http://www.nakedcapitalism.com/2017/03/magnus-china-must-reform-bust.html
I think that the verge of bust will usher in reform. The link looks at the problem domain entirely within the frame of the balance sheet. Assets/Liabilities in debt based system and what debt based entities are defined as Assets and Liabilities. What those entities are in the dark banking system is beyond me (things called paper levered on things to increase the number of units of measure I think) except for the fact that they all appear to be vehicles for the parking of (nominal?) value. "Money like" things that are not the medium of exchange but are convertible. Until the day comes when some "Real Money" is needed to back up the demand for conversion.
That day? The Big Bust!
Plan A: Make the balance sheet solvent again with some huge issue of Debt Money. Re-arrange the deck chairs on the Titanic.
Plan B: Paradigm Shift to a debt free BlockChain monetary system. Issue it out to debt based paper holders that want redemption in Real Money at a haircut rate. 1 to 1 for anything holdings in the official coin of the realm.
Have construction resources in China recently shifted to build vast server farms and digital communications infra-structure?
https://www.bloomberg.com/politics/articles/2017-03-25/china-vice-premier-sees-unstoppable-momentum-of-globalization
The global debt based monetary system is structured on the almighty US Dollar. It is like a railroad running on different guages requiring multiple conversions to carry the freight. Globalization of trade would logically need a singe global system for a common unit medium of exchange. Money market? The term always seemed like a contradictory paradox created to make money on money for the money changers. Cast all of them and their self-serving debt based money scam system out of the temple. There will be great weeping and whaling and nashing of teeth amongst them. Well deserved as they find that the ultimate state of being of a debt based monetary system is that the balance sheet balances to zero when debt money is extinguished and more debt money does not take its place by issue of replacement debt plus some extra debt always being produced for the money changers to skim off the top.
Universal Debt Free Monetary Operating System based on Blockchain technology where contractual debt called Finance Loan is measured in units of debt free digital currency and is merely one specific Application Program among other Applications of the Debt Free Monetary System. This is a total reversal of the current Debt Based Monetary Operating System where Debt Finance is the Monetary Operating System and creation of debt based Monetary Units as a medium of exchange is a specific Application Program function.
The reversal of Monetary Operating System from a design base of Balance Sheet Debt to Debt Free Positive money where there is no counter party Debt pushes the abstract concept of Debt out of the Operating System drivers seat and into the role of an Application Program.....Where it logically and structurally should be in an Object Oriented design. The current Function Based design of the Debt Based Monetary System was created for the purpose of serving the function of Finance the greater purpose of a Monetary System is for its units of measure to serve as a universal medium of exchange for all things measured in the common unit of exchange.
Here is the punch line: A loan is only one of a vast number of things that can be bought with the medium of exchange. It hould be only purely unique functional Application of the Monetary Operating System design. The only peculiar attribute of buying a loan is that it draws future money into the present with a concept of balance sheet debt existing as a function of future time.
Our Monetary Operating System Design must shift to a concept of Positive Debt Free Money as an Object Medium of Exchange of the Operating System. Function of Money in the role to serve contractual debt future based obligations is only one of many functions of money to serve as a social decision making tool.
How did our conceptually abstract debt based monetary system emerge as a product of Functional Oriented Design?
Duh!
What, and by association, Who does the Functional Based design of our Monetary System serve first and foremost?
Finance. Banking. Debt Money serves Debt, the functional purpose of Debt is the dominant functional design intent. That functional design dominates our self governance social system to also make it funtionally serve Finance and Banking.
A Debt Free Object Oriented Monetary System reduces the decision making power of Finance and Banking to dictate the functional design of our Monetary System by reducing the role of debt from the creation of money to an application of created money in Blockchain real time that persists over time as uniquely identified or associated units of value without extinction as a function of debt at a future point in time. The only thing that becomes extinct at a future point of time when Debt is merely an application of of the Debt Free Monetary System is a Contract. Not the money related to it as is the foundation of our current Debt Based Functional Oriented Monetary System Design.
Functional based system design suck in an Object Oriented driven Information Age.
Abstract Objects their properties, methods and message abilities to relate to other objects take the dominant design role in an Information Age.
Functions Follow as Application Programs.
Debt is a Function.
Might China be the one to recognize the need to put the debt function of Money in its proper relationship as an Application Program in the controlling Monetary System where the universal medium of exchange is a debt free abstract object building block of an Object Oriented system based on Blockchain design?
They that determine what gold is rule those that deal in the application of what gold does.
Gold became a child of Functional Design and lost its dominance as an object of the Monetary System on the day that it became conceptually abstracted to a future time value function that leveraged on its object properties. Essentially it lost Object Properties when leveraged functional debt properties became monetary system design purpose.
Simple solution........is.......is found in....a new abstract design methodology of the Information Age.
The Object Oriented writing is on the wall:
https://www.bloomberg.com/news/articles/2017-02-23/pboc-is-going-digital-as-mobile-payments-boom-transforms-economy
China rules when China determines what Money "IS" and what they establish "Money" to be rules what money "Does" as an Application program function. The inherent attributes of an object, real or abstract in human intelligence object properties design rule its functions. It is a law of nature and model for abstract human intelligence design as well. Form dictates function. Function can dictate from in human intelligence design....only as long as that approach mistake can last until Form asserts its natural design dominance.
Perhaps in the case of human intelligence the mistake of functional driven design dominating object driven design will persist until we create an Artificial Intelligence equal to the Natural Intelligence design of the physical world based on object properties that express themselves in functions.
The USA has little potential to end the dominance of a Debt Based Functional Monetary System Design. The designers of that system are too powerful for the government to challenge.
China? The debt based monetary system is a foreign functional design that serves foreign interests. The power of the People's Republic to change that system and change it to a design that serves itself as well as the world better as a social decision making tool is far greater than the USA. Russia has a lesser degree of power to do this as well but certainly much greater power to it than the USA.
Russia and China together. Maybe with a gang of 3, 4, or 5 to join in like India, etc. That power to change the world monetary system is awesome. Change is coming quickly in the Information Age. The only impediment is the security of systems we create. It is an excellent question: Can a monetary system to rule the economic world ever be absolutely secure? That is an Information Engineering Problem Domain. When all things are securely uniquely identified and traceable the answer is......maybe so. No place for hackers, persons or institutional entities to hide if they are placed in the system design position of entity self identification as a function of relating to any object in the Information System.
No system is ever perfect? Even time comes to an end? A system of object interaction constraints on object expression of object oriented entity level functions can serve to minimize failure to lower levels and assure acceptable continuation of total system function.
Time is the ultimate constraint.
The current Functional Debt Based Monetary System is essentially constrained by Time.
Perhaps constrained by function to end soon.
Meanwhile the focus of the USA wanders among a variety of issues while it is likely that China is taking a longer range view that has much greater impact of a new world order. We focus on Trump. A revision of Health Care that is not Universal Health Care. Wars in the Mid East. Refugee displacement and immigration. Building a wall. Increased defense spending. Top level Military and Finance background types moving into key government positions. Dark government. Surveillance. etc. etc.
It is happening quickly! While the entire world's attention is diverted to things that on the greater scale of Things, with a big "T" really don't matter that much. The glue that holds our social world together is Money. It is the universal solvent. A Digital Blockchain Based Monetary System is by definition of its fundamental nature a Debt Free Medium of Exchange. There is no counter party balance sheet debt to which positive blockchain based monetary units owe its very existence. All money in our world wide banking Monetary System is balance sheet debt based.
How blind can the entire world be to the magnitude of change that a Debt Free Blockchain Based Monetary System defining the Object Oriented properties of the World Wide unit of the medium of exchange bring?
Some see it coming and are banking on it! Among the nations of the blind China has an eye.
Zhou Xiaochuan is that eye. My 2012 blog entry looked into the crystal ball. He is an engineer.
This is Yooooge!
https://www.cryptocoinsnews.com/chinas-central-bank-completes-digital-currency-trial-blockchain/
"When the system is ready, the central bank’s pilot digital bank
acceptance exchange platform will be connected with the existing
Shanghai Commercial Paper Exchange to form a national platform for bank
bill transactions.”
China is testing a Blockchain monetary system. There is a joke about Australia testing a change to the established rule of road to drive on the left hand side. It was tested by having only trucks drive on the right side for a day.
When it come time for China to implement its Monetary System switch it will happen seamlessly over night. It will be so seamless that the users of the monetary system, the Chinese public will not see the difference in their monetary transactions but celebrate the victory of the People's Republic of China to govern the structure change of the most fundamental entity that controls the affairs of the entire world.
Ironic that we were so afraid of the Domino Theory that China would rule the world one geographic territory after another that we exhausted our self in Vietnam. We are doing it again with Domino Theory 2.0 much to the same detriment but also much to the same benefit of those that made a killing in Vietnam while others were killed.
"Some foreign policy analysts in the United States have referred to the
potential spread of both Islamic theocracy and liberal democracy in the
Middle East as two different possibilities for a domino theory."
Oh, how I love my often repeated in this blog admiration for the most elegant way to skin a cat.
Induce the cat to skin itself by structuring object relationships that cause the cat to jump out of its own skin. There must be some metaphor for that in Sun Tzu book of war.
https://en.wikipedia.org/wiki/Sun_Tzu
Ironic that we are so focused on possible collusion between Trump and Russia that might undermine our way of life. What we should be looking at is collusion between China and Russia to change the basis of the world wide debt based monetary system. They will not rob the banking system they will simple let it elegantly skin itself to bring on a New World Order.
The entire world will be in debt to the collection of nations that are the first adopters and those that follow them like a Row of Falling Domino's.
The new Domino Theory!
https://btctheory.com/tag/blockchain/
The King of the Debt Based Monetary System will be the last to fall as it skins itself clinging to its American debt based dollar system with its cold dead hands.
Exactly the trend leading to implementation of a Blockchain monetary system. Everybody online.
http://www.pewresearch.org/fact-tank/2017/03/16/china-outpaces-india-in-internet-access-smartphone-ownership/
Just a matter of estimating when Peak Online will be reached.....or near enough to put it over the top as the digital infrastructure of the Debt Free, Blockchain based monetary system.
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