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Chapter Seven:


Russia can restore and transform itself into a world economic and political power in two to five years. This is only possible if Russia takes the initiative before China rises to dominate the world scene. Admittedly, there will be great resistance to the overall process, but the goal is, nonetheless, easily obtainable and the growing pains short lived.

The Federation of Russia and the United States of America

First, Russia should unilaterally merge with the United States of America to form the Federation of Russia and the United States of America. They should adopt an updated version of the American Constitution and national legal system. This will open the door for American migration and corporate assimilation. The great advantage for Russia would be in the Senate, where Russia would garner 178 seats to the 100 of the United States, thus making Russia a world power by default. There is an old American anachronism that purports:
"If you can't beat them, join them!"
It remains far better to be on the inside looking out, than on the outside looking in. But this does not mean that in any way that Russia needs to abandon its sovereignty entirely.

Secondly, Russia should adopt the U.S. dollar as the national currency to stabilize the economy and exchange rates; facilitate international transactions; and to encourage U.S. investment. The currency could be reprinted to reflect the "Federation of Russia and the United States of America".

Currently the United States (4% of the world's population , 300 million people) controls 70% ($7 trillion) of its wealth. This has had a detrimental effect on all other nations. No local currency (not even the much ballyhooed Euro) can compete against the U.S. dollar. However, if everyone on planet earth enjoyed the American standard of living, that would be:
6 billion people
x $ 30,000 per year
= $ 180,000 billion annual world economy!

Russia's portion of this bonanza amounts to:
150 million people
x $ 30,000 per year
= $ 4,500 billion per year,

and likely more if it acts before China dominates the world economy. By offering a more unique and competitive environment, Russia could capitalize on the weaknesses within Western economies.

First, Russia should institute a policy of:
No sales tax,
No income tax, and
No corporate tax.

The Russian state and the people thereof would, in fact, own all the property and natural resources of the nation, and through the government 'Lease' the same to all individuals and corporations, in lieu of taxation. Property leases should be fixed at $ 1.00 per square foot. This will amply supply the Russian treasury with more than adequate funds to maintain the government. Note that Russian citizens may own private property for their own residence.

Finally, all business must be independently owned and operated. No businesses should be licensed to operate in more than one State. Franchises will be allowed if they are independently owned and operated. This will curb the monopolistic ownership of private and public enterprises which has proven unsuitable to the Russian experience.

Russia should open the door to U.S. business partners as a precursor to the eventual emigration of the world's largest corporations to Russia. For example, Ford would be an ideal partner for Lada. These kind of relationships will lead to international economic dominance, and should be encouraged to foster partnerships and business integration in Russia. Furthermore, the free access of U.S. investment in Russia should also be accompanied with guarantees of U.S. ownership of the invested capital. And finally, only products manufactured in Russia may be sold in Russia to ensure a strong and vibrant national and local economy.

WAGE AND PRICE CONTROLS are necessary to maintain a stable economy. For this reason, all labor in the Federation of Russia should be constitutionally unionized, with common wages, benefits and labor contract for all citizens. The following wages are lower than American rates because they reflect a no tax society.

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