Sunday, October 25, 2015

The Trinity of the Monetary System

The foundation of the Digital Monetary System that I propose are the Big Three components:

1.  User of Digital Currency (Class:User)

2.  Digital Currency (Class:Currency)

3. Currency Account  (ClassAccount)

The lowest granular uniquely identified singular conceptual unit representation of each of these components is an IPv6 number.  There are enough of these numbers to cover the total requirement for a numbering identification scheme with enough left over to create a long string of zeros after it.  Look at the IPv6 link.

In a Parent/Child Object Oriented System these three components are all Children of a Parent Class: called Digital Currency System.  In Object Oriented methodology all Children of a Parent Class inherit attributes of the Parent.  One of the Parent Attributes and its associated methods and messages is IPv6 system identification. 

Starting to see the light?  IPv6 itself is a Class that shares its attributes with many other types of Class Objects.  The Internet and World Wide Web have and use IPv6 attributes.  Object Oriented Parent/Child relationships become extremely complex but are structured to reduce complexity to simplicity.  Think of it as a mapping system for sharing attributes at the lowest level that are children of progressively higher levels all the way to their to their origin at the top.  Associated with those attributes are methods for them to do something and messages to pass between objects that get things done.  Conceptually it is an information structure analogous to the real world.

If your parents did not have any children to whom to pass on the attributes of life you can't have any either.  It is kind of like a block chain.

Grab selected Class Owned Attributes from here and there as necessary to build a system, Create a few new ones that never existed before and are therefore uniquely owned by the Class object (not a child of any other class)  and presto:  A System emerges.

State of the Object Oriented art is such that just about everything required as a necessary to build a system is on the shelf.  If what the Information Engineer cannot find on the shelf is not there then the Information Scientist must discover the requirement's nature and in the Object Oriented scheme of things and provide for its proper place in Parent/Child relationship.  Sometimes necessary to change parent ownership to resolve conflict, comply with protocol, create a new class as the picture of the forest becomes clearer as a function of better Information Engineering.

The beauty of Information Engineering is so much of the engineering has been done that a great number of Object things and attributes have already been created.  Just plug them in.

IPv6, its Parent/Child attributes, methods and messages is a multi-purpose plug in.  It brings with it a vast number of associated plug ins from a side variety of other top level Object Classes, many related to the generalities of the Information Age that make things work.

All Monetary System components: Users, Currency and Accounts have an IPv6 number at their respective lowest granular level of identification because working up the Parent/Child relationship chain the Parent has inherited some specific attribute/method/message to pass on to the child. 

The next step is to design/discover all the Parent/Child relationships in the Monetary System.

Those relationships are whatever we want them to be!  The fashion in which they are put together produce an Operating System in which Application Programs serve the system design objectives.

We already have an operating monetary system.  It is dysfunctional.  A legacy system designed to serve the objectives of creators of the system while serving us.  It is serving them better than us.  They became to greedy and structured social and monetary object relationships and functions at a fundamental level to serve that objective. 

Restructure!

IpV6 identification is mandatory for all User, Currency and Account participants in the Digital Monetary System.  Without one there is no participation in the system.  All other systems, dark money systems, "money like" instruments are not legal tender and may or may not be convertible to the digital monetary system currency.  They are "off the grid" The Digital Monetary System is a tightly controlled relatively closed system and the the only one through which to settle tax liability or is "legal tender", whatever that may be defined to be.

Total system ownership is public.  Monetary system component ownership is public.  Users and Accounts systems may be public or private.

Users:  Entities authorized and registered to participate in the Digital Monetary System.

Currency:  Digital Monetary System unit of exchange

Account:  Record of User ownership of Currency in an aggregate variable amount of Currency at the uniquely identified Account level.

This restructure extracts Currency from its role as a child object of Account where there are only two components of the current monetary system; Account and User in the current scheme of things and elevates it to Parent level owning unique attributes, methods and messages independent of strict inheritance of attributes, methods and messages of Account in the current monetary system.  In the current monetary system Currency is a created number, purely a child the Parent:Mathematics with inherited mathematical attributes used to keep score. 

Note: The exception is physical currency, less than 6%, all else is presently digital currency.  Of that 6% about 3% is outside the country in the form of $100 dollar bills.  All attributes of physical currency are eliminated in the Digital Monetary System.

This from Zero Hedge gives the magnitude of things;


Consider the structure of the financial system.

1)   The total currency (actual cash in the form of bills and coins) in the US financial system is a little over $1.36 trillion.

2)   When you include digital money sitting in short-term accounts and long-term accounts then you’re talking about roughly $10 trillion in “money” in the financial system.

3)   In contrast, the money in the US stock market (equity shares in publicly traded companies) is over $20 trillion in size.

4)   The US bond market  (money that has been lent to corporations, municipal Governments, State Governments, and the Federal Government) is almost twice this at $38 trillion.

5)   Total Credit Market Instruments (mortgages, collateralized debt obligations, junk bonds, commercial paper and other digitally-based “money” that is based on debt) is even larger $58.7 trillion.

6)   Unregulated over the counter derivatives traded between the big banks and corporations is north of $220 trillion.


That is the big change in restructure of fundamental object entity relationship but it shake up all relationships and their connections.  To say the least.  How it does that becomes rather mechanical because methodology for design of any operating system information structure has been well established as logical in relationship among things and the functions that implement relationships.  It is the domain of Information Engineering.

The current monetary system is Rube Goldberg thing. "In 1931 the Merriam-Webster dictionary adopted the phrase "Rube Goldberg" as an adjective defined as accomplishing something simple through complicated means.[13]"

He must have been attempting to describe the Banking System!  Information Engineers un-complicate this kind of thing.

"Banks" generically manage Accounts therefore all money created as a function of Account called accounting.  Accounting is a functional method of Money that when asked to do so by a request message (keystroke of a number) it performs its method inherited from its Parent called Math to perform "divide" which communicates  message to another attribute of math called "equal" to do its thing with its method, return a result of two numbers that create two distinct Money Accounts of equal value: Debit and Credit children.  Each has methods and messages.  

Much of the current Banking Accounting System is already object oriented structured.  That is the way business programming is structured on a computer today.  Structured at the lowest level, absolutely not yet at the more abstract higher conceptual structure.  The higher abstract level where currency must be recognized as a stand alone entity with more attributes and relationships at a higher conceptual level than exclusive low level math attributes.

The simply elegant way to cut out all the noise in the Rube Goldberg currency system is to give currency an object identity beyond a score number.  It once had that unique identity as a dollar bill with its score number in the corner but it also had a unique identity serial number.  It lost that identity assigned by the Bureau of Printing and Engraving when it became a digital entity created by key stroke.

One way of looking at the problem domain of restructuring the Monetary System is the re-establishment of uniquely identified monetary units.  Used to be when physical cash was a dominant form of exchange that denominations of amounts in the corners of a bill facilitated large exchanges of money to a certain extent below amounts of account to account transactions.  No need for that physical convenience.  Each unit at a given level of value can have its own identity.  Computer are good at handling that now.

Currency itself at the single unit of value can and must once again, at least conceptually, be uniquely identified with an IpV6 number.  That extracts it from a role as an object of Account and returns it to the conceptual identity it had assigned be Printing and Engraving.

When currency is assigned a unique identity at the unit level and extracted from Account and elevated to it proper system relationship level then new attributes that are children of other Parents in the Monetary system can be attached to it with methods and messages to enhance total system structure and operation.

That change is dramatic.  It facilitates the management of currency as a discrete object rather than the product of a math function that has no intrinsic identity other than mathematical.  Banks will have a problem with that.  Banks are the problem, this is how to resolve it in the same way that our entire society is being and/or in need of the logical restructure of legacy relationships in the Information Age.  

Money is a big "Information Thing System" dominated by a dysfunctional but powerful and well entrenched institution.  Today gives ample evidence of the emergence of new Information Age institutions and their effect on legacy systems of the Industrial Age. 

In a debt based monetary system, and all our money is debt based, money only has a numerical unit value identity for system management and only really exists as a division of a number in two parts having a two faced debt identity until it is extinguished by debt repayment. 

Essentially, the dynamics of the system will not change.  They will simply become a situation where money as a number in an debit/credit division of itself into two numerically equal parts is abolished and replaced with an object that has persistent identity and constant unit value of one.  It does not come from nothing at a keystroke and go back to nothing when the debit and related credit account are zero.  It retains its assigned identity as a unit of currency and is continuously over time persistent and only changes is condition state of being either in circulation of out of circulation and held in reserve for future circulation as system control management requires.

I Gotta Name 

 A unique identity is what gives an object "being", existence beyond just a number.

A unique existence to which can be associated a vast amount of unique interactions over an life time.

Perhaps there is nothing more important in the living of our lives or representative of how we live them than the decisions we make throughout our lives.  They tell our story.  For what it is worth. 

Money is a social decision making tool.  Decreasingly private at the micro level requiring increasing but foot dragging protection, increasingly important at the macro level of private and public decision making that relates to our quality of life and national objectives.

Money cannot give us the necessary information about what we do with it at any level of analysis until it is given a persistent identity and block chain history record to which, at least at the macro level we can account to the penny where it goes for what purpose.  

Money without a unique identity such as IPv6 assigned to each unit as positive money extracted from its relationship to debt based creation will perpetuate monetary system mis-managment by design or default that gives currency an ambiguity of a a big marshmallow of a split personality created by a bank as its reason for being in two parts one of which is a conceptual figment of imagination and the other its shadow.

Money, currency, will always be a figment of our conceptual imagination to which we assign value as a medium of exchange.  

The trick is to turn the shadow on the wall cast by money in the current debit/credit based system structure created by a function that divides a single number into two states of being (positive and negative) that are both derived out of nothing in the first place.  

That trick is done simply by assigning an identity to the object.  Make it an object, not a function that comes and goes.  It becomes a conceptual object when it is given a unique identity and has persistence over time.  There is no shadow, not when the object and light is recognized as things outside the cave.  Hard to convince those still in the cave of the reality producing what they see as shadows.  

The situation is as old as witch doctors and modern medicine.

Choose your own analogy.  

Wizard of Oz tells a newer version of the same story.  It was not only the man behind the curtain that was given an identity but the Tin Man, the Straw Man and the Cowardly Lion.  The identity relationships changed everything for the better. 

Happy Ending!
 













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