A NEW ECONOMIC MODEL

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What is our current Paradigm?

Finance: The field of finance  refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important. Financial assets, known as investments , are  financially managed with careful attention to financial risk management to control financial risk. Financial instruments allow many forms of securitized   assets to be traded on securities exchanges such as stock exchanges, including debt such as bonds as well as equity in publicly-traded corporations.

We have allowed the Banks complete control of the world!

Public: The whole body politic, or the aggregate of the citizens of the state, district, or municipality. Open to all.

This is our current Paradigm!

par·a·digm  Listen to the pronunciation of paradigm     

\ˈper-ə-ˌdīm, ˈpa-rə- also -ˌdim\   
Late Latin paradigma, from Greek paradeigma, from  paradeiknynai  to show side by side, from para-  +  deiknynai to show - more at  diction          
15th century   
1: example , pattern ; especially : an outstandingly clear or typical example or archetype2: an example of a conjugation or declension showing a word in all its inflectional forms3: a philosophical and theoretical framework of a scientific school or discipline within which theories, laws, and generalizations and the experiments performed in support of them are formulated ; broadly : a philosophical or theoretical framework of any kind  
Paradigm Paralysis  

Perhaps the greatest barrier to a paradigm shift, in some cases, is the reality of paradigm paralysis, the inability or refusal to see beyond the current models of thinking.

Paradigm Shift: Undoing the existing Paradigm!   

Commerce: is a division of trade or production which deals with the exchange of goods and services from producer to final consumer. It comprises the trading of something of economic value such as goods, services, information or money between two or more entities. Commerce functions as the central mechanism which drives capitalism and certain other economic systems (but compare command economy, for example). Commercialization or commercialisation consists of the process of transforming something into a product, service or activity which one may then use in commerce.


Private: Affecting or belonging to private individuals as distinct from the public generally.


Banks should serve and facilitate Commerce!


Co-Venture:  undertake as joint venture: to undertake a business venture in partnership with another person or company.

Noun:  business partnership: a business agreement, deal, or partnership involving two or more companies.


Revenue Sharing: The splitting of operating profits and losses between the general partner and limited partners in a limited partnership. More generally, the practice of sharing operating profits with a company's employees, or of sharing the revenues resulting between companies in an alliance.    


Obligation: An obligation is a requirement to take some course of action, whether legal or moral. There are also obligations in other normative contexts, such as obligations of etiquette, social obligations, and possibly in terms of politics, where obligations are requirements which must be fulfilled. These are generally legal obligations, which can incur a penalty for unfulfilment, although certain people are obliged to carry out certain actions for other reasons as well, whether as a tradition or for social reasons. Obligations vary from person to person: for example, a person holding a political office will generally have far more obligations than an average adult citizen, who themselves will have more obligations than a child. Obligations are generally granted in return for an increase in an individual’s rights or power.

Obligation Definition continued:

1. The act of binding oneself by a social, legal, or moral tie. 
a. A social, legal, or moral requirement, such as a duty, contract, or promise that compels one to follow or avoid a particular course of action. 
b. A course of action imposed by society, law, or conscience by which one is bound or restricted. 
3. The constraining power of a promise, contract, law, or sense of duty. 
4. Law  
a. A legal agreement stipulating a specified payment or action, especially if the agreement also specifies a penalty for failure to comply. 
b. The document containing the terms of such an agreement. 
a. Something owed as payment or in return for a special service or favor. 
b. The service or favor for which one is indebted to another. 
6. The state, fact, or feeling of being indebted to another for a special service or favor received. 

BCL: Bank Commitment Letter: Commitment letters are contracts obtained by borrowers to assure the availability of financing from a lead lender. Borrowers may need commitment letters to "prove" to interested parties that they have a line of credit available from a lender or group of lenders. This gives those interested parties a certain degree of confidence that the borrower will be able to keep its promises - at least from a financing standpoint. In other cases, a borrower may want a commitment letter in place before it takes actions that require third party financing. The commitment letter gives evidence that a transaction is financeable.


Aval: A guarantee added to a debt obligation by a third party who ensures payment should the issuing person default.



Bill of Exchange:  a short-term negotiable financial instrument consisting of an order in writing addressed by one person (the seller of goods) to another (the buyer) requiring the latter to pay on demand (a sight draft) or at a fixed or determinable future time (a time draft) a certain sum of money to a specified person or to the bearer of the bill.


A bill of exchange is a kind of check or promissory note without interest.   It is used primarily in international trade, and is a written order by one person to pay another a specific sum on a specific date sometime in the future.   If the bill of exchange is drawn on a bank, it is called a bank draft.   If it is drawn on another party, it is called a trade draft.   Sometimes a bill of exchange will simply be called a draft, but whereas a draft is always negotiable (transferable by endorsement), this is not necessarily true of a bill of exchange.



Purchase Order: A purchase order (PO) is a commercial  document issued by a buyer  to a seller , indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services. Acceptance of a PO by a seller usually forms a once-off contract  between the buyer and seller, so no contract exists until the PO is accepted


Financial Glossary


Private Bank

An incorporated bank licensed through a specific jurisdiction that is privately held either by an individual or a general partner(s) with limited partner(s).


Offshore Bank

A bank located outside the country of residence of either the depositor or owner.


Captive Bank

A wholly or partially owned subsidiary that plays its role as a bank only for the benefit of one legal entity (usually a firm) and its customers and suppliers. In addition to safe keeping of deposits, captive banks may also offer merchant banking, financing and other services, usually in association with commercial banks.


Private Trust Company

Provides trust administrative services for individual and family assets including day-to-day investment management and delegating money management services.


Swiss Trust Company

A Swiss Trust Company is a financial institution, similar to a bank, which can provide many banking services. Not to be confused with Special Purpose Trusts, a Swiss Trust Company can provide a wide variety of fiduciary and administrative services to shareholders, related subsidiaries and clients.


Irish Trust Company

Similar in capabilities of service to a Swiss Trust Company yet its primary location is in  Ireland. Additionally, ownership of an Irish Trust Company is issued in registered form, not bearer share certificates.



A wholly or partially owned subsidiary that is primarily controlled by its owners.


Captive Insurance Company

A Captive Insurance Company is an institution established primarily as a risk management technique that enables its owner(s) to finance retained losses in a formal structure. Additionally, a Captive Insurance Company can be used for reinsurance purposes in addition to issuing insurance to protect employers and principals from various risks.


Edge Act Corporation

A federally-chartered US corporation that is only allowed to engage in international banking or other financial transactions related to international business. Authority established by the Edge Act in 1919.


International Banking Facilities (IBFs)

Institutions in the United States that allow depository (banks) to offer services to foreign residents and institutions free of some Federal Reserve requirements and some state and local income taxes.



A person, company or association responsible for holding & investing assets in trusts wisely for the beneficiary’s benefit.


Swiss Fiduciary

Operates as a fiduciary in the country of Switzerland and therefore most uphold the laws and regulations specific to that jurisdiction.


Letters of Credit

Issued by a financial institution authorizing the bearer to draw a stated amount of money from the issuing organization, its branches or other associated agencies.


Promissory Notes

A written promise to pay or repay a specified sum of money at a stated time or on demand. Also called a “note of hand.”


Safekeeping Receipts

Safekeeping is the storage of assets or other items of value in a protected area such as a bank, brokerage firm or trust company. Safekeeping receipts indicate that the assets of the individual do not become assets of the institution and that they may be returned to the individual upon request.


The Society for Worldwide Interbank Financial Telecommunication (SWIFT)

A member-owned cooperative through which the financial world conducts its business operations with speed, certainty and confidence. SWIFT enables customers to automate & standardize worldwide financial transactions.



The world’s largest provider of domestic & cross-border settlement and related services for bond, equity and fund transactions.



A leading European supplier of post trading services; ensures that cash & securities are promptly & effectively delivered between trading parties. Operates in over 100 countries worldwide.