Sum Of The Parts Equals the Whole

I seek  simple way to present the basic concept of my proposed monetary system.  This is an attempt to do that.

The sum of the parts equals the whole thing.

In some cases that is not true.  In the case of numbers it is a mathematical truth.

A single dollar is expressed as a whole number to two decimal places:  $1.00

For the sake of simplicity I will continue this explanatory example using only the whole number.  There are provisions to handle the decimal amounts but that is not necessary for simple explanation of my monetary concept.

The sum of each and every single dollar ($1) equals the total number of dollars.

A stack 100 dollar bills with a denomination of $1 each is equal numerically to $100.

Still with me?  If so, then you took a leap from a physical reality of the existence of each instance of a thing (a $1 bill) to a conceptual expression of the sum of the stack of 100 instances of that $1 thing equaling a conceptual expression represented by a whole total of $100 in the mind.  If $100 is hard to hold in the mind then write it down and thereby give the concept some physical representation.  Of course, the dollar sign part of $1 was conceptual in the first place, so is one but less conceptual when directly associated with what we view as a real physical object.

It is convenient for us to think in terms of $100 as a shorthand way of conceiving 100 single instances of $1.  It is also easier to actually have a single dollar bill with a numerical denomination of 100.  But my monetary system exists in a digital world where denomination for convenience is not necessary.  The sum total is what counts (a wry joke!)  Where it counts is in the account. (another wry joke!)

The account is where digital dollars exist.  That is the biggest joke of all.  The joke is this:  They do not exist as dollars by any intrinsic definition.  Dollars in an account are only a sum total number and the only intrinsic quality of a number in an account is that it has numerical properties.

This is an antropromorphism for the sake of explanation:  We say money talks so I can have it do any kind of human thing I wish.  An amount in an account is a number with no self aware knowledge that it is a dollar.  It could discover that it is a dollar (or will become a dollar some day) by looking at the bigger Accounting System in which it exists.  If it exists in a tight closed system we call the Banking System in an Account then by default it learns that it must be a dollar by virtue of existing in a highly controlled dollar accounting macro system that is aware of what it is although the number itself is not.

At the micro level in the current digital monetary system the amount in an account called balance is simply a number subject to arithmetical processing.  It is a number type of a thing to be processed by virtual of the seat position of an account that it occupies.  The thing is a number that does not even know enough to search for its own internal identity nor express its own unique identity by doing behaviors money does.

The identity and behaviors of money were once encapsulated in a $1 bill was shorn from it when it entered the banking accounting system where the identity was virtually sheared from it leaving only the numerical properties entering the bank accounting system via a customer account.  This shearing was necessary to enable Fractional Reserve Banking which by its nature is a numerical thing and process.  So is a Ponzi Scheme.  Fun and games with numbers for profit.  Numbers stripped of an original identity to become rubber numbers that would have otherwise kept the system honest or at least protected from the opportunity for dishonest manipulation.

The intent of my conceptual digital monetary system design is to establish the monetary identity attributes and the behavior of money as an object directly related to the amount of dollars expressed in a Positive Account Bank Balance.  The banking accounting system provides for a negative balance as a conditional state of on hand balance in an account but a negative state balance as a net of assets vs liabilities really has no relationship to money, its identity or behavior in my digital monetary system design.  It is therefore not a banking system dictated design.  The banking system is a sub-set system of the digital monetary system that deals in category of money called loans.  The clearing functions of banks are optionally extracted and undertaken by the monetary system itself and the open source participation of any entity wishing to enter and perform that system function in accordance with open standards.

The relationship between positive on hand balance of dollars in a banking system account and the attributes and behavior identity belonging to Money is to implemented by establishment of Class:Money as an independent self aware digital conceptual object with every instance of the object class knowing its own numerical value (1) its unique identifier (serial number) and an instance of Class:Account in the Banking Accounting System (or Open Source Provider of this accounting service) that has current ownership of its denominated and serialized self.  Money is all the money in the monetary system and all money has a current "owner".

The accounting service system provider passes Seller Account, Buyer Account, Total Transaction Amount and date/time of transaction to the central Money virtual repository where the total amount is applied to each serialized unit of $1 having knowledge of being "owned" by the buyer and changing ownership of itself to the seller.

The total of all on hand balances in the Accounting System must at all times equal the sum of its $1 parts in the Money Money System.

That is the long way around simple explanation.

The Money System has approximately 10 trillion parts composed of $1 serialized units that in aggregate know the X number of total accounts they belong to.  Each $1 knows its own owner.  Each owner can, if they wish know each $1 they own.  The fact that they own this 1$ as the function of a loan that they are contractually indebted to repay is strictly an Accounting System Function not a Monetary System function.  It is  debt free Monetary System.  Accounting systems provide debt management systems and functions.

Simple.

Here is the rub that makes the difference:

The whole is equal to the sum of its parts is a Cash Counting proof of validating an amount of money.  

The whole positive balance = the whole negative balance is a Bank Accounting loan management and validation system.  Not only that, it dictates that the entire monetary system be equally debt based where all money used as a medium of exchange must have an equal amount of debt somewhere in the system.  Therefore public debt equals private savings.  That is the Banking System Design of, by and for the Banks.

A monetary system concept is the sovereign right of the nation.  Our right exercised by our government.  The government must govern what money is beyond just declaring that the dollar is the coin of the realm. The fault at the crucial base of the entire current system is that there is no object definition in terms of current Object Oriented System Design that describes as a standard the properties and behaviors of the Class:Money.

If we cannot come to grips with what money is we will be forever ruled by those that define it by what it does.  The most important thing that money does as Banks see it is loans.  Loans create debt.  Debt money.  Debt is their business model.  No wonder the system is structured on their vested interest in what money does.

Loans, buying money with money plus a promise is just one of the multitude of things that can be bought with money and should drive system design no more than anything else that can be bought with money.

Another example that elevates what can be bought with money, what money does rather than what money is to the status of dictating system design to sub-optimize on what it does is the World Reserve Currency system.  That is a broader banking domain system.

It could be said that if I studied the "System" and really learned how it works then I would understand it.  (and have a Phd in economic sorcerism)  I don't have to understand much more than the fact that our money system was built to serve the banks first.  Us second.  Theirs is a failed system and must change to something based on a solid foundation to serve us better.  The power of the banks is like the power of a feudal monarchy based on a conceptual structure of Divine Right.  Funny how we conferred that right upon them through the Federal Reserve.

On one hand we fight for out rights.  On the other hand we give them away.

Why do we do that?

We must reclaim our rights to our money system as an open source system design.

What money does is what makes money for the banking system.  Banks designed what money is (debt) so that it favors what money does for them. They wanted to get out of the checking account business, which is just a clearing house function, and into the financial speculation business where the money is.  Fine with me as long as we divest them totally of the clearing house function related to the attributes of debt free money as a medium of exchange under the system design control of our government but the operation of any business that wishes to be a provider of private money system services to public (government) and private sectors built on the neutral, non-biased, level playing field of what constitutes the attributes and behaviors of our national money supply.

In other words get debt out of the fundamental design.  Debt is not applicable to the public sector and only applicable to the private sector as a matter of Banks that make loans and the loans that they make need not, nor should they be based on the creation of debt money.  It is our prerogative to shift the entire system to a concept where there is no "Minus Money" at any level.  Just contracts that establish debt relationships and terms over time between any two or more parties.  That is something done with money and people can agree to anything.  Sounds Libertarian!  Well, subject to the social good that may take precedent short of freedom to sell your soul.

The current monetary system is rotten to the core.  The sum of its parts is so much less than the whole.  It is the money that just does not add up to the number is should be and we do not know why not.  The reason is that there is no way to add up the money, it is whatever the banks wish it to be as long a money loan debt (debt money)  is their asset.

I claim copyright ownership of this simple Monetary System concept expressed in this blog entry as as all entries in this blog as my intellectual property.