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.

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.

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.