Jeff Jonas presents a brilliant analogy explanation of Entity Relationship conceptual structure at this YouTube link. Absolutely brilliant in explaining the concept. Its brilliance is only equaled by its elegance. I can't give it much more praise than that!
IBM Chief Scientist Explains how Puzzles Inspire to Create Innovative Context Computing Solutions
This is my house? You are also a minimalist like me, Jeff!
Jeff Jonas: You Are An EntityMan! If my friend Whit Raymond is announcing your next Ironman I will ask him to say that as you cross the finish line.
Good job Jeff!
In order to understand what this blog entry is all about (and it is a key entry to my puzzle) view the YouTube link. Otherwise the this blog entry stand a much less likely chance of being understood and a much more likely chance of remaining a puzzle with no significant meaning. That being the definition of failure?
Before I get diverted again I want to make this blog entry a place holder to be extended with more to follow as the substance of the subject line relating to my conceptual monetary system.
Heck, look at all the Jeff Jonas YouTubes at this link!
Jeff's puzzle, (he calls it metaphor, I called it analogy. I'll go with his metaphor but if we talked about it he might go with my analogy) let's just call it an example, is a brilliant way to explain how entity relationships build bigger pictures. The granular level is a puzzle piece with some unique attributes. The challenge is to fit the piece into a puzzle solution domain. Fun stuff. To Jeff it is very much fun stuff and he excels at having fun.
I have been following Jeff from time to time over the years ever since he first wrote about throwing everything in the back of a car and going to Las Vegas to solve a problem puzzle there by entity relationship analysis. If I search back in this blog I could link to prior entries relating to Jeff. Then I discovered that we have more in common than what I feel is a similar way of thinking or approaching a problem domain. We are both triathletes. While I have only done 8 Ironman races he has now done about 25! The intuitive connection I have with Jeff is maybe not so mysterious. He expresses/explains stuff in a simple comprehensible manner. The ability to make simplicity out of complexity. He, however, can make complex systems designed to implement simple fundamental conceptual relationships among high level entities.
I, after a whole lot of thought, can see a big high level abstract conceptual picture. In other words I can finally see the full moon at the right conjunction of time and space and read the writing on the face of the moon. Having done that and read the writing the best I can do to go to the moon is to climb a tree. Progress toward a moon landing stops abruptly at the top of the tree. Jeff has, relatively speaking walked but he might modestly say he has only seen it closer from an orbiting time space position.
I will use Jeff's puzzle vehicle to apply it to my thoughts on a conceptual monetary system.
The pieces of my big picture monetary system puzzle picture are all out on the table of this blog. I have been laying them out and actually joining a few of them since February 2011. Other pieces to other puzzles were created along the way but they were puzzles that related in even a higher level picture.
The recent breakthrough in assembling the pieces of the puzzle that I have created results in a picture consisting of the puzzle pieces taking form and substance. Finally! It had to do that because I was at the top of the tree! The paradigm shift in view was that I do not have to change the monetary system from debt based to debt free base, leave it unchanged as far as user view goes but add something for an overlay control on the the Monetary System that does not change the user view and usage but adds to the Accounting structure for better control. Better control to identify the crooks as well as correct the environment (draining the swamp) in which they operate. Not something that would draw support of the crooks of course but on the other hand something they could not escape.
Jeff's YouTube relationship puzzle uses one picture to be assembled but alludes to pieces that do not fit in that puzzle. When more pieces are created or identified (maybe more identified than created, they were always there like gold nuggets in the stream to be mined) that may relate to them other related pictures emerge. It's relational dude!
I see, more or less the picture and its puzzle pieces that present the two big entities of our current monetary system: Accounts containing associated money value totals and Loan Contracts that is the sole source agent entity that creates the Money that populates those Accounts. Two primary subsets of Loan Contracts are those that create Public and Private debt. Public and Private Debt creation have equal and balancing Asset creation for each category in the Balance Sheet accounting system.
Jeff stresses how important it is to understand accounting in order to understand entity relationships. That's for sure!
Something Jeff said in another of his YouTube videos is that in a certain domain (Google) going down to the pixel level is not the most productive level to go to. Maybe it is in some graphics domain but not the information domain. My idea too but I expressed it as choosing the appropriate granular level foundation upon which the conceptual structure of any problem domain is built on.
The two granular level (unique instance of the entity) in the current monetary system is a singular unique Account and singular unique Loan Contract that gives birth to amounts total amounts in the Account which might be better described as the Account Bag or Purse on the asset side.
Just to refresh the comprehension of the existing system: All money in existence was initially created out of thin air (fiat) by a bank loan that established debt amount as well as equal asset amount. As debts are paid to reduce loan principal money is extinguished until debt is zero (money is extinguished back to the nothing it came from on both asset and liability sides of the balance sheet.
What we've got he-ya is a fail-ya to com-mun-cate with a vital third entity at an appropriate granular level. That vital third entity is Money. Money? But it is all about Money! No, it is about Contracts and Accounting for debt that Contracts create. Incidentally, during the period of time that the rolling total aggregate amount of all money created by all Loan Contracts (public and private debt) exists in the system we use as a medium of exchange between accounts. The only entity identity that "Money" has is a numerical on hand balance number as a data element in an Account representing ownership of a stated number of unit values.
Following this line of thought, convoluted maybe, it might be said that we have a Monetary system with no "Real Money" in it. We have a shadow on the wall (called account) representation of money as a total number in an account but nothing that casts that shadow on the wall (Account). Or, if you want to look at it this way: If a shadow was not cast on that wall then where would the money be, what would be its nature of being independent of its shadow if it did not cast a shadow on the wall?
The answer is of course as non existent as the shadow on the wall. The answer defines the problem. the object Money must be attributed the same entity level existence and identity attributes at the Class as well as the granular instance of its class as Contract and Account. The problem is that Money has been so tightly logically bound to Loan Contract that it goes out of existence at the granular level of a number as the contract is paid off.
Follow?
Solution: Unbind Money dependency as a functional product of Contract Loan to create it and Account to manage magnitude/transactions for its existence and related identity. Manage money as a third Entity Class and at its appropriate instance of an entity granular level.
Why do what I propose as a Solution? At this point I wish I had Jeff's clarity in reducing the complex to the simple but I don't. I can however relate (this is about entity relationship!) to his puzzle metaphor.
This is why: In our current monetary system Account and Loan Contract (public and private debt) are its foundation but what money does is called Economics. We have a difficult time managing Economics. We need more information data points to manage economic matters. On the one hand that would be good for some that are not benefiting from current state of the Economy on the other there are some (far more, like 90%, 60% but at least most) that are not benefiting from the current state of the Economy and even less in the future from where it is going.
Unique identification of each and every single unit digital dollar with unit value of one and a unique IPv6 number or other unique identifier establishes the entity existence and conceptual substance of the entity Class: Money. Just like an Account identifier or a Loan Contract Identifier.
I think, because it is logical (but I am not Vulcan) that the best and strongest conceptual logical structure is best built principally on (like a cornerstone) the most persistent Entity among all other entities in the structure and certainly foremost on the entity objects in the structure which by their nature are more persistent objects than the actions that they do. Reprogram the entity structure every time an action changes, and they change all the time, is not a good way to design a system.
The big addition to the Monetary System: Money as a persistent entity Class and its instances. Recognition that Money is the most persistent thing among the three Classes of entities in the total monetary system.
Money
Account
Loan Contract
Money should not the least persistent thing (as it is now) at the numerical level with its existence tied to granular level loans in the Loan Contract Class. When the loan is paid off then it is history, so is the money in circulation as a medium of exchange associated with the loan as long as it existed.
If money, once it has been created, has persistence to live forever as a uniquely identified object building block (unique puzzle piece) it is what the monetary system becomes structured on. It defines what money is. Account and Contract Loan are entity application programs in which Money does things. In which uniquely identified puzzle objects assemble in an unlimited number of ways through Contract Loans and Accounts to create Pictures out of the pieces.
The general picture that emerges using puzzle pieces of uniquely identified money (among other valuable information through data mining) is Economics. Economics on a real time basis, not a batch process look back to see what happened. Economic data that presents in real time who has current ownership of money in an account, what account it came from in a transaction that increased balance and in the history blockchain ledger what account it went to in a transaction.
In addition, each unit dollar with a value of one is linked to its parent granular dollar in the Money Entity Class. That link identifies on a single dollar basis who previously owned that specific IPv6 dollar in the Money Entity Class blockchain history as well as all previous owners of that dollar back to the date of the original owner upon its creation.
Knowing what account money came from or went to in the current system is called following the money. It is not really following the money it is following account paths transfers of money amounts from one account to another. Laundering defeats following because it is laundering through accounts not actually laundering money because, as I previously suggested we have a digital money system but it does not really have uniquely identified granular money entities in it.
I have gone off track from applying Jeff's puzzle model to my monetary system proposal.
Getting back on track: All the puzzle pieces called uniquely identified digital dollars with a unit value of one are in a big unrelated pile like the puzzle pieces at the beginning of Jeff's video. Their only differentiating characteristic is their unique IPv6 number. They are instances of the Class Money but in the beginning are in the sub-class pre-money. Digitally minted in an amount required to support Monetary System operation and ready for circulation to become money by virtue of entering the Monetary System through Contract Loan.
1. Each unit becomes Money once it is loaned into an Account through Loan Contract.
2. Contract Loan Entity informs Money Entity of the Account Entity unique account number that the loan was made to and the associated unit dollar IPv6 identity of each unit dollar loaned. This also generates the beginning of the Contract Loan blockchain that will maintain a record of payments as well as compliance with the terms of the contract (Smart Contract).
3. Account Entity confirms to Money Entity posting of the loan to a unique account holder account including confirmation of related unit dollar identifiers. This begins the Accounting transaction block chain in an extended universal ledger.
4 Money Entity associates current owner to each uniquely identified unit dollar owned in response to input from Accounting entity.
5. Account Entity reports all account transfers among accounts to Money Entity as they occur on a unit dollar basis.
6 Money Entity makes current ownership information changes including date/time and any location information associated with the accounting transaction, prior owner information locks into the blockchain history of the unit dollar.
Due to the fact that all of this is happening in the conceptual abstract domain, logical properties of an entity thing can be separated from physical properties. The digital dollar piece of the puzzle can continue to exist as present in the Money Entity as well as being a puzzle piece of a specific owning account in the Account Entity where single transaction total amount is the granular level of interest and management. Money at the unit level dollar with a value of one is a shared entity.
Command and Control of the Monetary System.
The intent is to have minimum change to current monetary bank operations. Establishment of a Money Entity requires reporting bank transactions by the Account Authority (Banking system) to the Money Authority. Total value of the transactions might be sufficient. Banks would have no requirement to maintain record information or report down to the granular unique unit dollar level. That could be applied in a random or algorithmic manner to to the pool of unite dollars identified to be currently owned by the associated account.
It is important at this point to restate what I have said so often in this blog that a fundamental concept of the conceptual monetary system is that money does not move. Money is the static fundamental record of the system that records who owns what specifically identified units of digital money each with a value of one. Only the relationship of a fixed static unit dollar changes it does not travel from account to account or owner to owner. It is the power of money that flows, not the money itself. It is in one place, always in one place existing as a unique thing instance of its Class: Money forever or as long as money is needed. Its state may change from active in circulation (owned by an financial account) or inactive (held in reserve and not circulating under the Account of the Money Authority) for regulatory purposes.
If I have a thousand dollars in my bank account it is all debt money by definition. That is the way the current monetary system works. Go back far enough in the block chain of every single dollar in the Money Class and its connection to a Loan Contract can be established. To conclusively identify it as part of the unpaid balance of the loan is either difficult or impossible. When an Account Holder makes a payment on the Loan Contract it is composed unit dollars managed by the Money Authority unrelated to the original unit dollars received as the loan. The original unit dollars related to the loan would be associated to any possible owning account managed by the Account Authority.
There is a way around that difficult or impossible situation that is relatively easy. So easy I have to think about it for awhile to continue this.
Does this all sound unnecessarily complex? Our current system is far more unnecessarily complex and provides only a fraction of the information necessary to manage the public and private economy and protect it as much as we value and protect the security of this country. The internal and external security of this country depends more on the monetary system than the defense system.
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