Compared to a coal-fired generating station or a natural gas or
nuclear facility, a typical wind farm is one of the least
profitable types of generating stations. Unless your facility
is employing cutting edge technology (i.e. a GPP design), profit
margins are usually under 10%, which leaves little room for
learning, cost overruns or mistakes: a huge risk for anyone even
thinking about running or owning their own generating station -
especially a wind farm.
This method can produce slightly higher returns, but does bring
along an enormous amount of risk.
Additionally, capital requirements to build a typical wind farm
are generally out of reach of "Mr. and Mrs. Average Farmer or
Rancher". The average project size at GPP is over $400,000,000
and unless you have a lot of capital, its unlikely a project you
attempt on your own will be cost-effective or affordable: you're
probably going to have to form a Team to develop a project of
any reasonable size.
We still pay the highest lease rates in the industry: we support our land owners and local communities and always will!
For example, a 2,500 acre parcel with 100 turbines on it would earn the land owner about $1,500,000 - $2,500,000 under a GPP lease. Make sure you do the math at
www.goldpactpower.com/math.html and compare lease royalty rates before signing a lease with anyone.
Working with BTUWorldBank (www.btuworldbank.com)
and using the GPP-MTN
method (note - an authorization code is required to view
that free class and the class is available on the CD),
Land Owners and communities across the nation are learning an
"Inside Trick" to profiting from wind power: charter
your own bank.
This method is the most profitable of all, combines the high
Return on Investment (ROI) of option A, while eliminating both
high risks related to financing and capital, and all of the
risks of owning and operating your own wind farm. For Land
Owners with smaller acreage, this option is probably your only
choice. Most investors won't even look at parcels under 5,000
acres. The GPP MTN method helps owners of smaller parcels
"Partner Up" with others people just like you,
forming Teams that charter a bank.
BTUWorldBank provides the structure and GPP provides both the
projects and the development, construction and operating
engineers.
While you may wish to attempt option A, the ROI of option A
isn't as high as option C, which doesn't have most of the risks
of option A.
ROI comparison:
For Land Owners interested in the highest Return on Investment, the
GPP MTN method (option C)
reduces risks and provides the highest ROI - TEN TIMES THE REVENUE OF EITHER OPTION A OR B!
Support:
Land Owners who have a wind farm lease with Gold Pact Power and
Investors funding GPP projects, can simply ask for free support as they
walk through the step-by-step process with attorneys, bank and
credit union formation and SEC compliance advisors. The end-result
is your Team will charter your own financial institution, you own
100% of the stock and thereafter enjoy the benefits of the highest revenue stream
and least risk, and an ROI of 200% - 1000% per year.
Partners:
We have plenty of Land Owners just like you who are interested in meeting you and forming
Teams. To learn more about this program, we suggest you review the
second class in this series at www.goldpactpower.com/formteam.html.
Additional resources: With the inclusion of the GPP-MTN
program under both BTUWorldBank and the classes at KWHExchange
(www.kwhexchange.com),
we are providing Land Owners, Investors and Utilities with the financial
tools to "accelerate the global transition to renewable energy by making it profitable!"
We invite you to contact us today to learn
more about how to increase your revenue through
formation of your wind farm related corporation. If you'd like to explore joining
a Team of Land Owners just like you, please visit
PART II of this class - www.goldpactpower.com/formteam.html.
A review of risks:
The benefits and low risk of option C outweigh both the returns
and the 'gamble' you take with option A, and increase your
revenue by TEN TIMES over option B. Before signing a wind farm
lease with anyone, anywhere, DO
THE MATH and think about both your future and the future of
your children and community.
Gold Pact Power was created to help Land Owners keep their land
in their families for generations and we designed our programs
and classes (like this page) to insure Land Owners and Investors
alike, benefit from the exploding wind power industry.
 Many Land Owners begin the process of 'organizing' their Teams with people they already know. Print this page, make a few copies and then contact us and tell us when you're having your next 'Coffee Club' meeting at a local diner. We'll be happy to answer questions over a 'speaker phone' for the group and help you and your neighbors and communities form your own Teams to take advantage of the revenue available to you from wind power. If you'd rather partner up with Land Owners who are already in our system, please let us know when you write. Thank you.
The Educational Team at Continue to PART II of this class - www.goldpactpower.com/formteam.html.
Newer bills carry security threads, color-shifting ink and
watermarks. None of that insures the money will grow, however.
For that, you need lots of lending and even more faith.
Making money in 2008 looks like a grim proposition, but not
because U.S. government printing presses can't create enough
dollar bills.
The U.S. Bureau of Engraving and Printing (whose web site name
perhaps says it all: moneyfactory.gov) churns out about 38
million bills of varying denominations daily, all worth $750
million in face value. Facilities in Fort Worth, Texas and
Washington D.C. use 18 tons of ink per day to keep up.
Yet 95 percent of fresh notes simply replace those already in
circulation. Common $1 bills last about 21 months, while a $100
bill can go for roughly 7.4 years before requiring replacement.
Taken all together, these physical bills represent just a drop
in the bucket of global money.
The real trick to funding the $700 billion bailout of the
financial industry: Make more money. However, most of that money
never actually gets printed at all. Rather, it's infused into
the economy by the ultimate ATM: the federal government. And it
grows and grows by a rather mystical process that works only
when everyone plays the lending game.
Virtual cash
Most money lives not in our wallets but in something like a
banking Matrix – a virtual world of electronic numbers running
between bank accounts. People typically look at their money as a
figure in a bank statement, and trust that number is real. The
economy runs on that faith as workers deposit their checks in
banks.
Banks then get down to the business of creating money by lending
it out. Assume that you put $100 in your bank account. The
government requires banks to hold a certain amount in reserve,
say 10 percent, so the bank may just take $90 and lend it out to
someone else. That person can then buy something with the $90.
The store deposits the $90 in another bank, and the lending
process continues to inflate the original $100.
"The original $100 that came in gets blown up by the banking
system into something much bigger – essentially $1,000 [assuming
a 10 percent reserve]," said Menzie Chinn, an economist and
public policy expert at the University of Wisconsin in
Madison.
This system may sound a bit magical, yet it works as long as
banks and other lenders believe that debtors will pay them back.
And if the loans go toward spending or investments that make
even more money, everyone gets paid and the money-creation cycle
continues.
The problem
People typically deposit their money with commercial banks such
as Citibank or Wells Fargo. Corporations and large groups
deposit their money with bigger investment banks such as Lehman
Brothers and Morgan Stanley.
However, this lending-as-creating process imploded this year
after seemingly everyone had bet their borrowed money on the
idea that housing prices would keep going up. When housing
prices began to fall, many debtors lost that gamble and ended up
failing to pay back their loans. Investment banks also found
themselves in serious trouble after they had bet on the housing
market, and either filed for bankruptcy, ended up on the auction
block, or needed a federal hand.
Remaining banks have become scared of lending out money when
there is no guarantee they will get any of it back. That
reluctance to lend out money "short circuits the money expansion
process," Chinn told LiveScience.
This is a problem because the global economy depends heavily on
borrowing and loans. Individuals and corporations may need to
borrow heavily during bad times, and the lack of available loans
can further plunge the economy into a downward spiral of
recession.
The collapse of confidence in the lending system also destroyed
any grand illusions of greater wealth created by the long chain
of loans and ever-rising housing prices that weren't supposed to
come down. The money-creation cycle screeched to a halt.
"But at the bottom of it, there was some reality of greater
wealth," Chinn said. "Just not as much as we thought."
Solutions
The U.S. government's central bank, the Federal Reserve,
normally has several tactics to tweak the money-creation
process. The Fed can change the amount of money that banks are
required to hold in reserve, which either frees up more for
loans or reduces the amount available for loans. It can also
deal with banks to buy or sell Treasury securities, again to
increase or decrease the amount of money available for loans.
That's how it normally works. But as Chinn and other economists
point out, these are strange times. The government is now taking
"extraordinary means" to try and unlock the freeze on loans, and
may even consider more extreme measures such as guaranteeing all
bank deposits in case a bank fails.
"They're trying to make it so banks and other financial
institutions trust each other," Chinn noted.
The $700 billion bailout bill for Wall Street is another attempt
to save faltering banks and financial institutions, but the
government has to get all that money somehow.
One option involves issuing more U.S. Treasury bonds so that
U.S. and foreign investors or governments can buy them up –
basically borrowing more money from the rest of the world. That
would tend to drive the interest rate up, so that the U.S.
government would ultimately have to pay back more money to its
lenders.
The Fed could also buy up some of the Treasury bonds itself and
reduce the interest rate on its bonds. That action essentially
represents "printing money," Chinn said. Creating money out of
thin air may help in the short term, but in the long run reduces
the value of U.S. dollars.
"Or the U.S. government can raise taxes," Chinn added.
| |||||||||||||
As the wind industry explodes across the Great Plains and Texas Panhandle,
American Land Owners, Ranchers and Farmers are faced with a variety of
options:
Out of Thin Air: How Money is Really Made
|
