Wednesday, December 24, 2014

Financial Engineering

This blog is about Monetary Engineering.  Discovering what "Money" is as an object design problem, determining if what Money is in the current system design is the best system design structuring what the object "Money" is to support what Money does.  What Money is facilitates the efficiency of what it does.  Much of what it does is finance with debt because the object "Money" is Debt.  Money is created as a function of Debt.

Debt creates Money.  Parsing the structure of this sentence:  Debt is the subject noun, creates is the verb, Money is the object noun, otherwise described as the receiver of the subject noun action that is implemented by the nature of the verb that relates the subject to the object.

Stuff we learned in 3rd grade.  However that fundamental structure is the Trinity Site of our natural language.  The E=M(C squared) of language.

Monetary Engineering establishes the attributes of the object Money in the same way that the object Nature was designed to establish the attributes of the physical world.  Put another way; The physical world is a function of the attributes of Nature.  Laws of Nature define its attributes.  They are fundamentally rigid rules.

In the conceptual world, the one we whip up out of nothing with our imagination, rigid rules do not necessarily have to be a function of natural rules.  It is a good thing if they are modeled on natural rules since they make an excellent environmental model.  On the other hand they are not bound in any way by natural rules.  What can the product of imagination be?  Why, my dear, it can be anything we want it to be to do anything we want it to do.  It all depends on how we want to structure the relationships of the conceptual objects we play with that are products of our unbound imagination.

Play is the verb form action that relates Subject and Object things.  Which thing will be the Subject and which thing will be the Object is arbitrary but that arbitrary choice is the genesis of two very different implementations of a total system structure when they are put into "Play"

Debt chosen as Subject and Money as Object produces one structure to play with.

Money chosen as Subject and Debt as Object produces a different structure to play with.

The nature of the verb that joins them puts Debt/Money or Money/Debt into Play.

The king of the trinity structure of Subject/Verb/Object is Subject.  The Verb?  Without it we might presume some kind of a relationship to the object but that relationship is an action joining the relationship of Subject to Object.  The action itself can be any of a vast number of Verbs while the Subject and Object remain constant.  Like the number of plays on a football field where one team is offense and the other is defense.

What happens if Verb says to Subject, I am the most important thing (an action is a really sub-type of a thing if Think is a universal term that can be applied to any and all things in existence including actions and things like time).

Is time a noun or a verb?  I digress.  Call it a verb.  God made  world.  In this sentence She made it by implementing the relationship of herself to the world through the verb of time.  Time is what we see as her knowledge of eternity.  She had to make it easier for us to understand eternity by knowing time, which is not easy but doable as a work in progress.

When the Verb is king of the Subject/Verb/Object relationship it drives the nature of the trinity.  When we choose to create conceptual systems where the verb drives the system structure design there is greater, almost unlimited, latitude in the nature of the system that can be created.  It is a system where the nature of the verb Play dictates the rules.  Or put another way:  Who controls the nature of Play controls the after the fact establishment of rules to serve nature of whatever the Subject of Play may be and consequently the thing that jumped over the fence last......the Object of Play.

It is an Alice in Wonderland world when Play is King (or the Crazy Queen) that makes the King a Jester Fool that is a puppet Object on the strings of Play.

Finance is a verb.  Finance has been made by Crazy Queen Banksters to be the Jester Fool Object dancing on a string to the tune of Finance to extract resources from the Object of the relationship trinity.

Like all monarchy that "Rules" the structure of a society, Rules is the implementing Verb that subjugates the natural domination of the Object to the power of the Verb to dictate the structure by fooling like a Court Jester the Object of the Ruling Monarchy:  That is everyone that is not Monarchy (by default).  Call them peasants, sheeple, any object of this Alice in Wonderland perversion of the natural order of things that will tolerate the supremacy of the Verb.

Financial Engineering is Engineering based on the supremacy of the Verb in the Trinity Structure: Subject/Verb/Object to dictate the economic system.  It is the verb that dictates that Money must be a Court Jester called Debt and we the Objects of this debt money system are the Fools (as long as we continue to tolerate the perversion and what it does to us believing that There Is No Alternative.

The alternative is written on the wall:  What money is designed to be as the dictating subject creator of the monetary/finance system must be established as the true king of the economic trinity of........

Money/Decisions/Common Good.

Finance is only one of a multitude of variable verb words that maybe be substituted in this sentence for what money does to result in the receiver of its Object action: Common Good.

Money cannot be a subservient product of the verb Finance we call Debt Money.

Money is properly the king subject of the state we call "We the People".  We endow it by choice of a free people to be the controller chosen law of the land chosen to order our social relationship decisions.  It is not a child of Debt and those that rule by Debt creation.  It is a positive Debt Free thing that we create because Freedom to do this is the the antithesis of domination by a Special Interest to create it for us to their greater good of a few.

The term "Financial Engineering" was used in this excellent analysis of why Elizabeth Warren is really fighting so hard against the nomination of  Antonio Weiss.  It is the bigger picture of "Financial Engineering" to which we are subservient to the decision making power of money to serve those that designed the Financial system to have the verb Finance dictate its structure for their perverted private  benefit as the expense of decision making power of money to serve the common good.

"Owned by the richest man in Brazil, billionaire Jorge Lemann, 3G specializes in picking up companies through debt-financed buyouts, and mercilessly cutting costs. Private equity managers get paid hefty fees out of the cash flows, increasing debt as the value of the company slowly gets siphoned off into executives’ pockets. They take the profits, while someone else gets stuck with the losses."...............................

"Through brokering these deals, Weiss facilitated this transformation of American capitalism, as a cog in the wheel of a corporate strategy that has led to a stunning gap between productivity and wages and historic levels of inequality. The deindustrialization of the country has turned us into a nation of financial managers and the service workers who attend to them, virtually eliminating the middle class. Weiss became a very wealthy man from this process, which every Democrat from the president on down likes to decry."

The con game of the flim flam artist is to divert the attention of the mark to the action of the game while the con man controls the objects of the game (by hiding them or their true nature from the mark). Marks are easy to deceive with directing their attention to the action of the game, Those that keep their eye on the ball rather than the play are harder to bamboozle.

Controlling the form of the ball is controlling the game.  Dictate the ball and it determines the action of the game to be played.  Football, baseball, basketball, etc.  The ball is a constant. 

The con artist trick of Finance is to control the ball in play but to make the ball (money) so hard to grasp and our total attention devoted to the the action of grasping it.  Always just enough out of reach and amorphous enough to benefit them greatly as they "help" us to grasp the object they control with great benefit to themselves because it is their ball.  The con artists win.  Set, Game and Match.

When the ball is determined by a third party the two teams (two parties to an exchange) agree on and the ball is known by its persistent object attributes.  Debt money really has no object attributes, its only attribute is a numerical property and that property foundation is negative.

Positive money is an entirely different ball with which to play the game.  A game where we can keep our eye on the ball.  An honest game of fair competition on a level playing field involving what we do with the ball that becomes a decision making object tool in play for both public and private spending decisions.   The decisions on what money does are reflected in changes of ownership of discrete money amounts represented in accounts.  What money is.....is the ball.  It does not change is does not come in and out of existence at the command of a bankster.  It is persistent and we own the ball we play with. 

The paradigm shift of Financial Engineering must be from a system structured on the Playing the game to the Object we Play with.  A neutral object that is the basic subject of the game in accordance with the computational trinity and Object Oriented System Design and Implementation methodology of our Information Age.  That is how modern Information Systems are designed an built.

The current Financial system and its dominance of the monetary system is old school from a past that will continue to not just constrain us but fail us in operation until it is restructured on a fundamental object instead of a fundamental action.


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