Tuesday, October 15, 2013

Debt Neutral Money Object: The Solution to the Debt Crises

This is not a primer on Object Orientation.  I probably mix apples and oranges here with my own, perhaps incorrect understanding of OO but I think I get the basics right consistent with my efforts to climb the tree to the moon.  Perhaps it is only necessary to get to the top of the tree, forget going to the moon, and look around at the bigger picture landscape around me to see where my efforts are going.  It is a lofty enough perch to see the obvious writing on the wall.

Adequacy is sufficient, all else is superfluous.   ---Adam Osborne

Somewhere in the conceptual structure of the world monetary system there is a key component  (yet to be identified by a future real world, real time condition) that will shake the integrity and validity of the entire system to the point of collapse.

Collapse is a relative term to be quantified by just how much of the conceptual structure falls down.  The current government debt limit is a mini collapse.  It will be resolved, it is a minor thing as far as money goes in terms of what money is and will remain to be: Our medium of exchange.  What might change, or simply be tested depending on which political party wins (its an odds on bet!) is what money does.  What money does is how money as a decision making tool is applied to making spending decisions and who gets to decide (or have primary influence to increase of decrease) which sector makes the money spending decisions (public or private) and what the money is spent for.

The entire National Debt Crises, like Obama Care is all about what money does.

The Crises is not about what money is.  However, a few think that what money is (the basic concept of money as an object and its nature separated from whatever it is used to do)  is the solution to the greater "problem" of current money system design.

I am one of those that think the concept of what money is as a thing is at the core of the problem of what money does in the decision making process that determines the allocation of resources.

Money is debt.  That is the core concept the monetary system is built on.

Money must be a "Debt Free" medium of exchange.  Perhaps "Debt Neutral" might be a better term.  

A "Debt Neutral" money system is the new foundation on which to design a better monetary system with which to make spending decisions for resource allocation at the micro and macro level.  It is the only foundation to build from a logical information engineering basis to build the best conceptual structure.

A "Debt Neutral" money system moves the concept of "Debt Money" from a definition of what "Money Is" to a definition of what "Money Does".  In that case  some transactions involving money have a relationship to the establishment of debt as one of the many functions (function is what a thing does) of money.

Money must not equal debt upon (by virtue of) creation which, at the same time, creates an equal asset to a bank.

Money must be an asset only upon creation no offsetting debt to be held by anyone.

Using money to create a debt called a loan is just some "thing" (a conceptual, contractual relationship between two or more parties) that is "bought" with money.  A loan is just one of the things money buys.  It just happens to be a rather strange situation in which money plus a promise buys more money in real time to the buying party and money in future time (plus interest) to the selling  party.

Money itself is bought and sold on a value exchange basis.  The odd relationship is that money buys money.  They are however two types of money with a value difference as a function in time (or other factors that are contractual). Therefore not the same money but  children of the ParentClass:Money that inherits some attributes of the parent but has some unique attributes of its own that make it a different thing????????

No, that would be the wrong way to look at a loan in a Debt Neutral monetary system.

I have to figure out just what a loan is in a Debt Neutral monetary system.  Is it a ChildClassMoney of ParentClassMoney or is it a State of that ParentClassMoney is in???

The answer is in the definition of the Object Oriented System terms:

Object
Behavior
State

An explanation and example here:

  • Lamp is an object.
  • The "state" in lamp:on and off.
  • The "behavior" in lamp:turn on and turn off.
In programming you declare states in "fields" and behaviors in "methods" etc..
Read and learn object-oriented.

Study the link for a quick intro.

A class encompasses (knows) its own state (variable) and behavior (actions depending on state).  Those same states and behaviors of the ParentClass are inherited (also known) by children of the parent class.

There are many children of the ParentClass: Lamp (flashlight, chandelier, etc) they all have (share) the same state (on, off) the same as the Parent.  They all (have) share the same behavior as well.  If they did not then they would not be Lamps.  They would be something else.

Take the following paragraph as a leap in logic.  Take it on faith to be true if you can't handle the logic but Object Oriented thinking is not built on faith.  It sometimes helps to make a little leap on faith but it is essential that when the big picture emerges, what was once faith becomes conceptual structure fact.  Maybe that is what life is all about if you are trying to figure it out.  Otherwise just live on faith.

State of an Object:Class is in itself a Class.  An even bigger leap is to see Behavior itself as a Class.  Its there when the whole picture comes together....I think, at least the way I see it.

A Loan (ParentClass:Debt) is a possible variable State of the ParentClass:NeutralMoney.

Since State is also a Class it knows certain behaviors and any ParentClass:LoanState with variable states and behaviours as well as its own ChildrenClass:LoanState that share the same states and behaviors.

Different States of any Object put it in a different Object Class.

Getting far in over my head hear but this is a fuzzy approximation of how it all works.

The essential thing is that Money is Debt in the current system.  It must not be conceptually structured on debt nor have debt states or behavior at the ParentClass:Money.  It is failing because it is built on a fundamentally falacious concept that benefits Banksters.  Money must be neutral but having a conditional variable State of being that is a ParentClassState of Asset (by default of the system design) or liability (by a virtual of particular behavior ChildClassState:Loan method  MakeLoan).

A structural concept as money as an Asset first, foremost and by default is not debt related upon creation must rule system design.

A structural concept based on the creation of Debt as the Default product of creation will fail.  Capitalism need not be based on a Debt Money concept.  That is Debt:Finance.  The foundation of Capitalism is Investment of Capital Resources that are the "Profits" of production plowed back into the system?

Maybe I better go back and study Capitalism, Investment and Finance in view of Debt money creation and Neutral Money (Debt Free Money) in an Object Oriented System as I see it.

Finance is what banks do with Debt Money created from nothing and pyramided up to be more than it is upon creation by various financial schemes that plunder a real money system based on investment of labor and material.

Neutral Money destroys a behavior method of banks that sub-optimizes the entire system to a point of collapse.  The business model of that system is to keep it as close to collapse as possible to maximize return on increased risk and/or shift the consequence of risk to another entity.

Banks either are not very good at risk analysis or are either masters of the art.  They must keep the game going and if they are masters of the art they will win, we will lose.

Is that the name of the DebtMoney game?

No, no, Banks are there to help with money.  They own the money, they own the system.  It is generous that they are so benevolent to elevate the purpose of money to serve the economy which is us by putting us in debt as a function of finance, not investment.

Banks are neither generous not benevolent nor do they contribute to the weath of the common good inspite of their media propaganda.

A Neutral Money (Debt Free money) changes the entire game and drives "control fraud" made possible by debt money out of the game.











No comments: