how are central banks affected by systemaccounting?


systemaccounting eliminates the role of a central bank from an economy by enforcing a conservation of information through a data structure, thus 1) distinguishing and separating money from the risk-bearing financial instruments held on the balance sheets of banks (see monetary inflation, money-supply hacking), and 2) setting a criterion that automates financial stability to a degree not capable by committees

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: fictional 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 systems inputs (cost of borrowing), it is this same fictional-setpoint-dependency that causes the accumulation of entropy to persist until system failure

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