Update to the data structure

Someone suggested to break the units and denomination into two 'events'.  So, we would have:

I Offer 100
My Offer-units $
My Terms 'plane ticket to BKK'
His Terms 150
My Offer 130
He Agrees.

So, the data structure has 6 columns:
EventID (GUID or similar)
TransactionID (GUID or similar)
EventType (text)
CommerceID (user defined)
Description (text)
TimeStamp (date time)

Federal Reserve meeting 2017/1/16 10 AM Transcript.

https://www.facebook.com/federalreserve/posts/1213283372082986?comment_id=1214206138657376

Andrew Brown Monday 10:00 AM: Andrew Bransford Brown will explain how to a) Retire the national debt, and b) finance infrastructure/economic projects. Lakeland, Florida.

Like · Reply · January 14 at 1:47pm

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Andrew Brown I don't believe in holidays. This will continue every day of the week until a formal announcement is made on television.

Like · Reply · January 14 at 1:48pm

Andrew Brown I'll preface this by saying: Contrary to popular belief, USD is an "asset-based currency".

Like · Reply · January 14 at 2:09pm

Andrew Brown Sorry for the late start. Someone did not want this meeting to begin at all and took extraordinary steps to prevent me from being here.

Like · Reply · 1 hr

Andrew Brown USD is an "asset-based currency":
Treasury bonds, notes, and bills are a debt from the perspective of the Treasury, Congress, and general population of the United States, however, they are an asset to those who own them. The obligation is a structural component of the trust and faith of the US Government and is a core basis of the US dollar's value. Currently, income taxes are collected to maintain those obligations.

Like · Reply · 1 hr

Andrew Brown Questions and comments are welcome at any time.

Like · Reply · 1 hr

Andrew Brown USD is issued in when the Treasury creates new debt securities (bonds, notes, and bills). Since those are technically assets, USD is an asset-based currency. In 2008, rules were changed that allow the FED to issue USD in exchange for non-Treasury issued assets called Collateralized Debt Objections (CDO's). Both can be called "debt-assets", because they represent the future income-stream of interest and principal payments. Can USD be issued against other assets that are not time-based income streams (debts)? Yes.

Like · Reply · 1 hr

Andrew Brown *Obligations

Like · Reply · 1 hr

Andrew Brown How to retire the national debt?
Is there a way to uphold the obligation and satisfy it, while eliminating tax liability? The answer is yes, and requires the introduction of a negotiable debt instrument known as a Federal Credit Receipt (FCR). The FCR represents the Treasury bonds, notes, and bills owed to a particular person or entity, removed from the secondary market, and held in custody at the Treasury. The FCR represents has no interest rate attached and ensures it is without encumbrances. The FCR is created when the Treasury debt is voluntarily placed into custody at the Treasury and retired. The FCR can then be negotiated for another asset deemed of benefit to the economy or infrastructure.

Like · Reply · 1 hr

Andrew Brown *The FCR has no interest rate attached and ensures it is without encumbrances.

Like · Reply · 1 hr

Andrew Brown My apologies, some of my prepared material was sabotaged.

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Andrew Brown Infrastructure and improving the economy:
Each FCR is individually negotiated between the debt-owner and a transjurisdictional commission, to include the Federal Reserve, Treasury, Congress, State legislature, and local authorities (County Commission and City Council, for example). If the FCR is not redeemed for another asset within 1 year, a new Treasury bond is issued.

Like · Reply · 1 hr

Andrew Brown Financing and/or money supply:
The FCR can either be used as collateral for a loan, or the Federal Reserve can issue currency against the FCR and/or asset(s) the FCR purchases. The purchased asset(s) might be land, corporation, derivative representing the income-stream, or other derivative representing an asset delivered over time.

Like · Reply · 1 hr

Andrew Brown The above plan provides each State with up to $1,000,000,000,000 (trillion) to build infrastructure or improve the economy. Potential projects might include high-speed rail, driverless-car cities, intra-state stock markets, remediation and improvements, etc.

Like · Reply · 59 mins

Andrew Brown I'll wait for questions/comments here.

For those familiar with the Promesa Act, one will see similarities with a more distributed, transparent, and accountable structure.

Federal Credit Receipt (FCR)

A plan to retire the national debt & turn it into a spendable asset

Summary
The national debt is voluntarily (one bond-owner at a time) placed into custody at the US Treasury and a local committee is created to decide how to spend that money for the benefit of the economy.

A “Federal Credit Receipt” (FCR) represents the Treasury bond obligation, after it is freed from all encumbrances and registered at the Treasury Department.  A “Credit Review Commission” (CRC) is created by the State legislature to decide how that money is disbursed.

This is a plan to distribute the monetary authority that has centralized in DC and NYC.  It delegates monetary power to the States while retaining Federal oversight.  Existing markets remain intact and an outlet is provided to retire the debt.  The national debt can be negotiated and its income-stream swapped (debt-to-equity swap), reducing the tax liability while respecting the obligation.

The national debt can be retired in an orderly and voluntary manner while distributing up to $1 trillion in spendable assets to each State.  Federal government obligations and credit are maintained.  As the $19 trillion becomes spendable by the States, the Federal budget and deficit can be reduced.

Goals
• Retire the national debt safely and voluntarily.
• Maintain the full faith and credit of the United States Government.
• Re-build the infrastructure and economy.
• Provide up to $1 Trillion in spendable assets to all 50 States.
• Support the military's need for financing and provide currency-defense.

Problems
All money originates in Washington DC, forcing the States to ask for money from Congress.  DC frequently places strings on that money without legal jurisdiction or authority.  The primary fee source of NYC’s capital market is the daily rollover of the expiring debt.

Unless State taxes have pooled pockets of money within the State, all new money is requested through either DC or NYC.

The budget of the United States is financed through tax revenue and debt.  The ratio is about 1/3 new debt and 2/3 tax revenue.  The debt payments are interest-only with up to a 30 year balloon.  The debt-owners are in a powerful position because they own the future revenue stream of the tax payers.

Existing debt-owners are selling their T-bonds at their sole discretion and purchasing other assets denominated in USD.  The military requires a stable source of financing, so Treasuries cannot be negotiated.  Selling debt for USD is an uncontrolled source of inflation and is a threat to the currency.

For example, China selling bonds for USD and purchasing assets is a risk that the United States should not be willing to accept.  China can be allowed to swap bonds for other assets as determined by the State legislature.

Solution
1. A “Federal Credit Receipt” (FCR) is created by the US Treasury to represent the obligation of the Treasury bonds, notes, and bills.  The FCR is created when the debt obligation becomes unencumbered and separated from the markets.  The FCR is effectively a Treasury bond with "clear title" and in the custody of the US Treasury.

The FCR expires in 1 year.  If the FCR has not been redeemed for another asset within that time, the US Treasury can re-issue a 30 year bond to satisfy the obligation.

2. To process the FCR's creation, a new division at the US Treasury is created, called a “Credit Assurance Bureau” (CAB).  The CAB processes each debt instrument, ensures it is not being used as collateral, removes the interest rate obligation, and verifies its ownership.  The CAB maintains the records of the FCR, records its rightful owner, and holds the debt obligation in custody of the US Treasury.

3. Redemption of the FCR is performed by a multi-jurisdictional Commission as delegated by the State legislature.  An example might be a “Credit Review Commission” (CRC) created by the Texas state legislature as inclusive of representatives from the US Treasury, the Federal Reserve Dallas branch, Texas State Treasury, and County and/or City government agencies.  The legislation should specify that all redemptions must be "for the benefit of the local economy".  The CRC is comprised of many different people in different jurisdictions and they collectively decide how the income-stream is swapped on the obligation.  Due to the public nature of the national debt, decisions must go through committee, rather than individual control by the owner of the debt.

Pilot program
The Social Security Administration turns in some Bonds to the US Treasury for an FCR.  Texas' CRC decides to redeem that FCR for ownership in a Texas Stock Market in San Antonio.  SSA receives an income-producing asset, the debt obligation is retired, and Texas' economy is improved through more efficient capital distribution.

This also prepares Texas as a potential financial center for processing $200 Trillion in world-wide debt instruments.  A “Credit Receipt” would be a more generalized version of the FCR described above.

About me
Andrew B. Brown has a degree in Accounting from UT Austin, 20+ years of IT and executive experience including VP of a software company, managed the IT department of a Medicaid healthcare plan in Arizona, and most recently worked at Morgan Stanley as a lead software architect.  Mr. Brown has also managed ad valorem taxes for Bank One's REO department, originated mortgage loans for sale to Wall Street, and has 10+ years of professional trading experience while holding SEC Series 7, 63, 55 licenses.


The above is a brief overview and I'd like the opportunity to explore the details of how this can work to fix the US economy and rebuild its infrastructure.  As the legislation covers more than one jurisdiction, it could be summarized as the "Robin Hood legislation", as it places monetary decisions in the hands of the local population.

Andrew B. Brown
(512) 947-8282
andrewbb@gmail.com

Lawyers disbarred

While the trend is up, the quantity does appear lower than what might otherwise be expected.

Contract Scripting Language (CSL)

Scenario:

Andrew has $20 Dollars and wants Lasagna.
Christine has Lasagna and wants $25 Dollars.


Contract script:

Andrew         Offer           $20
Andrew         Terms           Lasagna

Christine      Terms           $25

Andrew         Accept
Computer       Notice          "This is a legal binding contract."

Christine      Deliver         Lasagna
Andrew         Deliver         $25
Computer       Notice          "Contract complete."

Computer is performing as the lawyer above. This introduces the idea of Computer as a legal entity. You could create a contract between a Computer and a Human with specific Terms, such as the Human must keep the computer running and the Computer must keep the ledger.


Example of a 3-party equilateral contract

Scenario:

Andrew has Dollars and wants Yen.
Matthew has British Pounds and wants Dollars.
Since we have non-matching value, we advertise on Bank of England's book and also market it on Forex.
Bank of Japan sees the opportunity and translates the value.

Contract script:

CommerceID     EventType       Description
Andrew         Offer           2,000 USD
Andrew         Terms           200,000 JPY
Computer       Notice          "This is a legal offer from Andrew."

Matthew        Offer           1,500 GBP
Matthew        Terms           2,000 USD
Computer       Notice          "This is a legal offer from Matthew."

Andrew         Terms           210,000 JPY
Andrew         Counter
Computer       Notice          "Terms-value change from Andrew."

Matthew        Terms-Advertise Bank of England
Matthew        Counter
Computer       Notice          "Terms-Advertise change from Matthew."

Andrew         Terms-Advertise Forex
Andrew         Terms-Advertise Bank of England
Andrew         Counter
Computer       Notice          "Terms-Advertise change from Andrew."

Matthew        Accept
Computer       Notice          "This is a 2-party legal offer."

Bank of Japan  Offer           210,000 JPY
Bank of Japan  Terms           1,500 GBP
Computer       Notice          "This is a 3-party equilateral contract between Andrew, Matthew, and Bank of Japan."

Andrew         Deliver         2,000 USD
Matthew        Deliver         1,500 GBP
Bank of Japan  Deliver         210,000 JPY

Andrew         Complete
Matthew        Complete
Bank of Japan  Complete

Computer       Notice          "Contract complete"

This is a 3-party contract and can be used to settle currencies or for barter.

Monetary history

Treasury Bonds were invented in the 1860's for the purpose of placing America into debt. The inventors of T-bonds were bankers in England who designed the system to force the "slaves to feed and house themselves, without them realizing they were slaves". (I can't find those letters on the internet any more; I read them ~10 years ago.)

1907 Bank Panic
1908 Titanic commissioned
1912 Titanic sank (by-passing immigration)
1913 Income Tax Amendment
1913 Seventeenth Amendment - Popular Election of Senators
1913 Federal Reserve Act
1914 WW I

A permanent segregation was built into the legislation: bond-payers and bond-owners.

Debt is a means to an end.  It keeps the population working while title to land and businesses is transferred among the bond-owners.

The blockchain defined in plain language

The blockchain is a list of Bitcoin transfers, synchronized on 6000+ computers.  Each Bitcoin transfer consists of an amount, time it was transferred, who it was from and to, and a description.

The blockchain is a half-ledger, because it doesn't show what was purchased.

Since the description is only 40 characters, most companies store a reference # on the blockchain referring to data stored on their own computers.

How to retire the national debt

1. Create a "Credit Assurance Bureau" at the US Treasury to take custody of the T-bonds (one bond at a time and at the owner's discretion).

2. As the US Treasury takes custody of the debt, a "Federal Credit Receipt" (FCR) is created to represent the obligation, verify ownership, and make sure it is free of all encumbrances (clear title).

3. Each State creates a "Credit Review Commission" to oversee the assets' distribution for the benefit of the local economy.

Example: Social Security Administration turns in a few of their T-bonds to the US Treasury and receives an FCR.  That FCR is redeemed for shares in a Texas Agricultural/Commodities Market in Amarillo.

I have presented it to both Texas Senators' Regional Directors here in Austin (John Cornyn and Ted Cruz).  They have forwarded the plan to DC.  This will bring up to $1 trillion to each State.  Texas could become the clearing house for the $200 trillion global debt market, as well.

Puerto Rico's debt crisis

If Puerto Rico had had a "Credit Receipt" option, then Templeton & Oppenheimer might have turned in their bonds to the US Treasury. Once the Treasury verified the bonds were free of all encumbrances and verified ownership, the asset would be registered. The obligation rests with the PR government, as expressed through the inhabitants' organization. The right is in custody of the Treasury and terms can be negotiated.

Turning the national debt into a spendable asset

The Robin Hood legislation is designed to retire Treasury bonds and redeem them for other assets via a "Federal Credit Receipt" (FCR).  The redemption goes through channels (State & local Commissions), rather than financial predators swapping assets for USD and creating inflation.

The legislation has 3 parts:

1. State legislation to create a "Credit Review Commission" as part of the State Treasury.

2. Federal legislation to define a "Federal Credit Receipt" and a division of the US Treasury.

3. Constitutional Amendment separating money creation from Federal authority.

The good:

- $19 trillion to spend on the economy and infrastructure

- Provide an outlet for retiring the national debt

- Maintains the bond and derivatives market

- Prevents inflation and allows Treasury and Federal Reserve oversight

- Protects against financial predators

- Maintains the value of the dollar

- Creates jobs around the country

- Supports the military's need for financing

The bad:

- facing the psychological denial of being in debt

The "Credit Receipt" applies to all debt instruments, so $200+ trillion.  This would work to solve Puerto Rico's recent debt crisis.  I am hoping Texas can catch up as it can become a clearing house for $200 trillion as we transition from debt-based currencies on planet earth.  We are currently in a slow-motion Venezuelan Bolivar situation, and I am trying to warn and provide the solution.