The system of accounts settlement

Currently an entrepreneur does not have the ownership rights to the money in its bank, which he could use to pay its obligations on production market. I have developed the monetary relations where the bank becomes the emitter of a negotiable certificate of the ownership rights to the money in this bank.

The bank cedes the ownership right of the central bank’s non-cash obligations to a third party. In order to account for the amount and to register the monetary request right the bank prepares a money document in a form of a book-entry security – “The Ownership Right to Non-Cash Money Certificate”. The certificate amount is reflected on the sub-account of the emitting bank’s correspondent account in the central bank. The emitting bank is a recipient of the money as payment for the end products from the consumer market. The emitting bank acts as a payer to its purchaser-client in an end-products delivery negotiation. The emitting bank pays for the end-products delivery with the certificate which is has issued. All the accounting between the parties is done with the money kept at the emitting bank, by certificates’ settlements.

Money certificate is issued in a book-entry form. The emitting bank keeps a register of the certificate for its nominal holders - depositaries of the executive banks. These depositaries hold depositary accounts for the owners of the certificate issued by the emitting bank. The emitting bank title on the depositary account is not identified, and all the amounts of certificates are summed up. Only the depositary and not the owner has relations with the emitting banks. The emitting bank issues a financial obligation only to pay for the VAT and other taxes of the certificate’s owner. As a result the banking financial obligations serve only the consumer market. The emitting bank acts both as a payer for the products in favor of a buyer in the consumer market, and as a payment recipient for these products from consumer market. This ensures equal interests of both the payer and payment recipient.

What do we see now? The absence of money in labor distribution mechanism (that is portion from the end-products cost) leads to the fact that banks consume end production, though they have not expended a penny on its manufacture. The end-products is being paid for by bank liabilities, because the debt in consumer market can be turned over digitally via a bank card. This has ruined a two-level bank system. Consumer products (goods, labor, and services) are divided into two types of product. The first is the type that gains income, which is then used to pay for this production. The other type is the production which is being paid for not with the money gained from the sale of its own production, but from a simple emission of monetary liabilities. This leads to a depreciation of monetary liabilities, gained from the sales of end products. It should be noted that those who produce goods for those who emit monetary liabilities, also add to the monetary amount to purchase production, in which manufacture costs they have not participated. This additional monetary amount that does not exist in the costs of end-products manufacture is reflected as profit. However there is no real coverage for these bank liabilities. In production relations bank liabilities do not have turnover and need coverage, so this disrupts bank accounting operations. It should be noted that in production relations as well as in distribution of cost of end-products share there is no   mutual trade (labor exchange). So an offset (exchange of liabilities) among the emittents is impossible.

Violation of monetary turnover leads to the entrepreneurship relations’ deformation. The service of trade turnover with depositary obligations rather than with financial obligations, changes the bank assets structure. Banks receive income from the end-products cost and are interested in increase of trade turnover. With the trade turnover increase the living level in an economic system also rises. The banking multiplier effect is being excluded which decreases inflation. The operational system equalizes commodity goods with monetary amount in production and consumer markets.

Решение развития банковской системы.

В настоящий момент хозяйствующий субъект не имеет на правах собственности денег в банке, которыми он может оплатить свои денежные обязательства на производственном рынке. Мною разработаны денежные отношения, при которых банк становится эмитентом оборотного удостоверения права собственности на деньги в этом банке.

Банк уступает право собственности на безналичное обязательство центрального банка третьему лицу. Для учета суммы и оформления права денежного требования, которое банк передает, банк оформляет денежный документ в виде бездокументарной ценной бумаги - Удостоверение права собственности на безналичные деньги. Сумма удостоверения отображается на субсчете корреспондентского счета банка-эмитента в центральном банке. Банк-эмитент является получателем денег с потребительского рынка, как оплату конечной продукции. Банк-эмитент является плательщиком в договоре поставки конечной продукции его клиенту-покупателю. Банк-эмитент оплачивает поставку конечной продукции удостоверением, эмитентом которого он является. Все рассчитываются деньгами, которые у себя держит банк-эмитент, путем расчетов удостоверениями.

Денежное удостоверение имеет форму именного бездокументарного удостоверения. Банк-эмитент ведет реестр удостоверения права собственности на деньги его номинальным держателям в лице депозитариев исполняющих банков. Депозитарии исполняющих банков ведут счета-депо владельцам денежного удостоверения банка-эмитента. Имя банка-эмитента на счете-депо обезличивается, и суммы денежных удостоверений соединяются в одну сумму счета-депо. Отношения с банками-эмитентами имеет депозитарий, а не владелец удостоверения. Поскольку эмиссия денежного удостоверения проводится в качестве оплаты конечной продукции, то удостоверение отображает факт поставки конечной продукции (необходимость и стоимость). Поскольку имя банка-эмитента обезличивается счетом-депо, то удостоверение отображает поставку  любой конечной продукции. В результате счет-депо денежного удостоверения образует эквивалент стоимости обезличенной (любой) конечной продукции в экономической системе. Финансовое обязательство банк-эмитент выдает в обмен на удостоверение только на оплату затрат текущей добавленной стоимости и налогов владельца денежного удостоверения. В результате финансовые обязательства банков обслуживают только потребительский рынок. Банк-эмитент является плательщиком за продукцию в пользу покупателя на потребительском рынке и получателем оплаты за эту продукцию с потребительского рынка. Это обеспечивает равенство интересов плательщика и получателя оплаты.

Что мы видим сейчас? Отсутствие денег в механизме распределения труда (доли от стоимости конечной продукции) приводит к тому, что банки потребляют конечную продукцию, в затратах на производство которой они не участвуют. Банковскими долгами оплачивается конечная продукция, поскольку долг может обращаться в цифровом виде с помощью банковской карты на потребительском рынке. Это разрушило двухуровневую банковскую систему. Потребительская продукция (товар, работа услуга) разделена на два вида продукции. Один вид это продукция приносящая доход, деньги которого идут на оплату этой продукции. Другой вид продукции это продукция, которая оплачивается не из денег, от продажи продукции собственного производства, а из простой эмиссии денежных долгов. Это приводит к обесценению денежных долгов, полученных от продажи конечной продукции. Следует отметить, что те, кто производит продукцию для эмитентов денежных долгов, так же добавляют денежную массу на покупку продукции, в затратах на производство которой они не участвуют. Эта лишняя денежная масса, которой нет в затратах у участников в производстве конечной продукции, учитывается в статье прибыли. Однако, реального покрытия полученные банковские долги не имеют. А так как в производственных отношениях банковские долги не имеют обращения и требуют обеспечения, то это разрушает операции в банковских расчетах. Следует отметить, что в производственных отношениях, как в распределении доли от стоимости конечной продукции, нет встречной торговли (обмена трудом). Следовательно, взаимозачет (обмен долгами) между эмитентами безоборотных долгов не возможен.

Нарушение законов денежного оборота ведeт к деформации хозяйственных связей. Обслуживание товарооборота депозитарным обязательством, а не финансовым, изменяет структуру банковского актива. Банки получают доход из цены конечной продукции и заинтересованы в росте товарооборота. Растет товарооборот, растет и уровень жизни в экономической системе. Устраняется эффект банковского мультипликатора, поскольку отсутствует приход суммы банковского резерва равной банковскому долгу, что снижает инфляцию. Операционная система уравнивает товарную массу с денежной суммой на рынках производства и потребления.

Цена контроля над заработной платой и ценой продукта слишком высока по сравнению с выгодами, имеющими по большей части лишь видимость решения реальных проблем. Оказывая воздействия на инфляцию, путем разделения формы денежного эквивалента для покрытия затрат, контроль над ценами белее энергичен и эффективен, при этом не подавляется экономическая свобода. В заключение следует отметить, что никаких новых денег не появляется. Долгами центрального банка в безналичной форме могут владеть не только те, кому центральный банк ведет корреспондентский счет, но и хозяйствующие субъекты права, которым банк-эмитент уступает право денежного требования к ЦБР. Банк реально выполняет функции учета денег владельца бездокументарного удостоверения, которое банк выдал владельцу безналичных денег. 

Project: COMMODITY MONEY ISSUE.

I hereby present to your attention a mechanism of relations in which the European Union or a state body emits book-entry securities, displaying the property right to the marketable export goods of the countries participating in the accounts. A book-entry security that represents the money value of goods minus the emitter’s share is transferred to the owner of the goods. The security displays the ownership right to the goods, but has measurement in currency of the country of its reference. The quantity of goods for which the security owner has property rights, is defined proceeding from the official tariff of the commodity unit. Possibility to use the security nominated in currency in the banking clearing channels allows using it as commodity money.

Export operations in exchange for financial assets in the currency of the non-resident cause an essential loss (loss of production expenses) to a national economy of the manufacturer. Accounting between national economies through counter-trade promotes world production growth, allowing the countries to specialize on those goods and services which they can make and render with the greatest productivity. These goods are necessary to be reflected in the form their money' equivalent by means of securities to be used in accounting between trade parties. The legal sense of payment by securities certifying the property rights to marketable goods reflects counter- trade of goods, transformed into commodity money.

The use of production (goods, work, and services) in the form of a document measured in currency provides the manufacturer with monetary capital. The manufacturer transfers ownership to production to the Fund in exchange to securities. Production is delivered to a certain place of warehousing. The Fund transforms ownership rights to production into book-entry securities that measure the goods in national currency of the Union according to official tariff of the market unit cost. The sum of commodity money can be any and does not depend on the tariff of a commodity unit. The main goal of implementing payment document is development of economic relations. In order to achieve this goal the ownership right to goods acquires the qualities of labor saving and those of another product monetary equivalent. A security reflecting the goods becomes a monetary equivalent thanks to its currency estimation, and not because of the quantitative measurement of goods. The same with the gold – when transformed into coins, it was measured in currency, instead of oz. Everyone knew the official tariff size since they knew the goods quantity measured by currency.

The security is presented as a depositary (securities`) account of  "the commodity capital» certificate in a bank depositary. Change of cost of the financial obligation is reflected in the change of the sum of commodity unit tariff and of the certificate nominal amount on the holder’s depositary account. The Fund establishes time frame for the accrual to depositary account of an annual interest of the securities nominal value. The accrued interest reflects the income in commodity measurement from securities nominal value. The Fund establishes the security interest on the basis of share market interest rate, whereas the sum of the official tariff is based on the goods market value.

The primary owner of a security as a provider of commodity money delivers production to a certain place. Production shipment is executed upon presentation of a security for redemption. The owner can pay with a security in the required amount from the sum on the depositary account or sell the security at a required price (with discount or nominal value award). The Fund takes upon itself obligations to owners of depository receipts in the bank system which became such as a result of public turnover. The Fund’s share forms a basis for risk decrease from execution of a certain oil delivery contract for securities redemption.

The “commodity capital” certificate par in the corresponding sum of national currency is registered in the securities’ register. The bank depository conducts depositary (securities) accounts of the "commodity capital» certificates and registers them as a nominal holder in its name in the register. In relations with the legal owner of certificates the depository bank signs a contract to maintain a depositary account of «the commodity capital certificate». 

Rules are prepared in the form of a legal framework. The framework defines an order of securities` issue which sums up the rights and the mechanism of relations for securities` turnover. When the Fund receives the ownership rights or request for delivery of goods, it has the right (if it wishes) to place corresponding certificates in the state reserve bank or at an authorized reserve bank of the importer’s country. The Fund registers only either assets (the bill of lading, a waybill), or liabilities (delivery obligations) accounting balances of participants in the form of book record, avoiding excessive complexities of transactions.

An authorized reserve bank serves the turnaround of transactions by registering for nominal holders as depositaries conducting securities accounts for certificate owners.  The “commodity capital certificates” account in reserve bank’s balance sheet corresponds to the number of certificates, owned by the EU as one of its assets. Placing of certificates at a reserve bank increases in the bank balance the “commodity capital certificates” account (assets) and the depositary (securities) account of the “commodity capital certificates” (liabilities). The liabilities depositary “commodity capital certificates” account in the assets of the receiver of the certificate is the personal account. The depositary account is opened for accounting operations with the certificates accepted for keeping. Despite a complete coincidence of names of balance accounts, the liabilities of commercial bank depositories have nothing in common with the Fund’s assets we are describing. As a matter of fact, it is an ordinary check for acquisition of a certain marketable commodity. The commodity capital certificates” account does not constitute a loan to EU and is considered a banking system asset.

It is necessary to remind that order documents (ownership right) are not financial or depository documents (obligation). The order document divisible at its nominal value and negotiable as a book-entry security is creation of a new legal form of the monetary capital. The legal sense of money as ownership right to marketable goods (commodity) is much more reliable than the legal sense of money in the form of a commercial bank obligation that does not represent an economic asset, and does not circulate on production market. Unlike the Fund the Central bank does not have any obligation before the owner of a commercial bank account that disposes of money as an owner. Moreover the bank depository does not have legal possibility to create its own obligations, as opposed to commercial bank’s possibility to issue financial obligations. Use of "goods" as a monetary capital will considerably increase demand for it and its cost since it will acquire a savings function. An ordinary person with modest financial assets can turn into a buyer of goods. The Fund regulates cost of commodity money (share of discount or the award from par) by managing goods quantity and the unit tariff. The securities coverage allows their trading at commodities stock exchange. The given circumstances provide balance between commodities and money supply. 

Alternative system

At present a business legal entity has no ownership rights to the turnover monetary asset, which it uses to pay for its financial obligations under a contract in the production market. I have developed a mechanism of relationship in which the bank is the issuer of revolving funds in the form of an ownership to non-cash money ("certificate").

All payments shall be done with money that is held by the bank that issues monetary certificate by accounting with these certificates. The certificate certifies ownership to non-cash money by the owner of such certificate. Money funds take the form of a nominal non-documentary certificate. The issuing bank shall maintain a register of the certificate for nominal holders in the person of depositaries of executing banks. Depositaries of executive banks open accounts- depot for the holders of the certificate. The issuing bank is an analogue of the central bank for executing depository banks. So the banks build new inter-bank relationships for turnover of the monetary certificate. Any bank may become an issuing bank. It depends on whose client is the buyer of the end product in the production market. The right to issue monetary certificate has the bank, which pays with the certificate for the contract of delivery of end products. The issuing banks carry out among themselves all accounts and offsets. Total amount of financial liabilities of the banking system is reduced. Banking financial liabilities become depository obligations that serve production market. It is beneficial for the banks because they receive income from servicing commodity turnover. They become interested in the growth of trade. As the turnover grows, living standards in the economic system also grow.

Thus the monetary certificate reflects the revolving bank asset and the cost of end product. An exchange of monetary certificate for the financial obligation (transfer to the owner’s bank account) is allowed only in the amount of the costs of the current value added tax and the owner’s due taxes. Dynamics of costs` changes have a regular order, and the expenses are carried out only after a prior notification of the curator of the issuing bank.

It should be noted that the name of the issuing bank on the account-depot is depersonalized and monetary certificate amounts are summed up. This allows making accounting on account-depot regardless of the name of the bank – issuer of monetary certificate.

The bank benefits from holding money on its correspondent account, and from conceding ownership rights for this money. Business legal entity benefits from having ownership rights not to the bank liabilities, but to revolving bank assets, which are issues for production purposes in the amount of the end-product cost.. As a result a financial liability is emitted for consumption in the amount of the end-product cost, for which the issuing bank receives payment. Turnover of ownership rights to the money, not the turnover of non-cash money (bank reserves) eliminates the effect of the banking multiplier that results in inflation reduction. The operating system equalizers commodity mass of goods with monetary in consumption and production markets.