Revolutionizing Money Supply Management in the Modern Economy

If you have been keeping up with Split Velocity, at this point you should understand that accounting negligence and malpractice which fails to distinguish between gains in GDP [at the macro level] and or Annual Total Revenue (ATR) [at the micro level] over time and the point in time losses created by financial architecture misinforms how Central Banks and Federal Reserve Banks manage money supply. They do not provide the point in time increases in money supply required to counter losses in the CFI. This accounting negligence forces businesses and institutions to mark up products or use cost plus pricing due to the fact that they are attempting to increase money supply to remain profitable, a practice that drives creeping inflation world wide. It forces economies to subsist on mark ups where growth ranges on average from 0% – 6%. Instead of 100% of the waste being recovered from the CFI must be restored to business and institutions. This accounting negligence and malpractice leads to business losing 100% of their ATR to the CFI for absolutely no relevant reason. Advisory and consulting services institutions and individuals have failed to advise companies and governments about this ongoing problem, instead they manage and remain fixated on subsistence gains from 0%-6% growth while remaining completely blind to 100% losses in the CFI. This negligence is the reason why scarcity remains high across the world and poverty remains unmanageable. These ATR losses must be restored to businesses and we designed the fintech with which to do this and correct this problem, namely, Split Velocity.

In an era where central banks continue to amass gold reserves amid geopolitical tensions and economic uncertainties, a paradigm shift is overdue. As of September 2025, global central banks are on track to purchase around 800–1,000 tonnes of gold this year, down slightly from the record 1,086 tonnes in 2024, yet still representing trillions in tied-up capital due to inadequate advisory services. Nations like China have extended their gold-buying streak to nine consecutive months, underscoring gold’s enduring appeal as a safe haven. However, this reliance on physical assets overlooks a more efficient, digital alternative: the Split Velocity (SV) model, grounded in the Punabantu Equation of Exchange. Developed by business management specialist Siize Punabantu, SV promises to transform monetary policy by enabling exponential economic growth without inflation, making the demand for gold greater than that driven by central banks. This article argues that SV not only outperforms gold in stabilizing money supply but also unlocks unprecedented productivity, urging central banks to rethink their strategies.

The Enduring Allure—and Shortcomings—of Gold Reserves

Gold has long been a cornerstone of central bank reserves, with global holdings exceeding 36,000 tonnes valued at over $3 trillion. In 2025, surveys reveal that 95% of central banks anticipate rising gold reserves in the coming year, driven by its perceived roles as an inflation hedge, geopolitical safeguard, and strategic asset. Proponents argue that gold diversifies portfolios, counters currency devaluation, and signals financial sovereignty—especially amid de-dollarization trends in emerging markets.

Yet, gold’s limitations are glaring. Purchases incur massive upfront costs, with central banks adding 244 tonnes in Q1 2025 alone at prices averaging around $2,500 per ounce (escalating to $3,675 by Q4 projections). Once acquired, gold sits idle in vaults, demanding ongoing expenses for storage, 24/7 security, purity audits, and insurance—running into millions annually per institution. Price volatility poses risks; a supply surge from mining could dilute value, while declines (as seen in 2013’s 20% drop) erode reserve strength and weaken national currencies.

Moreover, gold offers passive protection at best. It failed to prevent or mitigate the 2007–2009 subprime crisis, where reserves remained untouched amid economic collapse. Central bank gold buying, accounting for 20–25% of global demand, artificially inflates prices but stifles broader market growth by diverting resources from productive investments. Opportunity costs are staggering: Funds locked in U.S. gold reserves (valued at ~$500 billion) could instead address infrastructure deficits, hunger affecting 44 million Americans, or unemployment programs.

In essence, gold perpetuates a reactive, resource-intensive approach to money supply management, rooted in outdated models like the traditional Circular Flow of Income (CFI), which overlook systemic inefficiencies leading to inflation and stagnation.

Introducing Split Velocity: A Dynamic Alternative Powered by the Punabantu Equation

Enter Split Velocity, an innovative economic framework that addresses these flaws head-on. At its core is the Punabantu Equation of Exchange, a refinement of Irving Fisher’s classic MV = PT (where M is money supply, V is velocity, P is price level, and T is transactions). The Punabantu version, KV(MS/E) = PYR, introduces key components: R (operating system, representing transactions per cycle), S (emoney multiplier for balance restoration), E (emoney constrictor for efficiency), and K (virtual velocity from splitting).

Unlike Fisher’s equation, which assumes a linear economy prone to zero growth and treats velocity as aggregate, Punabantu’s model splits velocity into dual streams—capital (productivity-focused) and household (consumption-focused). This “split” allows money to perform multiple roles simultaneously per cycle (e.g., R=2), effectively doubling output along the Production Possibility Frontier (PPF) without price hikes. For instance, in a $300 billion economy, SV shrinks apparent money supply (M/E) while boosting virtual velocity (K), resulting in doubled GDP at constant prices.

The benefits are profound: SV creates a “price plane” where sellers lack incentives to inflate costs, enabling money supply to double annually tied to real productivity gains. Empirical tests, replicable using public GDP data, reveal 100% annual CFI losses recoverable through SV, projecting growth rates exceeding 15% without inflation, poverty, or recession. By advancing or boosting GDP by as much as 0%–100% per annum—recovering the full spectrum of CFI inefficiencies—SV fosters an environment of rapid economic expansion. Implementation is digital and cost-effective, leveraging electronic money creation at near-zero marginal expense—no vaults, no audits, no physical risks.

Head-to-Head: How Split Velocity Outperforms Gold

SV’s superiority over gold is evident across key dimensions of money supply integrity:

• Inflation Control: Gold hedges against inflation but cannot prevent it. SV’s price plane eliminates inflation proactively by balancing money supply with output, making fiat more stable than gold (where supply doublings erode value).
• Crisis Resilience: Gold provides passive sovereignty but proved ineffective in crises like 2007. SV accelerates growth during shocks, injecting funds into productive splits to boost employment and output, countering recessions dynamically.
• Cost and Efficiency: Gold’s high acquisition and maintenance costs drain resources. SV operates electronically, freeing capital for infrastructure and social programs while unlocking exponential growth.
• Market Impact: Central bank gold purchases artificially support demand but stunt organic growth. SV enhances purchasing power, naturally surging private gold demand (e.g., jewelry in booming economies) beyond what banks can buy, benefiting miners sustainably. Crucially, SV’s capacity to boost GDP by 0%–100% per annum amplifies this effect dramatically. For example, elevating an economy’s growth rate from 6% to 36%—achievable through SV’s velocity splits and CFI recovery—would increase per capita income and disposable wealth, driving demand for gold as a luxury or investment asset in far greater quantities than central bank purchases. Historical precedents, like China’s high-growth periods in the 2000s–2010s, show how rapid expansion correlates with jewelry demand spikes exceeding 1,000 tonnes annually, dwarfing current CB buys of ~800–1,000 tonnes.
• Overall Stability: While gold is volatile and idle, SV transforms fiat into a durable store of value, doubling money supply at constant prices via the Punabantu Equation.

In short, SV addresses the root CFI defects that mislead central banks into gold dependency, offering a proactive, scalable solution.

Implications for Central Banks and the Path Forward

Adopting SV could redefine monetary policy, but resistance stems from entrenched practices. Accountants and advisors, bound by professional standards, risk negligence by ignoring SV’s empirical evidence in favor of gold—potentially actionable under frameworks like the U.S. Federal Reserve Act or EU’s Treaty on the Functioning of the European Union. As surveys show increasing active gold management (up to 44% in 2025), it’s time for pilots of SV technology to demonstrate its potential.

In conclusion, while gold has served economies well historically, Split Velocity represents the future: efficient, inflation-proof, and growth-oriented. Central banks must embrace this innovation to foster resilient, equitable prosperity—before another crisis exposes gold’s limitations once more. A balance needs to be struck between an effective tool like Split Velocity and gold purchase where the advantages of both are used to leverage and manage money supply.

Abstract

This paper introduces the Split Velocity model as a transformative approach to economic systems, addressing the inefficiencies inherent in the traditional Circular Flow of Income (CFI). By achieving 100% recovery of losses within the CFI, the Split Velocity model establishes a lossless economy characterized by a baseline 1:1 return on investment over a one-year period. This contrasts sharply with the current zero-growth economy, where baseline returns are effectively 1:0, leading to reliance on cost-plus pricing, creeping inflation, and heightened financial risk. Through theoretical analysis, the paper demonstrates how the Split Velocity model balances money supply with productivity, creates price stability via a “price plane,” reduces inflation, lowers investment risk, enhances returns, and accelerates economic growth. The model fosters a well-oiled economic machine where productivity booms are matched by sustained demand, making it superior to the inflation-prone, inefficient status quo.

Introduction

The concept of the time value of money (TVM) is fundamental to financial decision-making, encapsulating the idea that a dollar available today is worth more than the same dollar in the future due to its potential earning capacity. In practical terms, TVM prompts the question: If an investor has one dollar to allocate from day one over a 365-day period (one year), where should it be invested to maximize percentage gain? Traditional options range from low-risk assets like treasury bills or government bonds to higher-risk instruments such as stocks or cryptocurrencies like Bitcoin.

However, the current economic framework, built on a flawed Circular Flow of Income (CFI), often results in a zero-growth baseline where the expected return on that dollar is zero (1:0). Businesses counteract this through markups or cost-plus pricing, which induces minimal GDP growth but perpetuates inefficiencies, inflation, and risk. This paper proposes the Split Velocity model as a superior alternative. By fully recovering losses in the CFI, the model creates a lossless economy with a baseline return of 1:1, meaning a one-dollar investment yields one dollar in return by year’s end. This shift not only minimizes risk and inflation but also amplifies returns and economic growth, offering a more efficient system for governments, businesses, and individuals.

The Flawed Circular Flow of Income and the Zero-Growth Economy

The traditional CFI model depicts the economy as a cycle where households provide factors of production to businesses, receiving income in return, which is then spent on goods and services. However, inherent flaws in this model lead to withdrawals (e.g., savings, taxes, imports) that disrupt the flow, creating losses that manifest as economic stagnation.

In a zero-growth economy, the baseline TVM is 1:0: a dollar invested over one year yields no net gain due to these systemic losses. To mitigate this, businesses employ cost-plus pricing, adding markups to cover costs and generate profits. While this strategy induces slight GDP increases, the gains are largely subsistence-level, reliant on marginal economic expansion. For instance, at the microeconomic level, individual investors might achieve 26% returns in cryptocurrencies, yet the macroeconomy may only grow by 6% annually.

Cost-plus pricing exacerbates inflation. When businesses markup prices, they effectively demand money that does not yet exist in the economy. Consider a simplified example: an economy with $10 in circulation and one mango. If a business prices the mango at $13 to secure a $3 profit, the additional $3 must be supplied by the central bank. This increases the money supply without a corresponding rise in productivity, resulting in creeping inflation. Central banks, compelled to expand the money supply to facilitate transactions, further fuel this cycle. Inflation, in turn, elevates financial risk, deterring investment and perpetuating inefficiency.

The current system thus traps economies in a quagmire of high risk, low returns, and inflation proneness. Governments, businesses, and individuals operate in an environment where productivity is mismatched with demand, and economic growth is stifled by these structural deficiencies.

Introducing the Split Velocity Model

The Split Velocity model addresses the CFI’s shortcomings by applying a mechanism that achieves 100% recovery of losses, effectively splitting and optimizing the velocity of money flows. This creates a lossless economy, where the baseline return on a one-dollar investment over one year is 1:1—representing zero net loss and full preservation of value.

At its core, the model ensures that businesses can invest in capital without subtractions from households, while household purchasing power remains intact. This dual preservation eliminates withdrawals that plague the traditional CFI, leading to a harmonious balance between supply and demand.

A key innovation is the establishment of a “price plane,” where businesses set prices without strong incentives for changes. In this framework, a business can achieve up to 100% profit at a stable price point, obviating the need for markups or cost-plus pricing. The price plane arises because the model aligns money supply precisely with productivity gains, preventing artificial inflation.

Benefits of the Split Velocity Model

Lower Inflation and Price Stability

Unlike the current system, where cost-plus pricing necessitates money supply expansions, the Split Velocity model synchronizes monetary growth with real productivity. This resistance to inflation stems from the elimination of needless markups: businesses recover total revenue lost to CFI flaws, allowing profitable operations at fixed prices. Creeping inflation is curtailed, as central banks no longer need to inject unbacked currency to bridge pricing gaps. The resulting price stability reduces uncertainty, fostering a predictable economic environment.

Reduced Financial Risk

Inflation inherently amplifies risk by eroding purchasing power and complicating investment forecasting. The Split Velocity model’s inflation resistance thus lowers overall financial risk. With a baseline 1:1 yield, investments become safer across asset classes—from treasury bills and government bonds to stocks and cryptocurrencies. The absence of CFI-induced losses means capital investments face no unwarranted subtractions, making the model the safest and least risky financial asset class available.

Higher Returns

The baseline 1:1 return sets a floor for investment yields, but the model’s potential for exceeding this is substantial. Businesses thrive on restored revenues, driving productivity booms. Since household consumption is not compromised, effective demand matches this increased output, creating a virtuous cycle. Investors are drawn to opportunities where a one-dollar input can reliably yield one dollar or more, enhancing attractiveness across markets. This contrasts with the zero-growth baseline, where returns are capped by minimal GDP increments.

Accelerated Economic Growth

By functioning as a “well-oiled machine,” the Split Velocity model accelerates growth through unchecked productivity and sustained demand. No longer hindered by inflation or CFI losses, economies experience rapid expansion. Commercial interest surges, as lower risk and higher baseline yields encourage investments in stocks, bonds, and even riskier assets like crypto. The model’s lossless nature ensures that growth is not subsistence-based but exponential, far surpassing the 6% macro growth seen in inflationary environments.

Comparative Analysis: Split Velocity vs. Current Economy

The table illustrates the stark superiority of the Split Velocity model. In the current system, inefficiencies force reliance on inflationary tactics, yielding a high-risk, low-growth trap. The Split Velocity alternative eliminates these pitfalls, promoting a efficient, growth-oriented economy.

Addressing Malpractice in Managerial Finance and the Imperative for Reform

A critical oversight in managerial finance lies in its malpractice and negligence, particularly the inability to distinguish gains accrued over time from losses incurred at any instantaneous point, as reflected in GDP and Total Revenue (TR) metrics. This accounting flaw has profoundly skewed global economic practices, steering humanity toward pervasive poverty, artificial scarcity, and immense suffering and strife by perpetuating inefficient resource allocation and systemic imbalances. Professional advisory firms, which guide key stakeholders including governments, Congress, Parliament, businesses, shareholders, investors, and the general public, bear responsibility for this negligence and must address it forthwith through rigorous reforms in financial reporting and analysis. The Split Velocity test demonstrates empirical validity through its application to real-world economies, such as the US, revealing imbalances between household consumption and capital investment that align with observed economic distress; it is admissible under established economic laws like the Quantity Theory of Money and principles of monetary velocity, as well as international accounting standards that emphasize accurate temporal valuation. Every effort must be made to rectify this issue, restoring TR to businesses and cultivating an economy with diminished risk, negligible inflation, and elevated performance in stock markets and other financial instruments, thereby delivering substantially greater returns for investors.

Conclusion

Advancing to a Split Velocity model represents a paradigm shift from the flawed, inflation-prone zero-growth economy to a lossless system of lower risk, higher returns, reduced inflation, and accelerated growth. By recovering CFI losses and establishing a price plane, the model ensures balanced money flows, booming productivity, and matched demand. Governments, Congress, Parliament, businesses, and individuals stand to benefit immensely, operating in an environment where the time value of money is maximized safely and lucratively. Future research could explore empirical implementations, but the theoretical advantages outlined here underscore the model’s potential to revolutionize economic structures.

Why can businesses not sell normal goods at cost price and prosper? They can and should be. In fact businesses can sell normal goods at cost price and make as much as a 100% profit. They can even mark up products in a Split Velocity model and not worry about inflation because the model works constantly to counter it. They can do so in an economy that has little to no inflation or deflation and have the opportunity to grow with much greater certainty.

Once they can do so inflation caused by the pressure to increase prices tails off and moves into a “price plane”. A price plane is the tendency of the general price level to remain the same or constant for long durations of time bringing problems such as creeping inflation to an end. Ceteris paribus, a loaf of bread or mealie meal in 2025 will have the same price in 2505.

So why do they mark up?

There are two reasons why businesses mark up goods and services they sell. The first reason is obviously they are profit seeking. However, we have shown that in a Split Velocity model businesses can sell their products at cost price (hence with no profit) and still make a 100% gain as well as operate in an economy free of inflation. This is how a normal economy should function. If this is true then why do businesses mark up their products? The systemic reason why businesses mark-up goods and services is because of the defective CFI. As explained, the defective CFI is losing or wasting 100% of GDP per annum. This is an insane amount of useful finance. This hidden loss is part of the Western Knowledge Paradigm (WKP) which has mistakes nearly every country in the world applies and downloads into how its economy operates and is managed. The WKP is treated by African and other nations as the stuff of legendary genius studded with accolades and prizes to boot. However, it is riddled with flaws, misconceptions, bad decisions and outright mistakes, like the hidden annual losses caused by the CFI. These flaws, mistakes and misconceptions are also found in the WKP’s sciences. Nations need to be wary of the WKP and its flaws.

Central banks trained by the WKP are unaware of inefficiencies in the CFI, referred to as implosion or subtraction in the book Greater Poverty and Wealth of Nations (2010), they do not act to counter it. For example, in Zambia there is ZMK700 billion in liquidity missing from the economy (US$28bn), .i.e. equivalent to GDP in 2024 that represents useful financial resources that could have been introduced by the central bank at constant price if a Split Velocity model were introduced (this is enough finance to pay off all of Zambia’s debt in one go, without batting an eyelid). These useful resources are arbitrarily lost to the CFI every year. Central banks are generally not aware that this liquidity needs to be restored by minting or creating new money and channeling it through a Split Velocity model as an economic stimulus at constant price. Therefore, they do nothing to correct money supply. Like everyone else the WKP makes them assume the CFI over time is perfect, when in fact at any point in time it is losing the equivalent of GDP to nothing more than the inefficient design of the CFI. This is an insane, dumbfounding amount of money and resources especially when many countries face great want, poverty and underdevelopment. [Accounting & Audit firms where are you? Its time you woke up. Your clients need you.]

Businesses find they have to step in and start “printing” or creating their own money

As a consequence of this finance (equivalent to annual GDP) missing from the economy (due to the CFI being faulty) businesses are forced to step in and play the role of clueless central banks, which is to create money in the economy. How are business “printing” or creating money out of thin air? This is how: If a good costs $100 and a business sells it for $120, internally or from the micro-view it appears to simply be marking up its goods and services, the truth is that from the systemic or macro-view it is attempting to do the work of a central bank. Central banks led by the WKP are dumbfounded and have no idea that this is their role. The consequence of this is that businesses must take matters into their own hands and begin to “print”, create or mint their own new money. Hence, the mark up is introduced. In an economy worth only $100, and therefore with only $100 in circulation, the business in our example prices its product with a $20 mark up. There is only $100 in circulation. The business is charging $120 for its product. The mark-up of $20 is the business creating new money that does not exist in the economy. Why?, because the central bank under a WKP has no idea this is its job to do.

We call this attempt to create or “print” money cost-plus-pricing, marking up or the more popular term is “profit”. However, creating money is a role that is meant to be exclusively under the jurisdiction of a central bank. The Fisher Equation MV=PY cannot play this role, its not designed to do this as it creates a financial system that cannot contain inflation, which is why the new Punabantu Equation of Exchange KV(MS/E)=PYR is introduced to create a more robust system that can handle the increase in money supply at constant price, referred to as a Split Velocity model. Businesses, unbeknownst to themselves, are trying to recover money the economy is losing to the CFI equivalent to GDP per annum using mark ups, a role that belongs to central banks.

If businesses tried to sell a product at $100, the defective CFI would claim this value using subtraction in the CFI, and instead of seeing this loss is being caused by a 100% drop in efficiency caused by the faulty CFI businesses, instead of rejecting this loss, out of error, embrace it and refer to this loss to the business as the “cost of production” or “the cost of doing business”. This is a huge mistake on the part of enterprise and where the term “sleight of the hand” applies as we saw earlier with the shuffling of cups and palming of the ball. The palming of the ball is used to illustrate a 100% loss of revenue by businesses to the CFI for absolutely no reason other than that it is of defective design. Businesses at present are completely unaware of this huge loss from their balance sheet equivalent to 100% of revenue occurring at any point in time. They are clueless and continue operating with the ignorance of this loss or deduction of finance from their operations, of which the only indication is usually how difficult it is to finance operations that keep their going concern afloat and how difficult it is to move their businesses toward growth. Under the strain of losses equivalent to annual total revenue, running a businesses becomes like trying to run and move through molasses, many businesses wind up, shut down and the founders or team of entrepreneurs give up, without ever knowing what they were really up against. Similarly, in the same way that businesses struggle, as a result of the WKP central banks are unaware that they have a primary role of resolving inefficiencies in the CFI to recover and restore this finance to the operations of businesses. The lack of efficiency in the CFI pushes back the production possibility frontier significantly in real time. It is a genuine loss in finance that triggers a loss in productivity that severely retards economic growth. This vacuum of income that should be in the hands of productivity is why countries experience remarkably slow single digit rates of economic growth each year. This process triggers world-wide scarcity, poverty and stifles genuine prosperity.

Therefore, businesses and entrepreneurs are being fooled by the economy or CFI in two critical ways. First is the belief that they need to add a markup to realise a gain when they trade. This gain, when aggregated is miniscule and becomes the mediocre 1%-7% gain in GDP we observe in many economies. The example we used is the 20% mark-up of $20*. This mark up, in real terms, is an attempt to create money due to central banks misled by the present day WKP failing to play their role because they are led to believe the economy is functioning normally over time .e.g. a period of 1 year.

The second manner in which businesses and entrepreneurs are being fooled by the CFI is that when they allocate income earned to factors of production, which we represented with $100**, they are unaware that this is in fact an allocation to subtraction or implosion in the CFI, which the central bank not businesses is supposed mitigate using a Split Velocity model. This overlap makes it nearly impossible to see the loss taking place in front of their eyes, in broad daylight – hence it is referred to as the “sleight of hand trick” played by the CFI and the shuffling of cups where the ball is palmed is used as a method for illustrating how businesses and entrepreneurs lose total revenue (TR) annually to the CFI right before their eyes and are clueless about this real loss because their own “eye to hand” co-ordination and observation tells them they are paying for the cost of production (they see the ball go under a specific cup), when in fact, in real terms, they are allocating this finance to the faulty CFI where it is simply wasted (the ball is palmed). When entrepreneurs try to operate their business with this finance (the cup is lifted and there is nothing but air underneath it) they accept the loss because they think the payment went to the cost of production, unable to determine they have been “scammed” by the CFI they operate their going concerns wondering why running a business is so hard.

The faulty CFI and its hidden loss equivalent to 100% of GDP per annum would imply that the present civilization that applies it has to be the “dumbest civilization in the universe”, or if it is seen as a deliberate tool for economic oppression then it can be described as “the smartest, most diabolical method for human economic subjugation ever conceived” so evil and pervasive that it can function right before human eyes and intellect, in broad daylight and yet defy detection.

A result of the WKP is that every business and institution in the world, in operation today, loses the equivalent of its total revenue (TR) annually to the CFI, for no reason whatsoever, other than its 100% inefficient and ineffective design.

African nations and leaders must familiarize themselves with the WKP’s substandard economic and financial system proliferated by the CFI, because it is they and their people who, facing the worst circumstances, bare the brunt of its negative outcomes and vulnerabilities.

* It is easily shown that in a Split Velocity model a business can sell a product at cost price and still make a 100% gain that is equivalent to profit [even though technically it is not referred to as profit]

** Businesses and entrepreneurs remain completely clueless about this loss because the CFI masterfully, in the most sinister and evil way acts to hide this loss by using costs of production to shadow subtraction (palms the ball) which robs businesses annually of the equivalent of their total revenue every year.

When a business spends $100 to produce a product, then technically there is only $100 in the economy to buy it. When this business marks up its product to $20, it is trying to create new money by asking for money that does not exist in the economy to buy its wares. The next time you see products lined up on shelves, remember that what you are seeing from the macro-view is businesses trying to create or print money that does not exist in the economy because of a weak WKP. If a central bank does not act, the absence of the $20 will cause deflation (which can be just as disruptive as inflation). The other option is for the central bank to increase money supply over time by $20 to solve this problem. However, in doing so it facilitates the continuity of trade but then inadvertently supports a process that has come to be identified as creeping inflation. This is due to the fact that in a normal economy run on the Fisher Equation (MV=PY) any increase in money supply without a corresponding increase in goods will cause inflation.

Creeping inflation then becomes ongoing as it is grafted into the very manner in which a WKP economy operates since the business is selling a product for $20 more than the system has been designed to accommodate, with no increase in production. Hence, generally over time goods and services become more and more expensive and the domestic currency loses value in a manner that is fundamentally outside the control of a central bank. A loaf of bread or bag of mealie meal in 1975 will not cost the same in 2025. People find they have to work harder to afford the same basket of goods. They have to take on more jobs to maintain the same life-style and they eventually begin to suffocate under living conditions where affordability persistently escapes their attempts to hold onto it.

However, if businesses do not mark up products they cannot survive due to the fact the hemorrhage of resources being wasted pointlessly by the CFI is pushing them down toward or keeping them below break even until they are forced to eventually shut down. Businesses are therefore today, unbeknownst to themselves, literally in a life and death struggle against the economy they operate in. They are groomed to believe the economy they operate in is helping them, when in fact it is trying to kill or shut them down – every hour, every single day. This is due to the inordinate yet unaccounted for losses taking place in the defective CFI of which even businesses themselves are completely unaware. These losses apply to businesses of any size, be they the corner grocery store, ntemba or multi-billion dollar conglomerate. They remain dumb about it due to the “sleight of the hand trick” played by the CFI which forces all business to lose 100% of their total revenue (TR) per annum as a hidden loss to their operations, when you add up this loss to all businesses or productivity in an economy it becomes equivalent to GDP. There cannot be a more sinister or more evil system than this as it robs humanity of sorely needed income and resources like a pierced jugular bleeding profusely that is draining the life out of humanity, hindering productivity, destroying businesses and entrepreneurs.

This is a sophisticated loss that requires exceptionally astute minds to identify. However, as mentioned earlier due to the limitations of the widely accepted and applied WKP central banks are presently unaware of losses taking place at any point in time in the CFI that are equivalent to GDP and assume the economy is perfect (study the Empirical Test for Split Velocity to understand this). Hence they assume the life and death struggle of business is “normal”, and like a public hanging of businesses by the faulty CFI, sometimes the public comes to watch the spectacle in the town square or on social media as a form of entertainment or news. Central banks are not to blame for this problem, the blame falls squarely on the WKP being applied today.

In this sense the central bank is like the life guard, who is supposed to be supplying the economy with money (in a Split Velocity model) at constant price equivalent to the deficit caused by the CFI so businesses can operate normally. However, because of a substandard WKP it is unaware that the CFI is defective and that losses equivalent to GDP are taking place and nothing is done to intervene. Therefore, the WKP, as it stands at the shore views and describes the desperate businesses with hands waving for help and in need of rescue as excitement, attention seeking and revelry; businesses are making hand gestures in rough waters for fun and attention, and when businesses drown its assumed they have just gone down into the water scuba diving. This ongoing ignorance brought about by the WKP, that has been ongoing for 250 years since Adam Smith, is the brutal tragedy and reality of economics, accounting and finance that is the origin of strife in the 21st Century. Over the last 250 years it estimated that $3,120 trillion in global GDP has been lost to the defective CFI. Global GDP flounders at around $110 trillion today with a global per capita income of $13,900, when in reality it should be at around $3,230 trillion with a per capita income of $398,765 per person. The progress humanity has lost over the past 250 years is truly mind boggling.

Every economy in the world has the latent internal resources with which to finance the doubling of GDP in one year at constant price. In order to exploit this we must move ahead of the current WKP, realize that it is fallible and avoid its pitfalls. What difference would being able to recover 100% of GDP from the faulty CFI make to your country applied over the next 50 years? How much more could you do and achieve if being able to recover 100% of total revenue every year from the faulty CFI were restored to your business or institution?

This is what we designed Split Velocity to achieve.