By Kimberly Klemm

There are only sixteen nations in the world recognized by the World Bank as having a GDP higher than one million (1,000,000) USD in 2013.  The US is listed as second highest with a2013 GDP of almost 17 million. The scary thing about this is that the US Federal Revenue is 3.0 trillion USD for 2014.These figures indicate physical revenue is lower than service support spending at the US national level.  Expansion of financial resources is necessary to sustain the growth level needed for domestic stability. Investment population demographics might provide a new arena through financial credit index valuations in asset markets.

Financial expansion in the US domestic market should center on investments focused on population demographics’ clear stabilities and not route back to the finance sector for distribution into service for services. Consumer income participation in the credit market is a clear-cut place to target spending influenced by population characteristics to return taxable productive yields.Index credits based on age group, spending participation, and goods over services initiatives could spin a new valuation enabling financial expansion without increasing revenue distribution.

Kimberly Klemm
Kimberly Klemm

The reason that GDP is relevant to this observation is that the services industry is not going to return the gap in the financial spreadsheet on cost returns. Inflating credit based on goods exchange and not encouraging service for services credit to financial institutions will pour back into a lower market a stability of exchange. Age group specific credits would help to bolster removal of federal assistance for programs related to education, social security, and childcare and allow consumers broader choices in their own spending participation. Spending participation credits could be earned to help pay back credit debt.  If these initiatives were part of credit lending/payment systems through already established market creditors, financial expansion would occur in the credit market. This is not the same as creating a “false” market by encouraging spending without investment by providing inflated worth. There are pieces parts of this type of financial incentives programs in supported social systems and independent business practices in the US already. Applying this type of expansion to the credit market puts a value on assets previously not acknowledged and provides a way to quantify investment factors and reduce the burden of service credit markets.

In a world where high finance is taking “banking of banking “ to a new level, such as the Mauritius Commercial Bank (MCB) current acquisitions in Africa, financial services’ service is resulting in a non-profit return for investors in the first offering service levels. According to the IMF, securitization is a move to create room for small business funding (IMF Survey; January 2015). However, securitization underwrites assets and does not leave room to expand assets over commerce. Securitization pools liquid assets and ties them back to the hard asset backing to create more cash flow by releasing a fluid valuation. The decline of support for this type of maneuver (Boughton, James; September 2014) is based on original funding needed to support organizations that offer the financial services’ service.

Valuation is a strange word with a definition based on the currencies in use and support for those currencies. Credit has always been a strange type of currency that reflects potential earnings and expected returns. It is beneficial to examine the basis of credit valuation based on investment population demographics to create a financial expansion arena tied back to goods instead of services.

The idea for credit index supports is a bit like the BitCoin phenomenon without creating a new currency. BitCoin is an online payment system used for direct transactions without an intermediary based on a unit of account that uses its own valuation with a return on the interest over invested capital. Instead of creating a new valued currency, applying the idea of a financial index to already established credit markets finds a valuation not based solely on income and returns and proffers an index valuation of worth based on age demographics, spending participation, and goods over services. Part of the magic involved is that the index credit can be used to pay back credit. This leaves room for financial expansion of assets and stability based on hard worth.

The yields would be taxable. Financial growth and expansion is not an easy arena for innovation, but new ways forward at least create some headway and offer an idea for financial expansion not previously explored.Although this method for financial expansion will not contribute directly to increased hard goods production, it has the potential to support the buyer/seller relationship without creating a services middle ground that erodes the capital investments that should be returned to the actual market

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