A banking protocol.

The financial system is composed of a series of broken promises going back to treaties and trust funds.  Modern central banks were deliberately designed as a financial slavery system about 150 years ago, although it existed in other forms prior to that.  What is the solution?

A banking protocol.  I spent 8 years studying law, finance, banking, monetary science, and history and reverse-engineered the concept of money into its constituent parts.  Then arrived at a solution.

All financial transactions can be described as:
- one promise for another
- did each side deliver?

The above describes the basics of what I call “Promise Language”.   Please see the attached diagram:

While this appears simple (and it is), adoption of this protocol would fix the economy and world financial system within a few months.  Due to unraveling the treaties and trust funds’ broken promises, it would end warfare as well.  The protocol can be started anywhere and due to its simplicity and cutting transaction costs, it would be adopted rapidly.

Here is an abbreviated example.  For a more detailed specification, please contact me.

[transaction]
    [promise]
        [promissor]
            John Doe
        [/promissor]
        [promisee]
            Jane Doe
        [/promisee]
        [description]
            One stick of gum
        [/description]
        [date promised]
            2/8/2013  10:00am
        [/date promised]
    [/promise]
    [promise]
        [promissor]
            Jane Doe
        [/promissor]
        [promisee]
            John Doe
        [/promisee]
        [description]
            USD $1
        [/description]
        [date promised]
            2/8/2013  10:00am
        [/date promised]
    [/promise]
[/transaction]

Sincerely,
Andrew Bransford Brown
+1 917 653 7781
andrewbb@gmail.com


The protocol is currency agnostic.  Currencies can be designed to be backed by tangible value such as gold, silver, land, manufacturing output, rice output, wheat, natural resources, etc.

The protocol eliminates usury (charging a fee for a transactional medium), but allows interest when borrowing capital.

The protocol makes money supply important from the economies of scale of a currency, but unimportant to an individual.

The protocol allows an individual to become their own central bank, but this is unlikely due to the economies of scale of a national currency.

Each currency is a reflection of the culture of the country.

It eases the micro-management required in daily central bank operations.  Design of the currency becomes paramount.  For instance, if the US took the total currency in circulation and pegged it to the value of all real good manufactured exports, including processed food, the currency will gain value in direct relation to the real value of exports.  As exports increase, the value of the currency increases thereby lowering the cost of imports.  This happens automatically without daily intervention and manipulation of money supply or interest rates.