorts to increasing taxes to have the means of public spending or avoid budget deficit. But it is known to many the myriad tradeoffs it can create.

People often hear in the news the fiscal plans created by government all in the name of "development," another function of fiscal policy. Perhaps, this word is the most overused, if not abused, word in the political arena.

Development is multi-faceted. The word itself is nice to the ear. But it is a "very expensive commodity" in the words of Professor Briones. In order to translate development into reality, financing is, of course, needed. In harmony with other measures, fiscal policies are expected to generate resources in order to finance development activities (Briones 1983: 55). In loan-dependent countries like the Philippines, generating resources means borrowing more and paying even more.

Over one third of our national budget goes to debt servicing. With the widening fiscal deficit, the national government's debt now amounts to P4.42 trillion, accounting for more than half of its GDP and more than three times the government revenues if creditors were to call the debts in. The Philippines relies heavily on domestic and foreign borrowings to bridge its fiscal gap, which is expected to hit a record P325 billion this year (abs-cbnNEWScom).

The Challenging Economic Environment

Borrow more. Tax more. Pay more. It is a vicious cycle. It is without a doubt that the Philippines, the then mighty tiger in Asia, has transformed into a desperate pussycat roared by the giant financial institutions to which we are heavily indebted. The Filipino people become victims of immoral and debilitating conditionalities imposed by the IMF and the international financial oligarchy.

The economic situation becomes even more difficult as the world is facing what many economists describe as the worst economic crisis in history. The credit crisis in the US has accelerated the rate of financial meltdown all over the world, making the international lending institutions more eager than ever to force heavily indebted countries like the Philippines to extract a pound of flesh from their people. The national government's total indebtedness has ballooned as a result of sudden and sharp currency depreciation during this critical time of global economic uncertainties.

In response to minimizing the impact of the global economic downturn, the Philippine government embarks on measures aimed at stimulating positive performance in all sectors of society. Former Socioeconomic Sec. Ralph G. Recto, for example, proposed stimulus package intended to keep the economy afloat. As a consequence, Economic Resiliency Plan (ERP) was put in place to supposedly manage to sustain economic growth by fiscal policy adjustments alongside the implementation of pump-priming programs and vital projects and activities.

The former NEDA Chief simply argues that the government intends to battle the present crisis by increasing spending through what he calls stimulus package-a fiscal and monetary strategy that is very Keynesian in nature. The ERP basically entails "ensuring resources through better revenue collection; enhancement of cash liquidity, access to credit and low interest rates; and more effective spending. It seeks to ensure stable growth, save and create jobs, provide assistance to the most vulnerable sectors, ensure low and stable prices, and improve competitiveness in preparation for the global economic rebound "(Recto 2009).

This stimulus package, however, is a mere pain reliever. It does not cure the cancer, which is the crisis itself. A major surgery operation, therefore, is needed.

Think out of the Box: A Fiscal Strategy for the General welfare

"There's life after the IMF."

These are the words of then President Nestor Kirchner of Argentina when he defied the predatory financial institutions that imposed belt-tightening measures on his people.

The newly elected Philippine President Noynoy Aquino must do the same. He must have the courage to disassociate himself from the deceptive legacy of "honor all debts" policy of his mother. The traditional government action plan for debt management such as bond exchanges, maximizing the use of ODA, guarantees for GOCCs, and more borrowings, will not create lasting economic growth.

The Philippines, as an independent nation, with all dignity and courage, must therefore declare a moratorium on foreign debt payments. This will allow our country enough time to rebuild and expand our productive physical economy.

Through this fiscal strategy, the country can channel huge amount of its annual budget, instead to debt servicing, towards effective educational system, efficient healthcare system, and sustainable scientific research centers focused on food production, health maintenance, and industry. Consequently, this will encourage real investment into agro-industrial and manufacturing sectors and ensure a genuine path towards development.

To seriously participate in the global effort to save the world's economy, the Philippine government should join the growing worldwide call for a new financial system of fixed exchange rates. This new financial system is said to put an end to the financial tsunami hitting practically all nations in the world today. Proposals are made by the Governments of Italy, Argentina, Malaysia and a growing number of countries, institutions, statesmen and patriots aiming at changing the global financial structure based on the tradition of the Bretton Woods Agreement of 1945 (Philippine LaRouche Society 2004)

The issue of fiscal policy amid global crisis is indeed a very complex and thought-provoking issue. The crisis, which we now face as a nation, requires intelligent understanding of the problem and courageous act to do what is right for the benefit of the present and future Filipino generations.

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Insurance In Tort Laws

This project has been an eye opener for me. It is extremely relevant to the modern times and as the future of India we should understand that it is the common mass that runs the country. Consumer protection rights are an important issue in modern days. The law can be effectively used to stop any abuse of the common people especially illiterate masses who do not understand the rules and regulations which is to be followed while buying particular item. It is law, the controller of the entire society which can stop this abuse from taking place. It can place effective standards guiding a product's genuinity and the proper verification of its price. No extra taxes should be issued according to the seller's wish. I have proceeded by referring to the books written by Avtar Singh, Venkat Rao and others. It has been a wonderful and educational delight in going about this topic and making a project which is of greatest importance in the present day scenario.

The words "consumer", "consumed", "consumption" is all cognate, and when one is defined, the contents of the definition go into all of them wherever they occur in the same act.
Section 2 of the act wherein 'consumer' is defined. According to him, the definition of the consumer will not take a client who engaged the advocate for professional services.
Consumer means any person who-
– Buys any goods for a consideration which has been paid or promised or partly paid and partly promised or under any system or deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly promised or under any system of deferred payment when such use is made with the approval of the person, but does not include a person who obtains such goods for resale or for any commercial purpose
– Hires or avails of any services for a consideration which has been paid or promised or partly paid or partly promised or under any system of deferred payment and includes any beneficiary of such services other than the person who hires or avails of the services for the consideration paid or promised or partly paid or partly promised or under any system of deferred payment when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial support

In Black's Law Dictionary it is to mean:
One who consumes. Individuals who purchase, use, maintain or dispose of products and services. A member of that broad class of people who are influenced by pricing policies, financing practices, quality of goods and services, credit reporting debt collection and other trade practices for which the state and federal consumer laws are enacted.

The act is dedicated, as its preamble shows, to provide for better protection of rights of consumers and for that purpose to make provisions for the establishment of consumer councils and other authorities for settlement of consumer disputes and for other connected matters. In the statement of objects, reasons it is said that and the act seeks to provide speedy and simple redressal to consumer disputes. Quasi judicial body machinery has been set up at the district, state and central levels. These quasi judicial bodies have to observe the principle of natural justice and have been empowered to give relief to a specific nature and to award, wherever appropriate, compensation to consumers. Penalties for non compliance of orders given by quasi judicial bodies have also been provided.
The object and purpose of rendering the act is to render simple, inexpensive and speedy remedy to consumers with complaints against defective goods and deficient services and for that quasi judicial machinery has been sought to be set up at the district, state and national levels. These quasi judicial bodies are required to apply the principle of natural justice and have been empowered to give relief of specific nature and appoint wherever necessary, compensation to consumers.

An operational definition of insurance is that it is
– The benefit provided by a particular kind of indemnity contract, called an insurance policy;
– That is issued by one of several kinds of legal entities (stock company, mutual company, reciprocal, or Lloyd's syndicate, for example), any of which may be called an insurer;
– In which the insurer promises to pay on behalf of or to indemnify another party, called a policyholder or insured;
– That protects the insured against loss caused by those perils subject to the indemnity in exchange for consideration known as an insurance premium.
The influence of insurance on the law of torts has been significant, both on theoretical level and on practice. Insurance has undermined one of the two main functions of awarding of damages, and it has in cast doubt on the value judgements made by the courts in determining which particular test of liability is appropriate in the given circumstances.
Regardless of whether in the particular circumstances the appropriate principle of liability is intention is malice, fault or strict liability, the purpose of common law damages remains the same. The primary purpose of an award of damages is to compensate the victim for his loss, with view to restoring him as near as possible to the position he would have been in but for the tort of the wrongdoer. But damages have another: by making the wrongdoer responsible for meeting an award of damages, the courts are trying to deter others from committing similar tortuous wrongs.

Insurance vitiates the secondary purpose of damages, at the same time incidentally ensuring that the primary purpose is more often achieved.
It can scarcely be realistically asserted that insured defendants are deterred by the prospect of losing no-claims bonus or by increasing of premium on renewal of their policies. Once it is conceded that insurance renders compensation for the sole purpose of damages but then the tort action itself becomes vulnerable to attack, for there are many ways-some perhaps fairer and administratively cheaper than tort- of compensating a victim for a loss he has suffered .
Prima facie, where a person suffers loss of recognized kind as the result of another's act, then the latter should have to make good that loss. But for valid reasons, the courts have held that, in certain circumstances, the actor will have to compensate his victim only if he is at fault. The victim's right to compensation is, therefore curtailed in an attempt to be fair to both the parties. The courts have made a policy decision that, in the circumstances, it is right to reward a defendant who has been careful by protecting him from liability for the consequences of his actions and that, as a corollary the plaintiff must forego his compensation. The policy decision is made on the supposition that the wrongdoer would himself have to pay for the damages but for this protection; it by no means follows that the same decision would be made if there were no risk of the wrongdoer having to provide the compensation.

It is difficult to judge the victim's right to compensation should be curtailed when that curtailment is not justified by a corresponding benefit to the wrongdoer. The requirement of fault ceases to play its role as the leveler between the victim's legitimate expectations and the wrongdoer's legitimate expectations, and becomes simply a hurdle to the victim's progress to compensation. If it is accepted that no one can insure against liability for harm caused by intentionally to another, then similar arguments can be made by the inappropriateness of the victim's having, in certain circumstances to prove an intention to do him wrong or harm, when it is irrelevant to the wrongdoer whether he had such an intention or not.

Again the victim's right to compensation is being curtailed without any corresponding benefit to the wrongdoer.
However, insurance has influenced the law of tort on a much more practical level as well. While the fact of insurance is not of itself a reason for imposing liability, there can be no doubt that it does add "a little extra tensile strength" to the chain which a wrongdoer to his responsibilities.
As well it has given new horizon to damages; it is true that traditionally it was considered to inform the court that a defendant was insured, but "those days are long past" and now it is frequently openly recognized that the defendant would be insured.

The policy of insurance constitutes a contract of insurance between Life Insurance Corporation or a subsidiary of General Insurance Company of India, as the case may be, such services such has been undertaken to render under the contract of insurance. However as a rule, occasion to render services arise only when insured surrenders his policy, or the policy matures for payment or the insured dies or any other contingency which gives rise to render service occurs.
Breach of contract of insurance may give rise to a cause of action to file a civil suit, but such breach of contract may itself constitute deficiency in service, so as to give a cause of action to file a complaint under the consumer protection act for one such more relieves awardable hereunder.
Section 13 (4) of the act vests in a redressal agency powers of the Civil Court, while trying a suit in respect of such matters as examination of witnesses on oath and production of documents. Declining to exercise jurisdiction in a case before it only because it involves examination and cross examination of facts, witnesses and production and consideration of documents would amount to abdication of its jurisdiction.

Such discretion can be exercised only when the gives rise to several issues and necessities taking of voluminous oral and documentary evidence, or otherwise involve complex questions of fact and law which can not be decided in time bound proceedings under the consumer protection act.

Where the sale of a vehicle is complete, the title therein passes to the purchaser notwithstanding that his name has not been recorded in the RCBook. Such owner is entitled to get his vehicle insured and also to maintain a claim on the basis of such insurance. The earlier owner, who has lost insurable insurance on the sold vehicle, can not advance a claim on the basis of policy of the said vehicle, earlier taken by him, on the ground that he is still the recorded owner of the said vehicle.
Section 157 of the motor vehicles act is only in respect of third party risks and provides that the certificate of insurance described therein shall be deemed to have been transferred in favour of the person to whom the motor vehicle is being transferred. It does not apply to other risks, if any, covered by the policy. If the transferee wants to avail the benefits of other risks covered by it, he has to enter into an agreement thereof with the investor.

If it is established that the discharge voucher was obtained by fraud, misrepresentation, undue influence or coercive bargaining or compelled by circumstances, the authority of the consumer forum may be justified in granting relief. Mere execution of the discharge voucher would not deprive the consumer of his claim in deficiency of service.

In Sarveshwar Rao v. National Insurance Company Ltd. , It was held that the delay of two or more years in settling the insurance claim would result in inadequacy in the quality, nature and manner of the service which the insurance company has undertaken to render, and amounts to deficiency in service.
In Delkon India Pvt. Ltd. V. The Oriental Insurance Company Ltd. . The National Commission has held that it was a deficiency of service to have delayed the claim by two years on the ground that the final police report was not coming.


In Skandia Insurance Company v. Kokilaben Chandravadan, the honorable Supreme Court ruled that the exclusion terms of the insurance must be read with so as to serve the main purpose of the policy, which is to indemnify the damages caused to the vehicle.

In Oriental Insurance Co. Ltd. V. Mayur Restaurant and bar, the conduct of the insurer was under question. The commission held that deficiency of the service was established on the part of the opposite party on two counts i) delay in settlement of claims and ii) unreasonable and un maintainable reasons for repudiating the claim of the complainant, and the compensation with the interest and cost was awarded.

In Life Insurance Corporation v Dharma Vir Anand, the national commission refused to hold the insurance commission liable as the insured committed suicide before the expiry of three years from the date of the policy.

In BVNagarjuna v Oriental Insurance Company Ltd., the terms of insurance contract permitted the insured vehicle to carry six passengers at a time but the driver allowed two more persons to get in. It was held that merely adding two more persons without the knowledge of the driver did not amount to indemnification by the insurance company.

In Jagdish Prakash Dagar v. Life Insurance Corporation, it was held that a nominee under a policy of life insurance will be a consumer within the meaning of section 2 (1) (d) of the Consumer Protection Act. The commission held that the nominee could legislatively maintain an action against deficiency raised in service by the arbitrary decision of the insurer.

Repudiation is defined as the renunciation of a contract (which holds a repudiator liable to be sued for breach of contract, and entitles the repudiatee on accepting the repudiation to treat the contract as at an end
This concept of repudiation is needed in the concept of insurance. The concept of repudiation will be dealt hereto a number of times and to provide beneficiary evidence, the definition has been given.
Unilateral repudiation of its liability, under the contact of by the life insurance corporation or an insurance company does not, by itself oust the jurisdiction of a redressal agency, to go into the sustainability of such repudiation, on facts and in law and to decide and to adjudicate if, in the facts of the case, it amounts to deficiency in service or unfair trade practice, and if so, to award to the aggrieved person, such relief or reliefs under Section 14 (1) of the said Act as he or she is entitled to. The fact that before such repudiation it obtained a report from a surveyor or surveyors also does not oust the jurisdiction of a redressal agents to into the merits of such repudiation, for otherwise in each case the corporation or such company, and deprived the aggrieved person of the cheap and expeditious remedy under the consumer protection act.
Where, however the corporation or the company conducts thorough investigations into the facts which have given rise to claim and other associated facts, and repudiates the claims in good faith after exercise with due care and proper application of mind, the redressal agency should decline to go into the merits of such repudiation and leave the aggrieved person to resort to the regular remedy of a suit in a civil court.
The law does not require the life insurance corporation or an insurance company to accept every claim good or bad, true or false, but it does require the corporation or the company to make a thorough investigation into such claim and to take decisions on it, in good faith, after exercise of due care and proper application of mind and where it does so it renders the service required by it and can not be charged with deficiencies in service, even if, in the ultimate analysis, such decisions is wrong on the facts and in law and the redressal agency would be disinclined to substitute its own judgement in the place of the judgement of the corporation or insurance company.
The question as to whether repudiation of its liability does or does not amount to deficiency in service would depend upon the facts of each case.
Where a cheque sent towards a premium is dishonoured by the drawee bank and consequently the policy is cancelled or it lapses or the injured dies before the proposal is accepted and contract of insurance results, no claim can be founded in such a policy, which was cancelled or has since lapsed, or a contract of insurance, which did not materialize at all. Repudiation of such claim can never amount to deficiency in service.
Insurance agent is not entitled to collect premium on behalf of the corporation. Where an insured issues a bearer cheque towards premium and hands it over the insurance agent who encashes it, but does not deposit the premium with the corporation event till the expiry of the grace period and consequently the policy lapses and meanwhile the insured also dies, his nominee has to blame himself or herself for the indiscretion of the insured and can not blame or fault the corporation.


There are some basic principles concerning the topic of Consumer Protection Law and Insurance.
– Settlement of insurance claim is service, default or negligence therein is deficiency of that service
In the case of Shri Umedilal Agarwal v. United India Assurance Co. Ltd, the National Commission observed as under:
"We find no merit in the contention put forward by the insurance company that a complaint relating to the failure on the part of the insurer to the settle the claim of the insured within a reasonable time and the prayer for the grant of compensation in respect of such delay will not within the jurisdiction of the redressal forums constituted under the consumer protection act.

The provision of facilities in connection with insurance has been specifically included within the scope of the expression "service" by the definition of the said word contained in section 2 (i) (o) of the act. Our attention was invited by Mr. Malhotra, learned counsel for the insurance company to the decision of the Queen's Bench in national transit co. ltd. V. customs and central excise commissioners. The observations contained in the said judgement relating to the scope of the expression insurance occurring in the schedule of the enactment referred to therein are of no assistance to all of us in this case because the context in which that expression is used in the English enactment considered in that case is completely different. Having regard to the philosophy of the consumer protection act and its avowed object of providing cheap and speedy redressal to customers affected by the failure on the part of persons providing service for a consideration, we do not find it possible to hold that the settlement of insurance claims will not be covered by the expression insurance occurring in section 2 (1) (d) .Whenever there is a fault of negligence that will constitute a deficiency in the service on the part of the insurance company and it will perfectly open to the concerned aggrieved customer to approach the Redressal Forums under the act seeking appropriate relief. "

– LIC Agent has no authority in collecting the premium
The supreme court held that under regulation 8 (4) of life insurance corporation of India (agents) regulation, 1972 which had acquired the status of life insurance corporation agents rules with effect from January 31, 1981, which were also published in the gazette, LIC agents were specifically prohibited from collecting premium on behalf of LIC and that in view thereof an inference of implied authority can not also be raised.

– Rejection of claim as false after full investigation
The national commission held as follows:
"From the facts disclosed by the record and particularly averments contained in the consumer affidavit filed by the first respondent it is seen that the insurance company had fully investigated into the claims put forward by the complainant that his claim was rejected. Thus it is not a case where the insurance company did not take a prompt and immediate option for deciding the claims against the insurance company. Having regards to the facts and circumstances of this case and the nature of the controversy between the parties we consider that this is a matter that should be adjudicated before a civil court where the complainant as well as the respondent will have ample opportunities to examine witnesses at length, take out the commission for local inspections etc. and have an elaborate trial of the case. "

– Unilateral reduction in the insurance amount.
The national commission held that the insurance company is not entitled to make a unilateral reduction of Rs. 4, 29,771 from Rs. 30, 12,549 at which its own surveyor assessed the loss.

– Mere repudiation does not render the complaint not maintainable.
The national commission overruled the objection of the insurance company that merely because the insurer had totally repudiated its liability in respect of the claim, no proceedings could validly be initiated by the insured under the consumer protection act.

– Mere unilateral repudiation does not oust the jurisdiction.
The national commission held that merely because the insurer has repudiated the insurance claim under the policy unilaterally, it is difficult to hold that the various redressal forums constituted under the consumer protection act, 1986 will have no jurisdiction to deal with the matter that if such a contention of the insurance company can get a report from the surveyors, repudiate the claim and oust the jurisdiction of the redressal forums, that the redressal forums are, therefore, bound to see whether or not the repudiation was made in good faith on valid and justifiable grounds that if the surveyor or surveyors choose to submit the wrong report and the insurance company repudiates the claims without applying its mind then the repudiation can not be said to be justified that the report of the surveyor will show that the investigations have been proper, fair and thorough and that it has to be remembered that the surveyors bread comes from the employer.

– Mere unilateral repudiation no ground to oust jurisdiction.
The national commission repelled the objection and observed as under:
"Ordinarily a remedy is available to a consumer in Civil Court but mere repudiation of claim arising out of policy of insurance under section 45 of the insurance act, 1938, can not take away the jurisdiction of the redressal forum constituted under the act. The avowed object of the act is to provide cheap, speedy and efficacious remedy to the consumers and it is with this object that section 3 of the act lies down as follows:
3. Act not in derogation of the provisions of any other law: – the provisions of this act shall be in addition to and not in derogation of the provisions of any other law for the time being in force. "
The national commission overruled the objection in the view of repudiation of contract of insurance by the corporation; the redressal agencies under the act can not entertain the claim of the insured and reiterated the law laid down by it in the Divisional Manager, Life insurance Corporation of India, Andhra Pradesh v. Shri Bhavnam Srinivas Reddy.

– Removal of insured goods on attachment no theft.
It was ruled in the stated case that attachment of certain items of insured Machinery and goods by the bailiff of a civil court, though later found to be illegal and consequent removal did not amount to theft and or house breaking by force so as to entitle the insured to prefer a claim under the policy.

– When repudiation amounts to deficiency and when it does not?
The national has held:
In M / s Rajdeep Leasing and Finance and others v. New India Assurance Company Limited and others –
That rejection of the claim by the insurance company after examining and considering the two separate survey reports from qualified surveyors and three legal opinions from different oriental counsels could not be said to constitute a deficiency in service so as to give a rise in the cause of action for a complaint under the consumer protection act.
In Oriental Insurance Co. Ltd. V Modern Industries Ltd. , The national commission has held that where the cover note inter alia mentions that the risk is subject to the usual terms and conditions of the standard policy, it is equally the responsibility of the complainant to call for these terms and conditions even if they are not sent by the insurance company, as alleged, to understand the extent of risk covered under the policy and associated aspects.

In Life Insurance Corporation of India v. Dr. Sampooran Singh
The complainant had taken out an insurance policy of 40,000 rupees in 1982, for the purpose of payment of estate duty on his only residential house in chandigarh in the event of his death and paid 5 premia, but with the abolition of estate duty on one residential house owner in 1985, the policy became inoperative due to the act of the state and not due to any deficiency on the part of the corporation any dispute between the parties as to the amount payable there under can not be construed as deficiency in service on part of the corporation.

In LIC of India v M / s Kanchan Murlidhar Akkalwar
The complainant applied to the opposite party for housing loan, and on the advice of the latter, she took two LIC policies, one for Rs. 90000 and the other for Rs. 20000 entered into an agreement for the purchase of the house with the house with the owner on the advice of the opposite party obtained a fire policy for Rs. 2 lakhs. The opposite party advised the complainant to obtain a release deed from the zilla parishad co operative society in respect of the she proposed to purchase with a certificate that the said plot is not mortgaged therein. The complainant got a certificate from the Maharashtra government that the vendor had re paid the housing loan and interest thereon due to Zilla Parishad Krishi Karmachari Sehakari Gribe Narman Sanstha and that there was nothing outstanding from him towards loan amount or interest. Still the opposite party did not release the loan. On these facts the national commission by its majority judgement observed that:
"We have carefully gone through the records and heard the counsel. Clause 1 (c) of the loan offer letter clearly states that the advance of the loan is subject to the property being free from encumbrances to the satisfaction of the insurance company and a good and marketable title. at the same time it appears that the respondent-complainant had to go through a number of steps, although necessary, having financial implications and causing mental and physical stress to her and at the end of all of which she was told that no dues certificate given by the maharashtra government in respect of the prospective seller of the property in question, was not "release of mortgage" certificate that was obtained. The respondent complainant perhaps also had in her mind the case of Mr. Vaishempayam who got the loan under similar circumstances. Thus the evasion petition is disposed of as above. "

This project topic is increasingly beneficial in the modern times with the consumer protection rights being redressed with due care. It is being advertised in the mass media in our country. The slogan which our consumer is using is: "JAGO GRAHAK JAGO". The time has come to realize the ideal market situation in which the buyers are not persuaded or coerced falsely into buying items which are of no use to them at all. Besides the relationship between buyer and seller should not be damaged at any cost. The relationship between the buyer and seller is said to be a fiduciary relationship and the trust between them should remain intact. A time has come in which the customer should get his proper position in the market conditions. He has to have proper knowledge about what is going on in the market and the concerned prices and the supply and the different other practices referred to.
Insurance is a very sensitive issue in the modern times. People are being hoodwinked into signing up in companies which are turning out to be frauds in the true sense of the term. This project has been an eye opener to me and I have come to realize the importance of the consumer protection act and insurance.

Corporate Profits – Who Gets the Money?

Imagine this: You live somewhere, anywhere, in the USA and on Saturday morning you and your partner set off to do some errands.

First, you stop at an Exxon station and gas up your car. Once again, your partner complains about the high cost of gas, and the outrageous profits of oil companies. But, you explain that California's public employees, among and millions of other working Americans, in every state, appreciate your business. The California Public Employees Retirement System (CalPERS) owns millions of ExxonMobil shares, and Exxon's corporate profits help pay for their pensions.

Next. you're off to Wal-Mart to pick up a couple of things for the garden and house. As you swipe your credit card to pay, California's public employees thank you again. Their retirement fund owns millions of Wal-Mart shares, and each time the company earns a profit on a sale to a customer, a portion of that flows to them.

Of course, the piece of the profit they get from your $ 20-dollar purchase would be minuscule. But, California public servants are getting an tiny bit from every one of the billions of purchases made at Wal-Mart, and they own millions of shares, so they end up with a sizable injection of Wal-Mart profits into their pension fund.

Next, you visit the travel agent, to finalize your vacation plans. After booking flights on Alaska Airlines, California's public employees thank you. They own shares in Alaska Air Group, which operates Alaska Airlines, and share in the corporate profits.

By now, you're feeling hungry; your partner suggests burgers at McDonald's. Would you be surprised to learn that California public employees own McDonald's shares as well, and share in the profits from McDonald's? Look in a recent annual report from CalPERS and you'll see it owned shares in exactly 4,656 American companies on June 30, 2007. The fund also holds millions of shares in companies in other countries, bonds (basically loans to corporations and governments), and other investments.

Here's another point that recently became one of public interest. As of June 30th, 2007, our public service friends in California owned almost a billion dollars worth of shares in American International Group, or AIG, the company that's in the news so much these days. If you've wondered for whom those supposedly greedy people at AIG were making big money, now you know – California public employees, along with millions and millions of other government and private sector members of pension plans and mutual funds. Assuming they still own a lot of AIG shares, all these working Californians have to hope the AIG survives – if not, it will mean a hit to their pension funds.

Now, you may not work for the State of California, you may not even live there. But, you're likely in the same boat, for better or for worse. Whether you live in the USA, Australia, Chile, or a hundred other countries around the globe, your non-government retirement income depends in large part on corporate profits.

If you live in Canada, both your government pension and your non-government retirement income may be affected by corporate profits. A few years ago, the government agency that manages the government pension plan began investing in corporations to help fund the Canada Pension Plan and Old Age Security. So essentially all Canadians now depend, to a greater or lesser extent, on corporate profits for retirement money.

Maybe you do not belong to a pension plan, maybe you have to invest in mutual funds. Well, you're in the same boat. Regardless of country, your retirement income depends on corporate profits, and for two reasons. First, companies that make a profit can pay dividends to the owners, including those of us who contribute to pension funds and mutual funds. Second, shares in profitable companies may be sold for more than they cost, allowing pension funds and mutual funds to sell those shares for a capital gain (a capital gain is the difference between the price at which you buy a stock, and the higher price at which you sell it – if you sell it at a lower price, then you have a capital loss).

If you're trying to make sense of modern, middle-class capitalism, start by recognizing that most big corporations belong to working people, through their pension funds and mutual funds. Forget the old class warfare slogans, and the left wing bumper sticker logic. We workers are also owners in the world of modern capitalism, and addicted to corporate profits for much of our retirement incomes.

125 Action Statements and Power Phrases

1. If you're having a tough time getting by on your salary now, how well do you think your family will get by without it?

2. The only thing worse than a home without a mother is a mother without a home, is not it?

3. You can say, "I do not need it", but can you say "my family will not need it"?

4. The most valuable asset that a father can leave his children is their mother's full time care, is not it?

5. More good things are lost by indecision than by wrong decision, are not they?

6. Someone always pays for life insurance, whether a man buys or not; the question is, who …. the man or his family?

7. You say come back in September … But whom should I ask for if you're not here in September?

8. The difference between an old man and an elderly gentleman can be a decent income can not it?

9. Wives may not believe in life insurance, but widows always do.

10. Life insurance is a shield to meet the blow that you can not see coming is not it?

11. You would certainly give your life for your children, so why not insure it for them?

12. Have you ever met a widow who said that her husband had too much life insurance?

13. Life insurance is the only plan that will guarantee a known sum at an unknown time.

14. You have not needed it (life insurance) yet? Do you carry a spare tyre in your car? Do you own an umbrella? Do you check for the parachute in the aeroplane?

15. The worst time for a wife to become a breadwinner is when she first becomes a widow.

16. If you would not like to live the rest of your life on the face amount of your present insurance, how do you expect your wife to?

17. Income is provided for a widow or by her is not it?

18. Losing a father is bad enough, inheriting a part time mother makes it worse, does not it?

19. You can put me off, but you can not put my competitors off – death and disability.

20. Life insurance will not keep people from dying, but it will keep their plans from dying with them.

21. Any partnership that operates without a proper buy / sell agreement is living on borrowed time.

22. It is not easy to be old or poor, but it's a great deal worse to be both.

23. You finish the job if you live; we finish the job for you if you die, become disabled or long term sick.

24. Whatever reason you may have for not starting this plan now will only sound ridiculous to your widow.

25. Just because you stop working does not mean you stop loving your wife, children & grandchildren. That's why you have permanent life insurance is not it?

26. Would you like to buy your parents interest in the company for less then 5 cents in the dollar?

27. Partnerships are like a seesaw. One man gets off the other falls off. Is your business succession plan like that?

28. It's better to use insurance to protect the partnership because while you will pay $ 1,000,000 for your partners share you really pay very little for the $ 1,000,000, do not you?

29. No person ever dies at the right time, do they?

30. A person needs credit to live, but their family needs cash when they die, do not they?

31. You may last longer than your money

32. Tell me, how will you treat all your children equally in your will?

33. No debt should last longer than the person who created it, should it?

34. If you buy insurance or not, in the end someone will pay for it.

35. Life insurance is time. The time you might not have. If you need time you need life insurance.

36. Your wife should be left something that will take care of her – not something she will have to take care of, should not she?

37. Have you a plan to pay for capital gains tax or will you let the family sell assets to cover your oversight?

38. A professional loans their educated brain to create income for their family to live on. Unfortunately the brain is not a going concern. When it terminates, so too does the income it generates.

39. No has always been the first two letters of nothing. I have never liked what nothing implies. Would I be right in assuming that you do not like the meaning of no either?

40. In the final analysis, all you can leave your wife with is "the dignity of choice" is not it?

41. If you had a goose that laid golden eggs, would you insure the eggs or the goose that laid them?

42. If you can save as much money in the next five years as you have in the last five years, will you be satisfied?

43. Life insurance? Anybody who does not believe in it ought to have the right to die without it at least once.

44. Sometimes the biggest price in the world is doing nothing. A lot of people do nothing wrong; they just do nothing. That's what's wrong.

45. What formula did you use to arrive at the amount of life insurance you have at the moment?

46. ​​What percentage of your income in a lump sum would you like to leave your wife and children?

47. If your partner became permanently disabled or long term sick, how long would you be willing to do 100% of the work for 50% of the profits?

48. If it were free how much insurance would you like?

49. Do you know anyone who has died who had too much insurance?

50. If you were to die because of some one else's negligence, how much would you want your family to sue for? Should they have any less if you die by other means?

51. Do you have trouble accumulating money and keeping it?

52. What type of lifestyle would you like when you retire? What type of lifestyle will you have if you are forced to retire because of ill health?

53. If you were not here could you pay for all of your children's higher education or just a percentage of it?

54. What assets would your executor have to sell up to allow your wife and children to keep living in their current lifestyle?

55. Are you aware of your most valuable asset and do you know how much income it is capable of producing in your lifetime?

56. What would happen to your estate if you had died last night?

57. You and your wife together can handle debt, but can she handle debt by herself?

58. Would your executor be embarrassed by the lack of liquidity in your estate?

59. Long term insurance is a good idea in retirement. Just because you retire does not mean you stop loving your family or their need for estate equalisation.

60. Life insurance is like a parachute in an aeroplane. If you ever want it and have not got it, you will never need it again.

61. At no time in life is a wife less able to become a bread winner than when she first becomes a widow.

62. One ordinary father can support four children, but it takes four extraordinary children to support one father

63. A life insurance person brings no financial problem to any prospect, they only bring the solutions.

64. If every wife knew what every widow knows, every husband would be insured for more, would not they?

65. I can understand your hesitation to pay the $ 800 premium. You may feel that you are making a mistake. Would you rather make an $ 800 mistake or a $ 250,000 mistake?

66. If you suffered a traumatic illness or serious accident would you sooner lose your home or your mortgage?

67. Do you have a family debt extinguishable fund?

68. If you were permanently disabled which assets could your partner sell for full value?

69. Are your debts "good" debt or "bad" debt?

70. "Your price is too high!" Is that if you take the cover, or if you do not?

71. Do you want your bank to have first call on your estate?

72. If your family was in Financial Free Fall, would not it be nice to know we could provide the Parachute?

73. If you were not here, who would you want to take care of your obligations?

74. Who do you want to inherit your debt?

75. What other assets are instantly created for your family and estate if you die?

76. Tell me what you want to leave out of your debt reduction program. Is it the capital redemption or the promises to your children that their mother may not be able to keep?

77. Which is harder for a widow? Being unprepared or being unfunded?

78. Do you see your family being disadvantaged by the unknown or being disadvantaged by being unfunded?

79. If I could deliver you a guaranteed amount of money for a specified event at an unknown time in the future, would you be interested?

80. We do not have a choice about good luck or bad luck, do we? It just happens!

81. Your insurance should compensate for an event, not encourage it's occurrence

82. If life cover was FREE, how much would you want to take?

83. If you became long term sick or permanently disabled, which would you sooner lose, your house or your mortgage?

84. If you knew you were going to die tomorrow, how much insurance would you demand of me?

85. You do not buy insurance because some one may die; you buy it because families and people keep on living, do not you?

86. If you do not protect your income, how will you be able to pay for or afford your other insurances?

87. Even if a couple become divorced or separated, the ex-partner will not see another maintenance payment should the income earner die. How will that affect your children?

88. How would your family be affected if you could not work for 2 years?

89. Which is more important to your wife? The size of your overdraft whilst you're alive and well or getting rid of the overdraft when you are not here or are unwell?

90. Are you leaving your family an asset or the asset and a liability?

91. What is your gross estate value? What is your net estate value?

92. Are you aware that your children stand to lose two parents if your partner is forced to go back to work after the death of a spouse?

93. How big a reduction in your income could you absorb / sustain if you became disabled?

94. If you were totally disabled yesterday how much would you need to clear your debt?

95. If you were totally disabled yesterday how much capital would you need to produce the income you have now?

96. Modern medicine is saving lives, but it is converting death to disability: long-term economic death. As important as you are, do you know anyone who will pay you an income for the rest of your life should you become disabled?

97. This plan will pay 75% of your salary when no one else will

98. Your family's outcome relies on your income

99. Earned Income is an extremely delicate and easily destructible asset subject to three hazards; death, early retirement and long term disability. It can be compared with a 3-legged stool; if one leg gives way, the whole stool topples over.

100. Saving your life should not mean losing your savings

101. Income Protection benefits are Dollars of Dignity. They mean not having to beg, diminishing reliance on charity, not having to borrow (if you still can), sending your spouse or partner out to work, asset sell off, capital erosion or life style down grading.

102. Doctor, have you ever heard of a physician being pensioned by his patients when he was laid up from accident or sickness?

103. (I can not afford it.) If your salary was cut $ by 10 per week would you quit your job?

104. (See me later). Before we plan a later date Mr. Prospect, would not it be eminently sensible to see if you qualify first?

105. Of course you are right, you do realize that life insurance can provide capital to earn income from after you have passed away. But what if you are seriously injured and do not die?

106. Naturally your superannuation will provide you with an income when you retire. But what if you have to retire early?

107. Comparing the number of doctors to the number of undertakers in the phone book, will give you an indication of the number of unwell people requiring attention compared to the lesser number of deaths requiring attention.

108. You are aware that the biggest gamble your partner and family can ever take is on you. Why not minimize the risk with an income protection plan?

109. Would your bank manager pay off your mortgage if you had a heart attack?

110. If a sole proprietor tells you his business will run itself while he is off, then ask him why he is not at the beach or on the golf course every day instead of enjoying himself

111. Life insurance pays when you die. But what happens if you are only 1/2 dead?

112. Can you guarantee immortality?

113. Did you know that insurance can now be paid on diagnosis of specific diseases and insurable conditions?

114. Do you want your family to have to sell their house if you became disabled or long term ill?

115. What happens if your money machine breaks down?

116. People are money machines. They produce income called money. When the machine breaks down is destroyed or fails to operate the income stops.

117. Did you know there are two ways to make money? People at work and money at work. Money at work is a whole lot easier is not it?

118. You have an accountant and a solicitor, but do you have anyone whose responsibility it is to deliver money in the event of a death, disability or long-term injury or sickness?

119. If you were not here what percentage of your children's higher education would you like them to have?

120. What would happen to your estate if you had died last night?

121. Who would you like to serve as guardian and trustee for your children if you and your spouse died?

122. If the entire family dies in a disaster, to whom do your want you estate to pass?

123. "Whatever the dollar's future value, the man who has one will be better off than the man who does not."

124. "You say you have trouble living within your income – consider living without your income."

125. Ask upfront "What has been the major problem you have had with my industry in the past that I would need to be aware of as we build a relationship together?"

Thinking of Starting Up Your Own Bank Or Financial Institution?

Bank Ownership Offshore

Offshore bank ownership solutions include a New Zealand Finance Company, an EU Registered Trust Company, a Panama registered Forex Brokerage, or a Closed End Fund registered in the British Virgin Islands.

Each of these bank ownership solutions can be set up in tax advantaged manner in tax advantaged jurisdictions.

It is possible to set up a tax advantaged banking solution and to be able to offer traditional banking services including the provision of checking and savings accounts, certificates of deposit, trust account services, wire transfer services, credit and debit card services, and trust account services.

The rules and regulations vary front one jurisdiction to another. However, it is perfectly legal to set up an offshore banking solution in any of several jurisdictions world wide, taking advantage of the laws of that country. In general, it is possible to find jurisdictions when one does not to provide the capital reserves required of a traditional bank in the same country.

Not All Offshore Banking Solutions Are the Same

If you are considering banking offshore talk to an offshore expert because not all offshore banking solutions are the same.

The world is full of decent offshore banking solutions and there are a handful of exceptional offshore banking solutions. Why not go with the best and most professional choices?

You should work out the best offshore banking solution in your choice of jurisdictions. Offshore shore banking in tax advantaged jurisdictions can save you money. Offshore banking can be very discrete in an increasingly intrusive world. Offshore banking can be safe and profitable.

An offshore banking solution should save you money, guard your privacy, and protect your assets.

Offshore Banking Solutions: Closed End Funds

One of the many offshore banking / financial institution options is to start and run you own closed end hedge fund. An offshore expert can help you explore the opportunities involved in such an investment and its relevance to your personal needs.

An offshore closed end fund option is in the British Virgin Islands. Such a fund invests pooled assets, charges management fees, and, typically, receives performance fees on profits.

The British Virgin Islands are a tax advantaged jurisdiction for such an institution. Reporting requirements and the attendant overhead are minimal in the British Virgin Islands helping to hold costs down.

Such a fund can engage in investments and trading world wide without excessive reporting requirements to local institutions. This is a tax advantaged location. You can seek advice about the pros and cons of starting a British Virgin Islands registered closed end fund. It is also possible to obtain the technical support required to successfully run a closed end fund in the British Virgin Islands.

A closed end fund can be a very successful undertaking if properly set up and managed in a tax advantaged, low overhead location.

Offshore Banking Solutions: Forex Brokerage

An attractive offshore banking / finance option is to set up a Forex brokerage in the country of Panama. This is a tax advantaged jurisdiction with minimal overhead from reporting requirements in its jurisdiction.

There is a several opportunities offered by setting up a Forex brokerage in the Republic of Panama. If property set up and managed a Forex brokerage in Panama can be a profitable undertaking in a tax advantaged jurisdiction with a low overhead as relates to reporting requirements in Panama.

Panama has an advanced telecommunications infrastructure sufficient to support active trading as done by the brokerage houses and individual traders working out of Panama. The expertise and infrastructure knowledge needed for a successful Forex brokerage business is something the investor will need to bring to the table. You can be provided the advice and council to successfully register and set up business in this offshore location.

You should seek advice about the pros and cons of incorporating in Panama as an offshore corporation. This is a tax advantaged location and if property set up and managed can offer a substantial overhead reduction as relates to local reporting requirements.

Offshore Banking Solutions: Trust Company

An attractive offshore banking / finance solution is a trust company registered in the European Union. You should ask about the advantages of registering the company in the EU while accounts are held and administered in a tax advantaged offshore location. This is traditionally a service of large banks but can be provided from a tax advantaged offshore jurisdiction as an offshore banking solution available to investors.

If properly set up and managed, such a trust company can act as a legal trustee for clients throughout the world. Such a company can be set up with the capability to wire monies worldwide and can offer debit cards for account holders. Talk to an offshore advisor about the opportunities offered by acting as a trustee to a world wide client base using an EU and other offshore solution.

As with all offshore solutions, seek competent, trustworthy council in setting up the business entity. Talk about your goals and business risk tolerance. You will get help to evaluate and set up this or any other offshore banking solution in tax advantage locations with low reporting overhead.

Who Sets Up Offshore Banks and Why?

Banks set up offshore banks as do corporations, groups of companies, and groups of investors. The formation of an offshore can be extremely tax advantaged for the investment, corporate, or banking group. In the right location the cost of business can be significantly less than in the countries of origin of the bank shareholders.

Setting up a bank allows the entities mentioned above to profit from their own banking needs and profit from selling banking services to others. The tax advantages of offshore locations as well as well packaged services such as trust accounts, international credit and debit cards, savings and checking accounts, loan services if well merchandized can attract business and provide a profit over and above the savings that the offshore bank can provide its shareholders.

Seek advise about use of an offshore bank for your business and ownership of your own offshore bank alone or with partners. Talk to an offshore advisor about locations and options in creating your own offshore banking ownership solution.

As with all business ventures good planning, competent council and careful follow through will lead to the best results.

Why a New Zealand Finance Company?

The country of New Zealand allows one to set up a credit union, building society, or finance company as well as a registered bank in its jurisdiction. Why would one choose to form a New Zealand Finance Company ?.

Each situation is unique, each jurisdiction, each individual. You will get help with an appraisal of the needs of the investor and the opportunities in the jurisdiction. An opportunity that presents itself in New Zealand is that a New Zealand Finance Company can be set up and managed without the substantial reserves required of a standard bank. Also, such an entity can be set up to reduce paperwork by not requiring the supervision of the New Zealand Federal Reserve Bank.

Despite the ease of operation of this opportunity and potential for a low cost of entry such an entity can offer a full range of banking services to offshore customers, including checking and savings accounts, credit card services, and investment marketing.

In general, the ease of operation and freedom from red tape involved in a New Zealand Finance Company comes with offering services only off clients offshore from New Zealand.

A New Zealand Finance Company might be what you are looking for. A refreshing and low cost alternative to a fully licensed bank.

Safe Keeping Receipt (SKR) – Collateral For Alternative Financing

Safe Keeping Receipt's, or SKR's, are bank instruments that are on the rise as collateral for alternative financing. A SKR is a financial instrument that is issued by a safe keeping facility, bank or storage house. In storage, assets or other valuables are in a safe, secured and protected area. The issuer of the SKR takes the responsibility of being the legally responsible custodian. Check with your institution or safe keeping storage facility as some require fees for these services.

Examples of asset skr's that can be monetized:

• Fur SKR
• Collectible Art SKR
• Gold SKR
• Above Ground Assets SKR
• Commercial Property SKR
• Antiques SKR
• Valuable Documents SKR
• Precious Metals or Gems SKR

The issuer of the SKR is not the legal owner and therefore, must return the asset to the owner upon request. Who can obtain an SKR? Individuals, corporations, companies, organizations and trusts to name a few. The owner of an SKR may monetize this instrument much like an SBLC, LC, Bond or BG and use these funds as an alternative funding source for projects. Most issued SKR are capable of SWIFT transfers however, some may require an additional MT 760 simultaneous to the transfer of funds in the transaction.

Monetizing and SKR is the process of converting the financial instrument into a legal tender transaction. Depending upon the monetizing bank, certain additional conditions may apply. For instance, is the asset free and clear, meaning; is the title free and clear listed on the SKR? Aside from the validity of the SKR, free title is the single most important aspect of monetizing. The next important aspect is the capability of a SWIFT MT 760. Once monetized usually for a term of 1 year and 1 day unless otherwise agreed upon, the safe keeping receipt is then completed to the originating issuer.

With these very crucial points in place, monetizing your safe keeping receipt can be a safe transaction because in most circumstances, you do not move your asset or give up control. Any fees associated with monetizing your SKR should be paid out of proceeds and not upfront. For many reasons, you should never make arrangement to SWIFT or transfer your SKR to any one or company without first having a contract in place or knowing the company you are dealing with. Monetizing your SKR can be a solution to alternative conventional financing.

SunTrust Bank Ratings – The Pros and Cons of SunTrust Bank

"SunTrust Bank Ratings" are few and far between because it's small size keeps it off the national radar. It's located in 12 states in the southeastern part of the US, and has 1700 roughly branches.

So how do they stack up with their competition? Here is a thorough and UNBIASED look at this company.


# 1) Friendly service

It's relatively tiny size gives it more of a "small town" feel to it. You can expect some good southern hospitality from most branches.

The vast majority of people who've dealt with them affirm that they've been treated very well. Obviously this depends on the branch you go to, but by and large their customer service is quite a bit above average.

# 2) Mortgage and loan Interest rates

Suntrust has extremely reasonable rates when compared with their competitors-especially for current customers.

# 3) Many locations

If you live down south, you will not have trouble getting to your branch … they are very well represented.

# 4) Low cost

The fees for all their services are quite reasonable-they will not "nickel and dime" you to death ,.

But these "SunTrust Bank Ratings" would not be complete with just the positives. On the flip side here are the …


# 1) Low checking and savings interest rates

While they do have low mortgage and loan interest rates, unfortunately this also carries over to their checking and savings accounts.

# 2) Low quality tracking system

They tend to have an inordinate amount of problems making simple transactions because of their poor tracking system.

# 3) Complicated phone system

It can take ages to get you to the right person if you call them up. I'd strongly recommend you restrict yourself to "face to face" contact when dealing with this them.

Book Summary: Way of the Turtle – Ordinary People Into Legendary Traders – By Curtis Faith

Trading is an interesting art form. Most of the theories in this book have to do with psychology of winning and losing. Research has shown that people are more emotional about losing money than they are about winning money. The negative effect of losing is almost 3 times stronger than winning. Professional traders know this and make big money because of it.

Why is this important to me?

I understand that you are going to invest the next 7 minutes reviewing this book summary so it needs to be actionable. With that said, this is important because people are looking for ways to make money in the markets. Financial planners have made a killing over the last 25 years; unfortunately most of their clients have not. This is a paradox that has people worried about their retirements. When you enter a 401K, it is touted as simply put money in and forget it. The problem here as people know, most 401K's are really bad investments. People put in money for years and the account seems to not have moved or worse is less than what you put in. Market pundits will tell you to simply think long term and keep putting money in. There are so many problems with this logic but I will not go into it now.

Financial education needs to be acquired by each person. I am accountable for my financial future and so are you.

Curtis Faith was an original turtle and at 19 years old made $ 31.5 million in profits. Let's examine what, why and how around the turtles.

1. What is the "way of the turtle?" This is a trading system based on principles that beat the market handedly over a long period of time. This book examines the system and shows you how they did and why some turtles were more successful than others.

2. Why is this important? We looked at this in the last section but based on my own quest for financial education, I wanted to study the most successful traders and understand the psychology around it.

How does it work? The how is the bulk of the book. I will examine the psychological side of why some turtles did better than others. There is a ton of math in these trading systems that I will let you dig into on your own.

1. Rules to live by: Trade with an edge, manage risk, be consistent, and keep it simple. The entire Turtle training, and indeed the basis for all successful trading, can be summed up in these four core principles.

2. Trading with an edge – Are you familiar with black jack? This is the only casino game that can be beaten without cheating. This is so because the game has a memory. Card counting and playing in teams is a way to create an edge so the odds swing in your favor. The same is needed in trading. The turtles were trend traders and understood how to create an edge to make money.

3. Manage Risk: In trading terms there is price risk and liquidity risk. Price risk is fairly straight forward, if you are betting the price goes up over time then your risk is that it either does not move or goes down. Liquidity risk consists of the number of people who will take your trade. The Forex trades $ 4 trillion per day. This morphs all other trading platforms in the world combined. The New York Stock exchange trades $ 32 billion per day to give you an idea.

4. Be Consistent – This is where Curtis beat all other Turtles. He simply stuck to the system through thick and thin. Being consistent is the way to trades heaven but actually doing it is another story. There is a concept in trading called a draw down that happens to all traders. This means you can make 100% returns in six months and then have a drawdown of 20% of your profits in one day. When this happens, then consistency goes out the window. The herd effect takes over and people run for the hills at the same time. The mental side of trading is by far the biggest asset or liability when executing any system.

Curtis summarizes the whole mechanical trading system in the book. He covers Markets, Position Sizing, Entries, Stops, Exits and Tactics. This is great information to know especially if you are thinking about investing money. I personally just got involved with a professional trading group and only will allocate 3% of my investment capital. I realize that if I need heart surgery, I will not pick up a book and do it myself. There are true pros out there and I do not want to be eaten. In the book, Curtis and the rest of the turtles were trained for only two weeks but they were mentored by professionals.

I hope you have found this short summary useful. The key to any new idea is to work it into your daily routine until it becomes habit. Habits form in as little as 21 days. One thing you can take away from this book is get financially educated. Understanding trading is a key component to financial education. This does not mean you have to do it but understanding it is important.

Top 1% of THREE MLM Companies! The Daniel K. Song Interview

Advancing to the top 1% of any MLM opportunity is quite a challenge, choosing to start all over with a new company and doing it again is absolutely astounding.

After taking a break from Network Marketing for almost a year … What Daniel K. Song plans to do next may be his toughest challenge; not only does he plan to do it again with a new, rather large company, he is going to do while working a full-time job! Post why? To prove to you that it CAN be done.

It is said that in order to have success in network marketing you need to truly master one skill. Whether it is presenting, closing, encouragement, or (for the internet world) copywriting, SEO or social networking, it's incredibly important to identify your talent and "run" with it.

Daniel K. Song has mastered the incredibly lucrative art of Team-Building: The branding of a culture and system of duplicating distributors that completely trust his leadership. He is an example of the power traditional network marketing methods have on those that can obtain this skill.

During this incredibly hectic time, I had a chance to meet up with him and I want to invite you to take a look at our conversation in hopes that you may gain some value from a true MLM guru.

* Disclaimer: does not encourage "opportunity jumping," however the story of Daniel K. Song is a testimony to the power of the network marketing opportunity and reiterates our belief that people choose leaders before choosing a company. In other words, we believe that in the beginning, people are buying YOU; not your products nor compensation plan.

sK: I'm just going to start with the basics … how long have you been involved in Network Marketing?

Daniel: I've been a part of the Network Marketing Industry now for almost 7 years. The majority of which has been full time … I started back in May of 2003 as I was preparing to graduate from Art Center College of Design in Pasadena. I've been part of The Health and Wellness Industry for all of the 7 years I've marketed. It was not until this past year that I decided to take on two separate career paths; one as a designer & marketing manager, and the other as a network marketer (again).

sK: So what's your age at the moment … you still seem like a kid to me.

Daniel: I'm 29, look 20, and probably act more like I'm 12 … I enjoy being a "kid," life was much more enjoyable when you were a kid. I envy the innocence, simplicity and pureness of a child's actions, choices, and thoughts … although getting carded for 'R' rated movies at almost 30 is a bit annoying.

sK: I hear you brotha, I'm 31 and I get carded everywhere too! I'm guessing it's an Asian thing. Prior to more serious matters … anyone that knows you, knows that you love cars … how many different cars have you owned?

Daniel: Umm … to date? I've owned (9) cars in the past (8) years … I started in network marketing with a Honda Civic that I bought in high school. The first car I bought "through" network marketing was a 1993 Acura NSX (which was my dream car growing up as a kid) … That NSX was then followed up with a: 2002 BMW 325i, 2004 Infiniti G35 coupe, 2005 Lotus Elise, 1997 Acura NSX-T, 2008 Honda Element SC, 2008 Lexus GS350, 2004 Honda s2000, and now a 2010 BMW 335i … I think that's it … I really enjoy cars.

sK: … uhh yea you think?

Daniel: I mean, considering that I do not have any other real vices (like drinking, smoking, or partying) this is my only real vice. I just hope my future wife-to-be can still love me for it.

Vice: Daniel's custom Acura NSX – His "dream" car prior to network marketing.
sK: As long as she's driving what she wants … you'll be ok. Where are you currently living now?

Daniel: I currently live in the Newport, California. I used to be in Rowland Heights and Diamond Bar most of my life, but moved out to Orange County about (2) years ago because my brother wanted to be closer to work … and since I work from home, location really didn ' t matter much to me. It's definitely a nice area.

sK: Before I forget, on a serious note, I appreciate you taking some time out of your schedule to chat, with that being said … let's just get down to it … WHERE THE HECK HAVE YOU BEEN !?

Daniel: Not a problem. Sorry it's taken this long to finally sit down to have this conversation! Where have I been ?! Haha …. Let's just say I took about a year off to "reinvent myself" if you will.

sK: Reinvent? Like Madonna? What's there to reinvent?

Daniel: To understand what I did, would mean you'd have to look a little further into my background before network marketing. I've always wanted to be an artist or a designer, this was my primary passion. I mean, I even went to an Art School to pursue this passion … and YOU know that coming from an Asian-American background, most parents want you to be a doctor, lawyer, or anything "prestigious".

sK: Yea, I can understand that … at the very least an engineer right !?

Daniel: Right, so you can imagine the mental heart-attack my parents suffered when I announced that I "wanted to be an artist" and go to an art school! This would NOT make for good family dinner bragging conversations between aunts and uncles.

sK: It's all about bragging rights with them …

Daniel: Ok, fast forward 3-4 years, and I got started in network marketing RIGHT out of college … I found myself in massive (and I DO mean massive) student loan debts, and credit cards graduating.

sK: Approx. how much?

Daniel: I think my student loan balances were in the $ 145,000 range, not including credit cards. So I was presented with a CHANCE to make some money through network marketing as I prepared to graduate from college.

sK: That's a lot of debt … were you sponsored in MLM from someone that was already a leader?

Daniel: My sponsor was someone who has been very successful with his own network marketing career, and took me under his wings to mentor and teach me the "game" … and for 7 years, I did network marketing FULL-TIME; as the only means of an income source. It was GREAT, but it always weighed on my conscience that I seemed to have neglected my artist passions to pursue marketing.

24k + … not bad for a "BONUS" check! (Notice there is one behind it as well)
sK: Oh got it … you never really had a chance to reevaluate things … never "pulled over on the side of the freeway" if you will?

Daniel: Right … so after walking away from my last opportunity, I decided to take some time off to pursue a career that DID NOT involve network marketing. This was a huge gamble to walk away from the ONLY thing I knew how to do, and the ONLY thing that paid my bills.

sK: So was it a mistake?

Daniel: Nope … the gamble paid off. I landed an awesome position as a design and creatives member of Leg Avenue Inc, one of the industries largest costume and lingerie manufactures in the US! I quickly took on a lot more responsibilities helping in all facets of the design and creative process there. It felt great to finally have a productive and positive outlet for my creative needs!

sK: They should've tapped into your marketing prowess …

Daniel: That's what they did … they could not ignore my past as a marketer. They quickly started to harness my experiences to help with branding projects, and marketing resources and tools. I just got promoted as a marketing manager there.

Daniel utilizing his design and art passion behind a desk for Leg Avenue Inc. Photo: Hank Lee
sK: So you completely forgot about MLM?

Daniel: Well no … with that being said, I also always had one eye back on the industry that helped make EVERYTHING possible for me. I mean this is the industry that truly opened up doors to many more opportunities for me.

sK: So where are we at now?

Daniel: Well, after taking a few months to search for a new home / opportunity to pursue, I decided it was time to jump BACK INTO network marketing. The only difference this time is that I still have a full-time career, but also juggling network marketing.

sK: What makes you think you can do it successfully on a part-time basis? When I say "successfully" I mean success as in "Daniel Song" -type success.

Daniel: There's a lot of skepticism that without going full-time in network marketing, you can not become successful. I'm here to prove that myth wrong! I strongly believe it's about TIME MANAGEMENT, and the efficient USE of time (meaning: the quality of effort and planning) that leads to success and NOT the AMOUNT or QUANTITY of time.

sK: … keep going, this is valuable stuff …

Daniel: … some people can clock in 40-50 hours into their network marketing business and not make a dime, and there are some of us, who can just make 4-5 phone calls a week, and pull in an annual income of over 6 figures. What's the difference? EFFECTIVE USE OF YOUR TIME! I've always been a multi-tasker.

sK: I think that's important for many people to hear … I feel that so many networkers mistake movement for progress … when it's really a matter of intention and focused enery. So how long has it been, or … how long have you been inactive?

Daniel: Approximately 8 months is the time it's taken to: reevaluate, refocus, and readjust. I can not say that I'm even currently "FULL-TIME" technically based on the definition of most working class … but I can TELL you with confidence that I am BACK in network marketing! I'm not an amateur playing with his hobbies, but a professional planning his business.

sK: Got it … sounds like you're serious … you know from what I know about you, you really are a big proponent (at least in my opinion) of not "loving" Network Marketing, but appreciating its ability to deliver time and freedom in order to pursue what you really do LOVE ….. Would you say that is accurate?

Daniel: Uh yes and no … I mean I do LOVE network marketing, but I think what I "LOVE" about network marketing is really it's ability to open new doors and unlock new levels of potential which were not available to you previously . I mean it's great that you can make money through network marketing, but if that's your end-all goal, then it's quite sad and limiting. Network marketing gave me not only the financial freedom, but the TIME freedom (which is MORE important – as time is NOT replenish-able like money is). The time-freedom gave me the chance to pursue my other passions of: photography, cars, art, and travel. Network marketing for ME, has been the "Vehicle" to me to pursue MY TRUE passions without the restrictions that most jobs would give you.

sK: Now there are people that could only dream of reaching the levels that you have reached in two different companies and spend a lifetime pursuing that … how were you able to do it with (2) different companies?

Daniel: Haha … you think? The problem and answer lies right in the question itself. Most people could only "DREAM" of reaching those levels. You can not just WISH for it, or DREAM of it. You need to MAKE it, and CREATE it. You must attach a clear action plan, and strategy to the goals you want to achieve, and go do it.

sK: You really think it's that simple?

Daniel: Well, I can honestly say that I was very blessed with an awesome team, great leadership group, found the right opportunities (but more so the timing IN those opportunities), and a strong desire to SUCCEED. As cliche as it sounds, "it all starts with STRONG motivators we like to call" YOUR WHY's "… make your" WHY'S "clear and the" HOW's "become very easy. I've been able to build a large downline group in (2) separate opportunities and hit leadership ranks that pay in excess of 6 figures a year, but what people do not see is ALL of the planning, time, energy, and hard work that goes into doing it.

Daniel with yet another solid team at a company function.
sK: How important is timing to success in MLM?

Daniel: It's very important that you find NOT only a GREAT opportunity, but more importantly look at the TIMING within that opportunity. There are so many great companies, which unfortunately the timing has come and gone. Any surfer will tell you, that in order to surf, you need to catch the wave from the front, and not once it's passed, that's how building a successful business is done. So many people are sentimentally attached to their opportunity (which is not wrong – I still love my first company to death … it's like your first girlfriend, and you will always cherish those memories), but you have to still remember, we are "BUSINESS" people and "BUSINESS" decisions are sometimes best made when you can separate your emotional biases from them.

sK: Alright let's talk a little about actual skills … what would you say is the one or two key skills needed to be able to start over and build large and build a team quickly?

Daniel: Finding a "good" opportunity with "great" timing; rather than a "great" company with a "good" timing … I'm sure most of your readers will understand what I mean by that. Being able to "smell" where the next opportunity is can make you a fortune. Make the wrong choice or decisions once too many, and you lose your ability to influence or convince people of that. The second skillset that can help when starting over and building a new team is to create a solid foundation … a house built on soft sand will inevitably come crashing down, never neglect the foundations and basics. Create a solid, duplicatable, and simple system that NOT only your downlines will follow, but you will follow and just GO TO WORK!

sK: You know that solid network marketing companies do an excellent job promoting motivational paraphernalia like books, CD's, trainers / speakers etc … in your opinion, what is more important to success a solid skillset or a strong mindset?

Daniel: MINDSET !!!! If NASA can teach a monkey to go to space, we can teach you how to do network marketing. Teaching and learning skill sets is simply a choice and a process … nothing too magnificent or magical with that. Having the right mindset, or fertile soil upon which you can plant, is where the "MIRACLE" process begins.

Daniel stands behind personal development above personal skills.
sK: I highly value the importance of personal development, what are your thoughts?

Daniel: I am a BIG believer on personal development … It's changed my life! Having the right mindset will make for a great foundation to learn all your skillsets on. I've seen way too many talented network marketers (those who posses high amounts of skills and abilities) but lack the proper mindset go to the wayside … often times they fail, not because of their talents, but because of their mindsets.

sK: It's so true, even in my own downline … I've seen some of the most talented presenters and trainers … just fall apart with a weak mental frame. Daniel … you've primarily stayed in the Health and Wellness Industry …. no water filters, legal services, telecommunications, or anything else …. Why?

Daniel: HAHAHAHAhaha …. the Health and Wellness revolution is here to stay! This is not just simply a trend … The Wellness Industry is going to be forever perpetual.

sK: What do you mean by "perpetual"?

Daniel: When the baby boomers move on, we (Gen X and Y) will soon replace the adult categories, we may ignore the value of wellness products now, being fairly young, but it will soon become a priority for us as we age, whether we like it or not. Once we move on, our children will become to next adult group. There will be NO end to the demands and needs of wellness-based products. Plus how many other things do you know that you can sell, and make money from, but know that you've made someone's life truly better in the process? I do not get too turned on about saving a few cents on someone's long distance bill, but I DO get turned on about saving someone's life … but that's just me!

sK: We'll put. This is a tough one I think … but if we surveyed each and every one of your personally sponsored downline past and present, what would they say is your greatest strength and what would they say is your greatest weakness?

Daniel: Wow. That would be scary. Not sure exactly what THEY WOULD say … I really do not know. I mean if I had to take a guess, I'd assume they'd think my ability to multitask and organize is one of my major strengths. I've been told that I can get a lot done in such a short amount of time. People have often asked, if I've successfully cloned myself! I really think that time management goes hand in hand with the ability to multitask and organize. I was told by a mentor that I could increase my productivity and results just by simply being more organized.

sK: … and a weakness?

Daniel: As for a weakness, I am very picky and a perfectionist. It drives me nuts when things are not done to a 110% and done perfectly. These high standards keep me and my teams performing at the best of our abilities but it also sets me up for countless hours of stress and anxiety.

sK: We talked about this privately and earlier you gave me a great analogy of comparing it to breaking up with a first love, could you share that with us …. what it's like (for whatever reason) when you decide to leave your first MLM company, especially after so much success with it?

Daniel: Whew … for a second i thought you wanted me to comment on my breakup with my first girlfriend!

sK: No, that's another time … most likely another blog.

Daniel: Haha … well when we join our first MLM company, we tend to get very emotionally invested into the company. Everything is brand new and exciting for us. It's the first time writing new goals, the first time inviting, the first time building a team, etc. Because of all these "FIRST" time experiences, we develop a strong attachment to these memories. These attachments tend to be more based on emotions rather than logical or rational thoughts. When you're young and in your first relationship, it can be sometimes dangerous. You may choose to ignore signs of danger or issues because you want to believe you are truly in love. They say love makes you blind and I believe it's sometimes that emotional attachment that sometimes compromises our logical or rational judgment.

sK: … so you think it's wrong to be emotionally attached to your first company? Is not that a part of commitment?

Daniel: No, there's NOTHING wrong with having a sentimental value for your company, but it does become an issue when it prevents you from making good business decisions. I'm sure it'd be a no-brainer, but most people would not want to see a CEO of a major company make huge decisions for the company when they are emotionally compromised or have a biased interest in something. The first "breakup" is always going to be the hardest for MOST! I know it was for me. I thought my world was going to be doomed when I first broke up with my "girlfriend". Sooner or later, life will show you that there is more out there. In the same way, you should never blindly turn away an opportunity or overlook it simply because of an emotional or sentimental attachment to something they believe to be true love. Separate the emotional attachment, and look at it as simply a business proposal.

sK: Tell me more about how it was when leaving your first opportunity?

Daniel: When I left my first company, and a large downline organization (after building it for nearly 4 years), it was a very painful and scary process. It felt like stepping out into the dark or into the unknown. After taking a lot of time to research, and study my second company, it was a slow but confident transition into the new company. Sure enough, I do not regret my decision, and as a business move, it was a complete success. Like relationships, after each breakup, you become that much more wise and experienced. You learn what you liked about your significant other, and what you disliked. That information will SERVE YOU WELL when looking for a new girlfriend.

sK: I'm a proponent of analogies … continue!

Daniel: … you already come prepared for what to expect. The same applies for network marketing. I made a ton of mistakes in my first company but I took all the knowledge, experience, and wisdom gained from my first company, and applied it to the second venture. I made sure to steer clear of any of my former mistakes, and improve on the old, it's a refinement process.

Is Daniel ready to take center-stage again?
sK: I feel like that is such a big decision …. what do you personally look for when selecting a primary opportunity?

Daniel: There's really a lot that I consider when searching for an opportunity. There really is not a formal science behind the process either.

sK: Ok, give me like a 5-6 aspects you consider in a new company.

Daniel: First off, you check for the simple but important basics: 1) is the company legitimate 2) do they have a strong mission statement or vision 3) do they have a marketable and credible product 4) the corporate team and background 5) how is the timing of this company 6) the compensation plan.

sK: Simple enough …

Daniel: These are just some of the check lists I go through when looking for a company. I do a lot of outside research on the companies I am prospecting. Generally speaking, I always choose from a product-based company versus a service based company, and more specifically always in the health and wellness industry.

sK: What about product line?

Daniel: I also now prefer a more condensed and focal product line. Coming from a company that once had 50+ products and a large catalog / price sheet, I realized it would nearly paralyze some of my downlines from ever learning the product line. A condensed or focal product line allows all the members to quickly learn the products but at the same time, get a much more concentrated efforts to market and expose a product. Some of the largest and fastest growing network marketing companies in recent times have been with companies who choose a condensed or focal product line.

sK: I actually disagree somewhat, I feel there are pros and cons of having a larger product line … but you make some valid points … what about the compensation plan?

Daniel: I look for a comp plan that is lucrative, but also fair. I tend to always believe that the BINARY plan is the easiest of the basic types of comp. plans to build. The basic logic is: if you can not build 2 legs, there's no way you can build 3 or 4. Then I really look into the timing and growth cycle of the company. Is this product or company saturated and over exposed? Is this company a startup? Most startups have a higher risk of failure, but a company that's too old may not have any opportunity left in it. That's why it's so important to find a company that has a good balance of stability and newness.

sK: … well since we're on the subject … word on the social networking 'street' is that you're officially "back" in the game. I heard that you just filled out an application for a new opportunity. Talk about a lucky sponsor (whew)! Without getting into the obvious question … what are you most excited about and what is one aspect of this business that you will never be completely comfortable with?

Daniel: Hahaha … I guess word gets out fast. Two weeks ago I began posting very vague Facebook status updates about me looking for opportunities in network marketing. Then a post about "myself" inviting me to a meeting, needless to say, that triggered a ton of post comments, inbox messages, emails, texts, and phone calls.

sK: What were they saying or asking?

Daniel: … people offering deals, incentives, or just pitching me on why I should take a look at their company. Anyways, so yes, after an intensive search process, I can proudly say that I've found a new home to build with. Ironically I also received the blessings of some of the TOP earners in my previous company who would only praise the company I chose … and yes, my sponsor is quite lucky. There's nothing they could say or do to "sell" me on a company. The only thing they can do is present to me the information that I requested. It is up to me to be "sold" or not.

sK: So then you signed?

Daniel: I signed up, and started the process of building a team one more time. The difference now being that I am doing this part time (which I answered earlier) .It's also going to prove to so many that you can STILL build a financially rewarding business just from a part-time commitment, as long as you are serious!

sK: How excited are you?

Daniel: I'm just most excited about getting back in the trenches, and building something BIG again. It's exciting to see the excitement that's being generated by just me coming back. I truly have to admit I am the luckiest guy in the world. I have so many supportive, and loyal downlines, that I can not even express with words. Their encouragement and support is probably the biggest reason why I still come back for more. I'm excited to see what we can do with this new vehicle of choice, as I think it's truly the greatest opportunity the industry has seen to date. The growth of this company is second to none.

sK: What about the second part of my question, what part of MLM will you never completely be comfortable with?

Daniel: The one thing I'll never be completely comfortable with is knowing that not ALL my downlines will always be with me. I always miss my old team members and the ones who have no longer chosen to pursue network marketing. I miss the people from the old companies who chose to stay or were just on the sidelines.

sK: Do you ever consider going back to one of the companies that you had done before?

Daniel: Who knows it COULD happen, but honestly, I think it's doubtful. I did not leave on a irrational or emotional decision. It was a long process in the making. Plus I left partially because I feel strongly that the "opportunity" that once was there was no longer there. It has NO reflection on the quality of the company or its products.

The Numbers: A Candid Look Into Daniel's Blueprint Of Immediate Advancement In His New Opportunity. When Is The Last Time You Were This Detailed In Achieving Your Goal?
sK: As of today, (during this interview) … it's been about a week since you officially started …. how confident are you in getting back to an elite status in this new venture?

Daniel: Umm … my current genealogy shows approximately 800+ downline currently in the system, most of which has been "power-legged" to give maximum support and incentives for my team members. I'm just beginning to build my other leg now and my iPhone has been dying on me mid-day everyday for the last week.

sK: Pshh … 800 new downline in about a week? That's alright I guess … (insane sarcasm obviously).

Daniel: I think we're off to a great start! Where I'll ultimately end up in this company, I do not know. I can tell you that it'll be exciting either way!

If history and track record prove true, Daniel will be back on top in this newest of ventures.
sK: How about I check back with you later on this year? Daniel, I know it's been incredibly busy for you these past few days, and I'm certain you have not gotten much sleep. I appreciate you sharing with me and my readers some incredible insight, value and knowledge …. Best of luck friend on this next chapter.

Daniel: Sure thing Soomin! Let's not be strangers!

Thanks for sharing,

Soomin Kim

Bureaucracy – The Demon Controlling Our Lives

What is bureaucracy?

Bureaucracy is the administration of a set of rules that are used to run an organization or a government. The more rules that are created, the more people are needed to administer them, and the more complex the organization becomes. The administrators who create the rules are themselves part of the bureaucracy. In the case of government, the rules created are called laws. As a result of the proliferation of all sorts of requirements and laws in today's society, life is becoming increasingly complex. Here are just some of the ways that bureaucracy affects us in everyday life.

Bureaucracy makes it hard to get a job .

These days to qualify for certain jobs one needs degrees, certifications, licenses, good references. Your background, credit history, medical records will be investigated. Even janitorial jobs require resumes. Besides all these requirements, many large companies are looking for someone who knows "everything" in his or her field in addition to being a "self-starter with excellent communications skills." Most human resource departments do not realize that the world is full of people and not "gods." The successful candidate usually turns out to be a "friend" of a company bureaucrat or someone who is highly skillful at lying.

Bureaucracy makes it harder to do your job .

You may have been hired to do one thing, but in a bureaucratic system, "corporate" finds a lot of extra things to do to provide you with the additional skills or motivation they believe you need. There are those morning meetings, where everyone must get up and cheer the praises of the company and listen to endless discussions about the "bottom line." Then there are the dozens of daily emails from "corporate" that require your immediate attention.

Everyone is being constantly rated, teachers are rated by students, sales associates are rated by customers, products like movies, books and articles are rated by the "stars" they receive from the public. It's quite easy to get bad ratings if you're a teacher who does not entertain the students enough, or if you're a salesperson who's too technical for a customer, or if you're a writer, writing about an unpopular subject.

Performance ratings also come from your supervisors. You get bad ratings when you fail to meet assigned quotas or other company requirements. These ratings can affect your salary and even be an excuse for your dismissal.

Bureaucracy makes life more complicated.

In the sixties, it took less than a half hour to purchase a car and drive off, now it takes close to a workday needed to fill out the paperwork before you can take possession of your auto. In the sixties you were able to afford to pay cash, now most cars are bought on credit. The credit checks and added government regulations make the purchase a much more complex procedure. It is also is more complicated and costly to own a car. There are all the licensing fees, the insurance, the air quality tests. Any small driving mistake can cause a monetary loss as well as endless frustration. Soon there will be technology in place to issue citations automatically for every possible driving mistake you can make.

Tax forms are so complicated that many people have to hire a third party to fill them out. They were designed to make sure that the rich could find adequate loopholes to legally exempt themselves from paying, while the working class got saddled with the brunt of the tax burden.

When I first bought my property in 1986, the stack of mortgage papers was less than a half inch thick. When I recently applied for a homeowners loan for a small fraction of the property's equity, the paperwork was nearly two inches thick. If this is any indicator, bureaucracy has grown four times within the last twenty years.

Bureaucracy requires too many laws.

The more laws a country has, the more likely an ordinary citizen is to violate one. Some laws are designed to collect fines from violators to help maintain the inflated salaries of city or state officials. In an effort to make authorities do the thinking for us, many laws like seat belt, smoking, and gun control laws are passed for our supposed welfare.

There are some laws in the United States that threaten the welfare and freedom of all its citizens.

New "eminent domain" laws make it easier for corporations get your property for their pet projects.

Drug laws allow the government to seize one's property if illegal drugs were used there, even if the owner did not know about it.

Worst of all, the "Patriot Act" can label anyone as a "terrorist" and detain that person indefinitely without due process of the law.

Bureaucracy wastes time and resources.

Since forms are the lifeblood of bureaucracy, it wastes the massive amount of trees needed to produce the paper the forms are printed on. With the advent of the Internet, the "soul" of all bureaucratic systems, is its endless swarm of email decorating the PCs of everyone in the corporate and government offices. The added electricity to run the mail servers and the terabytes of data they transport requires some form of fuel that places a burden on our environment.

Tons of jet fuel is needed to transport bureaucrats from city to city or, even country to country as they travel to their important meetings or golf games.

Bureaucracy ruins our health.

The frustration in the everyday dealings with bureaucrats has spawned many diseases from heart attacks to assorted cancers. To "cure" us, "Big Pharma" bureaucrats use the media to push a variety of prescription drugs. Every other television commercial in the US keeps telling you to "ask your doctor" about the benefits of a this pill or that pill. Doctors, who make profits from prescribing certain drugs, tend to over medicate the population. In reality, the Pharmaceutical Corporations are really drug lords and the doctors their dealers.

Along with physical illness, there is also psychological addiction to substances like alcohol, cigarettes, and drugs. Many of us have a hard time overcoming such addictions simply because they are crutches that help us face our daily encounters with the demon of bureaucracy.

Bureaucracy in the form of "political correctness " limits our freedom of speech.

The media now attempts to control every aspect of our lives. They tell us what to wear, what to eat, how to act, and what to say. Even though they claim that there is freedom of speech, if you say the wrong thing you could lose your job and your credibility. It does not matter if what you say makes more sense, if it is not "politically correct," you are subject to ridicule, loss of job, or a ruined reputation.

Many people have been fired for expressing themselves "inappropriately" with blogs and videos on the Internet. Google, Yahoo, and MSN have been blocking "inappropriate" web pages in countries like China. We can look forward to the day that countries like the US, Canada, and the UK will also censor "politically questionable" content.


The Demon of Bureaucracy reigns throughout our civilized world. It is the manifestation of "corporate-aliens" trying to control our planet. Bureaucracy pulls the strings and we dance to the whims of our "corporate masters." We are so deeply entrenched in our bureaucratic systems that it becomes exceedingly hard to combat the demon. In a subsequent article, I will try to come up with some ideas to help exorcise this demon from our lives.