At this point of my blog's continuing evolution I have come to the view that my conceptual Monetary System is composed of Three Entity Super Classes presented in the recent posts in the past two weeks. Won't link them here. Super Classes that do not depend on a prior conversion to a positive debt free monetary system but simply overlay the debt based current system with a higher level of object oriented controlling Entities.
MONETARY SYSTEM COMPONENTS:
Money System
Accounting System
Contract Loan System
Each of these entities has a block chain component focused on its appropriate granular level as follows:
Money System: A single unique digital dollar with a value of one identified by a unique numbering system. Could be serial, could be IPv6. I like IPv6. Used to like serial number because that is how our dollar bills are numbered but it is old school. The history of who previously owned each dollar is a block chain record of each dollar. While this is on a granular dollar level it relates to the account in which a total amount of dollars transferred from one account to another. Each dollar always knows its current owner as well as a block chain of previous owners
Accounting System: Granular level is the account. Every citizen has one. Every other entity is a registered business entity and they have one or more than one. If more than one primary account it is a subsidiary account under the ownership of the primary account to identify which big fish own which littler fish, if any. Each account knows its owner, its current total on hand balance as well as its Account Block Chain history of transactions with other accounts. All this is on an extended ledger in the Swift system. IBM is working on that. (Adept).
Contract Loan System: Granular level is a two party contract. Each party identified by its account. All contracts in an extended contract ledger are identified by a unique number. IPv6 numbers reserved in a block for this application perhaps? Contract transactions involving loan and payback under contract terms and agreement feed to the Accounting System on a total dollar value of the Loan Payback during the life of the loan. The Accounting System passes the total value of the transaction to the Money system for application to each granular single dollar in the total amount of the Accounting System Transaction. Current Loan amount due on loan has a block chain history back to loan origination of all loan transactions including not only money related Transactions but changes in terms and conditions related to money transactions. After IBM straightens out the Accounting system it should then focus on the Contract Loan System. In addition to what I propose for my Monetary System, IBM should apply it to all non-monetary related contracts all the way into, as far as possible the grey area of stakeholder contracts to formalize their interests and associated rights.
This conceptual structure is an overlay of the current debt based monetary system. It therefore requires some understanding of that system, which is not so easy. However there are some truths about it that apply (more true than false all the way to absolutely true or should be).
Truths:
In a debt based system money is created out of thin air by the establishment of a contract agreement to loan money by the lender to be paid back in accordance with the terms of the contract by the receiver of the money. This applies for loans in both the public and private sector.
All money in circulation is debt money.
All money in circulation is at the aggregate total dollar value is held in an account by an account manager at.....well, let me just say by an account manager without saying exactly who....just some account manager somewhere that keeps track of who owns the money at any given time as well as a required historical history of transactions.
All money in all accounts is owned by some financial entity and that entity can be known.
The prior truths cover existing Monetary Account and Loan Contract categories.
The third category, my conceptual Money System does not currently exist. While I propose some monetary overlays to the current system, the Money System is a new entity that did not exist before at the digital money level. While the monetary banking system continues to create money as a function of debt created by a loan contract, that money created does not come from nowhere, it comes from somewhere. Where it comes from is a pool of uniquely identified dollars with a value of one that were in suspended circulation, a sort of limbo where it was not owned by anyone but may have been previously owned while it was in circulation in a prior life time called "Circulation".
"Circulation" in the prior paragraph requires some definition because the big change in the overlay of the existing system is a new entity of "Money" that is more than a number that represents the total on hand balance of all dollars in an account and the transactions identified to total dollar amounts that change that balance. Money in the proposed system does not move. The single unit digital dollar with a value of one dollar is a static record that goes nowhere. It does not move from account to account. It is a fixed record that relates to total transaction amounts (which are not "real money"itself but transactions of total money value per transaction in the Accounting System to be applied to changes of ownership of each unique dollar in the Money System.
Therefore there are some more truths related to the Money System that emerge:
The total of all unit digital dollars with a value of one expressed a total value of all money in the Money System......
Equals....
The total of all on hand balance value in all accounts in the extended ledger in the Accounting System expressed as a total money value.....
Equals the total value of all payments due under contract loans in the Contract loan system.
Big theoretical Truth here: All three component entities of the Monetary System must be equal to each other in their total money value.
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