The Economic and Financial Systems are labeled as parallel systems because they are not ultimately based on traditional economic or financial modelsi. They are however, designed to full function within the parameters of the current economic and financial systems. It is still important that all of the business interests generate a sufficient level of positive proceeds to pay for operations, and enough profit to provide for a division of funds between the innovator/inventor/owner and the foundation is generally beneficial if the innovators are going to be persuaded to maintain operations within the community developments. This however, is generally little more than “haggling over price” for want of a better term. Given the extended markets that will become available, it is not difficult to imagine that even a smaller profit margin would allow most developers and innovators to make sufficient levels of income so as to give them the incentive they need to work in a cooperative fashion.
The majority of the proceeds from the corporations will be placed in trade to fund the utilities, public services, healthcare and other benefits for the people. In this way, the innovators/inventors/developers still retain a viable and meaningful portion of everything that they produce, the burden on the taxpayer is greatly reduced as the funding comes from sources other than exorbitant and oppressive tax schedules. Those who wish to form their own corporations in the more traditional model are also free to do soii. These private corporate entities however, will not be funded by the Community Development as the community is effectively investing in its own future in the same way as any family would.
As is the case with whatever the governing body may be, the people must ultimately have the right to and the responsibility of keeping the governing body in check. While this is a challenging prospect on the best of days, it will be made even more complicated by the complex and private nature of the trades and how these financial and economic systems work. The people who are involved with the economic and financial structuring are numerous, but like so many other aspects of this rather grandiose venture, they are not going to sit down to finalize everything until such a time as the funding has been released and their families and personal needs can be provided for in full … in short, until they get well (and justly and rightly) compensated for their time.
If there is any real benefit, it is that the vast majority of the economic and financial experts working within this realm have both the knowledge and necessary experience to maneuver in this shadowy realm. Should the economists and financial controllers (for want of a better word) be kept separate and apart from the governing body? Who or what would be capable to mandate what can and cannot be done with the economic and financial system? How is such a system going to be introduced without the ability for those controlling the economic and financial system being able to abuse that system or use it to amass power and control over the people? All of these are issues that need to be addressed as historically they have almost always proven to be the bane of societies and one of, if not the leading cause of the degradation and/or destruction of the society?
These will be isolated economic and financial systems as they are, at present anyhow, only used in certain areas where ... we can suffice it to say that economic and financial growth and development are not the primary factors. Though they are used for many projects wherein large amounts of (off-ledger) funding are needed, these investment opportunities are largely restricted and kept from the general population, not least because of their complex nature and the scarcity of end-buyersiii. The reason that these systems must be isolated is to prevent any instability in the current global economic and financial markets. Such a “shock” to the existing, exceedingly fragile systems would risk far more than an economic collapse and would ultimately lead to a global war that would leave the very same system in place at the end of the day, starting over from the beginning and leaving those that survived such an event, trapped in effectively the same system in place now.
Furthermore, a largely complete isolation of these systems will allow them to be utilized in conjunction with growth, further strengthening the economies and providing for a value-based economic and financial model. Granted, it would still require economic growth to expand, but should be wholly sustainable even with minimal growth occurring. This brings up an interesting point wherein the proceeds from the trade must be utilized for humanitarian purposes. Current regulations require a minimum of seventy percent of all proceeds to be used for humanitarian purposes. As such, the proceeds from these trades will be utilized by and large to stimulate growth directly through research, technology, development, housing, agricultural security, medical and health care and treatment ... and if that is all starting to sound a bit familiar to any of the readers, it helps to formulate a picture of how this economic and financial model creates its own looped system that allows for economic stability even in times of minimal economic and financial growth.
Perhaps most important, finally, and perhaps the biggest reason for having isolated economic and financial systems is the ability to fully integrate and perfect them. It is not unfathomable that there will come a day in the very near future when people are no longer required to labor. What will become of the human race? Ideally, a society will be created wherein people will not have to work but will still be encouraged and rewarded for pursuing the betterment of society. At such a time as it is ready, the world will see it and then the concept can be introduced globally without upsetting balances or starting wars.
This system is, in some ways, much the same as the Central Banking System that is already in place. Among the primary differences are the fact that the current central banking system is based on debt. A debt-based economic system depends on increased debt for growth every bit as much as it does for Gross Domestic Product (GDP) and/or Gross National Product (GNP). Whereas the current central banking system relies on debt, it also utilizes a system of “fiat currency” or currency backed by nothing more than the “faith and good credit” ... try that one at the local store and see how much can be purchased.
The economic and financial systems of the community developments are all asset-backed and/or value based, including gold and other commodities and/or asset-backed (or other) securities. The currency, like the economic and financial systems will be asset backed. While the assessed value of the actual assets will never change, the values of the currencies may change based on growth or a lack thereofiv. Since the proceeds from the trade ... or at least seventy to eighty percent of them, will directly fund growth and GDP and GNP, normal growth should remain constant. The funding of new and additional projects will only see the introduction of more physical growth ... based on infrastructural physical growth (and the creation of jobs) as opposed to debt.
The electronic or digital economic growth as occurs off-ledger, can then be utilized as a reserve for future physical growth and development. It is a very difficult concept to understand, and even more difficult to impart, made even more difficult by the fact that so much of the information regarding this system is so sensitive and secretive in nature. At the end of the day, when this system is fully implemented properly, the more money that is given away, the more money is earned. As long as the money coming out contributes to growth, the physical economic and financial systems (on-ledger) can remain relatively constant while the majority of the growth is off-ledger. An economic and financial bridge is built between the digital and the physical to allow for any and all transfer to the physical to be transferred only in conjunction with growth, thus, the physical system maintains economic sustainabilityv.
Such a system can be utilized for the purposes of decreasing the existing parity between international, “independent” national and local economies and financial systems. It can also be used to stabilize market values and prevent “pricing people out” of markets for necessary goods and services. The system can be used to ensure that all of the people of the world (and beyond at such a time as that day arrives) are provided with the basic necessities of life without putting any undue strain on the producers or the contributing members of society. All of this can be accomplished without the need for bloated and inefficient bureaucracies that utilize more of the economic system to “feed themselves” than they are able to distribute to those most in need and to provide each and every person with a viable and meaningful education in areas that relate to their personal skills, abilities and interests.
Furthermore, it can even be used to reward those who do wish to contribute to the betterment of society without punishing them further, thus providing very real and meaningful incentives to improve one’s own life by contributing to society as a whole. The creation of a “Dependency Class” wholly dependent on the proverbial “powers that be” has led this world to the point it as at now, and that system is most definitely broken and in need of being changed. The only question remaining is who exactly will change it?
The only two choices are the system we live under now, with the same people that put this world into the current social, environmental and economic and financial mess to begin with, or the introduction of a new paradigm that provides for the basic necessities for all people equally.
Even when such a system is created however, it is imperative that those in charge of that society be held to account by the people directly, be it through the citizens, teams of experts in their own areas of expertise or by the governing body itself? The ideal solution seems to be the creation of an entirely new system that provides a direct voice for the above and a means to implement such solutions as are introduced into that system providing a manageable, balanced bridge between digital and physical growth.
i The Economic and Financial Models being utilized for the funding of the Community Developments utilize a value-based market. The trade platforms that are discussed are by invitation only and are utilized for very large-scale, trade investments. The systems themselves are somewhat complicated in nature and a lot of the information is not anything that will ever be shared outside of the private organizations and private members who do have their invitations. The performance of these private trade platforms is already impressive but will be further enhanced by utilizing seventy to eighty percent of the funds generated from the trade platforms to enhance growth including GDP for the community developments. As the physical assets of the community developments increase, these will be monetized, the accounts blocked and the funds traded. This is the model that will be utilized to ensure economic and financial sustainability and how it works that so much can be “given away” in the form of benefits without bankrupting the system. While it is not exactly a closed-loop system, it is mostly isolated, but not separate from the global economy, thus, a parallel system.
ii Those who wish to form their own corporate entities in more traditional models will be allowed to do so, but likely not within the confines of the Community Developments and certainly not to be funded by them. The purpose of the investment of the community development into corporate entities is specifically to fund the community. The community itself effectively becomes the majority shareholder with this action undertaken by the foundation and under the terms and conditions as established by the foundation for the benefit of the community. Even in the community developments however, the overall division of profits for the original founders of the corporate entity should not differ greatly from that which exists in the more traditional models. If anything, the reduced tax rates and the expanded marketing platform should help to increase the profit margins of the more entrepreneurial type individuals and to allow for the working class and middle class people to keep more of what they earn.
iii Economic and Financial Growth are not currently the primary focus of these trade platforms. The only time such issues even arise is generally with large-scale projects as evidenced by Jane’s Defense Weekly and other annals that track large scale contractors for ... more discreet projects such as the underground cities throughout Colorado and surrounding states, the now, mostly limited projects at the very well-known Area 51 and the underground city on the Arkansas/Missouri border. Yes, these projects are all classified, but also far enough out in the public domain to be able to be addressed without concern for recrimination. There are substantially more projects that are not currently in the public realm and will not be discussed anywhere, much less here.
iv The “perceived” value of gold has not seriously altered or radically changed since currency was removed from the gold standard. Rather, the value of currency has fluctuated, resulting in what appears to be a fluctuating value for the asset … gold in this case. When the gold standard was ended, it was possible to purchase two nicely tailored suits for the value of a troy ounce of gold. Today, it is possible to purchase two nicely tailored suits for the value of a troy ounce of gold. Granted, this is an over-simplified view, but accurately reflects the fact that the actual value of the assets have not actually changed. Economics and finance are far too complex to fully explain in a single book.
v Physical Currency is not limited only to on-ledger banking or accounting. There is also some concern that all currency will soon be “digital” in nature through services like BitCoin and HiCoin and others but physical currency ... what is commonly (though mistakenly) known as cash, will always have a place in society, even if it is electronic in format. Furthermore, there will always be cash reserves in the event of a complete breakdown of the grid. Sadly perhaps, tomes could be written regarding these matters of advanced economics and finance but still, most people would not even be interested. At the end of the day, what is most important, is to ensure economic and financial stability for all of the people and to provide for a system that is economically sustainable for true economic freedom.
Let us know what you think please!