Split-Velocity Solutions, Outreach 25th February 2019
Recourse through the Justice System and Legal Framework in your country
Losses of finance caused by flaws in the CFI cause billions of dollars worth of lost income in a national economy leading to extensive damages that affect every area of human development for which there is both responsibility and culpability.
In order to have financial losses in the CFI addressed, recovered and applied to improve living standards, counter poverty and sustain the national economy, it is best to explore and exhaust all options and advocate for changes in national economic management and the financial system be made. It is best to write to officials and office bearers of relevant institutions who are professionals directly engaged with managing the national economy and ensuring the financial system is stable, in an effort to have these losses addressed and recovered, seek their engagement and explore all the amicable avenues available. Do your best to exhaust all the available avenues. Most professionals who are genuine, career driven and pro-active will be open minded, willing to meet, listen and see how to act to address the problem.
Where this fails or proves fruitless recourse through the justice system has several channels that can be pursued.
Culpable professional malpractice
This is where the dereliction of professional duty or a failure to exercise an ordinary degree of professional skill or learning by one rendering professional services which results in injury, loss, or damage.
[The injury, loss and damage created by failing to address financial losses caused by subtraction in the CFI are readily demonstrable. Failure by a trained, professional to act to counter and recover losses in the CFI caused by subtraction is culpable professional malpractice.]
Criminal Negligence
In criminal law, criminal negligence is a surrogate mens rea required to constitute a conventional as opposed to strict liability offense. It is not, strictly speaking, a mens rea because it refers to an objective standard of behaviour expected of the defendant and does not refer to their mental state.
Criminal negligence is conduct where a person ignores an obvious risk or disregards the life and safety of those around him or her. Both federal and state courts describe this behavior as a form of recklessness. The negligent person acts significantly different than most people would under similar circumstances.
[The financial losses in the CFI can be demonstrated and admitted into evidence in a court of law. They are critical to the national economy and once recovered would go to saving lives, purchasing life-saving medicines and medical equipment, rescuing people from poverty, improving services, health and safety, education, policing and crime prevention, paying off a country’s debt that have a great impact on livelihoods and the well-being of a given population. Failing to act to recover these losses is classified as both civil and criminal negligence]
How Criminal Negligence can become a Financial Crime
This brief article evaluates what constitutes the inability of an institution to act on financial loss caused by an inefficient design of an economy, that has been pointed out and reported to relevant offices, and how it will measure up to criminal negligence in a court of law.
Communities cannot stand by idly while so many people in both developed and developing countries, both rich and poor, suffer the negative effects of poverty and scarcity in their lives brought about by problems in economics for which there is an answer today. Economic justice and the right to live in an economy that uplifts businesses can only come about through a transformation. If there are obstacles to required change that stand in the way of economic emancipation that liberates humanity from inordinate levels of scarcity, then, as it is with most forms of justice, the recourse to bringing about this change shall be the courts of law.
Legal recourse
Criminal negligence when it comes to finance and financial crimes appears to be in the same vein as gross corruption, abuse of authority, money laundering, pyramid schemes and other financial crimes, except, when it comes to comparison with the financial loss being caused by subtraction or an inefficiently designed national economy, it will be considered a more serious abrogation of the law than the latter due to the magnitude of the loss; which will overshadow any loss due to negligence in human history. Having been reported or been informed of this financial loss, an office bearer’s inability to act to prevent it and the tremendous negative consequences this has on human life and livelihood will add to the gravity of this offense, described as a form of gross negligence well beyond the charge of simple misdemeanour.
When there is evidence in any country that a central bank or other relevant authorities are made aware of the real financial loss being incurred by the economy be it through the ministry of finance, governor or deputy governor of the central bank or other relevant offices; the central bank must act to stop this loss of public or national finance to the economy. A failure to do so by office bearers will inadvertently constitute a financial crime that is prosecutable by law as criminal negligence. The inability to act on a matter of this magnitude that has been reported and requires action would need to be investigated.
Criminal negligence is an abrogation of law recognised in both national and international law. For instance, in the Federal Laws of Canada Penal Code Section 219 states that:
The daily financial loss caused by failing to address an inefficient economic design can attract value from the date the loss or benefit of correcting the loss is reported. The Zambian economy in 2018 grew by 4% (source: African Development Bank – AfDB). This means that the inefficient design of the national economy caused a loss equivalent to 96% of Zambia’s GDP. In 2018 Zambia’s GDP was pegged at US$25.81 billion. The daily loss for Zambia in 2018 due to subtraction was therefore US$68.8 million per day. If this loss was reported on the 17th of December to the central bank for action, for the sake of example, the damages caused due to inaction or negligence to date in a court of law could be valued at 68 days, that is, 68*US$68.8 million or US$ 4.6 billion.
As financial literacy concerning subtraction grows business managers and owners will come to the realization that they suffer and pay the price for the daily hemorrhage of these useful financial resources. Recovering these resources, estimated at US$68.8 million per day for Zambia in 2018 would make profound improvements to all the sectors of the Zambian economy both public and private. The same simple procedure for assessing daily loss can be applied to most countries. This colossal loss of income to the national economy is purely a waste of financial resources caused by nothing more than a technical inefficiency in how money works or moves in the circular flow of income.
Correcting this flaw and recapturing these useful resources is achieved through advancing our understanding of economics and finance, then applying innovation that introduces changes to financial architecture that enhances the performance of businesses in an economy. The innovation and technology with which to do this is available today, straight forward to implement and only require the foresight and will to begin to be applied.
These losses can of course be set aside or wavered where institutions step up to address the problem. However, this extraordinary loss of recoverable useful financial resources should help to illustrate why institutions to whom this loss is made known should act expediently. When the financial loss as a result of the inefficiency of money supply, created by subtraction taking place beneath the circular flow of income are reported to office bearers who oversee the economy at a central bank or other relevant offices, be it anywhere in the world, by law, it is advisable that the office bearers act diligently, expediently and within the law by taking the actions required to prevent this financial loss from taking place within the economy they oversee otherwise they may show a reckless disregard for the lives and safety of other persons the daily value of which can be assessed before a court of law through a process of evaluation described above. Having been made aware of this financial loss, failing to act to prevent it can constitute criminal negligence.
Why is failing to act on this potentially a serious crime?
Citizens of a country rely on the income prevalent in an economy not simply for sustenance and for their livelihoods, but for their very existence. This includes the infirm who rely on the availability of this income to provide medicines and access to medical care who will die without it. It includes those who require food, shelter and clothing who are unable to acquire it due to poverty who may fall ill or die; those who seek employment and steady jobs but cannot find them. The death, pain, anguish and suffering caused by the lack of resources in an economy is not only felt by both rich and poor, it is also experienced by businesses and business owners that fail to operate, experience low demand, watch as fast moving consumer goods (FMCGs) remain endlessly on shelves, are forced to lay off workers and close down, which is the equivalent of corporate death. This death and anguish amongst human beings constitute a heinous crime, when the cause is reported and made evident to office bearers, it is their professional duty to act to prevent it in the interest of lives and safety of the people. Since this negligence affects diverse categories of people or groups in the economy, they may in their diverse groups engage separate class action law suits against the central bank or institutions involved in a bid to recover needlessly lost income caused by criminal negligence.
Subtraction taking place beneath the circular of income creates a 100% loss of value in an economy. This public financial loss is equivalent to GDP. Basically, the economy is flawed in that its financial architecture is inherently designed to subvert the operability of businesses. The financial architecture of the economy has to change, advancing the cost equation from:
Current cost equation: Profit = Total Revenue (TR) – Total Cost (TC)
to a position where this loss caused by subtraction is recovered namely;
Corrected cost equation: Profit = Total Revenue (TR) = Total Cost (TC)
The economy in every country today currently pushes business constantly towards the shut-down point. Businesses fight back against this loss-making position that exists in the financial architecture of the economy by charging more for products they sell than their real value, creating what is referred to as profit or a “profit margin”. Though the profit margin created by businesses (banks included through interest rates) rallies against the tremendous financial loss being caused by the inefficiency of money due to poor design of the economy, in aggregate, on average they rarely recover more than 3% or 4% of this loss. This recovery becomes what is known in contemporary economics (CE) as the annual GDP growth rate.
This financial loss once identified and made known to the offices that oversee workings of a nation’s economy must be stopped and recovered as a functioning part of due diligence. To fail to do so when it has been identified amounts to criminal negligence, which is not only an abrogation of justice, by law, it is prosecutable.
Although financial loss caused by subtraction or an economy operating inefficiently are a recently identified phenomenon, the magnitude of this loss makes it a serious matter that demands immediate action by authorities it is reported to that have a professional duty to respond to it.
If this loss is reported to your office or institution, it is therefore advisable that it receives a prioritised response and is acted upon diligently.
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