The global economy is plagued by systemic inefficiencies rooted in the circular flow of income (CFI), a foundational model in economics that describes the reciprocal movement of money between households, businesses, governments, and financial institutions. These inefficiencies manifest as unrecovered losses, draining resources from productive enterprises. To rectify this, we must reclaim these dissipated assets and redirect them toward businesses, fostering sustainable growth.
Achieving such reform demands a fundamental overhaul of prevailing accounting standards. Current practices fail to differentiate between gross domestic product (GDP) measured over time—representing cumulative gains—and GDP at any instantaneous point, which often conceals latent losses. This oversight constitutes a form of accounting malpractice, as demonstrated by empirical analyses such as the Test for Split Velocity. Even leading international accounting, auditing, and advisory firms perpetuate this error, providing misguided counsel to stakeholders. The repercussions are far-reaching, influencing corporate operations, government fiscal policies, parliamentary oversight of public finances, central bank monetary strategies, and stock exchange governance.
The economic toll is substantial, perpetuating inflation, instability, and suboptimal resource allocation. To illustrate, consider a relatable example accessible to non-specialists: the 2022 financial performance of First Quantum Minerals (FQM), a major mining company.
In 2022, FQM reported a net profit of $1.034 billion on total revenue of $7.626 billion, with implied total costs of approximately $6.592 billion. Under conventional accounting, this is interpreted as profit equaling total revenue minus total costs over the fiscal period: $7.626 billion – $6.592 billion = $1.034 billion. However, this temporal aggregation overlooks instantaneous dynamics. At any given moment, FQM effectively forfeits an amount equivalent to its total revenue to the CFI’s inefficiencies—resources that leak out without recirculation. Thus, the $7.626 billion in revenue generated over time is offset by an equivalent hidden loss at each point, yielding zero net growth ($7.626 billion – $7.626 billion = $0).
Businesses cannot thrive in a zero-growth paradigm. To compensate, FQM and similar entities resort to cost-plus pricing—marking up products beyond production costs—to artificially inflate money supply by $1.034 billion. This practice stems from the same accounting blind spot, which leaves central banks oblivious to the need for targeted interventions to neutralize point-in-time losses. The result is entrenched inflation and broader economic volatility. Our innovation, the Split Velocity system, is engineered to mitigate this precise issue.
Split Velocity operates instantaneously to recapture CFI losses, restoring them to the enterprise. For FQM in 2022, this would have reclaimed the $7.626 billion dissipated to the flawed CFI, effectively yielding $7.626 billion in recoverable earnings. While technically distinct from traditional profit, these restored funds are functionally equivalent. Due to accounting oversights, however, FQM unwittingly forfeited approximately $6.592 billion in potential earnings.
The implications for stakeholders are stark. FQM’s earnings per share stood at roughly $1.50 (based on 692.5 million shares outstanding). With Split Velocity’s recovery mechanism, this could have risen to $11.04 per share, representing a per-share loss of $9.54 attributable to accounting negligence—a collective shortfall of $6.592 billion for shareholders.
This simplified case underscores a pervasive global phenomenon: every business suffers analogous losses, depriving societies of vital resources. The CFI must not be permitted to erode value unchecked. Our commitment is to drive systemic change, advocate for accounting reforms, and position Split Velocity as the catalyst for accelerated, baseline economic growth worldwide.
(*It’s also worth noting that FQM spent $5.38B on Capital [equipment, machinery, taxes, repaying loans, electricity etc] in 2022 which is $2.246B less than it could have invested with Split Velocity, which would have been able to free up 100% of Total Revenue ($7.626B) for Capital expenses by recovering resources being wasted by the CFI, which would have allowed for an increase in FQM’s overall mining output.)
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All the information on Split Velocity, including this, is copied, reproduced or derived from the book:
The Greater Poverty & Wealth of Nations, 2010 Siize Punabantu
Go through and take the Empirical and Legally Admissible Test for Split Velocity here:
Run the test to see how it affects a national economy (sample of 24 countries) here:
https://collision-drive.blogspot.com/p/split-velocity-test-v9.html
Go through a Post Test Analysis for the EU here:
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