how are central banks affected by systemaccounting?


systemaccounting eliminates the role of a central bank from an economy because it 1) enforces a scientific definition of money, thus distinguishing and separating it from the risk-bearing financial instruments held on the balance sheets of banks (see monetary inflation, money-supply hacking), and 2) recognizes the measurement & publication of unmodified prices in a conserved system to be the only means of establishing a stability criterion in a free market

contrary to popular belief, economic inefficiency and instability is not ultimately caused by a central bank since its function is to serve as a control-mechanism* for any government action to centralize a borrowing and lending function (see central planning)

in the case of the united states, it is the u.s. department of the treasury that both i) authorizes and issues money to increase the efficiency of trade, but then ii) compromises this efficiency by centralizing a borrowing and lending function through the bank chartering process

when lending firms are granted the legal privileges of 1) bundling the services of storing, moving, and borrowing money from the public—which unjustly subsidizes their cost of competing for capital, and 2) redefining the money supply to include their notes receivables, the demand for a central regulating authority to intervene by a) mitigating the effects of monetary inflation and b) preventing money shortages is unavoidably created

once the role of government in financial markets is automated through science and technology (see role of u.s. treasury), the private financial sector will no longer find in government a willing bedfellow who compromises its scientific integrity in exchange for election assistance

the days of exploiting government authority to i) charter technically-absurd business models, ii) falsify rates, iii) bend the rules of accounting, and iv) force the public's acceptance of financial risk will end once the economy comes to depend on a purely scientific measure of value & cost of capital

*note: false information is used as feedback in a control loop intended to secure the stability of a system in a constant state of disequilibrium (markets are prevented from clearing when the objects defined to communicate this event are mixed with instruments containing financial risk)

since the setpoint is defined to favor only a fraction of the system's inputs (cost of borrowing), it is this same false-setpoint-dependency that causes the accumulation of entropy to persist until the system failure

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