The question that can be asked here is: How sustainable is the NJK's Financial Security Plan? I.e., Can NJK citizens rely on interest from their savings to cover the possible disbursements on money transactions (e.g., raw materials, adoptions) and also support the projected rapid population growth made of mainly dependents children. The succinct answer is "yes", and the subsequent budget data and table demonstrate exactly how, year-by-year, (or in -year generations).
First of all, here are the parameters that were used in this Budget Projection:
Budget Projection: Initial Values
- The initial savings base funds are summed from the sold-for-values of various assets of NJK Citizens. (Again, as discussed in the previous section, NJK citizens retain full ownership on the principal and the future inflation values of these assets). These includes, homes, automobiles, individual items (appliances, furniture, etc.), among others. Also included in the calculations are funds in savings accounts. The value of these assets are derived from typical U.S. values and their exchange rate equivalence (GDP/capita - PPP) in other countries resulting in weighted average values. To be more precise however, since the NJK Population will be made up of mainly Christians, the GDP per capita data of Christians in world countries as provided from a database of the World Christian Database was used for GDP per capita figures [further identified here as "CHR-GDP/cap"]. (See the data being used in this table). This results in lower estimates as the per capita values for Christians only GDP is lower than the General World GDP/cap Figures.
- The "weight" of these averages is determined by the projected makeup of the NJK's population from
the Global Christian community |
World Countries
and the average size of households in each of these countries
[source]. The
Economic Region
of each country also determined the general extent of asset ownership for households in that region. e.g.,
of household from First World countries own "real estate"
[cf.]
(a house and/or land) as opposed to
from Fourth World, (i.e., extremely poor) countries, as seen in the following table: ["NA" entries are seen when actual known estimate data for each country are used].
This results in a total projected initial base funding of as seen in the following breakdown:
- Estimations for "Savings" balances were based on one saving of their CHR-GDP/capita for a period of years. So, for example, if one country CHR-GDP/cap was then they would have a savings of [XX].
- Data for the projected NJK Population are from the detailed model done in this section of the website.
Budget Projection: Parameters Used
The NJK's Budget Projection table also uses the following parameters for its projections:
- While, as mentioned in the previous section several foreign investment avenues are possible for NJK citizens ((residential/commercial real estate, savings accounts CD accounts, stocks, bonds, etc), for simply providing a minimum example here in this budget, investments through a savings account are only used here. While the other avenues of investments may potentially provide a greater return, simple saving accounts have the advantage of being both virtually risk/loss free and more control to the owner of the funds (i.e., availability of and for withdrawal). So in the sense of it having the lowest rate of return, the use of only saving accounts here can be seen as an extreme parameter as other forms of investment would provide greater returns, though not that much more.
- All raw materials are bought from world markets. The cost per capita for raw materials for new HC's and for the sustainment of life at an already built HC are estimated to be: and , respectively. These parameters is considered to be extreme as HC's will procure its own raw materials from abundant, freely available sources. The only foreseen purely cash outlays that the NJK will make are for the adoptions of would-be aborted baby. The disbursement for this is estimated to be USD per adoption. Still this expense can easily be met through the exchange of a service(s) to the recipient, e.g., a repair, a free college course, etc.
- An inflation rate is included and starts from the present world average of but gradually, over the total projection period, stabilizes down to the present First World Average of . Thus it decreases at an annual rate of
- Since interest rates usually go up as inflation rates (i.e., prices) decrease, the savings rates that are used here are projected to increase from an initial to an ending , thus at an annual rate of .
- Would be NJK emigrants are calculated to be of total NJK migrants; arguably a relatively extreme parameter. This results in a net migration rate which is more the rates of over countries today. (See World rates here).
- The projections for the funds that are to be returned to would be NJK emigrants uses an extreme parameter in that it is the original owners of the asset funds that were made available to the NJK that are factored in as being the emigrants, as opposed to a future inheritor(s). This is an extreme parameter because a future inheritor that would emigrate could possibly be only entitled to a portion of the original inheritance, especially if it is shared with others. So while, let's say 9 of 10 future inheritors continue to be NJK citizens, this lone inheritor would only have been returned 1/10 of the original asset funds. Again this would not be the case with the original owner who would receive all of the original asset fund, unless this person had waived this entitlement of theirs.
Budget Sheet Observations
- When needed, the trading prices of goods and services provided by the NJK were at an averaged of world market prices ranging from a high of to a low of . Within years, any NJK Foreign Work|Services can, and will be, free of charge.
- Even with the collection of external revenues, the NJK aims to have a not-for-profit budget. However, over time, as it can be seen in the budget projections, the NJK will begin to amass a surplus even when its foreign work services are done for free. This is due to the fact that the money for NJK citizens' assets will be generating income by having been invested. The NJK then plans to continue to use these surplus fund for the "free" good of those in need by using a certain portion of it annually for interest free loans. This harmonizes perfectly with the Biblical provision (Pro 28:8) concerning justifiable 'increasing of wealth' in dealings with "non-Israelites." (cf., Deut 23:19).