BE1021531B1 - TARGETED OBJECTIVE COMPLEMENTARY CURRENCY - Google Patents

Abstract

The present invention relates to a production article for use as a currency, comprising: A) a representation proof of a value quantity as a currency quantity; B) a mechanism integrated with the representation evidence to substantiate a value of the currency with an underlying asset of net asset value linked to the currency quantity; and C) a mechanism for identifying that part of the value of the currency is destined for at least one of a predetermined container and object. The present invention also relates to a related financial instrument, a related method of preventing fluctuations in the value of tangible currency or an intangible evidence of such tangible currency or of intangible currency, and a related automated banking system.

Description

TARGETED OBJECTIVE COMPLEMENTARY CURRENCY Field of the invention

This invention relates to banking systems, and in particular, to a free market currency where the monetary value is defined by the holder, and to one or more complementary currencies that have corresponding socially responsible objectives.

BACKGROUND OF THE INVENTION

The current state of the art in monetary system, is fiat money with fractional reserve. The objective value of this currency is determined by law, which means that it is referred to as fiat money. Only a fraction of the intrinsic objective value of fiat money is determined by gold, the rest is supported by government and private debts and other assets, which usually have no objective, intrinsic value, making the subjective market value of the current fiat money volatile and can fluctuate inconsistently within different branches of the economy. This is the main cause of monetary instability, such as inflation and deflation or disinflation, causing economic crises.

Complementary currencies for existing fiat money also exist, but such complementary currencies do not safeguard economic value over time and therefore risk losing value, their main objective disadvantage. However, such complementary currencies each serve their own specific social or ecological purpose, and this is their greatest subjective advantage. The subjective value that such complementary currencies support may not be economic, but moral, such as in the value 'informal care' or 'rain forest protection'. Since such complementary currencies do not securely store value, they are not trusted to store capital. Therefore, social or environmental issues are currently mainly supported by government measures or charity. However, public funding decreases when public funding is at risk and only fully capitalized entities contribute substantially to charity, which causes the main objection of the current wealth-sharing system. If saving - i.e., the safe storage of value over time - could be made while supporting moral values, more resources would flow to such moral values.

Consequently, there is a need for one or more socially responsible complementary currencies that securely store value over time while supporting socially responsible or moral objectives.

Summary of the invention

Subjective values are firstly subjective moral ideas, such as gratitude for economic value, before they become objective categories. Economic objective value is only one dimension of moral value, other dimensions are, for example, social value and ecological or religious value. Value then comes in different tastes and colors, so also, as presented here, different forms of complementary currencies are associated with value money, each with a different socially responsible objective and each characterized by different colors and / or the look and feel.

Value Money, that is money that is supported by, supported by or that represents the value of equity as described herein, is referred to herein as Blue Money. Blue Money has objective, intrinsic and stable economic value.

To protect the different types of complementary currencies presented herein against loss of value, due to monetary effects such as inflation in the dominant fiat currency or as a result of an ineffective structural set-up, these complementary currencies are linked to Value Money, which means that the value is secure and reliable for saving purposes. The structure of such a coupling and effective arrangement and the practical application are described herein. Currency that stores securely and therefore supports economic value is referred to herein as Value Money or Blue Money. Currency that supports social value and is linked to Blue Money and, as well as being set correctly, is referred to herein as Red Money. Currency that supports an ecological or non-secular value and is linked to Blue Money and, as well as being set correctly, is referred to herein as Green Money.

Through the implementation and use of money in three dimensions: economic (blue), social (red) and ecological or non-secular (green), people are able to save their created value while contributing to their social or moral value of choice. The tax money spent on these values can therefore be reduced while private spending takes over, releasing government budgets to reduce debt and to solve the current financial and sovereign debt crisis.

According to an aspect of the invention, a production item for use as a complementary currency for a primary value currency comprises: A) a proof of a value amount as an amount of complementary currency; B) a link to an underlying primary currency with an intrinsic value associated with the amount of complementary currency; and C) a mechanism for exchanging the value of the complementary currency with the underlying primary currency. In embodiments, the exchange mechanism also includes a selectively configurable electronic device or chip associated with the currency, a traceable computer address embedded in the proof of representation of the currency. In other embodiments, the complementary currency may include currencies specifically intended to support the social, ecological, or religious objectives.

According to another aspect of the invention, a method for handling the exchange of goods ok / services comprises: A) providing an amount of goods or services with which a value is associated, B) providing an amount of complementary currency with which an assigned value is associated, the complementary currency further comprising a mechanism for the exchange value of the complementary currency with an associated primary currency with an intrinsic value associated with the amount of primary currency; and C) exchanging the amount of goods or services for the substantiated amount of primary currency. In one embodiment, the method further comprises: D) verifying whether the traded value of the complementary currency is substantially similar to the net asset value associated with the asset base of the primary currency. In one embodiment, the complementary currency may include currencies specifically intended to support social (red), ecological, or religious (green) objectives.

According to yet another invention, a method for preventing fluctuations in the value of complementary currency comprises: A) providing a representation of an amount of complementary currency having a numerical or nominal value; B) maintaining the value of the amount of complementary currency with an associated amount of primary currency, the amount of complementary currency being a certificate of the net asset value associated with the asset base of the primary currency; and C) defining one or more assets or entities to which the revenues from the complementary currency must be directed during the period in which the complementary currency is in possession or at the time of the exchange. In one embodiment, the defined assets to which the revenue from the complementary currency is directed may include one or more social purposes; including, but not limited to, socially conscious goals such as: care for the elderly, childcare, care for specific diseases, general illness care, homeless care, education, etc. In another embodiment, the defined assets to which the revenue from the complementary currency is directed may be one or include more ecological or religious / non-secular objectives, including but not limited to, buying rainforest, buying ocean, buying fish quotas, buying C02 certificates, buying or building churches, etc.

Description of the drawings

Figure IA theoretically illustrates the relationship between physical goods and / or intangible services, the new complementary value currency described herein and the equity portfolio that underpins such new complementary currency;

Figure 1B illustrates conceptually the relationship between physical goods and / or intangible services, the objective objective complementary currency described herein, the value currency and share portfolio in support of such value currency.

Figure 2 shows conceptually a network environment in which the value bank system can be implemented;

Figure 3 illustrates theoretically a system architecture, respectively where the system described herein can be implemented;

Figure 4A-B illustrates conceptual data structures that are useful in implementing the new complementary currency and the free market banking system in accordance with the invention;

Figures 5A-C conceptually illustrate the relationship between complementary currencies and assets with an objective value in accordance with the invention;

Figures 6A-C illustrate a conceptual diagram of the transactional flow between money and public value inventory as well as loans and savings certificates according to the invention.

Figure 7 is a conceptual diagram for illustrating the transactional flow between money and value of the balance of the central value bank of the value bank system in accordance with the invention;

Figure 8 conceptually shows a flow chart of a safety margin algorithm where the selection of Value inventory by the central value Bank in the value bank system described herein can be applied, and Figure 9 conceptually illustrates a flow chart showing the process for creating and reclaiming the value of a targeted objective complementary currency in accordance with this explanation, and Figure 10 conceptually illustrates a data structure useful in the implementation of a targeted objective complementary currency in accordance with the invention.

Detailed description

Selected terms and expressions as used herein have the following meanings:

Financial Crisis - A crisis caused by the financial system or the banking system, such as a recession or depression. The Great Depression of the 1930s, as well as the current financial crisis, are constitutive or inductive examples that shape the concept of a financial crisis. Monetary Confusion - The confusion between the variation of the value of a good and the variation of the value of money used to express the value of the good, as its price.

Free Market Banking System - a free market Banking System is a banking system in which interest on savings and loans are freely determined by the market without government intervention and where money can compete freely to become the (most popular or most common) currency.

Money and Currency - Money is a means of storing and exchanging value, making exchange possible within a community in the absence of the actual goods involved in the exchange. Money that is used actively and smoothly in a community becomes a Currency (also called a "currency"). Money is used individually by people to hold value over time and is used together by a community, as a Currency, to exchange Value.

Value Certificate - Value Certificates consist of electronic, paper, metal or other evidence of the right to value, usually the right to participate in the partial or full liquidation of the assets held on the active side of a balance sheet, with the liabilities of that balance sheet consist of those value Certificates.

Certificate Money - Certificate Money consists of value certificates, which are used individually as money to store value over time and are used together by a community, as Currency, to exchange value.

Value Banking System - A Value Banking System is a banking system in which the money consists of securities backed by the value reserve.

The value inventory - The value inventory is the equity stock in an enterprise (an entrepreneurship activity with the aim of creating value) that has the maximum safety margin between the objective net asset value and the subjective market price.

Metal Money - Metal Money is made of metal. The metal can actively deliver the real value to the monetary value or can simply be proof of it, such as Money Certificate.

Physical gold money - Non-certificate Metal Money, where the metal is gold.

Gold Certificate money - Certificate Money, where gold is the asset on the active side of the balance sheet, of which the Value Certificates represent the passive side.

Complementary Currency - A Complementary Currency consists of Certificate Money that is freely used by a community or part of a community, as a currency that runs parallel to the existing Legal Tender.

Legal Tender or Fiat Money - legal tender is the dominant currency of a jurisdiction imposed by law. The law determines the face value of Fiat Money, with the historical consequence that it is the currency of the community dominated by that jurisdiction.

Nominal value - The Nominal Value of the Money Certificate is the objective value determined by the name (in words) and the quantity (in numbers) shown on the Money Certificate. The name and number can also be united in a figure, as the face of the publisher (or someone else chosen by the publisher).

Complementary Value Currency - a complementary value Currency is a complementary currency that consists of Value Money.

Value Money or Currency - Value Money or a value Currency consists of Certificate Money that is proof of participation in assets with an intrinsic value that have been obtained by applying a safety margin.

Intrinsic Value - intrinsic value of an object is the objective value of that object that is logically derived as a necessary characteristic of that language Object, as a result of the definition of that object and a formally and logically correct deductive reasoning.

Safety Margin - A safety margin is the safety margin that exists between the higher Objective Net Asset Value of a good and the lower Subjective Market Price for which that good is acquired.

Object - An object is a mental projection that results in networked neural impulses that is logically and / or numerically consistent interpretable by a subject other than the subject who expressed it in language and / or numbers. Most mental projections are not entirely objective. People tend to believe that there is a residual non-consistency between mental projections in different subjects. The object is therefore a reduction in mental projection, called notion, concept or idea.

Left Brain Consciousness - the left brain consciousness is the consciousness that springs from the entire brain, led by the left prefrontal cortex. Because language (in the vast majority of the human brain) comes from the same left prefrontal cortex, the left hemisphere Consciousness is also defined as Language consciousness or objective consciousness. In language consciousness, the law of non-contradiction is tautologically valid, creating a one-dimensional awareness between a positive confirmation of a language pronouncement and denying it, expressed in the logical formulation of the law of non-contradiction as (+ p) + (- p) = 0.

Subject - A subject is a mental projection that is not (yet) completely logical and / or numerically reducible in objects, without permanent non-consistency or Bivalence. A rough or total Subject contains both conscious and sub-or pre-conscious information about phenomena and therefore also all known objective dimensions. A pure or remaining Subject only contains the remaining non-consistency that is not yet logical and / or numerically Translated into objects. Humans, but also animals, are classical constitutive or inductive examples that shape the concept of a subject, also referred to as a mind or psyche. The word Subject not only means a person or other living entity, it also means the subject of a sentence, but also the subject of a theme of writing or conversation, as in the subject or theme of a scientific discipline, which means the total area of the knowledge of certain phenomena.

Right Brain Awareness - The Right Brain Awareness is the consciousness that springs from the entire brain, led by the right prefrontal cortex. The Right Brain Consciousness integrates empathic phenomena in images and subjects, to induce concepts, to invent ideas or to intuitively visualize meaning as a concept. While the left hemisphere consciousness analytically reduces and differentiates phenomena from all parts of the brain into objects, The Right Hemisphere consciousness intuitively integrates phenomena across the brain into subjects, meaning and meaning.

Value - a subjective image in The Right Brain Consciousness that intuitively shows how much appreciation a subject or person would feel for an action taken (such as a good or favor delivered) by another subject or person.

Knowledge - Knowledge is the name of subjective and / or objective representations of conscious and sub-or pre-conscious information about phenomena.

Science - Science is the collective human effort to analyze or reduce the abstract subject from certain phenomena to differentiated Objects. Individually this mainly comes from the left brain consciousness, but science is the result of a combined, but not necessarily simultaneous, activity of the left and right brain consciousness. Science is made when subjects in the right hemisphere consciousness are reduced to objects in the left hemisphere consciousness, allowing the left hemisphere consciousness to detect contradiction with existing (formal) mementos of the phenomena and new (empirical) phenomena for false knowledge and to further reduce the subject in objects.

Bivalence Bivalence is the objective name I gave to the Subjective concept, understanding or idea of the phenomena that are both subject and object at the same time, because the right brain consciousness and the left brain consciousness exist simultaneously when people are aware of phenomena . Being is basically Bivalent because human consciousness is bivalent because the brain is bilateral. The equivalence of matter and energy in physics is only one, albeit a very convincing example of my subject-object and Left-Right Consciousness Bivalence concept or hypothesis. Transcendence - Transcendence is the objective name given to the Subjective concept, understanding or idea of phenomena that cannot be traced back to objects alone, unless the phenomenon is a purely tautological mental projection or a pure object. A pure suject is irreducible to nothing (unless it is a pure object, but then it is not a subject), that is how it remains its Transcendent for language (and numbers). Remaining measurement inaccuracy is an example of transcendence.

Cult of Symbolic Religion - A cult or symbolic religion is a collective human endeavor to intuitively synthesize phenomena in a (and possibly the) total subject. Individual it stems from the activity of the right hemisphere Consciousness.

Culture - Human culture is the combination of Cult and Science in their pure and mixed forms.

Free Will - Free Will is the objective name given to the Subjective understanding of Transcendence in understanding human behavior. Free Will is defined as the remaining non-consistency, which remains after neurological, psychological, sociological and other objective reductions of the scientific subject of free human behavior.

Free Human Acting - Free Human Acting is the personal result of human free will.

Free Human Action (and free Animal Action) is the pure Subjective source of real change. It is not (yet) deterministly traceable to objective causes of the change, such as heat, mechanical strength, postnatal depression or a lack of dopamine.

Free human action is defined as free human behavior outside the family and between families. One Personal family is eligible as a family.

Economics - Economics is the scientific discipline that seeks to reduce Bivalence in Free Human Action. The subject of economy is free human action, as a result of Free Will. In contrast to psychology, economics does not object Free Will, but only free human actions. Psychology - Psychology is the scientific discipline that focuses on the further reduction of Bivalence in the human subject or psyche itself. The Subject of Psychology is the psyche. The aim is to further objectify and thus reduce the psyche in objects, such as motivation, emotion, sub-conscious and pre-conscious projections and representations, to finally name the remaining subject as free will. That is why free will, in psychology and in economics, remains the remaining inconsistent, non-reducible and therefore transcendent subject.

Motivation - Motivation is the subjective source of immediate action.

Emotion Emotion is the subjective source of future actions.

Anxiety - Anxiety is the objective name for the generalized subjective emotion with a negative valence. Fear is the subjective force against objective change.

Risk - A risk is an Objectified Anxiety, based on objective reality and expressed in language and / or numbers.

Desire - Desire is the objective name for the generalized subjective emotion with a positive valence. Desire is the subjective force for creating change and exposing it to change. Also this word subject, in 'subjects', is the same word Subject or Subject as in the described concept and the definition of Subject and it has the opposite meaning of the word Appeal in 'appeal'.

Good - The adjective Good is used in a certain sense, not as a subjective assessment of value, but as an objective adjective that indicates which specific character of the noun contributes to an evolutionary fitness of the human species to survive. Complementary Value Money - has an objective structure that has the same structure that has contributed to humanity's ability to survive: objectively dealing with fear. Therefore, it will probably also contribute to the further suitability of humanity for survival. That is why it is called Value Money, instead of good money.

Figure IA illustrates conceptually the relationship between physical goods and / or intangible services, the new complementary currency described herein and the equity portfolio in support of their new complementary currency. In the illustrative embodiment, the new complementary currency can be issued in the form of a certificate for value shares. A central value bank issues the complementary currency as a listed certificate of shares of its own equity investment fund. The depository receipts for shares of the complementary central value bank can be transferred or exchanged in the form of paper or coins (possibly with an electronic chip) and then used as a means of payment, freely without a legal obligation to accept it.

The equity investment fund of the complementary central value bank consists, in one embodiment, of a equity stock portfolio that guarantees long-term value through a safety margin between objective, intrinsic stock value and subjective market value. The equity stock portfolio that underpins the value of the complementary new currency is a value equity portfolio, which means that it is selected or selected and re-selected by choosing stocks with the best safety margin between objective, intrinsic value and subjective market value. The selection algorithms and their computer implementation are described herein.

In addition, the foreign currency distribution of the equity portfolio is selected for the purpose of hedging the currency risk and the risk of importing monetary instability of foreign currencies, as well as of the hosting fiat money, and by choosing the currency distribution to make it the currency represents distribution of trade, expressed in other currencies, as traded by the community using the new complementary value currency.

The short-term risk of loss of value is hedged by the central value bank, which arbitrates directly or through its co-market makers, between the market price of the new value currency (being the listed certificates of shares) and the net asset value of the equity value currency. The net asset value of its currency value is modeled on the basis of the stock market price of the underlying share or shares in its equity portfolio or on the net asset value of such equity portfolio. Arbitrating between the new value in market value currencies and the intrinsic value based on the market value of the underlying share ensures realization of arbitrage profit, shared by partnering banks (it restores their balance sheets) and social non-profit organizations (as a free tax for social goals ). In any case, the arbitrage covers the short-term risk of the currency and stabilizes the value of the currency by sending it to its net asset value. The information about the market value, the net asset value based on market value and / or the net asset value of the underlying equity portfolio can be continuously communicated via electronic means, such as a smart chip embedded in physical, tangible money, so that trust is built up optimally through the continuous transparency.

Collaborative loans and savings are realized directly from the complementary central value bank. To guarantee a 100% fraction and value-supporting money, bank partners accept savings but are converted into value currencies and deducted directly from the balance of the central bank value, from which loans also originate.

The design rules, specifications for loans, savings and balance sheet structure of the central value bank, as well as the arbitrage and stabilization methods and the stock selection methods, can all be implemented with a number of software algorithms that are executed in combination with a decision engine and a number of predefined rules that define models for the new currency and central value banking system described herein.

The method and system described above processes physical and material goods more efficiently and effectively. The concept of using a volatile asset class, such as stock, to substantiate the intrinsic value of a new complementary currency is not obvious and new. While the systems and methods described herein are computer-implemented, the techniques also require skill and expert understanding in the field of neuropsychology, history, and economics. The integration of software, electronics, mechanics, economics, neuropsychology and history provides a solution to this technical problem of inefficient (and sometimes even ineffective) processing of physical material goods in a practical way.

In accordance with the foregoing, a system and technique are discussed for establishing a Complementary Value Currency and a Free Market Bank System. In accordance with this disclosure, Complementary Value Banking applies a series of Objective rules and processes, implementable as executable software embedded in a computer system that defines the Complementary Value Banking. The Complementary Value Banking System consists of a Central Value Bank, also known as Value Banks, and a Community that uses Value Certificates as a Currency.

The Centrale Waarde Bank is a listed Value Fund, a fund holding that trades in stock, thereby optimizing its portfolio in order to achieve a maximum safety margin between net asset value and market value. The public shares of The Central Value Bank serve as money to be used by the Community as a Complementary Value Currency. Value Banks are commercial banks that, in cooperation with the Central Value Bank, transfer the value Currency, Savings Bonds as well as loans directly from the balance sheet of the Central Value Bank.

The exchange rate of the Value Currency is the share price of the Central Value Bank. A stabilization procedure is described that the Market Value stabilizes the Market Value of the Complementary Value Currency, through arbitrage between the Net Asset Value and the Market Value, via partner Value Banks. The stabilization procedure also stabilizes the Regulatory Payment Means and ensures stable restructuring of distressed commercial banks.

The fraction of the selected Value inventory varies across currency regions, with a view to covering the risk of Monetary Confusion created by other currencies and thus protecting the competitiveness of Community members.

The Complementary Value Banking system is implemented by using computer systems and program products and methods where the Value of money is objectified, secured and stabilized by the Net Asset Value of the underlying assets of the certificates used as money through the Complementary Value Banking system.

System Implementation

As noted earlier, Figure IA illustrates conceptually the relationship between physical goods / intangible services 3 (hereafter goods), the new complementary currency 5 described herein and a stock portfolio 4 that underpins such new complementary currency. In particular, goods 3 can include all tangible items or services that have value and can be exchanged or processed for a form of the new complementary currency 5 whose value is maintained by the stable equity portfolio 45 in accordance with the new value banking system described herein. New complementary currency 5 can take the form of physical notes and coins 5A, or a physical device 5B, or a physical or electronic certificate 5C. The currency 5 in the form of physical device 5B is embodied as a currency proof which in one embodiment comprises a smart card provided with one or both of a magnetic strip 2 or smart chip 4 enclosed therein for communication with each of the systems 10 in the new value banking system. Magnetic strip 2 or smart chip 4 can be used as links or communication mechanisms to substantiate the value of the coin with or to check with the value banking system. Certificate 5C can be stored in the form of a physical certificate such as traditional share certificate or electronic certificate in a memory of the computer and a data structure connected thereto as described in Figure 4A herein. Equity portfolio 15, as described elsewhere, can consist of a number of individual equity instruments 9A-N. As explained elsewhere in this document, equity portfolio 15 and the constituent equity instruments have been selected based on a model and one or more associated rules that are used to jointly implement in an automated manner the regulation of the new value central bank. The equity portfolio 45 is the underlying asset base for the amount of the value of the currency as issued.

Figure 1B illustrates the relationship between physical goods / intangible services 3 (hereafter goods), new targeted objective complementary currency 15, the previously described complementary value currency 5, and a share portfolio 4 that supports currencies 5 and 15. More specifically, goods 3 can contain any kind of tangible goods or services that have value and that can be exchanged or processed for a form of the new complementary currency 15, which is legally and technically linked to value currency 5 and can therefore be exchanged at any desired time, including the time when goods 3 are exchanged. Value 5, in turn, has substantiated or maintained an objective value through equity portfolio 45 according to the new value banking system described herein. New complementary currency 15 may take the form of physical notes and coins 15A, or a physical device 15B, or a physical or electronic certificate 15C, and may be accompanied by a specific color corresponding to the intended purpose or case associated with the underlying assets concerned. The coin 15 in the form of physical devices 15B can be implemented as a coin badge that, in one embodiment, can be supported with a smart card with one or both of a magnetic strip 2 or a smart chip 4, embedded thereon for communicating with a of the computer systems 10 within the new value banking system. Magnetic strip 2 or smart chip 4 can be used as links or communication mechanisms to link the objective objective complementary 315, eg red money or green money, to complementary value coin 5, as well as to substantiate or check the value of the coin with the value banking system. In various embodiments, smart chip 4 or another selectively adjustable electronic device, such as a switch on physical device 15B, can be used to exchange the value of a targeted objective complementary coin 15 into a complementary value coin 5, as shown in figures 6A-C. Certificate 15C can be in the form of a physical certificate, such as a traditional share certificate or can be an electronic certificate, stored in a computer memory and with a data structure similar to that in Figure 4A, described herein. In various embodiments, the use of the electronic signature with a certificate 15C at the time of issuing or exchanging currency 15 can be used to indicate the allocation of financial income or assets of the value associated with the complementary currency 15.

As further set forth herein, equity portfolio 45 may comprise a plurality of individual equity instruments 9A-N. As further set forth herein, equity portfolio 45 and its constituent equity instruments have been selected based on a model and one or more related rules used to implement the statutes of the new value central bank in an automated manner. The equity portfolio 45 provides the underlying asset base for the amount in value of the currency as it is issued.

The practical implementation of blue, red and green money can be done in software or hardware. People can set and change their preferences on their PC, smartphone or tablet, which are applied automatically when the money or bond is acquired, but the preferences for green and red bonds remain the same forever, unless they are perpetual bonds, then they can be reset when purchased on the secondary market. The profit allocation signature that automatically allocates financial outflows to red and green targets can be performed on a smartphone that wirelessly communicates with a store's payment terminal or via a software module that communicates with professionally used payment or management software or accounting software

Each of new complementary coins (blue, red and green money) can be implemented in paper money or plastic money or another physical license plate of money, such as a virtual certificate that is visible with a Smartphone or other computer device c or as before described with reference to currencies 15A-C of Figure 1B. In other embodiments, the transfer of complementary currency from one color to another color or a signature for assignment can be obtained by using a physically configurable chip 4, semiconductor or electronic device or via software.

Figure 2 shows a network environment in which a free market banking system according to the invention can be implemented. As illustrated in Figure, banking systems 10A-B, users 16A-B representing savers, the user 17 representing a debtor, as well as the exchange 19 are all interconnected via a computer network topology 29, usually a combination of LAN and WAN -networks, ie the Internet, to facilitate electronic financial transactions. Note that at least one of bank 10A or bank B is part of the free market banking system described herein, which is in accordance with the statutes of the free market banking protocol. Such a protocol can be executed with a series of computer algorithms and threshold values that are stored by the bank in the form of a set of rules that can be handled by a decision engine where appropriate and used in combination with the banks various day-to-day procedures and decision-making processes when it carries out transactions. Figure 2 further illustrates that each of the banking systems 10A-B can include one or more additional computer systems 27 databases and servers 37 and / or dashboard 23.

Figure 3 shows conceptually a computer architecture 10 that can be implemented with any of the systems in Figure 2 to perform the methods described. As illustrated in Figure 3, computer architecture 10 includes a central processing unit 12 (CPU), a system memory 30, one or both of a random access memory 32 (RAM) and a read memory 34 (ROM) and a system bus 11 that stores the system memory 30 connects to the CPU 12. An input / output system with the basic routines with which information between the elements in the computer architecture 10, such as during booting, can be stored in the ROM 34. The computer architecture 10 can be a mass storage device 20 furthermore also for storing an operating system 22, data and various program modules, such as the decision engine 24, rules 21 and portfolio models 13.

The mass storage device 20 can be connected to the CPU 12 via a mass memory controller (not shown) connected to the bus 11. The mass storage device 20 and the associated computer-readable media can provide non-volatile storage for the computer architecture 10. Floewel the description of the computer-readable media herein refers to a mass storage device, such as a hard disk or CD-ROM drive, should be appreciated by those skilled in the art that the computer-readable media can be any available digital storage media that can be accessed by computer architecture 10.

By way of example and not limitation, the computer may include readable medium volatile and non-volatile, removable and non-removable media used in a method or technology for the non-transient storage of information such as computer readable instructions, data structures, program modules or other data. For example, the computer readable media includes, but is not limited to, RAM, ROM, EPROM, EEPROM, flash memory or other solid state memory technology, CD-ROM, digital versatile discs (DVD), HD-DVD, Blu-ray or other optical storage, magnetic cassettes, magnetic tape, magnetic disk memory technology, other magnetic storage devices or other medium that can be used to store the desired information and that is accessible to the computer architecture 10.

According to various embodiments, the computer architecture of 10 may operate in a networked environment using logical connections to external physical or virtual entities via a network such as the network 29. The computer architecture 10 may connect to the network 29 via a network interface 14 connected to the bus 11. It will be clear that the network interface 14 can also be used for connection to other types of networks and external computer systems. In one embodiment, network interface 14 includes the necessary transmitter / receiver hardware (not shown) for wireless communication with other network devices or processes. The computer architecture 10 can also be an input / output controller for receiving and processing input from a number of other equipment, such as a keyboard, mouse or electronic pen (not shown). Similarly, an input / output controller can provide output with a display 16, a printer, or other type of output device. A special graphic processor 25 can also be connected to the bus 10.

As stated briefly above, a number of program modules comprising sequences of executable instructions and data files can be stored in the storage medium 20 and RAM 32 of the computer architecture 10, including an operating system 22 suitable for controlling a network desktop, laptop, server computer, or another computing environment. The mass storage device 20, ROM 34, and RAM 32 can also store one or more program modules. In particular storage device 20, optionally in combination with RAM 32, can store executable instructions that program modules that include decision engine 24 for execution by the CPU 12. The decision engine 24 may include software components for execution of parts of the processes discussed in detail with respect to FIG. 8 and the other arithmetic communication properties described 10. According to embodiments, the disposable motor 24 can be stored in the network 29 and opened by a computer in the network 29. Also patent database 37 and the associated server method can be directly coupled to the bus 11 of system 10 or remotely via network 29.

The software modules can include software instructions that, when loaded into the CPU and executed, convert a general-purpose computing system into a special-purpose computing system tailored to all, or part of, the volatility index generation techniques. described herein. As described in this description, program modules provide various means or techniques that the device or computer architecture can share in the overall system or control environment, using the components, logic streams, and / or data structures described herein.

The CPU 12 can be composed of any number of transistors or other switching elements, which can assume any number of states individually or collectively. More specifically, the CPU 12 can function as a state machine or finite state machine. Such a machine can be converted into a second machine, or specific machine by loading executable instructions within the program modules. These computer-executable instructions can change the CPU 12 by indicating how the CPU 12 transitions between states, thereby transforming the transistors or other switching elements of the CPU 12 from a first machine to a second machine, the second machine being specifically configured for managing the generation of portfolios and / or decisions. The states of each machine can also be converted by receiving the input from one or more user input devices connected to the input / output controller, the network interface unit 14, other peripherals, other interfaces, or one or more users or other actors. Either machine can also transform states, or different physical characteristics of different output devices such as printers, speakers, video displays, or otherwise.

Coding of executable computer program code modules can also transform the physical structure of the storage medium. The specific transformation of physical structure can depend on various factors, in different implementations of this description. Such factors include, but are not limited to: the technology for the storage medium, or the storage medium are characterized as primary or secondary storage and the like. For example, if the storage medium is configured as semiconductor-based memory, the program modules may form the physical state of the system memory when the software is encoded therein. For example, the software can transform the state of transistors, capacitors, or discrete switching elements that are system memory. As another example, the storage medium can be made with a magnetic or optical technique. In such implementations, the program modules can transform the physical state of magnetic or optical media when the software is encoded therein. These transformations can, among other things, change the magnetic properties of certain locations within a certain magnetic media. These conversions can also change the physical properties or properties of certain places within certain optical media, altering the optical properties of these locations. It will be appreciated that various other changes of physical medium are possible without departing from the scope and spirit of the present disclosure.

Figure 4A conceptually shows a data structure 33 that can be stored by the Central value Bank 10B in association with a certain value share certificate representing the new value currency in accordance with the invention. In particular, data structure 33 can be executed as an object, record, file or other storage medium maintainable in an accessible memory and can include one or more fields or parameters that help identify the specific implementation of the new currency. These fields or parameters can be used to determine one or more of the following self-explanatory parameters:

Bank More identifiable

Certificate More Identical

Number of shares

Type of shares More identifiable

Portfolio Model More identifiable

Currency Descriptor / Format

Date of the certificate issue

Date of last Net Asset Value Verification

Network Address (optional)

Certificate holder More identifiable

A number of data structures 33, each in association with a certificate of shares of new currency, are stored in the database 37 or other memory of a new value Bank system 10 according to the invention.

Similarly, Figure 4B conceptually shows a data structure 35 that can be stored by the central value Bank 10B in combination with a loan or order note according to the invention. In particular, data structure 35 can be implemented as an object, record, file or other storage medium maintainable in the computer memory and can include one or more fields or parameters that help identify the specific implementation of the new currency. These fields or parameters can be used to determine one or more of the following self-explanatory parameters:

Bank More identifiable

Loan More identifiable

Number of shares

Type of shares More identifiable

Portfolio Model More identifiable

Currency Descriptor / Format

Date of the loan origin

Interest

Debit balance

Network Address Optional

Borrower Name

Borrower Address

Additional loan data

Link to related files

A plurality of data structures 33, each in association with a certificate of shares in new currency, become in the database 37 or in another memory of a new value Bank System 10 according to the invention.

Good money

Money is the object that the fear covers for the loss of value over a longer time in savings and shorter time as a means of payment. Good Money does that well. Objects are neuropsychological, evolutionary developed to deal with fear. Therefore, for money to be good money, it must have objective value.

Government and private debts have no objective intrinsic value, but only an unstable Subjective Market value. Fiat money backed by debt is therefore not sure the value over a longer period of time. The subjective Market Value of fiat money-based debt without intrinsic value, is not stabilized value in the short term, for example by saving or saving, not even. That is why today's Fiat Money does not insure Value over a shorter or longer period of time and it is really bad money. It causes Monetary Confusion, economic cycles, recessions and depression.

Physical gold money has worked very well as money, because the subjective value of gold is relatively stable and it is further stabilized by its property that infinitely meltable without loss, but gold has no objective value. Physical gold Money is the best money in the art, but still not good money. The Spanish inflation in the 16th century, as a result of a massive foreign influx of precious metals, proves it.

Non-physical gold money has the problem of lack of continuous and transparent verifiability and is therefore subject to fraud. That's why it's not good money either.

This explanation describes a system and technique for implementing good money. To be good, money must have objective value, and to be a good currency, subjective trust must be enjoyed by members of the community. The objective value of the money as described here results from the intrinsic value of a Value Stock Portfolio used as the asset underlying the Certificate used as money. The continuous and transparent controllability of a public equity portfolio is objectively reliable and therefore offers the opportunity to build subjective trust between the members of the community who use money as a currency.

Value Bank system

The aforementioned is a method and procedure for an additional value banking system, embedded in software, to securely exchange and store stored value over time in cash and cash receipts allowing reliable exchange of value through its community currency.

Complementary Community Currency

Released is also a method to allow subjective confidence in the banking system and the currency to grow among the members of the Mint Community. This community currency is freely and voluntarily chosen by the members of the community and is a supplement to the legal currency.

Value Certificate as Money

The central value bank is a listed investment fund. The listed shares of the fund are the certificates that are Good Money and are therefore used as the Community currency.

The quoted shares of the fund are the value Certificates or the money, the stock price is the exchange rate. The continuous public trading of the money ensures the continuous exchange for other currencies, allowing the Subjective confidence to grow and the objective stabilization mechanism to be implemented, led by the Central Value Bank.

Value Money offer, Money stabilization of prices and Bank Partner arbitrage

Capital or value is brought into the central value Bank by community members or savers looking for reliable money when purchasing his money and use it as a Value Currency or Save Value Bonds.

Bank Partners, also called Value Banks, Broker the Value Currency to Community Members by Arbitrating the Value Currency in the Market. Therefore, Value Banks are allowed, from time to time, at discrete moments in time determined at the judgment of the central value Bank, to purchase its money from the central value Bank, at a premium to the Intrinsic Money value (determined by the market value of the Value Stock Portfolio), only when the market value of the Currency Value is above the net asset value and then selling it at the higher market price, reducing the money market price. And so to sell his money at a discount relative to its net asset value, only when the market value is below its net asset value, while buying it at an even lower market price, reducing the money market price. The continuous swing the market price around the intrinsic value is stabilized by the stabilization procedure, as shown in figure 6.

The profits from the sale are cash on a premium on the net asset value to Value banks flowing back to the Currency Community as described further below. The profit Bank Partners make by buying his money with a discount to market value and selling at market value is used by Bank Partners to repair their balance sheets, which are typically damaged by government debt or other toxic assets. Also with the profit from Bank Partners Value Buy money at market value, below its net asset value and sell it to the central value Bank with a discount Net asset value that is still higher than the market value. This arbitration by Banking Partners brings the money supply to the demand for money, the use of the free-market pricing mechanism.

Covering the risk of long value loss

Securing value over a longer period of time is achieved by objectively modeling the intrinsic value of stocks and selecting stocks that have the smallest (and even negative) purely subjective component in their market value.

Stocks have an intrinsic value objective. The decrease in the subjective component in the market value of the Currency is hedged by selecting the equity portfolio to maximize the safety margin. The safety margin is the margin between the target net asset value of the stock and the Subjective Market Value, as simply expressed in the price / earnings ratio. Selecting a portfolio with maximum safety margin minimizes the risk of losing value in the longer term, as has been successfully proven by Graham and Buffet.

Covering the short risk of loss of value.

The arbitrating between objective intrinsic and subjective market value, regularly done by Bank Partners to manage the money supply is one of the stabilization procedure a currency must stabilize fluctuating Subjective Market Value (such as saving and reminting were in history). The short-term fluctuating Subjective Market Value has been stabilized around the Intrinsic Value objective that sets the value in the longer term. This covers the short-term risk of loss of value.

Covering the monetary risk of other currencies.

An important contribution to the volatility of stock prices is the volatility of the value of money. When the value of the currency in which the market value of the shares is expressed decreases, the price of the share will increase, as is the case with the price of another good. The geographical selection of the Value Stock Portfolio is done in such a way that it reflects the interest of the trading partners. When trading with a specific foreign currency is x%, then x% of the value Stock Portfolio is selected in that foreign currency. If that foreign currency value falls, the foreign capital will expand in the price and the currency value will remain constant in value, because the price increase compensates for the decrease in the value of the foreign currency, reflected in the exchange rate. A product bought or sold in that foreign currency that decreases the value will increase the price, the falling exchange rate to compensate for this increase. The average competitiveness of the community economy is naturally covered by this simple procedure and monetary confusion is not imported, nor are the five associated disadvantages.

Hedging risk of government and private market manipulation.

Contemporary governments have the power, through their (loosely) controlled central banks, to increase the money supply of their Fiat currencies. Private speculators can also borrow Fiat Money. Short-circuiting this loaned Currency destabilizes the value of that Fiat Money, which Market Value will then together move closer to the intrinsic value, as, for example, 1992's Soros speculation against the British proved. The risk of the government or private short-circuit with borrowed money value, against the Complementary Value Currency, is covered by making the Value Currency a full reserve currency. When the value Money is borrowed, his money Supply cannot be increased. Any down market manipulation, per se must first have an upward influence on the market value, because the full reserve currency must be purchased before it can be sold, it cannot be made in any other way by the manipulator. Any manipulation of the market value of the Value Currency can be settled by the Central Value Bank, through its Bank Partners, the transfer of value from the Community manipulator and the Partner Banks.

Covering the risk of loss of value protects against financial crises.

All risks of the absolute value losses are covered. Relatively, the value of the Value Currency can still depend on the expected economic outlook for the communities trading in the Value Currency, but this is a relative variation, which is a property of value itself. The value is relative. It is the share within the future production as a tip for the contribution to the previous production. That is why money is objectively hedging against all loss of value and is therefore good money. Good Money does not cause monetary confusion, because the value is stable. Crises are the result of monetary confusion. The Currency value also protects against entered Monetary

Confusion. That is why the Complementary Value Currency is an objective of protection against financial crises.

The balance sheet structure of the central value Bank

Guaranteeing the full reserve character of the Value money is done by placing Savings and loans directly on the balance of the central value Bank. Money is only made when the Bank Partners wire other currencies to the central value Bank which then purchases the stock with these other currencies and creates full reserve Money in exchange, connected to the value Bank. This is indicated by the upper part arrow in the balance shown in Figure 7. Value Currency (as well as a number of other currencies) is held in reserve on the active side of the upper (and lower) balance, for trading purposes. The profit from the sale or purchase of his money on a premium or discount on the net asset value flows to the Community. This gain is added to a separate balance sheet that is not represented in Figure 3, the Community balance sheet, which entity, discussed further. The gain or loss that flows from the increase or decrease in the market value of the Value Stock to the net asset value of the Value Sock Portfolio and as such directly to the holders of certificates of the assets on the upper balance sheet. These are the holders of the Money, so also the members of the Mint Community. The increase in the value of a Value Stock Portfolio over a longer time, as evidenced by Graham and Buffet, sets the value of the Complementary Value Currency in the long term, as arbitration by the Banking Partners sets the value in the short term.

Loans and savings

Value Bank loans are provided in Value Currency. These value loans are granted directly from the second the central value Bank balance, the lower balance in Figure 3. The Bank Partners act as a broker in the sale of these loans to the Currency Community. These earned commissions vest at the time of the loan payment. This has the additional advantages that the income for distressed commercial banks, together with the central value Bank, is accelerated. This accelerated profit restores the balance sheets of these banks, which are typically saddened by impairments on government bonds and other toxic assets. The Central Value Bank finances the Value loans, expressed in its own value Currency, through the issue of Bonds store in the market, brokered by the Banking

Partners, the Value Banks. The risk of impairment on loans is covered by the issuance of Perpétuai Saving Bonds, also under the auspices of the value Banks. As part of this invention, the rule is applied (and communicated transparently to the public) the establishment of a minimum condition of the percentage of outstanding value loans provided by Perpétuai Saving Bonds. A fraction of savings bonds may be held in cash for practical and reason trading. Save the amount of Perpétuai Bonds is the maximum condition for Private equity value Stock, as shown in Figure 3. The profit or loss generated by the value loans and the Private Equity Value Stock assets on the lower balance sheet of Figure 3 are allocated to the holders. of the Perpétuai Saving Bonds. The interest rate of the Value Saving Bonds is determined by the market price, upon issue. A liquidity rule under the value banking system is that saving Bonds redemption clauses should always be pro rate more mature than the value Loans redemption terms . Paying interest on Value loans is the same interest rate, plus the commission for Value banks and a margin as a result of the average write-down on loan percentage, which is determined periodically and communicates transparently to the public.

Enforcement of the rules of free market banking

The value Banking System rules are freely and voluntarily applied when licensed to the money concepts described herein such as Central Value Bank, Bank Partner, Currency Community member or Currency Community representative organization. E.g. 1) the central value Bank assets and liabilities can only consist of those shown in Figure 3 with due observance of the boundary conditions, as indicated in this to be made public, or 2) the valid tender of the Value Currency as a means of settling debts , is freely and voluntarily agreed between the Mint Community members when purchasing the Value currency or 3) the redistribution of profits (as a free and voluntary tax, as their distribution in the currency community) is freely and voluntarily agreed upon at buying Value Currency or saving value Bonds. No new legislation is needed to apply this invention.

Value investment rules

Public, but also Private Equity, Value shares are selected on the basis of maximum relative safety Margin or safety margin between subjective Market price and objective net asset value, taking into account different preconditions. This safety margin optimization criterion can be the price / earnings ratio or method disclosed or any other criterion that objectively expresses fear of losing the net asset value of the Value share. According to the rules of the Value banking system the central value Bank is not allowed to include purely subjective criteria, desire for profit from market value. Therefore, the optimization criterion expresses an objective safety margin and not subjective expected or thought gain. A Value Certificate can only be successful or Good money, if Fear is objectively covered, because evolution has taught us that the successful way to deal with Fear is to objectify. Preconditions only take into account objective real risk, such as the available liquidity at the market, illiquidity risks, hedging of currency regions to hedge pollution caused by Monetary Confusion in other currency regions, to cover the balance sheet with financial risks, etc. The safety margin can be calculated as Graham and / or buffet to do, but not mandatory. According to the rules of the Value banking system the Value Investing rules issued by the Central Value Bank must be objective and transparent to the public, while the equity portfolio itself is not published unless, from time to time, as required by law and other regulations, the central value Bank is bound to.

Collaboration or cooperation

A good banking relationship should be an Objective left brain activity that is not Subjectively speculating and therefore not Desire profit or value, it only covers fear of losing money value and not being reliable. A good banking relationship is therefore not entrepreneurial, but is a joint effort of Objectively securing value in money. The desired implementation of the central value Bank is therefore a cooperative bank and not a private company. Also the redistribution of the Free Tax, the profit to represent the Community Organization and realized by the central value Bank on the arbitration, carried out by cooperating Banks is a cooperative attitude or structure. According to the rules of this revelation holders of Saving Bonds can allocate their share in the future free tax profits, to specific social projects. Their share corresponds to the percentage share they own, at that time in the future in the time when the profits are redistributed, in the total savings Bonds on the passive of the lower, the second balance of the central value Bank. Representing the Community Organization organizes the selection of projects that the candidate as beneficiaries of this profit redistribution, purely on objective grounds, without Subjective (political) preferences. Representing the Community Organization also organizes the control and payment of the funds to these projects, in fact more a redistribution body of Free Tax.

Excluded activities and related activities.

Certain financial activities may be organized under the same brand as that of the Community, that organization and / or the central value Bank, but with a different and completely separate balance sheet means that no obligations or risks can be shared between these activities and the central value Bank. Such activities are called excluded activities because they are excluded from the central value Bank balance sheet and related activities because they can be conducted under the same brand as that of the Community, that organization and / or the central value Bank. Insurance activity is such an activity. It becomes Value insurance activity if insurance risks are objectified and insurance premium investment is made with the help of Value Investing. A Left Brain Interface should preferably be used to guide the investment and insurance process. A potential pay under a Value Insurance claim must be limited in time and scope. Life insurance and annuity are activities that must be separated from Value insurance activity, because the life and duration thereof cannot be objectified, with a sufficiently high accuracy or the low remaining pure subjectivity. After all life, the objective name of the Subjective transcendence in nature is more than material reality.

Dashboard Interfacing

According to the description in the systems described herein, all banking processes can be automated software, and regardless of software automation, up to the left half can be comparable to other computer traditional interfaces. The right-hand processes can be linked by a dashboard 23, as illustrated in Figure 2 as a function, an interface between bank policy decision engine 24 and the system 27 or another system 10. In the illustrative embodiment, the dashboard 23 is 1) defining new or additional rules, 2) changing existing rules to cover new perceived or otherwise perceived risks to the value safety margin of the stock, or 3) changing providing credit rules or general rules or parameters and variables used. In addition to modifying these active system parameters, the dashboard interface allows for the analysis of system performance and general functioning of automatic and non-automated modes. The dashboard 27 comprises a first or right-hand half interface display 80 mainly used for displaying video images that can be implemented in the illustrative embodiment with television image and an associated remote control. A second or left hemisphere user interface in the system 27 uses primarily and / or stimulates activity in the left hemisphere of the human brain, and also, to a limited extent, the right hemisphere of the human brain. System 27 can be implemented with a traditional personal computer, such as a computer or laptop system as well as other systems. In an exemplary embodiment, dashboard 33 presents visual, non-textual information, while computer 27 provides textual and / or numerical information and images.

Semi-automatic Trading system with Left Brain Interface

In order to minimize the level of Desire and the activity of Right Brain Consciousness, the trading system used by the Central Value Bank must be semi - automated and objectively structured.

This automatic trading is based on a mathematical software model that models the safety margin between the current price and the value of the stock or bond. Such a model is equipped with an optimization function for the safety margin between the price and the value of a security and weighs in total historical and / or expected income and / or dividends paid and / or other value indicators and preconditions consisting of balance sheet risks and other risks such as geopolitical risks, monetary inflation risks, perceptual and absolute risk of exposure and other risks. The risk is defined as an objectively defined fear of loss, not subjectively determined and not as a loss of opportunity. Exceptionally, if such a trading system is not implemented fully automatically, manual intervention may be permitted. Non-exceptional manual intervention can be done through the Left Brain software interface. That Left Brain software interface can be designed to limit the available actions to actions related to objectively modeled fears or risks.

For example, a manual labor or new automatic trading rule to optimize returns may be blocked in the interface, however, in a new precondition that models a new or changed risk allowed and supported in the interface.

Dashboard with Right Brain Interface

In exceptional periods in a new precondition that models a new or changed risk allowed and supported in the interface. Exceptional periods are periods in which new target risks are detected in the environment, not periods in which new Subjective possibilities are experienced. All processes related to minimizing known risks can be maximally automated in software under the value banking system and, regardless of software automation, should be maximal left hemisphere.However, detecting unknown threats and designing hedging strategies is an activity of right hemisphere consciousness. The right half processes linked via a dashboard, as illustrated in Figure 2 as a function, an interface between the central value Bank policy decision engine and Bank participating system. In the illustrative embodiment, the dashboard is 1) graphically analyzing phenomena, 2) defining new or additional rules and performing simulations on data from the past, 3) changing existing rules to address new perceived or otherwise perceived risks cover to change the value safety margin of Value inventory and run simulations, or 4) provide credit rules or general rules or parameters and variables that are used and simulations to be performed. In addition to actively changing the parameters of the system, it Dashboard interface also allows for the simulation of the newly proposed hedging strategies and graphical analysis / synthesis of the performance and general operation of the system in automated and non-automated modes.

Semi-automatic Trading system with Left Brain Interface

In order to minimize the level of desire and the associated right brain awareness activity, the trade necessary for deposits and the associated value of investments and for deposit and the associated value divestment should be automated to the maximum. This automatic trading is based on A mathematical software model that models the safety margin between the current price and the value of the stock or bond. Such a model is equipped with an optimization function for the safety margin between the price and the value of a security and weighs in total historical and / or expected income and / or dividends paid and / or other value indicators and preconditions consisting of balance sheet risks and other risks such as geopolitical risks, monetary inflation risks, perceptual and absolute risk of exposure and other risks. The risk is defined as an objectively defined fear of loss, not subjectively determined and not as a loss of opportunity. If such a system is not implemented fully automatically for trade, manual intervention may exceptionally be permitted. Non-exceptional manual intervention can be done through a left brain software interface. That left brain software interface can be designed to limit the available actions to actions related to objectively modeled fears or risks. For example, a manual labor or new automatic trading rule to optimize returns may be blocked in the interface, however, in a new precondition that models a new or changed risk allowed and supported in the interface.

Management costs

The operational costs of the central value Bank cannot exceed a predetermined and transparently communicated percentage of the money of the outstanding bank and savings certificates.

Transparency

The Central Value Banks standards and rules, including choices of variables (such as the numerical value of the percentages mentioned) to the public in a transparent manner and strictly applied and enforced. The Central Value Banks statutes reflect this revelation of the rules. Management is liable in case of intentional violation. Rules of Procedure can be changed to one of the central, non-Value Bank, if the majority of the votes of holders of depositary receipts so wish, but only if the Central Value Banks pays the non-voters who so wish.

Software implementation of a safety margin algorithm.

Figure 8 illustrates the method of the algorithmic 800 developing value stock portfolio with one or more of the computer and software described. In particular, the process of creating a stock portfolio by computer for each stock instrument (i) an objective fundamental criteria, and (ii) a subjective market criteria, as evidenced by process blocks 802 and 803. In the illustrative embodiment, the objective fundamental criteria may exist from a number of criteria, such as valuation multiples, profitability criteria, solvency and liquidity criteria with regard to the most recent fiscal year available. Subjective market criteria may also consist of criteria such as market capitalization and average daily turnover. In the illustrative embodiment, network-accessible memory 30 and 20 of the system 10 is used to store data on a plurality of equity instruments, each of which is associated with an entity that owns the equity instrument, for example, a sovereignty, government institution, corporation. The type of the security is selected from a large number of different eigen-types.

In one embodiment, the underlying equity instrument consisting of the asset that supports the currency and comprises at least: a share, a commodity; a future contract, a bond, an investment fund, a hedge fund, a fund of a fund; an exchange trading fund (ETF), a derivative and / or a negative weighting on an asset. Such equity instruments may also consist of one of a debt instrument; at least one unit of interest: an asset, a liability, a tracking portfolio; a financial instrument and / or collateral, where the financial instrument and / or security represents a debt, an equity interest and / or a hybrid, a derivative contract, including at least one of: a future, a future, a put, a call, an option, a swap and / or any other transaction with regard to a fluctuation of an underlying asset, in deviation from the current value of the contract, and despite the question whether such a contract, for accounting purposes, is considered an asset or liability, a fund, and / or an investment entity or for any account whatsoever, including an interest in, or rights related to: a hedge fund, traded an exchange-trading fund (ETF), a fund of a fund, an investment fund, a closed-end fund, an investment vehicle, and / or any other combined and / or separately managed investments.

In another embodiment, an objective metric of the intrinsic value of a proprietary instrument, which serves to substantiate the underlying value of the currency, can be at least one of: sales, profitability, sales, total sales, sales abroad, domestic sales, sales; gross sales, profit margin, operating margin, retained earnings, earnings per share; book value, the book value adjusted to inflation; carrying amount corrected for the replacement value; book value adjusted for the liquidation value, dividends; assets; tangible fixed assets, intangible assets, fixed assets; property, plant; equipment; goodwill, replacement of the value of assets; liquidation value of assets, liabilities, long-term debts, short-term debts, equity, research and development costs, debtors, profit before interest and taxes (EBIT); profit before interest, taxes, dividends, and amortization (EBITDA), payable accounts; costs of goods sold (CGS), debt ratio; budget; capital budget; money budget; direct labor budget; factory overhead budget; operating budget; sales budget; inventory system; type of shares offered; liquidity; book income, taxes, capitalization of profit, capitalization of goodwill, capitalization of interest, capitalization of sales, investments, cash, compensation, staff turnover, overhead costs; credit rating; growth; tax rate, liquidation value of entity, capitalization of cash, capitalization of profit, capitalization of sales; cash flow, and / or future value of the expected cash flow.

In another embodiment, the world of units which may be associated with an instrument of its own may include at least one of: a sector, a market, a market sector, an industry, geographic sector, an international sector, a sub-industry, a government issue and / or a tax-exempt financial object, agriculture, forestry, fishing and / or hunting in the industrial sector; mining sector; utilities sector; construction sector; industry sector; wholesale industry, retail industry sector, transport and / or storage industry sector, information industry, finance and / or insurance sector, real estate and / or rental and / or leasing industry, professional, scientific and / or technical services industry sector, management of companies and / or industrial sector companies, administrative and / or support and / or waste management and / or remediation services sector; education industry sector, healthcare and / or social assistance industry, arts, entertainment and / or recreation industry, lodging and / or food service industry, other services (excluding public administration) industry, and / or public administration industry.

In other embodiments, the underlying asset base includes that of an amount of currency substantiated, instruments other than government debt instruments or sovereignty.

Subsequently, an equity instrument with an associated value for the objective fundamental criteria and the subjective criteria market outside of a predefined set of values, for example outliers, is eliminated from equity instrument data set, as appears from process block 804.

Thereafter, a risk mitigation process is applied, comprising in one embodiment: for each of the number of asset instruments, scaling a ratio of the calculated value of the objective fundamental criterion to the calculated value of the subjective market criteria of the asset instruments by at least one weight criterion in order to minimize the risk, as illustrated by process block 806. In another embodiment, the risk can be minimized using a linear comparison of the form: minus [valuation multiple i * portfolio weights] that is resolved with any number of equity instruments, where the value for the objective fundamental criteria and the subjective market associated with the security and at least one predetermined criteria, as is also apparent from method block 806. The predefined criteria can be stored in the memory 20 of system 10 as one or more lines 21 interoperable with the decision of the engine 24. Such rules may, for example, take the form of one of the following:

Rule 1 - No more than x% (of the total value of the equity portfolio) are invested in one

Rule 2 - No more than 1% can be invested in a country;

Rule 3 - No less than y2% can be invested in a currency region;

RULE 4 - The portfolio's profitability criteria must be in the upper ath percentile;

Rule 5 - The portfolio's solvency criteria must be in the upper ßth percentile;

RULE 6 - The portfolio's liquidity criteria must be in the top y th percentile;

Rule 7 - The portfolio of valuation multiples (except for the multiple i valuation) must be in the lower ZTH percentile.

In an embodiment in line 1 of the value of x can be between 0% - 5% and more preferably between 0% - 2%, but even more preferably of less than 1%. In complementary value of x, dynamic y can be determined or calculated in advance by a separate risk model.

In one embodiment, in line 2 and line 3, yl and y2, respectively, may fall depending on matching the ratio of foreign trade currencies to the community's foreign trade in the currency, the ratio of selected stock expressed in these foreign currencies.

In one embodiment, lines 4, 5 and 6, alpha, beta and gamma, respectively, typically higher best quarter selections and may have values between 1% - 100%, but preferably between 50% and 100% but still preferably between 75% and 100 %.

In one embodiment, rule 7, z may have a value that is lower than quarter selection, and may have values between 0% - 100%, but preferably between 0% - 50% and even more preferably between 0% and 25%.

Thereafter, only the equity instruments are retained, resulting in a positive weight in step 808 in the equity portfolio, as evidenced by process block 810. The exemplary embodiments of the security margin described above are described herein for illustration purposes and are not intended as limitation.

Targeted objective complementary currency

Value money, that is money that is supported by, supported by share value or that represents share value as described herein, is referred to herein as blue money. Blue money has objective, intrinsic and stable economic value comparable to currency 5 as described herein. To protect complementary currencies as described herein against loss of value, due to the monetary effects, such as inflation in the dominant fiat currency or due to an ineffective structural arrangement, these complementary currencies 15 are linked to value currencies 5, thereby protecting their value and being reliable for saving purposes. The structure of the coupling and effective arrangement and practical application is described herein. Complementary currency 5 that securely preserves economic value and thereby supports it, is described herein as value money or blue money. Complementary currency that supports social value and is linked to both blue money and a good set-up is described herein as red money. Complementary currencies that support an environmental value or a religious or non-secular objective value and that are coupled with both blue money and with a good set-up are described herein as green money.

Through the implementation and use of money in three dimensions: economic (blue), social (red) and environment or non-secular (green), people are able to save their created value while contributing to a targeted goal, ie their chosen moral value. As a result, less taxpayer money can be spent on these values, while private spending rises, enabling government budgets to be released to reduce debt and resolve the financial and sovereign debt crisis.

Blue money

Value money is fair and effective money that stores value securely over time, making it suitable for saving because it represents objective value, making it fair, because it serves as an objectively valid means of exchange between different subjects or people.

Blue Money or value money keeps value securely over time, as it is a certificate that represents public value shares, ensuring its long-term value, as conceptually illustrated by the image in Figure 5A and the balance sheet of Figure 6A. In an illustrative embodiment, when other currencies are entered on the balance sheet, they are invested in public value shares based on value investment criteria and new money is made as a certificate that participates in the ownership of the assets as presented in box 40 top left of Figure 6A, while blue money issued by the Central Value Bank is represented in box 42 top right of Figure 6A. In the illustrative embodiment, when loans are granted, they are financed by bonds of blue money. Loan buyers can hold a predetermined limit, for example x% of their outstanding loan, as perpetual bonds of blue money invested in private value shares.

Red money

The color of value money that supports economic value as discussed earlier is blue money. Red money is just as valuable as blue money, since it can be exchanged for blue money at any time, by spending it or exchanging it. Red money, however, includes an additional subjective, moral value in addition to recognition of blue money: that is, the social value. Red money allocates the financial proceeds of blue money to social goals, as chosen by the red money holder.

Social projects are approved by the governing body of the Central Value Bank, based on only objective criteria. Social goals can be social, but it is not up to the administrative body to favor certain content, just to safeguard its form. Financial proceeds from blue money, that is to say both the arbitrage proceeds, as well as the interest on red money bonds, are allocated to the approved social projects, and this pro rata the votes of money and bond holders, as long as the bond is valid is or for as long as the money or the perpetual bond is in the hands of the voter.

Red savings certificates are issued on issue as blue savings certificates on which a social purpose is subsequently assigned by the owner / holder, and are tradable on the market at a discount that is ultimately indirectly determined by the specific social purpose.

In the illustrative embodiment, red money is a currency certificate 15C that represents blue money, for example, value currency 5, and can be exchanged for blue money at a 1 to 1 rate at any time. This can be done via a website for electronic money or by changing a setting on chip 4 on currency 15B-C, or via other currency exchange mechanisms. The specific social objective, which must be supported with the financial turnover of that money, can also be set in the same way. A personal electronic signature can automatically turn blue money into red money, including the allocation of the financial proceeds of that money to a specific corporate purpose, for the time that it is owned by that person. The percentage distribution of the financial income between the different types of social goals or informal care is personal and can be set automatically in accordance with a stored ratio associated with the electronic signature. Social objectives can include, but are not limited to, socially conscious, targeted objectives such as: care for the elderly, care for specific diseases, care for general diseases, homeless care, education, etc. Only organizations approved by the Central Value Bank receive such benefits periodically , in exchange for service level agreements of these social goals or care recipients.

When people convert blue money into red money, it appears in the balance, represented as blue money in the upper left corner of box 44 of Figure 6B and represented as red money in the upper right corner 46 of Figure 6B. When people buy red money bonds represented in the lower right corner 48 of Figure 6B, the proceeds used to buy blue money bonds for the same duration are represented in the lower left corner 50 of Figure 6B.

The financial income from red money consists of the share in the arbitrage income collected by the Central Securities Bank from the arbitration of the exchange rate of blue money against other currencies. The financial income from the red money bonds is the interest received on the blue money bonds that they represent. The allocation of proceeds from red money bonds is valid until their expiry date, which allows care providers to work in the long term. In the illustrative implementation, only objective criteria play a role in the allocation of the revenue within a category to a particular profit or non-profit organization.

Green money

Green money is a certificate that represents blue money and can be exchanged for blue money at a 1 to 1 rate at any time. Such an exchange can be done via an electronic money website or by changing a setting on chip 4 on the currency 15B-C, or by other currency exchange mechanisms. The specific religious or environmental objective that must be supported with the financial return of green money can also be set in the same way. A personal electronic signature can automatically turn blue money into green money, including the allocation of the financial proceeds of that money to a particular religious or environmental objective, as long as it is owned by that person. The percentage distribution of the financial income between the different types of environmental assets or non-secular items is personal and can be set automatically in accordance with a stored ratio associated with the electronic signature. The percentage distribution of the financial revenue between the different types of green objectives is personal and can be set automatically by the signature.

Similar rules apply to both green money and red money, except that the proceeds from both money and the capital of the bond are invested in personally selected green sustainable assets. Green goals are not costs, but purchases of green assets, including but not limited to: buying rainforest, buying the ocean, buying fish quotas, buying C02 certificates, buying or building churches, etc. Only organizations approved by the Central Value Bank will propose or propagate green asset investment cases.

When people convert blue money into green money, it appears in the balance, represented as blue money in the upper left corner 52 of Figure 6C and as green money represented in the upper right corner 54. When people buy green money bonds, represented in the lower right corner 56 of Figure 6C, the revenues are used to purchase green assets, such as, for example, environmental assets, represented in the lower left corner 58 of Figure 6C, with the same time horizon. If green money bonds expire and new green money bonds with the same maturity are not placed sufficiently on the market, green assets can be sold to repay the green money bonds. The financial income from green money consists of the share of the arbitrage income collected by the Central Securities Bank from the arbitration of the exchange rate of blue money against other currencies. Only objective criteria play a role in the allocation of revenue within a category to a particular profit or non-profit organization that controls the purchase of green assets. If these assets are to be sold, when more green bonds become due and payable than can be replaced, owners of green bonds can lose value in proportion to their favorite green assets.

The governing body that organizes the Central Value Bank is also the governing body that organizes the red and green money. The balance sheets of blue, red and green Money are separate, they can be managed by the same or different management organizations. Management costs can be limited to a certain percentage of managed funds, for all three colors of money.

Figure 9 illustrates the algorithmic process 900 for recovering an objective objective complementary currency by using one or more computer systems and Software systems as described herein. Specifically, the process for creating an equity portfolio by calculating for each equity instrument of i) an objective fundamental criterion and ii) a subjective market criterion, is described with reference to Figure 8. In the illustrative embodiment, the network is accessible memory 30 and 20 of the system 10 used to store data from a plurality of equity instruments, each equity instruments associated with an entity that issues the equity instrument, e.g., a sovereignty, government agency, corporation. The type of power instrument type can be selected from a wide variety of power instrument types, as described herein, as indicated by process block 902.

In the illustrative embodiment, a targeted objective complementary currency will take the form of savings certificates, for example, red or green, on issue acquired as a value currency, for example blue savings certificates, but on which a social purpose is then preferably set by the owner / holder, and will be tradable on the market at a discount ultimately determined indirectly by the specific social purpose. The preference for the social purpose with the targeted objective complementary currency is determined at the time of purchase, as indicated by process block 904. At that time, a data structure 100, as shown in Figure 10, is recorded with all relevant data. Specifically, data structure 100 includes an instrument identification field 102 and instrument type definition area 104, and an owner identification field 106, a personal electronic signature field 108, and multiple receiver fields 110 that defines the receiver or the case to which the revenue from the instrument is directed according to the percentage of the value instrument as defined in the relevant percentage field 112. Note that the data structure can have multiple receivers 110A, 110B ... 110N, each with its own corresponding percentage field 112A, 112B ... 112N. Once defined, data structure 100 for a particular instrument can be stored in memory at one of the central bank or any of the participating banks participating in the system.

The targeted objective currency can be exchanged at any time for a site currency at a 1 to 1 rate. This can be done via a website for electronic money or by changing a setting on chip 4 on currency 15B-C, or by other currency exchange mechanisms. The specific social objective to be supported with the financial return of that money can be set in the same way. A personal electronic signature, as stored in field 108 of data structure 100, can automatically change Blue Money to Red Money, including the allocation of the financial proceeds of that money to a specific corporate purpose, for the time that this person is owned or entity.

If the owner of an instrument wishes to sell, as illustrated in decision block 906, then his personal electronic signature can be submitted and compared to the value of data field 108, as illustrated by process block 908. Then the value of the targeted objective complementary currency is redeemed , as illustrated by process block 910. Next, the values of the fields 110 and 112 are retrieved from the memory connected to the central bank, as illustrated by process block 912, and the value resulting from the redemption of the value currency is multiplied by the percentage scale factor stored in the corresponding field 112 to determine how much of the resulting value will be routed to the receiver or case identified by the corresponding area 110, as illustrated by block 914.

Although the various embodiments of the system and techniques described herein with reference to interests in the form of images, the system described herein, especially the portfolio models, can also be used with other types of equity instruments with substantially the same disclosed system and techniques as would be understood by the reasonably experienced in the relevant art, given the disclosures as set forth herein. The proposed embodiments described herein serve for illustrative purposes only and are not limitative. It will be appreciated that the changes to the systems and processes described herein may occur without departing from the spirit and scope of the communication.

Claims (25)

CONCLUSIONS 1. A production item for use as a currency consisting of: A) a proof of representation of a value quantity as a currency quantity; B) a mechanism that is integrated with the proof of representation to support a value of the currency with an underlying asset with intrinsic value that is linked to the currency quantity; and C) an identification mechanism that part of the value of the currency is destined for at least one of a predetermined container and item. The production article of claim 1, wherein the substantiation mechanism comprises a smart chip associated with the currency. The production article of claim 1, wherein the substantiation mechanism comprises a traceable computer address embedded in the currency representation certificate. The production article of claim 1, wherein the substantiation mechanism comprises a warning mechanism to indicate whether the net asset value of the assets associated with the currency amount has exceeded a predetermined limit value range of values. The production article of claim 1, further comprising: D) a mechanism for identifying the current holder of the currency amount representation certificate. The production article of claim 1, further comprising: E) a mechanism for identifying an income portion of the currency destined for at least one of the predetermined recipient and item. 7. A financial instrument comprising: A) A proof of value of a value currency that has a value quantity that is substantiated and secured by an asset base that has intrinsic value and is associated with the value quantity of the currency; B) A proof of representation of a complementary currency associated with the value quantity; and wherein the complementary currency defines at least a portion of the value of the value currency payable to at least one of a social, environmental, or non-secular recipient or item, as defined by a holder of the financial instrument. The method of claim 7, wherein the asset base is provided with other currency instruments. The method of claim 7, wherein the asset base is provided with a combination of equity instruments and other currency instruments. The method of claim 7, wherein the asset base is provided with a equity instrument different from Debt Instruments of a government or sovereignty. 11. A method of avoiding fluctuations in the value of tangible currency or an intangible proof of such tangible currency or of intangible currency, the method comprising: A) providing a quantity of tangible currency or of an intangible proof of such tangible currency currencies or intangible currencies, as material or intangible evidence representing a value amount, where the currency quantity has a numerical nominal value; B) supporting the intrinsic value of the currency amount with a portfolio of equity instruments by turning the currency amount into a certificate representing ownership or profit rights in the portfolio of equity instruments; and C) directing at least a portion of the value of the value currency to be paid to at least one of a social, environmental, or non-secular recipient or item, as defined by a holder of the financial instrument. The method of claim 11, wherein B) comprises: BI) modeling an absolute or relative safety margin between the modeled intrinsic value of a stock instrument and a market price of the stock instrument, to choose the portfolio of stock instruments that support the currency amount / or reselect. The method of claim 12, wherein B) further comprises: B2) selecting equity instruments as part of the portfolio to hedge either currency risks or import risks in the event of monetary instability of other currencies for users of the currency amount. The method of claim 13, wherein B) further comprises: B3) equalizing the ratio of foreign trade currency to the foreign trade of the community using the currency, with the ratio of a selected stock expressed in said foreign currency. The method of claim 11, wherein the currency amount is in the form of coins, paper or plastic currency, or electronic certificates. The method of claim 11, wherein selection of the equity instruments in the portfolio of equity instruments is based on at least one predetermined rule for covering long-term risk. The method of claim 11, wherein the arbitrage of the price relative to the net asset value of the equity instrument is performed in accordance with at least one predetermined short-term risk hedging rule. The method of claim 11, wherein the tangible or intangible currency or the electronic proof thereof has a verification mechanism associated with the representation of the currency amount to allow for confirmation or verification of the intrinsic value associated with the currency amount. The method of claim 18, wherein the value verification mechanism comprises a traceable computer address that is embedded in a representation of the currency. The method of claim 18, wherein the value verification mechanism comprises a warning mechanism to indicate whether the instantaneous intrinsic value of the currency amount exceeds a predetermined maximum limit value or plunges below a predetermined minimum limit value. A computerized banking system comprising: A) at least one network-accessible central bank system comprising: i) a network interface; ii) at least one processor; iii) a memory for storing an executable model of a stock portfolio and a plurality of predefined rules relating to selection between or trade in stock instruments and the issue of currency, the currency; and B) at least one certificate representing ownership or profit rights in the portfolio of equity instruments and with which a quantity of value currency is associated, which is supported by the net asset value of a portion of the portfolio of equity instruments; and C) a data structure associated with each certificate and stored in a memory, the data structure comprising: i) data identifying the certificate; ii) data identifying an owner of the certificate; (iii) data identifying at least one of a social, ecological or non-secular recipient or thing; (iv) data identifying a percentage of the value currency of the certificate to which the identified social, ecological or non-secular recipient or item may claim. 22. An automated banking system comprising: D) a plurality of participating banking systems coupled via a network to the central banking system, each of the participating banking systems comprising a user interface for enabling automatic and semi-automatic interaction with the central banking system banking system via a network. The system of claim 21, wherein the memory of the central bank further stores an executable model of a stock portfolio that incorporates an optimization function for maintaining a relationship between a current trading price and a current net asset value of a traded equity instrument and / or a traded currency from that central bank and / or other currencies. The system of claim 21, wherein the relationship between the current trading price and the current net asset value of the traded equity instrument and / or the currency it supports is calculated by dividing the price by the total perceptual weighted historical income and / or the dividends paid and / or other value indicators. The system of claim 21, wherein the participating banking systems can perform one or more of the following steps: i) graphically analyzing phenomena; ii) defining new or additional rules and performing simulations on past data; iii) modifying existing rules to cover newly discovered or differentiated risks or to remodel the value security margin of the share value and perform simulations; or iv) changing lending rules or general rules or parameters and variables that are used and performing simulations.