The PPF Curve Demonstrates that this Growth is Easily Achievable
Every country has the potential to double GDP in one year at constant price. This is demonstrated by the spare capacity that allows the PPF curve to shift to the right. It is important to note that a Split Velocity model does not just increase access to factors of production, which leads to an increase in output it also simultaneously grows the markets where the output is sold by increasing effective demand. The consequence is that the economy begins to boom and this heightened activity becomes its modus operandi. This growth brings an end to poverty, scarcity, unemployment and very rapidly begins to scale up countries per capita income, accelerating living standards to the extent that within the shortest possible period, e.g. a single generation, they begin to equal and even inevitably surpass the living standards experienced by developed countries retarded by a dystopian and dysfunctional circular flow of income (CFI).
Split Velocity will allow developing economies to offer their citizens a better life, based on genuine science and economic strategy that will inevitably eclipse the industrialization and economic achievements of developed countries in every field and aspect of human endeavor due to losses equivalent to GDP being dissipated by the defective CFI being restored to businesses, private and public institutions and governments. This will allow Africa to move into an era of wealth, prosperity and higher living standards no other civilization on earth has been able to achieve.
Not only is the currency of a country that implements a Split Velocity model more advanced and more powerful than present day G7 “hard” currencies it is more resilient and more powerful than gold and other precious minerals. Many countries believe that by storing gold and using it to back their national currencies they can protect fiat money from deadly inflation that erodes value. However, if any precious mineral floods the market, like fiat money, what will happen? Yes, its value will begin to fall. Gold and diamonds are precious minerals, however, if the supply of these floods markets the value will rapidly decline, and can decline to a point where these precious minerals become worthless. Now if your central bank, your treasury, economy and national currency are backed by gold or diamonds and the value of these minerals is in free fall, what will happen to your national currency? What will happen to the value of currency in your treasury? That’s right, it will collapse like a deck of cards. Hence, when I point out that a Split Velocity model’s currency is more valuable than gold, diamonds and other precious materials you should have the presence of mind and intellectual capacity to comprehend what is being explained. A Split Velocity model can introduce the equivalent of GDP in domestic currency and instead of inflation the national economy will experience growth. This increase in money supply will take place at constant price. Even if a country converted its currency from fiat money to gold as a hedge against inflation and attempted to increase money supply in this gold currency, the value of gold would collapse and the currency would be rendered useless by inflation, despite being made from gold. Yet a fiat currency backed by a Split Velocity model that doubles money supply will do so at constant price, it will shift the PPF to right bulldozing everything standing in a country’s path to success out of the way. Gold, diamonds and other precious materials need a Split Velocity model to back and sustain their value. This makes the intellectual property (IP) and technology that is Split Velocity more valuable than gold and diamonds. A country whose government backs its national currency with gold, diamonds and other precious in minerals, in massive Fort Knox like vaults, even if this backing is 1 to 1 with the national currency cannot compete or challenge a government whose currency is backed by a Split Velocity model. It is the MVP in economic management of a national economy. There is no contest here. In a showdown between economies Split Velocity takes it all. This is just the facts. It is a rare example of where innovation and technology is more powerful than natural resources. As I have mentioned a Split Velocity model is the most advanced model, any government in the world that applies this model cannot be deterred from developing by poverty and scarce resources. A Split Velocity model is all business. It also cannot be confronted by any modern day MV=PY economy, not even if the country that confronts it is many times its size, a developed country or Superpower. Its very pertinent for leaders to understand this. For leaders tired of hide seek-like, kindergarten “play-time” types of approaches in economics that offer their populations juvenile and meaningless growth rates of 1%, 2%, 6% and so on, year in and year out for decades and centuries, year in year out dealing with same mundane problems, its time to flex with a Split Velocity model and move millions of your people out of poverty in one move, into a higher standard of living pundits assume is not possible and provide leadership with the kind of economic might only a Split Velocity model can deliver. Look at the movement of the PPF curve in the diagram above , from A to B, what the curve movement shows you is what you get. Its time to stop playing games, get moving and alter the lives of your people, transform their existence and that of the generations to come in a manner no other leader in history before you has been able to. This is real growth, meaningful development and it can be achieved.
MV=PY is one engine in one economy flowing in one direction. KV(MS/E)=PYR is 2 engines in one economy flowing in 2 directions (velocities) simultaneously that create the PPF move demonstrated above (A to B, 1x to 2x in one year), at constant price. This economic growth with its remarkable doubling time is science. You can test this using the equation.
Its important for leaders to understand the scientific origin of scarcity. It is also the scientific origin of poverty. This scarcity begins and is created within the circular flow of income (CFI). If the inefficiency in the CFI is not dealt with it does not matter how powerful or how wealthy a nation becomes or the level of its natural resource wealth, it will still face scarcity that is capable of dismantling all its gains.
Its important understand what it is that you are fighting or what you are up against in economics, accounts and finance. For the sake of example, the US debt is described as growing by $1 trillion every 100 days. This is a classic example of an Asynchronous Financial system. This debt is meant to be offset or paid off by income recovered from the defective CFI. If a move is not made to a Synchronous Financial system, by upgrading the economy to a Split Velocity model, the fact that the economy remains financially Asynchronous means this debt will inevitably return and become more aggressive. Zambia in 2005 experienced $2bn of debt forgiveness through the HIPC initiative, yet in 2024 owed 12 times this amount. This debt is meant to be settled through growth recovered from the CFI. If not, it has the potential to come back worse than it was before.
However, with a Synchronous Financial system, gained after implementing Split Velocity, the original economy is capable of shifting from A to B. Credit risk in a Split Velocity model is very low due to the enhanced capacity of private and public sector institutions to pay back their debts. This allows the banking sector to thrive and fund larger investments. Banks will find themselves able to finance huge investments on a scale they could not possibly finance before simply due to the fact their clients are better positioned to take on and repay loans of this scale.
The PPF Supports Accelerated Growth
When I asked ChatGPT to analyze the PPF of the Split Velocity Model, expecting a doubling of output due to equal increases in inputs to Households and Non-human capital in an economic environment with significant spare capacity, the response was quite surprising as at one point ChatGPT seemed to imply that doubling need not be an expected limit as it should not be ruled out that the model could more than double output in one year. This is quite true, similarly unexpected shocks to a (diminishing returns) economy can reduce doubling time, however, unanticipated windfalls (accumulating returns) can also more than double GDP in one year. The technology paradigm inevitably determines what the increase in output will be.
The diagram above shows the financing of Households grows by 40% and the financing of Non-human capital grows by 60% by recovering the losses being hidden from the economy by the dystopian CFI created by a messy Western Knowledge Paradigm (WKP). Combined this recovery of income leads to a 100% increase that shifts the PPF curve from A to B. This is how a normal economy should function. Its important to note that the PPF diagram shown above can cover both the macroeconomy (GDP) and the microeconomy (individual businesses or institutions) Total Revenue (TR) since Households and Non-human capital are common factors, all that differs between the two is scale. A Split Velocity model once applied by progressive governments will demonstrate that the industrialization developed countries have achieved over the last 250 years is mere child’s play and remains sub par (Developed countries will also have to upgrade their economies to a Split Velocity model to escape annual losses to the CFI equivalent to GDP). The gains seen in the industrialized world have come with a senseless backdrop of losses equivalent to GDP per annum. Therefore, the capacity for industrialization without the constraint of this hidden loss will transform the economic landscape for developing countries moving them from the back to the very fore of leadership in advanced economic development.
In the PPF diagram above not only are Households being paid for labour and ownership, they are also consumers. Similarly not only is income being spent on Non-human capital inputs, the cash being paid out is going into the hands of future buyers in Non-human capital markets. Therefore, not only does the potential for output in a Split Velocity model double in one year, so too does the market for the goods being produced, in terms of Household consumer products and Non-human capital consumables such as industrial equipment and raw materials. The ability to grow markets in tandem with growth in output is a unique quality of the Split Velocity model. This means that manufacturers will never have to fear that the goods they produce will not be met with effective demand when they are placed on the shelf for consumers to buy. This is more advantageous as it allows producers and manufacturers to compete more on consumer choice rather than whether the market can afford their products. This in turn leads to greater excellence in industry as businesses focus on quality of goods and the quality of customer service as the main method for securing market share and value.
Furthermore, the one major exploitation and fear that developed economies have had over the years is not having a hard currency. However, when a Split Velocity model backs any developing country’s currency, that currency becomes more powerful than any of the hard currencies held by the G7 or any government in the world today. No hard currency has the capacity to increase money supply without generating high levels of inflation (MV=PY, as expressed by the Fisher Equation). Whereas, the currency of a developing country managed using Split Velocity can even double money supply without triggering inflation (See the new Punabantu Equation of Exchange). This makes Split Velocity currencies more powerful and more technologically advanced than hard currencies in use today.
Even though Split Velocity can reduce doubling time to one year, governments can choose what percentage of this resource to apply to the economy e.g. 20%, 40% or 60% per annum.
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