Corrected Fractional Reserve-System

Here’s an essential sequence-diagram, how to prevent a global SHTF, including the meltdown of 500 nuclear reactors (the governments are their guarantor of last resort). This is an algorithmic topic, which relates to systems-engineering.

Use Ctrl+<+> in order to enlarge Scheme below:

CFRS 2020

The CFRS prevents Rentier-economy,
while preventing national sinking into exponentially growing indebtedness.

Taking a loan is a case of collateralizing, i.e. signing a commitment of,  the debtor’s vitality up to the combined-sum of the principle-sum + all accrued Interest + Insurance costs. Thus the volume of the interest need and can be issued to the Market (via the government + Issuer), per-annum, in advance of its repayment.

NRFA: National Repayment and Forfeiture Authority.
1. The NRFA receives the following Payments and writes them down:
The entire repayment of the Principle-Sum
* Instead of to the Banker/Issuer, who would then tend to keep it, illegally.
Plus the 90% of the Interest return (the Bank gets its 10% of interest sum, per its 10% collateral).
2. The NRFA issues debt-free currency in the volume of interest repayments, handed over to the government (in exchange for lower taxation in that volume), in order to balance-off the volume of the interest payments. This prevents an endless column of recursive indebtedness.

If the aforementioned algorithm of a properly specified (aka here: corrected) fractional reserve system (CFRS) isn’t implemented, then the government of the world would melt-down economically and politically, namely lose control – including defaulting on their role of last guarantor of the NPP (Nuclear Power-Plants) of the world, which would thus alas also melt-down: more than 440 of them in service by 2020 and up to some 600 including ones under construction:

Author: netzerconsulting

A seasoned Software and Systems Engineer/Architect, trained in electronics engineering to start with. Over 25 years of relevant professional experience.

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