Money - User Views

This is a short form of the long version that follows:

The NEED Act, H.R. 6550 by Congressman Dennis Kucinich transitions from the private, debt-based, fractionally-reserved, temporary money system that we have now to the public, debt-free, fully-reserved permanent money system of the future. A basic explanation of the mechanics of the transition to the new money system is given here by Joe.

This is my idea about how the structure of the new proposed system may be viewed by three primary players; Users, The Bank and the Monetary System Manager. It presents different views of money to serve these primary entities in the system. I see great opportunity in establishing a general view of money as fixed, denominated, serialized records associated with ownership. Ownership changes but this uniquely identified money entity does not. Once created, it exists forever.

The owner view is a unique account of total owned money.   Input and expenditure to the account are total amounts of single transaction. Transparent to the owner view of the their account, this same fundamental transaction as seen by the bank is to change ownership on the fixed record of a denominated serialized entity under their administrative control. Ownership is changed by the bank (program) by applying the total transaction amount among the least number of denominated "bills" to change the current associated owner to a new owner. Accompanying that change are various inherent pieces of information like date, time and location, plus whatever information may be required by the system, like purpose, or voluntarily attached by the payer or payee. That could be any information that does not violate the law or terms of contract? Freedom of information!  Especially if the owner of the money is the government.

If the bank simply chooses at random the specific denominated records to which the change of ownership is applied then there is a result that says: Money cannot hide. The associated information structure that makes that statement possible is another significant problem domain worthy of thought with social benefit value.  Money becomes very traceable.

I think the essence of this idea has enormous implications but in its own smaller portion of the total system. Small excellent ideas written on the wall can get big fast just by sowing them.

Short version is a relative term!

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Money - User Views

When Debt Free Money is established the agent owner of the money will have a user view that there is real money, United States Dollars, existing as an amount in a computer account with their name on it. They can add to it or disburse from it. Money in the bank. As good as money in the pocket and in virtual reality as good as gold but it does not glitter.

Might you buy that Mr. Ron Paul?  You see the problem and have the position.  You have a solution; abolish the fed.  Base money on rock solid thing.  What might be as good as gold to you?  A computer record of a uniquely serialized, denominated amount called money?  Existing in a secure system where not only transmission of information that causes money to change hands is encrypted but programs that operate upon money as a medium of exchange are created using cryptographic programming language like E

The bank, call it Bank with a big "B" as if there was only one, is a player in the system and can have multiple user views of the same money. Virtual systems permit different views of the same thing without changing it depending how you want to look at it to fit your preference or purpose. Money would be all one thing. Different views. One player does not necessarily have to look at it only from the standpoint of another player. It is like everyone looking at the same ball on a playing field. They see it from a different viewpoint. Maybe that is the glory of the game?

What if the Bank looked at the money in an owner account in terms of denominations of money rather than sum total dollars? Why not? This is just an interesting mental exercise. This may help to see one way the Bank might look at the money held by the depositor: Visualize real dollar bills in a pile of various serialized denominated amounts in an owners deposit box adding up to the owner's total account. The Bank is a clearing house for transactions.

Real paper money could be handled and counted. The paper locks physical and logical information together. The progress of man has been marked by advances in the level of conceptual abstraction representations of reality. Spoken language then written words then fast forward to stuff on computers. They are all conceptual tools that abstract reality to greater conceptual levels for our benefit. Levels where we can do better, be better. Object Oriented System thinking probably represents our latest general level of beneficial abstract conceptual thinking applied to design and implementation of complex systems. Some of out abstractions do not even exist in the real world although we create physical representations of them.

It is often more efficient to play with a well constructed abstract conceptual model of reality than the real thing. We do this with our increasing ability to separate the physical from the logical and then playing with the logical information of a thing to the extent that our information tools enable us. Playing with a model not yet connected to reality doesn't screw up the real world. It is just thinking about something. Applying a bad model does screw up the world.

To get back on track: To the Bank, money in an owner's account can be viewed as denominated, uniquely serialized bills bearing the amount of their denomination existing as a computer record. Once created the denominated bill exists forever? They never wear out. The denominations of serialized bills in the account could be variable but let's make them the least number of denominations possible given the total amount in the account. Calculate that by a simple formula.

While the owners view is "my money" expressed as a total in the account, and the Bank can look at it that way too, the Bank has to handle the money in order to satisfy their requirements as well as higher level views of what money is as designed by the Monetary System to satisfy system requirements. Establishing money as denominated, uniquely serialized conceptual entities in the Money System might be the best way to structure it closer to computer system implementation, without changing the user view?

The Monetary System primary view would reasonably be denominated, serialized money as a fixed secure uniquely identified record upon which the associated owners name (account number) changes with transactions. The owner primary view is their fixed uniquely numbered account where the total amount of money in it changes with transactions. The Bank is in the middle and provides, as well as uses, both views. Money could be denominated in amounts from a base amount up to millions or billions, depending on the need for various denominations of money related to an analysis of historical individual account transactions. "Making Change" could be done to accommodate any abnormal transaction. Some user accounts might transact dollars denominated in million(s) or billion(s) per day. Important to the Monetary System view, transparent to the user view of totals given or received. Owners of the fixed denominated, serialized money record change in one view. The total amount of money in a fixed ownership account changes in the other view. Same game. It all depends on where you sit. Computer guys figure out how to organize what really happens into something that operates to satisfy everybody.

Such a system would work above a base level denomination of money. A level below which it is expedient to handle small transaction amounts as only amounts, not having serialized identification. A small money system but one in which the amount of small money is associated with the existence of real money in the serialized system. Maybe below $100.00. iPhone money, real coins and bills? Pocket money, but the same device could spend big money. That is a different problem domain

All the money in the System could be determined at any given time. It would be expressed as total of all owner accounts. It would also be the total of all denominated, serialized bills. Both totals would be the same. Maybe add some plus or minus "limbo" accounts. Add to the system as necessary to maintain it in a constant balance. Serialized denominated bills would establish security in the system. No two bills could ever have the same serial number. By far, the greatest importance of denominated serialized money is the information that money would produce about itself and what it does in the economy. Information anonymized from the user as dictated by law or publicly known as permitted by security levels of authorization or permitted by law.

Money would be a denominated, serialized record of ownership as a medium of exchange and store of value in a new debt free money system. What money does would be anything it accomplishes in the exchange of ownership. That is economics and it can be anything the mind of man can conceive to do with money. The Money System can produce a vast amount of information about itself that is not now available in order to enable what society would like to accomplish with money, not the banksters. Money would be "my money" on an individual owner level as well as "our money" on a national level.

Just a different and perhaps beneficial way of looking at debt free money. How the system of computers and communications, their various levels of operating systems and application programs look at money is entirely another thing. Computers are now processing M0 today the way as they will generally do in the future. The future growth of M0 as it encompasses current debt levels of money will expand that aspect of computer processing in volume and scope. A higher level managerial view of the object class Money overlaying denomination and serialization on the system will change computer implementation in the total system operation. That is an important and significant technical change in the design structure requiring changes at the operating computer implementation level.

My mind boggles at the logical future extension of the new debt free money system. Establishing something fundamental, logical, reasonable and right in the system at the "one to one" simple relationship level can direct the growth of an entire world of relationships, physical or conceptual. Like the idea of one person, one vote. It took a lot to get that simple thing right. Look at what it produced.