A monetary nexus is a root function that is applied to all elements on a cybernetic financial set. For example, an interest rate is a monetary nexus, since it is used to credit interest to all accounts in a monetary set.

A cybernetic financial set may comprise all of the accounts at a bank, or only a type of account within a bank.  We can define four base financial operations on these sets: addition: (debit), subtraction: (credit), multiplication: (nexus), and division: (spread).

A nexus can also be propagated across several monetary sets, and can in effect produce macro economic effects, while it acts on a micro economic level by means of cybernetic multiplication of large financial sets.

Most nexus today are left up to the free market forces to set. However, some nexus are controlled by quasi-governmental institutions, such as the Federal Reserve Bank. A fed funds rate is a monetary nexus applied over the entire US economy, over numerous monetary sets, as a basis for the calculation of other interest rate nexus.

Stock Nexus

The most important nexus is perhaps that of a stock price point. In the stock market, a stock’s present value is a monetary nexus, since it is used to multiply the stock units held by the public by its value at real time, giving the posted selling price of the stock at each moment in time.

Astute investors in the past few years have usurped the stock market’s balance by controlling stock’s nexus. In a totally free and anonymous market, the value of a stock should vary according to the potential future benefits foreseen from the corporation, while taking the potential risks into account. However, in many cases today it is clearly not the case.

Many of today’s hype-stock values are manipulated by controlling the stock’s nexus. This is done by covert agreement between groups of "investors", where bids cycle up the stock’s nexus by selling low to other higher bids from the participants, thereby increasing the value of the nexus. If this is done with a small set of each seller’s portfolio, each may later repurchase the stock at a higher value, and will receive a speculative gain. Other unwitting stockowners are simply along for the free ride.

In the days of the financial tigers, they were known to pour in large sums of money to support and increase the nexus of a stock. This operation was done usually at about 3:00 p.m. on trading days, thereby artificially preserving the value of their portfolios before the day’s market close.

The Asian tigers of the past, and some of today’s emerging tigers, can put pressure on a stock nexus because some of their money has been generated overseas in fraudulent banking systems. One need only see the result of the flood of money generated in the Russian banking system in 1998 and the resulting influx of over $100 Billion dollars into the US system via well known New York investment banks.

Currency Nexus

Perhaps the most important monetary nexus is that of foreign currency exchange rate. A currency nexus is the value of the local money supply of an entire nation in relation to a global currency such as the US dollar. A currency nexus is propagated across all financial monetary sets in a nation. All of a nation’s economy depends on this nexus, and yet most ordinary citizens have no control over its setting.

In a free market, a currency nexus can be set by a free-floating rate. This free market nexus is purported to depend on the economic laws of supply and demand. The demand of a hard currency always exceeds the supply, by definition. So, the soft currencies chase after the hard ones until the soft currencies loose their value, and affect the currency nexus for entire nations.

If the oversupply of soft money is large enough to permit speculation in the hard currency, then devaluation is swift and crushing. This has been the case in many a nation, where financial moguls with enormous bogus holdings have managed to modify the currency nexus by speculating on the value of their own money, thereby causing disastrous currency devaluation for their own People.

A few callous financial speculators can ruin the economy for all of the People, who must simply abide by the value of the exchange nexus of the day.

There are other currency nexus where the exchange mechanisms are centrally controlled, such as the pegged exchange rate in China, or the currency board in Argentina. These provide far better protection from nexus manipulation of these irresponsible speculators.

Social Nexus

If we can understand that monetary nexus have a profound effect on today’s global cybernetic economies, we will be able to mitigate the effects of financial nexus manipulation, and to define more logical and ordered nexus for the cybernetic financial domains of the future.

A monetary nexus acts cybernetically on a micro economic level, but produces a macro economic effect. If we define a cybernetic monetary nexus that benefit the World’s Poor, we will be able to solve our deepest social problem.

A nexus can be set by political will. It is by this means of that we will at last achieve social justice. A simple, clear, logical cybernetic function known to all citizens.  A simple concept of digital currency contained in smart cards.

 
Atlanta, GA
March 9, 2000