Tuesday, May 31, 2016

Meet My Brazilian Friends: Roads I Have Traveled ... Transition Journal

Founder, Project C.U.R.E.
Author, The Happiest Man in the World: Life Lessons from a Cultural Economist


Dr. Heraldo Neves:
One day, quite separate and apart from Lorena’s family activities, I visited a little doctor in an area just outside Rio de Janeiro called Mesquite. I had met the fellow earlier and he had invited me to come and see what he was doing to help the people in a populated area of about 300,000. Previously, there had not been any health-care facility in the whole area, but Dr. Heraldo Neves and his friends had purchased an old house and had converted it into a very humble clinic.

When I arrived, I was startled at what I saw. There were hordes of people gathered in the hot sun crowding their way toward the front door of the old house. Mothers were holding crying babies, and old ladies were waiting their turn to get in by resting up against the building, where they could find a splinter of shade. Many people had been there since early morning waiting to see the doctor. He was their only hope for medical attention for their babies and for themselves.

Dr. Neves would try to persuade his other doctor and nurse friends in Rio to volunteer and come out to his clinic and help him meet the overwhelming need. As I approached the front porch area of the old house, I saw an ancient dental chair and drilling apparatus that was run by foot pedals and frazzled cables. That was Dr. Neves’s dental clinic. 


As I entered the door, I looked to the right at a room that had once been the front bedroom. It was now painted a light blue color and had a poster of a baby pinned to the wall. On a rickety old table there was an old rusty set of baby scales. That was Dr. Neves’s pediatrics ward. What had once been a kitchen was now the emergency room that consisted of a canvas cot, an empty canister of oxygen, and a small metal cabinet with a glass front. I could see that re-rolled, grayish bandages were stacked inside the cabinet. That was it. That was Dr. Neves’s health clinic.

“I don’t get it, Dr. Neves,” I said. “What is your problem here? You have all these people outside in lines that seem to stretch for a city block. They have come here thinking that you can help them, but when I come inside I can see that you have literally nothing in here to help them. Please tell me in your own words, what is your problem? Don’t you have anyone who comes here and comes along side of you and helps you? Doesn’t your government help you?”

Dr. Neves was a short man with a high energy level and dark penetrating eyes. He looked straight at me and said, “Meester Jackson, you are the economista, you should know that we are experiencing inflation that is running over three thousand percent. I have no money, but even if I did I could not buy anything from the US or Great Britain or Japan. We are not allowed to buy anything outside Brazil, since our cruseiros currency would then flow out of our country and into the other country, causing more hyperinflation for us. And the government infrastructure here is not strong enough to help us. So, we are doing the best we can with what we have.”

“Dr. Neves,” I confessed, “I do not know what I am talking about when I say this to you. But, I think I could go back to where I live in Colorado and get some medical supplies donated to help you.” Then I quickly added, “But if I were able to send some things to your clinic, you would have to guarantee to me that the goods would not get into the black market. I have been here in Brazil now long enough to know that I want to be part of the solution and not part of your problem.”

The intensity of Dr. Neves’s countenance softened and he said to me with a little smirk to his smile, “Well, Meester Jackson, you are working directly with President Sarney in Brasilia; why don’t you get the guarantees directly from him?”

Dr. Mauro Corbellini and President Sarney:

I got on the airplane and flew back to the capital. I took Lorena with me to do the translating so that there would be no misunderstanding. There I began working on a medical donation concept with the President and Dr. Mauro Corbellini, Brazil’s Minister of Health. In our meetings the Minister of Health said to me, “if you will go back to the US and obtain donated medical goods for Brazil, I will see to it that you can import the things on a tax exempt basis. And, further, I will give you a large storage space on the University Medical School campus where Lorena attends in the city of Campinas. You will have the key to the storage area and you can decide where the medical goods should go based on your assessments.”

I told the Minister of Health, “Thank you. That is all the assurance I need.” We shook hands and we parted. When I got back on the airplane, I slumped down in my seat and put my hands to my forehead and thought, Oh, my goodness, what have I just done to my life? I don’t even know where to go get a Band-Aid.
I made two trips to Brazil in 1987. Our first load of donated medical goods was shipped in August of that year, along with a $5,500 cash donation from Anna Marie and me to Dr. Neves’s clinic. My trip to Brazil in March of 1987 had certainly changed my life. Dr. Neves could not afford to pay any money for medical goods. I would have to find a way to get the items donated. Additionally, the shipping costs to deliver the donations could be a humanitarian deal-killer.

How would we develop a model that could be sustainable? Perhaps pursuing the idea of financial consulting with foreign governments like Brazil would help finance the possibility of additional gifting. There certainly appeared the possibility of creating some revenue stream from trying to develop the concepts of debt-for-equity swaps and other financial ideas that could assist the Brazilian government in their financial crisis. I would push to see if the US banks would be agreeable to pursue those kinds of ideas.

The years of 1984 through 1988 were extremely busy and a bit complicated. I was not only getting more involved in Africa and South America, but I was still speaking regularly and conducting seminars with the What’cha Gonna Do With What’cha Got? project in the US. Now I had even been asked to hold two of the financial seminars in Brazil.

It didn’t take any time at all for word to get out that we had begun to donate high-quality medical goods to Brazil. Before the end of 1987, I was also approached by contacts from Guatemala, wondering if we could include them in our donations. From those early days in Brazil the growth of Project C.U.R.E. has not slowed down. Twenty-eight years later we are shipping into over 135 countries and have well over seventeen thousand volunteers helping us just in the United States. But I will hold dear to my heart forever those early days where God directed my heart, ambitions, and efforts to help the beautiful people of Brazil.

© Dr. James W. Jackson   
Permissions granted by Winston-Crown Publishing House
  
    
Dr. James W. Jackson often describes himself as "The Happiest Man in the World." A successful businessman, award-winning author and humanitarian, Jackson is also a renowned Cultural Economist and international consultant, helping organizations and governments to apply sound economic principals to the transformation of culture so that everyone is "better off."

As the founder of Project C.U.R.E., Dr. Jackson traveled to more than one hundred fifty countries assessing healthcare facilities, meeting with government leaders and "delivering health and hope" in the form of medical supplies and equipment to the world's most needy people. Literally thousands of people are alive today as a direct result of the tireless efforts of Project C.U.R.E.'s staff, volunteers and Dr. Jackson. 

To contact Dr. Jackson, or to book him for an interview or speaking engagement: press@winstoncrown.com

Tuesday, May 24, 2016

Meet My Brazilian Friends: Roads I Have Traveled ... Transition Journal

Founder, Project C.U.R.E.
Author, The Happiest Man in the World: Life Lessons from a Cultural Economist


Lorena:

The next time I flew into Sao Paulo, Sostenez and his wife Miriam met me at the airport. They brought along with them the medical student, Lorena. She was a real winner, and for the rest of the many times I visited Brazil, Lorena translated for me. Little did I know at that time the importance and providence of that meeting at the airport in Sao Paulo.


Lorena was from a medical family. They had moved to Brazil from Chile during the repressive regime of Pinochet. Lorena’s mother, Natalia, was one of the best known gynecologists in the whole Sao Paulo area. Her sister, Natasha, was a dentist, and Paulo, Lorena’s fiancĂ©, was a doctor already well known for his outstanding work in infectious diseases. I was totally surrounded by medical people. They would invite me to go to their church with them and then would insist that I come to their home for Sunday dinner. Following dinner, I would be expected to accompany them on their hospital rounds. I got a real introduction to Brazil’s health-care system.

At times they would insist that I join them as they visited the poorest of the poor favelas, or shantytowns, to perform free medical service to the desperate dwellers. It was so dangerous in some of the favelas that the police or military would not even enter the areas. Then, the family would tell me how every October they would fly in small airplanes into the remote villages of the Amazon region and perform free clinics for the native people, who would have an opportunity to see a doctor only once a year. I began to truly admire the members of the family and all the acts of goodness in which they were involved.

I was fully engaged with my economic consulting work with President Jose Sarney and his chief economist, Antonio Bacelar on our plan that came to be known as the “Libra Proposal.” I was also becoming extremely sensitized to the urgent need in the Lesser Developed Countries for someone to go and help them with their health-care delivery systems. Even just the simplest of medical help was not available to millions of poor, but good, people.

NOTE: Lorena and her family became a strategic keystone to what would eventually become Project C.U.R.E. (Commission on Urgent Relief and Equipment), the largest handler of donated medical supplies and pieces of medical equipment in the world. Over the years Anna Marie and I totally adopted Lorena and her family. We told our sons, Douglas and Jay,that Lorena and Paulo were as close as they would ever get to having a brother and sister. Eventually, I began working directly with the two medical universities in Sao Paulo state where Lorena and Paulo were affiliated. We visited them many times and had them come to our home in Colorado. In recent years Paulo and Lorena even came to the mountains of Colorado with their teen-age sons to spend Christmas with us in our home on the creek. We also brought them from Brazil to Colorado to meet all our friends when we celebrated the launching of my book The Happiest Man in the World. 


Over the ensuing years Lorena and Paulo have become very influential medical doctors in Brazil. Lorena and her mother, Dr. Natalia, now have their own successful medical clinic. Paulo is highly decorated as a researcher and professor at the university in the areas of dermatology and infectious diseases. Little did we know what God had in store for us when Sostenez and Miriam introduced me to Lorena at the Sao Paulo airport that day in 1987.

© Dr. James W. Jackson   
Permissions granted by Winston-Crown Publishing House
  

Dr. James W. Jackson often describes himself as "The Happiest Man in the World." A successful businessman, award-winning author and humanitarian, Jackson is also a renowned Cultural Economist and international consultant, helping organizations and governments to apply sound economic principals to the transformation of culture so that everyone is "better off."

As the founder of Project C.U.R.E., Dr. Jackson traveled to more than one hundred fifty countries assessing healthcare facilities, meeting with government leaders and "delivering health and hope" in the form of medical supplies and equipment to the world's most needy people. Literally thousands of people are alive today as a direct result of the tireless efforts of Project C.U.R.E.'s staff, volunteers and Dr. Jackson. 

To contact Dr. Jackson, or to book him for an interview or speaking engagement: press@winstoncrown.com

Tuesday, May 17, 2016

Meet My Brazilizn Friends: Roads I Have Traveled. . . Transition Journal

Founder, Project C.U.R.E.
Author, The Happiest Man in the World: Life Lessons from a Cultural Economist

Sostenez Pimentel:
By 1986, I was being recognized as a knowledgeable international economic player, and people began to contact me for my help and opinions. I had thoroughly enjoyed what I had been doing in helping people in an area that was comfortable to me. But in my quiet times I would keep asking why I was being taken on a trip to strange parts of the world where I was meeting and working with people of influence and high position. It wasn’t going to be very long, however, until I discovered the next installment of revelation on the quest. Then I would know just why I had been taken on such an adventure.

When I arrived in Brazil, I was introduced to some very powerful people who had considerable influence in the capital, Brasilia. My credentials included letters of recommendation from US Senator John McCain and Senator Bill Armstrong. The Brazilian government had requested that I come to Brasilia, and our US Ambassador Shlackman, US Consul on Economic Affairs, Michael J. Delaney, and US Economic Minister to Brazil, John Bowen, would formally introduce me to Brazil’s Minister of Finance and Minister of Foreign Affairs.

I endeavored to pick up some key phrases in the Portuguese language, but there was no way that I was going to become proficient in the language in time to adequately participate in high level talks. I was fortunate enough to make some friends in the British Embassy in Brasilia, and they were more than happy to help me. If they were not available to help me, there was a fine missionary gentleman in the Brasilia area who had volunteered to help me with the translating.

Soon I met a young, ambitious man named Sostenez Pimentel. He also was an economist and had been employed by the Brazilian government. He was married to a lovely young schoolteacher, named Miriam. They wanted to get ahead financially, so they decided that Sostenez would quit his government job and become an entrepreneur. They both asked me if I would help them get involved in the import/export business. I agreed that I would help them, and in exchange they could help me with translating when I was away from Brasilia. 
The only problem with the deal was that Sostenez’s English was about as good as my Portuguese. We really had to work hard at communicating with each other. Portuguese was just enough different from Spanish to get things all mixed up, even though both languages were derived from the Latin root.

One day we had time as we were traveling across Brazil by car for me to approach the language subject with tact. “Sostenez,” I said, “when I am in business or government meetings in Brasilia I can do very well. But when I need to travel to Rio or Sao Paulo or Belo Horizonte or Goiania and I have meetings, I really need to have someone to help me who can speak better English. I mean absolutely no offence to you, but do you know of someone who might be able to help me?”

To my delight he was not offended, and quickly went on to try to make me understand that there was a very sharp medical student who knew English very well. In fact, she was coming over to Sostenez and Miriam’s house every Saturday morning and teaching them English. Sostenez agreed to ask Lorena if she would help out a crazy American in distress. I assured Sostenez that I would continue helping him get into business, even though he would no longer need to translate for me.

One of the saddest incidents that I personally encountered during all my work in Brazil was about a year later on a Sunday night when a group of young, drunk Brazilian thugs forced Sostenez off the road and tried to rob him. He resisted. They killed him and left his body crumpled by the rear wheel of his small car. I lost a dear friend and it was another wake-up call for me as to the dangers of working in developing countries where the rule of law is not well established.


© Dr. James W. Jackson   
Permissions granted by Winston-Crown Publishing House
  
Dr. James W. Jackson often describes himself as "The Happiest Man in the World." A successful businessman, award-winning author and humanitarian, Jackson is also a renowned Cultural Economist and international consultant, helping organizations and governments to apply sound economic principals to the transformation of culture so that everyone is "better off."

As the founder of Project C.U.R.E., Dr. Jackson traveled to more than one hundred fifty countries assessing healthcare facilities, meeting with government leaders and "delivering health and hope" in the form of medical supplies and equipment to the world's most needy people. Literally thousands of people are alive today as a direct result of the tireless efforts of Project C.U.R.E.'s staff, volunteers and Dr. Jackson. 

To contact Dr. Jackson, or to book him for an interview or speaking engagement: press@winstoncrown.com

Tuesday, May 10, 2016

JOURNAL HIGHLIGHTS: Roads I Have Traveled . . . Transition Journal Excerpt # 5

Founder, Project C.U.R.E.
Author, The Happiest Man in the World: Life Lessons from a Cultural Economist


Note: While recalling the experiences included in the 1986 Transition Journal and my early financial work in Brazil, I am persuaded to take a little “bird walk” and relate some of the things I learned in Brazil to what we are experiencing right now in our economic situation in the US. What are the implications of International Debt for Equity Swaps regarding the trillions of dollars of US international debt that we owe?
One of the problems we have in the U.S. stems from how we think about treasury bills and bonds. It is very convenient to play games with semantics when it comes to debt instruments. The media financial reporters tell us that “it was a very successful day in the sale of treasury bills and bonds.” That day the sales of T Bills and bonds set new records. We all cheer because it sounds like the government has been able to sell some of the fine products that they manufacture to domestic and foreign buyers and they have now successfully sold those items and have brought profitable revenues into our coffers. Wrong.

Every T-bill or bond is an I.O.U. that has to be paid back . . . with interest. We just went further into debt when we sold the bond! So what happens when the borrower cannot repay the debt? Like in any other debtor relationship, the holder of the I.O.U. must look to the collateral that backed up or guaranteed that debt instrument. In my Brazilian experience in the 1980s, when the sovereign government could not pay back the U.S. banks with money it got sticky, because the U.S. bank regulators would not allow them to take foreign assets to satisfy the delinquency. It had to be money.

So, the debt swap was initiated whereby Brazilian businessmen, who had financial statements strong enough to qualify, bought the debt instrument from the U.S. banks at a discount by signing a new note and assuming the Brazilian government’s I.O.U. position. Then the businessmen went to the Brazilian government and dictated which sovereign Brazilian assets they would take to redeem their I.O.U.s. The debt swap exchanged real sovereign Brazilian assets, like government buildings, raw land, prepaid port fees, transportation and communication rights, to satisfy the old debt.

I raise this phenomenon here for consideration because of our own country’s unfathomable debt in the amount of multiplied trillions of dollars. Our I.O.U.s are held now by entities and governments like China that have no qualms about taking U.S. sovereign assets to satisfy delinquent sovereign debts. Our U.S. Treasury admits our collateral problem in the bond market. One consideration, as a temporary cure, is issuing ultra long dated bonds (more than 30 years) to fulfill collateral needs. The repo market is broken due to massive collateral shortages. There are pressures now to explain the causes for an increase recently in the “fail-to-deliver” aspect of the U.S. government debt market.

Historically, without collateral to fund repo, there is no repo. Without repo there is no leveraged positioning in financial markets, and there is really nothing to maintain even the slightest exuberance in the stock market.

Another alternative as to what to do with questionable I.O.U.s seems to be unfolding in the case of China’s Anbang Group’s pursuit of buying Starwood Hotels and Resorts. The deal would make the Chinese group the largest hotel chain in the world with 5,500 individual properties and more than 1.1 million rooms, including the Sheraton, Westin, and Regis hotels. How could any lender resist taking U.S. government, guaranteed promissory instruments as collateral to secure the funding of such international groups purchasing United States’ icon assets? I am curious at the possibility of the American family pulling up at the entrance of Yellowstone Park and needing to pay in Chinese currency or Chinese debit card for entrance.

But these creative alternatives seem more plausible for the American constituents to accept than simply having foreign delinquent bond holders come in and possess large amounts of U.S. mineral rights, national lands, and nationally held assets that presently serve as sovereign collateral.

So much for my concerned musings sparked by my memorable days in Brazil

Next Week: Back to the Transition Journal

© Dr. James W. Jackson   
Permissions granted by Winston-Crown Publishing House
  

Dr. James W. Jackson often describes himself as "The Happiest Man in the World." A successful businessman, award-winning author and humanitarian, Jackson is also a renowned Cultural Economist and international consultant, helping organizations and governments to apply sound economic principals to the transformation of culture so that everyone is "better off."

As the founder of Project C.U.R.E., Dr. Jackson traveled to more than one hundred fifty countries assessing healthcare facilities, meeting with government leaders and "delivering health and hope" in the form of medical supplies and equipment to the world's most needy people. Literally thousands of people are alive today as a direct result of the tireless efforts of Project C.U.R.E.'s staff, volunteers and Dr. Jackson. 

To contact Dr. Jackson, or to book him for an interview or speaking engagement: press@winstoncrown.com