Restoring the "Creative Pipelines" of Global Trade

To reach a port we must set sail –Sail, not tie at anchor - Sail, not drift ~ FDR

Government

In Sum: The U.S. Commerce Dept. cannot succeed without the?"financial logistics" of a revised U.S. Export-Import Bank:?

one of 22 U.S. federal government agencies charged with supporting the global scaling of American ideas and of the American imagination.?

The U.S. Commerce Dept., newly charged with distributing $100 billion to restore "vibrancy" to the export of "America’s creative pipelines," cannot succeed without collaborating with a revised U.S. Eximbank. I have worked at Eximbank and learned that getting the 22 U.S. gvt. agencies charged with supporting U.S. U.S. exports to collaborate, much less to cooperate, is difficult at best.?

Such collaboration can be achieved with Correlation*, not only in the U.S. but in any country.?

Legacy and A Little History

The legacy of the Marshall Plan is that nearly every nation established an ECA, their version of the U.S. Export Credit Agency, a version of the Export-Import Bank of the U.S. This bank’s name is a misnomer because it does not support imports as originally conceived but is solely dedicated to providing 9 processes whereby the export of the American imagination is supported. Regrettably, only 2 of the 9 processes have relevance in today’s world. They are export credit insurance (ECI) and ECA (Export Credit Agency) guarantees to lenders for large projects and the export of large and extensive amounts of capital goods. This can include up to 20-year financing to supported countries for U.S.-based exports. The supported countries and level of support are indicated in the CLS, the Country Limitation Schedule available through Exim.gov.?

A Little History

FDR:

FDR used the link between global trade and domestic economic vitality to revive the American economy after the Great Depression.??Global trade was used by the culturally based resources of the German Landesbanks and the Mittelstand to revive the post-war German economy.?

MacArthur simplified the Japanese language and used Deming and his little book on statistical quality control (in place of Mao’s communist dictates), and the Japanese used their inherent cultural passion for perfection, to turn Japan’s economy into a global trade powerhouse.?

As Europe was being rebuilt thanks to the Marshall Plan

and as Russia surrounded Berlin and confiscated German machinery, the U.S.-led Berlin Airlift used EDI (Electronic Data Interchange):

and the American talent for logistics to furnish a beleaguered Berlin all that its 2-3 million inhabitants needed to survive:?

FDR’s skilled application of leadership, when the strength of the dollar impacted the price of American-made goods and American agricultural products - saved our nation’s economy and that of Europe after our economy’s deep dive during the Hoover Administration.?

Eleanor Roosevelt, the great educator, who awarded my mother a prize for poetry, and George Marshall, Churchill’s "Architect of Victory," having seen the horrors of war, embraced the concept of global peace and sought to educate America and the world in how to achieve it.?

Today

Today, the world is again at war. It is still influenced by autocrats and cartoon characters of superficial and mediocre vision:?a culture and a cult whose beliefs now affect our climate and our very existence:

Vision, Global Trade?and the Cult

The Visualization of global trade finance has arrived but to make this evolution work, the most hidebound industry, the most enamored of tradition, precedent and "Business as Usual" - will have to change.?

Bertolt Brecht:?

Process: Authentication, Correlation* and Delusion?

Today, Fintech and SWIFT are obsessed with Payments as a solution to global trade transactions.?Infor supports through onboarding the export of goods that do not compete with the fossil-fuel based products of Koch Industries.?Ignored are the more diverse requirements of pre-export financing where discounting without recourse to the exporter (Forfaiting) along with the credit enhancement and risk mitigation of Export Credit Insurance (ECI) and the guaranties of Export Credit Agencies (ECAs) to lenders - are also critical and as a result of which nearly every country has its own ECA.?

Correlation*

So ubiquitous in the modern world is cybercrime and fraud, that a means of preserving cybersecurity has attained a level of great importance.?

Correlation* enables the buyer in a trade transaction to issue an authentication challenge to its counterparty (the seller).

AI and Reed-Solomon error correction inherent to QR encoding, provide for the buyer’s bank to issue an authentication challenge which is resolved through a process proprietary to The Following Sea (Correlation*).?

This process provides for a speeding up of risk mitigation, settlement through payment or financing, and authentication of the underlying trade transactions at an accelerated and competitive rate.?

In addition to physically tracking the location of moveable inventory with GPS:

Electronic Data Interchange (EDI):

is used to report the location of shipments and the description of such shipments with a QR Manifest:

Settlement through Payment or Financing

Settlement, Financing and Payment are, as usual, determined by the underlying terms of the sales agreement or contract between seller and buyer and adherence to Incoterms 2020:

The seller creates a distinctive QR encoded manifest that becomes embedded as a Non-Fungible Token (NFT):

using Blockchain:

Embedding the QR codes in NFT binds it to a public contract, the underlying agreement for which visibility and authentication are provided.

Matching and Settlement Beyond SWIFT and Infor?

SWIFT

SWIFT, the La Huppe, Belgium-based Society for Worldwide Interbank Financial Telecommunications, utilized a match of Purchase Orders and Invoices in the TSU or Trade Services Utility:?

to create the basis for payment of the underlying trade transaction by BPO or Bank Payment Obligation:

Infor?

With Infor, payment and settlement occur in an automated fashion as all commercial and political risks are covered by credit insurance or guarantees to the lender before the automated matching process.?

To Summarize

GPS and EDI?are used to determine the actual location of the shipment - the truck, aircraft or vessel that the goods are laded aboard. QR is used to describe what is aboard. This provides comfort to the buyer and to the financing entity which can trace the whereabouts of moveable assets.?

Enter AI

AI, Correlation* and Matching

AI is also a part of the matching process. It is assisted by the Reed-Solomon error correction capabilities inherent to QR Encoding.?

Using a proprietary process, Correlation* enables all enterprises to safely engage in global trade. The buyer issues a unique challenge to the seller that ensures that all parties to a trade transaction conform to the underlying agreement.?

Correlation* ensures that the small business enterprises of any country can achieve Excellence in global trade.?

*@William A. Laraque Correlation March 2022:??All Rights Reserved