Audit trail.
Real-time exchange.
Works for any transaction in any currency, language, or culture.
Monday, July 6, 2015
Promise Language - technical specifications, version 1.
Audit trail.
Real-time exchange.
Works for any transaction in any currency, language, or culture.
Tuesday, June 16, 2015
$15 hour minimum wage
As low-wage workers' income rises, so will their spending. This is going to affect the CPI.
The end-game of the USD is quickly upon us. The USA needs to do something drastic to restore trust in the system or the USD will hyperinflate. Right now, they have many existing long-term contracts denominated in USD, and that is preventing inflation, but it won’t last forever.
My suggestion has been, and will continue to be: a standard language to describe transactions between institutions: Promise Language. Once those long-term contracts adjust to a rising CPI, the potential of the USD remaining the “denominating currency” of the world diminishes.
The ONLY way out of this is to "de-clip the coinage". What I mean by that, is to maintain the value while providing capital improvements to grow the real economy to handle the excess money supply. Then you can raise taxes and pay back the debt. Simultaneously, the Fed will also have to change their accounting rules to back the currency with something tangible (not purchasable assets). I have the full plan. Will they do it?
The hyper-inflation has begun!
Sunday, May 31, 2015
A ledger to describe any financial transaction
The following will work for any transaction, meet regulatory approval, and provide any imaginable functionality. Stock market to grocery stores, retail and wholesale.
Stock Exchange example:
My offer 100 IBM. Offer 100 IBM at $10/share.
My terms $1000.
His counter $970. Bid 100 IBM at $9.70/share.
My counter $980. Offer 100 IBM at $9.80/share.
He accepts. Buyer hit the offer.
Example: I have 11 oranges and want 10 apples
My Offer 11 oranges
My Terms 10 apples
His Terms-escrow AAA Escrow Co.
His Terms-value 10 oranges
His Counter-value 9 apples
His Counter [computer-generated contract]
My Terms-escrow ABC Escrow Co.
My Terms-value 9 apples, 1 soda
My Counter-value 10 oranges
My Counter [computer-generated contract]
His Terms-value 8 oranges
His Counter-value 2 sodas
His Counter-value 9 apples
His Counter [computer-generated contract]
I Accept
Computer-generated contract:
He owes 9 apples, 2 sodas
I owe 8 oranges
Terms: ABC Escrow Co.
Database columns
EventID
TransactionID
CommerceID
EventType
Description
TimeStamp
Event Types
Offer
Terms (value, escrow)
Accept
Counter (offer, value)
Notice
Complete
Cancel
Deliver?
Receipt?
The above provides a full audit trail. All data is stored in text format. "Relational" data is stored in ancillary tables with the EventID for reference.
The above works intra-firm as well as inter-firm. It is an EDI format that operates on an event-basis, so it works the same on paper. The protocol allows flexibility in mode of transfer and security, without changing the structure.
Stock Exchange example:
My offer 100 IBM. Offer 100 IBM at $10/share.
My terms $1000.
His counter $970. Bid 100 IBM at $9.70/share.
My counter $980. Offer 100 IBM at $9.80/share.
He accepts. Buyer hit the offer.
Example: I have 11 oranges and want 10 apples
My Offer 11 oranges
My Terms 10 apples
His Terms-escrow AAA Escrow Co.
His Terms-value 10 oranges
His Counter-value 9 apples
His Counter [computer-generated contract]
My Terms-escrow ABC Escrow Co.
My Terms-value 9 apples, 1 soda
My Counter-value 10 oranges
My Counter [computer-generated contract]
His Terms-value 8 oranges
His Counter-value 2 sodas
His Counter-value 9 apples
His Counter [computer-generated contract]
I Accept
Computer-generated contract:
He owes 9 apples, 2 sodas
I owe 8 oranges
Terms: ABC Escrow Co.
Database columns
EventID
TransactionID
CommerceID
EventType
Description
TimeStamp
Event Types
Offer
Terms (value, escrow)
Accept
Counter (offer, value)
Notice
Complete
Cancel
Deliver?
Receipt?
The above provides a full audit trail. All data is stored in text format. "Relational" data is stored in ancillary tables with the EventID for reference.
The above works intra-firm as well as inter-firm. It is an EDI format that operates on an event-basis, so it works the same on paper. The protocol allows flexibility in mode of transfer and security, without changing the structure.
Friday, May 15, 2015
The Constitution of the United States and 16 to 1
The legal construct between gold and silver is a part of the monetary system's problems. There are two ways to handle this:
1. an amendment specifically rewriting that section of the Constitution to eliminate the gold/silver tender problems.
2. rewrite the Constitution in the language of 2015 and update the grammar. This would require re-ratification by all 50 states.
The point being, as the Federal Reserve Note has apparently lost its original connection with gold and silver coin, all payments of debts in Federal Reserve Notes could be declared unconstitutional.
Specifically, Article 1 Section 10:
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
1. an amendment specifically rewriting that section of the Constitution to eliminate the gold/silver tender problems.
2. rewrite the Constitution in the language of 2015 and update the grammar. This would require re-ratification by all 50 states.
The point being, as the Federal Reserve Note has apparently lost its original connection with gold and silver coin, all payments of debts in Federal Reserve Notes could be declared unconstitutional.
Specifically, Article 1 Section 10:
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
Tuesday, May 5, 2015
How to restore confidence in the banking system?
The National Institute of Standards and Measures was created by the US Treasury to define the gold and silver weight standards. Today, money is based on databases and contracts, so is it time for a standard?
A public standard describing monetary transactions defines the security and integrity of the information. It allows an audit trail that can be compiled between institutions.
From a monetary science perspective, the standard encourages liquidity and velocity of money. The cost of transactions decreases, due to its efficiency and removal of ambiguity (intentional or otherwise). With greater efficiency and transparency, trust can be restored.
The basic format of the proposed standard handles any type of financial transaction, conforms to contract law in all countries, and is readable by anyone.
A public standard describing monetary transactions defines the security and integrity of the information. It allows an audit trail that can be compiled between institutions.
From a monetary science perspective, the standard encourages liquidity and velocity of money. The cost of transactions decreases, due to its efficiency and removal of ambiguity (intentional or otherwise). With greater efficiency and transparency, trust can be restored.
The basic format of the proposed standard handles any type of financial transaction, conforms to contract law in all countries, and is readable by anyone.
Monday, April 27, 2015
How do you "steal" money from a bank?
The most effective way is to add 0's to a database record. No one loses any money, so it is easier to hide.
Depending on your access to the database (and resulting reports), an explanation for the source of money will have to be faked. Faking incoming transfers might be as simple as creating a record in the incoming wire or ACH credit transactions. The amount and frequency should not raise any red flags.
Auditors do not normally check deposits against the sourcing bank or entity. For example, you might have a deposit appear to come from Paypal on an ACH credit. It is highly doubtful the auditor would contact Paypal to verify the deposit.
This could be set up as an automated procedure to simulate an ongoing business of some kind. Be sure to pay your taxes on the "profits".
From the bank's perspective, they are not losing any money and in fact, will see your bank account as beneficial to their "reserves". Assuming you have thought through all relevant possible auditing checks, you could simply spend the account directly and not worry about "laundering" it. Alternatively, you could transfer it slowly into gold or out of the country and retire.
A public specification to describe financial transactions goes a long way to solving this problem.
Depending on your access to the database (and resulting reports), an explanation for the source of money will have to be faked. Faking incoming transfers might be as simple as creating a record in the incoming wire or ACH credit transactions. The amount and frequency should not raise any red flags.
Auditors do not normally check deposits against the sourcing bank or entity. For example, you might have a deposit appear to come from Paypal on an ACH credit. It is highly doubtful the auditor would contact Paypal to verify the deposit.
This could be set up as an automated procedure to simulate an ongoing business of some kind. Be sure to pay your taxes on the "profits".
From the bank's perspective, they are not losing any money and in fact, will see your bank account as beneficial to their "reserves". Assuming you have thought through all relevant possible auditing checks, you could simply spend the account directly and not worry about "laundering" it. Alternatively, you could transfer it slowly into gold or out of the country and retire.
A public specification to describe financial transactions goes a long way to solving this problem.
Wednesday, April 8, 2015
What if?
The Bank of Thailand stopped accepting digital baht as settlement internationally?
That could lead to an "external currency" and an "internal currency". The neighboring countries might handle the "exchanges".
If prices are stable internally, how do you make sure the rice farmer receives the same price on exports?
That could lead to an "external currency" and an "internal currency". The neighboring countries might handle the "exchanges".
If prices are stable internally, how do you make sure the rice farmer receives the same price on exports?
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