Wednesday, 20 December 2017

Real-time management - business tiger jump

At the beginning of January Finland and Estonia signed a letter of intent regarding the construction of a real-time economy. This is the first step towards creating a modern economic system.

Estonia and Finland are developing plans to modernize the foundations of their economies. By targeting the real time economy, they want to eliminate bureaucracy, automate financial transactions and stimulate innovation and development.
It is difficult to imagine the company's operations without accounting, the state's tax system without dozens of forms or economic forecasts without reservation about the "latest data" from a quarter or a year ago. The payment of invoices or receipts goes a long way. Data from the quarter before is not the best basis for determining investment risk or for planning the state budget. In times of online, business continues to operate based on foundations and principles created in offline times.
These delays in the economy want to be eliminated by Finns and Estonians. For several years, economists from the University of Aalto in Finland have been developing the concept of real-time economy (Real-Time Economy, RTE). Recently, Estonia also participates in the project, which thanks to the well-developed offer of digital services is the ideal incubator for the new system.

Business in the rhythm of the Spotify playlist

So what is real-time management? Simply put, it can be described as an economic system that eliminates time-consuming intermediate steps between sales and reporting. All elements of transactions known to us today - sales, bill or invoice, posting, tax payment and final reporting - will be done automatically, in a digital environment and in real time. In other words, everything that has so far lasted even months will be shortened to "here and now". Data will flow over time limited only by the performance of links and servers.
The revolutionary nature of such a solution consists in time savings, but also eliminating bureaucracy and costly accounting, which will be replaced by an audit or a simplified form of verification of completed transactions.
Anneli Heinsoo
Anneli Heinsoo
- The youngest generation lives in the times of Spotify. If you want to listen to music, you do not have to buy CDs, write your favorite songs on a piece of paper and carry them with you. It will also be with business. - expresses the vision of the modern economic system Anneli Heinsoo, the president of the Estonian Association of ICT Enterprises associating the 80 largest companies in the sector. - Just click to accept the transaction, and the rest will take place automatically, without unnecessary delays and difficulties.
While such a vision sounds quite futuristic, especially when confronted with the economic system and tax law known to us today, according to Heinsoo, this is not the melody of a distant future. - Estonia has an ICT infrastructure that will allow such a system to be introduced within a few years.

A state without a tax office and a gray area

The Estonian public sector offers several hundred different types of digital services, from the establishment of a company to the settlement of taxes, and the government actively participates in and supports innovation. - Cooperation with the government is very important. It is on the government side to adapt the legal framework so that innovation can be introduced. - says Anneli Heinsoo - without Real-Time Governance, there is no Real-Time Economy - he adds.
The Estonian public sector offers several hundred different types of digital services, from the establishment of a company to the settlement of taxes, and the government actively participates in and supports innovation.
Real-time management goes hand in hand with real-time administration. Estonia is a small country that has been introducing advanced digital services in public administration for years to reduce spending on state structures. Despite the obvious savings, the introduction of a new model of the economic system may raise concerns. The elimination of documentation, "hard evidence" of the conducted activity may give the impression of consent for the gray zone.
- From the beginning of this year, entrepreneurs are obliged to provide the tax office with periodic declarations containing information on transactions worth over EUR 1,000. This small step already brings results and entrepreneurs are more meticulous in reporting their turnover - Heinsoo notes. - The introduction of a real-time economy will bring even better results, because no transaction will disappear from the system, information about each will automatically reach all interested parties. The obligation to submit a report to the tax office will be eliminated - he explains.
Limiting the shadow economy is supposed to increase the state's income. Automation of tax collection and reporting is to lead to a reduction of bureaucracy and as a result is to reduce the costs of functioning of the state. In the long-term, the effects of modernization of the foundations of the economy are also expected to reduce taxes.

Innovation of real time

The real-time management is to bring to the entrepreneurs obvious benefits in the form of reducing the costs of running business and employee costs, as well as increasing productivity and innovation. - The elimination of cumbersome reporting, tax and accounting settlement is to enable the entrepreneur to devote himself above all to business operations, creation and implementation of innovations. - says Heinsoo - Entrepreneurs are the lion's share of their time and energy currently losing on formalities. It limits creativity! - he convinces.
Entrepreneurs are the lion's share of their time and energy currently losing on formalities. It limits creativity!
All mundane activities, such as collecting bills, reporting, accounting and entering into databases or books, will be eliminated or automated. The paper and even the electronic document will be imported to the entry in the database generated after acceptance of the transaction in a taxi or online store.
The new model of the economy is also to limit the risk and uncertainty of investment decisions made on the basis of historical data - the system will provide data on the potential partner at the time of their verification. Similarly, the bank will not require dozens of documents to assess the credit risk of the client applying for additional funds. The state, on the other hand, could estimate economic growth or budget expenditures based on data flowing to statistical databases in real time.

The digital cradle of the real-time economy

Real-time management is a vision that requires advanced digital technologies to be able to think about implementing it. Estonia is a country in which a thriving ICT sector is supported by the government also implementing its own e-services. Thanks to this, digital solutions are implemented quickly after their development. Estonia already has the first components of the real-time economy, including the ability to quickly set up a business, company registers and real estate online, electronic tax returns, commonly used digital signature.
Estonia already has the first components of the real-time economy, including the ability to quickly set up a business, company registers and real estate online, electronic tax returns, commonly used digital signature.
The RTE concept requires innovative digital solutions, so Estonia, which is the avant-garde in the field of e-administration, is a natural incubator for a new economic model. In order for the new model to be implemented, not only fast links and efficient servers are needed, but also electronic proofs and signatures as well as dozens of digital services that must be connected to each other. X-Road is the backbone of Estonian (and soon also Finnish) e-services, which combines databases and information into one system, which in the future will allow you to generate reports and analyzes, or send e-invoices.
While currently digital services are necessary for the implementation of the real-time management, in a few-dozen or so years the new system will be crucial for their development. RTE will allow digital business to be based on digital basics.

Business tiger jump

The Estonians, in order to perform this modernization stroke, cooperate with the Finns. At the beginning of this year, a letter of intent was signed between the Estonian Association of ICT Enterprises and the Finnish Federation of IT. Banks and the state are to be involved in the initiatives of the ICT sector. ICT companies have prepared a vision, product concept, are to analyze the impact of RTE on the economy and identify the necessary legal changes and prepare pilot projects and implementation plan. It will be up to you to prepare a legal framework.
- We want it to be a product that can be compared to extended online banking. - says Anneli Heinsoo - including banks in our project is to guarantee the trust of users, which is often lacking in relation to public platforms - he explains.
Despite the incredible advancement, the digital achievements of e-administration and the success of the ICT industry have not been successfully translated into the dynamic development of the entire economy. The reasons for this state of affairs can be seen in the relatively small implementation of modern solutions in other sectors of the economy. The remodeling of the existing economic system may become a stimulus for the entire economy to perform another, this time business "tiger jump" [1] .

[1] Tiger's jump is a program of the Estonian government implemented in the 1990s. Its aim was computerization and internetization as well as education of the society in the use of computers and the Internet.

The interview with Anneli Heinsoo was carried out by Kazimierz Popławski, on January 30, 2015, in Tallinn.
Contact: ,  on Twitter @kazpoplawski .

Photo:  Ken Teegardin  / Flickr.

Technology The Real-Time Economy: How about Now?

Shades of Transfinancial Economics...

Information technology is increasingly taking the lags out of doing business, in effect creating a real-time economy.

You can’t accuse Gary Reiner of being verbose and inefficient. Ask General Electric’s chief information officer a question, and you get a three-sentence answer that is right to the point. He prefers show-and-tell to lengthy explanations and intellectual tangents. And he regularly checks whether his interlocutor is still following: “Are you getting what you need?”
Anything else would be a disappointment from someone in his position. After all, America’s GE is known for its almost obsessive quest for perfection. And Mr Reiner heads the company’s most important initiative: “digitising” as much of its business as possible. That not only means buying and selling most things online but, more importantly, setting up a digital nervous system that connects anything and everything involved in the company’s business: IT systems, factories and employees, as well as suppliers, customers and products.
GE’s aim is to monitor everything in real time, Mr Reiner explains, calling up a special web page on his PC: a “digital dashboard”. From a distance it looks like a Mondrian canvas in green, yellow and red. A closer look reveals that the colours signal the status of software applications critical to GE’s business. If one of the programs stays red or even yellow for too long, Mr Reiner gets the system to e-mail the people in charge. He can also see when he had to intervene the last time, or how individual applications—such as programs to manage book-keeping or orders—have performed.
As chief information officer, Mr Reiner was the first in the firm to get a dashboard, in early 2001. Now most of GE’s senior managers have such a constantly updated view of their enterprise. Their screens differ according to their particular business, but the principle is the same: the dashboard compares how certain measurements, such as response times or sales or margins, perform against goals, and alerts managers if the deviation becomes large enough for them to have to take action.
GE has a record of keeping ahead of the pack. In years to come, experts predict, many companies will use information technology to become a “real-time enterprise”—an organisation that is able to react instantaneously to changes in its business. And as firms wire themselves up and connect to their business partners, they make the entire economy more and more real-time, slowly but surely creating not so much a “new” but a “now” economy.
The Next Big Thing
Small wonder that the Silicon Valley hype machine has already appropriated the concept of real time. Venture-capital firms, and above all the most prominent among them, Kleiner Perkins Caufield & Byers, are promoting it. Software and networking start-ups are peppering their marketing materials with the term. There is even a new newsletter called Real-Time Report.
Wonderful, one is tempted to say: another buzzword out of Silicon Valley—just what we need in these difficult times. But real time is more real than it appears. The start-ups in this field are leading the counter-revolution to the dotcom mania. They are not about all-too-clever business models and breathless “Internet time” (for which read going public as quickly as possible), but about highly complex enterprise software, often based on serious mathematics, that can yield real savings if deployed and used correctly.
That is why these firms might actually grow up to become successful companies. What is more, the current recession will probably speed up the adoption of new real-time products and services. Many of these do not require big investments. Instead, they make existing computer systems more effective, promising a quick return. GE estimates that its digitisation efforts saved it $1.6 billion last year. Firms that have spent billions on IT without any guarantee that their bottom line would benefit are desperate for such savings.
Most important, perhaps, the concept of real time is more useful than the somewhat artificial distinction between the “old” and the “new” economy. Real time describes the full potential of what information technologies could ultimately do, according to Andrew Odlyzko, director of the Digital Technology Centre at the University of Minnesota: drive the lags and latencies out of the economy and make it much more efficient. Real-time technology might even prove as important for speeding up the information flow in business as the telegraph, invented in 1837.
The economic effect of that technology was substantial. Before the telegraph, Australian companies had to carry large stocks because the only way to order from England was to send a letter by sea. But once the first telegraph connection between Australia and England opened, businesses such as Prince, Ogg and Co, a soft-goods firm in Sydney, were able to cut their stocks by more than half.
Yet “real time” is also something of a misnomer. It was originally a term of art in data processing, meaning that data are processed the moment they enter a computer, rather than in “batch mode”, in which information is stored and worked on later. A classic example of batch mode is the early mainframe computer: data were first encoded on punch cards which were then fed through the machine.
In contrast, modern spreadsheet software is as real-time as it gets. To a layman these programs look like tables with many rows and columns of “cells”. But their most important feature—how these cells are related to each other—is invisible. Often they are connected by simple operations such as addition or multiplication. Investment banks in particular, however, use more sophisticated spreadsheets in which the cells are linked by dozens of “macros”, sometimes quite elaborate sub-programs. If a user changes the data in one cell, many others are automatically recalculated.
Instant Gratification
To advocates of the concept, the real-time enterprise is a giant spreadsheet of sorts, in which new information, such as an order, is automatically processed and percolates through a firm’s computer systems and those of its suppliers. Thus a simple inquiry such as, “When is my order being shipped?” can be answered immediately, and not six phone calls and three days later, explains Vinod Khosla, a partner with Kleiner Perkins Caufield & Byers and one of the most notable advocates of the real-time concept. Many consumers have already encountered real-time business without realising it, for instance when they order a Dell computer. The firm’s website allows customers to check the status of their order at any time.
But the real-time enterprise is not simply about speeding up information flow. It is also, as GE’s example shows, about being able to monitor a business continuously and react when conditions change. Today, businesses “are mostly shooting in the dark”, says Michael Maoz, a research director at Gartner, an IT consultancy, and one of the pioneers of the concept. Real-time technology, he predicts, will give firms a window into their business they never had before.
Mr Maoz also emphasizes the third main benefit of a real-time enterprise: using newly available information to offer new products and services. For instance, in 2000 GE’s consumer-appliance business installed online kiosks in selected branches of Home Depot, a fast-growing American home-improvement chain. Customers can order an appliance, select a delivery date and time, and be told instantly whether their request can be met.
How does the real-time economy work? First, there is the underlying technology. In the past, firms have faced a trade-off between being integrated and being flexible. New software technology promises to ease that trade-off, or even do away with it altogether.
At the same time, new hardware, such as wireless sensors, makes it possible to gather ever more information about the physical world and feed it into a company’s computer systems. Turbines made by GE are equipped with sensors that allow the firm to tell its customers online how efficiently their machinery is operating. Similarly, companies can now collect more data about people, even tracking their location.
By themselves, these data would just contribute to the increasing information overload. But they present a new business opportunity: to develop software that analyses them and suggests ways of optimising the supply chain, or even automates the response to certain kinds of new information. This has already happened in the financial markets, where the availability of real-time data has produced a plethora of firms selling programs to automate trading and make it more efficient.
How will all this change the company and the economy as we know it? IT will probably not spell the death of big firms, as is often forecast. But real-time technology will have a huge impact on the inner workings of companies. It is also likely to make economies more fluid, and perhaps more volatile, as last year’s abrupt American downturn suggests. The financial markets have already shown that putting even parts of the economy on autopilot can lead to accidents. A crash in 1987 was caused in large part by automated program trading. Perhaps, one day, the “now economy” will have to have circuit breakers installed.

Saturday, 9 December 2017

Transfinancial Economics

Project by Robert Searle                                               (latest update)

Tranfinancial Economics in a Nutshell

Transfinancial Economics, or TFE believes that largely non-repayable new unearned money can be created electronically, and slowly phased into the economy itself. If sufficient amounts of it can be produced this should not lead to serious inflation, or even hyperinflation (ie. Primary TFE similar to Quantitative Easing, or QE). However, if further new money was required then special unconventional super-flexible electronic controls would probably be necessary. In TFE they could monitor, and control inflation, and yet, allow the Free Market Price to rise, and fall naturally(ie. Advanced TFE). Such an arrangement could gradually phase out taxation, and possibly interest rates. These are the normal conventional methods to control inflation by helping to reduce money in circulation. But the super-flexible controls mentioned are far more advanced, and beneficial. If TFE is ultimately possible it would notably mean that many high ethical/social projects, and vital environmental ones (large, and small-scale) could be properly funded in full, or in part as never before. The only limits to this ofcourse would not be money but limited natural, and human resources.

One day TFE may be recognized as probably the most important breakthrough in the history of economics itself. The reason being is that it would (among other things) be able to give us a highly accurate understanding of the economy itself in Real-Time (or near Real-Time). This ofcourse does not exist in present day economics. Also, a very credible "inventory" of the amount of scarce resources used in the production of goods, and services could be created...again in Real-Time ideally.

Transfinancial Economics is an evolving project nearing basic completion. It should be said that there has been a degree of interest in it from a number of people with economic backgrounds such as Warren Mosler, Andy Dennis, Stephen Monrad, Trond Andresen (cybernetics expert), Prem Sikka, and the noted autodidact, and futurist Hazel Henderson. In April 2010, TFE was also a subject discussed at a major scientific conference (the ICEME, or International Conference of Engineering, and Meta-Engineering, Florida, USA).

In 2016 a paper was published entitled Orthodox Monetary Theory: A Critique from Post Keynesianism and Transfinancial Economics by the economist, Dante A Urbina. It formed part of a respected academic publication called International Monetary System, Past, Present and Future edited by Dr Debesh Bhowmik. It should be said here that a paper may also be published soon by the originator of TFE itself. Furthermore, one paper was to be published some time ago, but after receiving the copyright clearance form a dispute arose with the editor in connection with it, and it was withdrawn by the author.

Anyway, it is important to say that TFE itself regards the financial system as a huge global IT system, and recognizes the reality that virtually all money exists as electronic,or digital data transmitted from one bank account to another. This means that the free flow of capital can be tracked, and controlled if necessary.

Essentially, TFE can be regarded as a form of Cybernetic Economics. Its scope, and scale is colossal....colossal enough to help deal with a whole range of multidimensional problems facing humanity, be it social, economic, or political.

It should be said that TFE is form of non-mainstream economics, or Heterodox Economics. It is not a science in the strict sense of the word. Yet,it has aspects which may appear "scientific". Ofcourse, it also takes into account uncertainty in the economy, and indeed, the irrationality of the money markets. It has special super-flexible electronic controls that can instantly adapt to such unexpected economic problems.

Like a "science" though it uses a number of key terms that are also abbreviated. Apart from being a long term itself, Transfinancial Economics can be abbreviated to TFE as we see here. This can be seen in part to signify the point that it is to some extent, "scientific" but ofcourse not fully so.

As one may gather, the "full" development of TFE will require the help of "open minded" experts notably in the fields of Economics, Computer Science, Politics, and indeed, the Law (both National, and International). Indeed, there may well be important global/political implications to consider notably international trading laws especially in connection with WTO, or the World Trade Organisation. Moreover, there could be implications for the EU State Rules, and certain other rules of such other influential organisations as the Organisation for Economic Co-operation and Development (OECD) to do with amounts of money given to the Developing World by certain countries in the Developed World.

Please note that the following has been going through a whole series of continuous drafts, and where, and when necessary may be subject to changes, additions, and possible corrections. It is still a "work in progress" project. Also, the Kheper version of TFE which appears at times on search engines is out-of-date, and is not as authorative as the presentation here.

It should be clearly stressed here that TFE fully recognizes the vital importance of good efficient planning by businesses, governments, and NGOs in connection with many commercial, and "charitable" projects. Without that, money can be so easily wasted. Hence, excellent planning is of equal importance to excellent funding. One cannot have one without the other. Thus, the two factors of good planning, and good funding are critical for success. The former can be seen as the "Brains" of a project, and the latter as the great Enabler.

It is also recognized in the planning process that the correct, and efficient use of limited natural resources is of vital importance on a finite planet.

IMPORTANT. It should be said too that references are made to supercomputers to possibly monitor, and control the economy within a capitalist system. However, quantum computers could do an infinitely better job than supercomputers if they are properly developed.
Also, please note that we do not waste any time, or space here with the usual conspiracies theories against banking, and bankers.

Towards Super Economics

An Introduction to a Major Global Paradigm

The following may be helpful for new readers.

Essentially, TFE claims that new closely monitored non-repayable money, or Facilitation Finance could be created electronically by special transparent, and credible funding mechanisms, or Facilitation Banks (and/or by governments to some extent). This could notably fund in full, or in part high environmental, and high socio-economic projects of great ethical value. This would help to speed things up unlike repayable loans, but interest free ones could also be created electronically when necessary, and when a commercial operation becomes self-supporting. Incidently, funding using non-repayable money could be used to deal with projects that have little, or indeed, no commercial viability.

The aim of all this is also to give powerful financial incentives to businesses. They could profit with genuine projects, and more importantly help save the planet, and its people notably in connection with Climate Change, and "irreversible" Global Warming.

Extra finance would not lead to serious inflation, or indeed, hyperinflation (eg. Zimbabwe) as the phasing in of newly created unearned money would be a gradual process, and the checks, and "controls" would be most effective in monitoring, and controlling inflation. This point is most notably true of Advanced Stage TFE explained a little later. Thus, there is no mad flooding of the real economy which ofcourse is absurd in extremis.

Strictly speaking, there are two forms of TFE, one of which has just been mentioned above. Firstly, Primary Stage TFE which is when the amount of new money created is limited to "sufficient" amounts. It notably uses Economic Indicators (eg. GDP, and Inflation Indexes)to help decide how much could be created, and used directly into the Real Economy. Also, the conventional method of raising taxation, and interest rates could be utilized to help decrease the money supply, and hence, reduce any inflationary pressures.

Also, it is important to note that Primary Stage TFE could be skipped altogether in favour of Advanced Stage TFE. This could be regarded as genuine Transfinancial Economics as the latter would involve highly credible programming using relevant algorithms, and supercomputers, and their ilke.

In contrast to Primary Stage TFE, Advanced Stage TFE itself can create and phase in far greater amounts of new financial capital for projects mentioned in the first paragraph of this section. This should become clear shortly.

Among other things, Advanced Stage TFE can gain a "near perfect" knowledge of the entire economy of the country. Such Big Data as it is called would come about via full Electronic Transaction Monitoring(or ETM)and could be collected 24/7 in Real-Time. This is done via the ID codes, and barcodes of most products, and services at the electronic Point of Sale (EPOS), or later transactions with banks.

Due to comprehensive algorithmic programming, the Free Market Price comparisons can be made in Real-Time, and inflationary pressures can be detected (ie. data mining). This transaction data could be vital to bring about a genuine wholesale sea change towards an environmentally more comprehensive sustainable, and socially ethical economy, as more, and more new electronically monitored non-repayable money could be gradually phased in, and created with real confidence, and without any serious inflation in Advanced Stage TFE.

As we would have a highly accurate understanding of the real economy inflation risks could possibly be more accurately assessed continually via "instant" continuous computer simulations of the economy itself. This is revolutionary when fully understood. However, it is worth repeating here that TFE would have to take into account uncertainty, and indeed, the irrationality of the money markets. As such economic forecasts would still be very difficult to do accurately. However, such predictions may be more accurate than conventional methods.

Another aspect of Advanced Stage TFE, and full ETM is taxation(and interest) itself could possibly be phased out. Moreover, fuller funding of many charitable NGOs would also become possible, and fundraising for them could ultimately be phased out altogether in many cases.

In Advanced Stage TFE there would be super-flexible direct electronic controls (similiar to temporary "price controls" but far more advanced)to ensure inflation, and currency devaluation can never get out of hand. This would involve an instantaneous intervention with little, or no time-lag. This is explained in more detail later on.

However, as far as the collection of income tax is concerned it would be allowed to continue for the time being via conventional means. It would not be undertaken by some form of "instant" electronic deduction(s)even though this is perfectly possible. Civil, and criminal fines (a kind of tax if such it could be called) would still exist ofcourse.

It is also important to point out that we are not discussing a full Soviet style top down command/control economy. The reason why is that the Free Market Price is largely determined by private businesses, and capitalism in an increasingly more ethical form (due to increasing powerful financial incentives notably created by non-repayable money, plus repayable money as loans if necessary)would still continue until there is "full" automation when money, and wage slavery would no longer exist, and hence, become largely, or wholly unnecessary. This could with the right education lead to the "natural" phasing out of the rich elites, and lead to a more advanced non-hierarchical society based on true cooperation rather than competition.

During the above process, pressure groups, or NGOs would become increasingly more influential as they would gain over time greater, and greater access to mainly newly created funds from independent grant making bodies, and possible other sources. Thus, the process of socio-economic, and political reform should grow apace as never before in human history.

Hopefully, a more advanced technological, and more moral human civilization will largely emerge based on improved Democracy, Universal Human Rights, and greater fairness. In other words, Global Justice. As can be seen TFE is concerned essentially with a system's change to achieve these lofty goals.

Present Day Economics

Mainstream Neo-Classical Economics has developed a somewhat appalling reputation as the dismal "science". Most of its work appears to be largely theoretical, and based on highly questionable statistics, and mathematical modelling. Its economic forecasts often, or not turn out to be wrong.

Moreover, there is still an obsession with the need for more, and more unsustainable growth even though the planet has finite resources. More startling though, is that there is little, or no real understanding of the importance of how money is created, and what it fully means in society, and the world.

Unfortunately, Neo-Classical Economics still has great influence over the economics profession. Essentially, it believes in the "Free Market" in which little, or virtually no regulation is needed. Thus, Capitalism then appears to do well by being largely unimpeded by red tape.

Such ideology received a battering with the Great Financial Crisis, or GFC (2007-2008, and the following Global Recession) in which the entire world banking system practically collapsed, and was saved by massive bailouts. Ofcourse, the basic cause of the GFC was largely the overproduction of repayable loans due arguably to too much self-regulation. With TFE advanced computer technology would be able to get an accurate knowledge when such a "process" was beginning to get out of hand, and hence, curb the possibility of a serious economic collapse. This would also involve the likelihood of more advanced regulations.

The Creation of Money

In TFE ofcourse, money is recognized as being largely digital, or electronic encrypted data which can be transmitted from one bank account to another at the touch of a button. Governments create it notably as paper, and coins. This makes up a near non-existent portion of the entire money supply itself, and is spent into the economy as something largely non-repayable. However, the rest of the money is created electronically out of thin air by mainly private banks via Credit Creation as repayable loans with interest charged on them. In other words, unlike what many people may think, they do not actually lend out existing money from their reserves. The amounts they can issue are supposed to be limited by a "set" fraction of existing money held. However, in most, if not in "all" cases this is not observed. Thus, banks can create any amount of new repayable money. In the light of all this, it is not surprising that certain banking reformers believe that banks should not be allowed to create more money than they actually have.But it is very hard to see how this can ever become a reality in the foreseeable future.

As can be seen the actual mechanics of money creation are subject to some controversy. But what does appear to be clear as day is the seeming fact that private banks can create money ex nihilo which gives them great power. But this money is something which is repayable(ie. a loan) as opposed to being something non-repayable. Also, there are ofcourse a number of NGOs such as Positive Money, and the American Monetary Institute which are concerned with such issues.

A NOTE. In connection with the money creation by banks the actual principal, or the borrower's hard earned money (not created out of thin air electronically ofcourse) is apparently actually deleted leaving the interest (ie. earned money) on a loan for the bankers. This raises interesting ethical, and philosophical questions on the nature of money which is beyond the scope of this presentation on TFE.

Brief look at some other "Unconventional" Monetary Initiatives

Anyhow, some radical monetary reformers believe (like the Muslims) that loans should be free of interest, and of "excessive" interest, or usury. Others like the idea of banks possibly being nationalized.

Certain monetary reformers believe in the development, and the usuage of free local currencies which strictly speaking are meant to be tax free, and interest free. These have obvious limitations, but they are easily set up, and are workable. However, new virtual cryptocurrencies, notably Bitcoin have a global reach. They are usually anonymous transactions, and have no Central Bank.
Another important initiative is the emergence of P2P lending companies that avoid mainstream banks. Zopa is one such example in which lenders, and borrowers are brought together. Crowdfunding is another, in which the internet notably is used to raise money directly from the people themselves for some business proposal, or charity.

To return to TFE. It can be regarded by many as being very similiar to Social Credit(Socred) started by C.H. Douglas. Modern Monetary Theory, or MMT (also called Neo-Chartalism )is also like TFE. Both notably believe in the responsible creation of new non-repayable money, or what he referred to as Debt-Free Money in the case of Social Credit.

A New Vision and Understanding of Money

Policy makers, and technocrats in Advanced Stage TFE are given full confidence that newly created money could be "safely" created.Instead of conventional "controls" of raising taxation, and interest rates to try, and control inflation the TFE ones would be electronic, and ideally instantaneous. As a result, taxation, and interest rates could possibly be phased out altogether.

Some people would say that the notion of creating new non-repayable money is funny money. But as we have seen here in connection with banks they themselves create it ex nihilo as something repayable(ie as loans).

Moreover, in TFE itself we are not discussing easy money because controls on its electronic issuance would be legally credible, and transparent.

For some, the notion that new money could be created at the push of a button is socially unacceptable. Yet, social, economic, and political injustice is also socially unacceptable especially if there is a lack of conventional earned funding available to back up NGOs, (green) businesses, and governments to deal with it.This gives newly created money a new higher value, and ethical dimension as never before.

The Problem with Redistribution

It has been said that there may be more than enough money to change the world.The problem is gaining legal access to it especially where there is a genuine social,econommic, or environmental issue at stake.Apparently, most of the money of the world exists in financial trading, or "betting casinos" dealing with derivatives (eg. currency speculation). Indeed, the sum total of the capital involved may even be several times greater than the entire Gross Domestic Product(GDP)of the planet.

Some activist groups have suggested the implementation of the Financial Transaction Tax (FFT), or Robin Hood Tax to raise funds in the real productive economy. In TFE such an approach at "redistribution" in this context is ultimately seen as unnecessary, and frankly absurd when sufficient sums could be created at the press of a button. Incidently, it is interesting to point out that the Transaction Tax appears to be an instant electronic deduction in Real-Time.

However, redistribution of financial wealth using taxation is fine, and ethical as far as it goes. It is highly unlikely though that such capital will "ever" be fairly redistributed due to the present Capitalist System, and the Free Market Economy. Moreover though, the problems facing humanity such as food security, Climate Change/Global Warming, population growth, and the like are colossal. To try, and solve this via earned money alone through taxation, and business investment will probably become increasingly difficult. Hence, the need for TFE to speed up, and facilitate change notably using newly created non-repayable money, or indeed, repayable finance as an add on where necessary to earned capital. In other words, direct financial easing by special Facilitation Banks, and/or by governments if absolutely necessary.

The Emergence of Facilitation Banks

If Primary, and later Advanced Stage TFE is undertaken the introduction of ethical Smart Banks, or rather Facilitation Banks, or FBs is an important start.They can be seen as "superbanks". They could become a part of the mainstream banking system but they would have a far tighter regulatory framework. Ofcourse, there are a few so-called "ethical" banks already such as Charity Bank, Tridos, and UK's so-called Green Investment Bank(GIB).

Anyhow, FBs would have powers to electronically create closely monitored new non-repayable Debt-Free Money (ie. Facilitation Finance) as well as repayable interest free loans if necessary. The interest on loans does not have to come from the customer necessarily but could instead be electronically created by the Central Bank, or by some other independent authority. Something similiar could happen with the new non-repayable capital. In other words, an operating cost ideally, or more controversially, Grant Interest which could increase depending on the amount of new money created.

The basic aim, and purpose of such FBs is to create funds for projects which would be difficult if not "impossible" to finance by conventional means as indicated earlier on. Initially, their remit though is largely targetted at investing in full, or in part in large, or small human-scale concerns to do with renewable energy alternatives, enviromental projects as well as social/ethical "entrepreneurial" businesses, or indeed, non-profit "enterprises".

The decision making process on all this must be largely, if not wholly be free from any undue influence from governments, and corporations.It must notably be transparent, holistic and "objective" as possible with all options for consideration for some specific project, or projects that could be vital for the social, and environmental "health" of the planet. In the main this would require bona fide experts in their respective fields. It could involve genuinely transparent cooperation, and partnerships with governments, NGOs, and existing green businesses as well as Open Source consultations with the public.

Ofcourse, when ready, investors using their own earned money could put it in some commercial project in order to gain a return. Indeed, their assets could be financially protected by the FB should the economy of any country face any serious problems, and hence, could avoid capital flight where possible.

However, quite unlike existing mainstream commercial banks,(which would coexist with FBs) the financial dealings of FBs are continually, and fully tracked electronically to prevent fraud with specific algorithms for the job. Such a process could again be undertaken by a Central Bank, or by some other credible body which could also possibly impose instant fines, and/or indeed, an instant freeze on targeted accounts as part of a legally binding contract.

Also, during tough business negotiations with companies, and notably corporations the FB would have access to "infinite" sums of money. This would hopefully ensure that only the very best lawyers, and business negotiators are always employed to ensure that contracts are genuinely enforceable, and hence, honoured.

Essentially, the amount of funding which FBs can create is dependent on the cost, and availability of present, and future planned resources, or products from suppliers. This means that the amount of goods needed to be manufactured for some project would need to be planned well in advance.

Ideally, if possible at all, checks on the relevant suppliers in the supply chain as to whether they have sufficient capacity to produce such resources could be undertaken. Capacity though could be increased if necessary by the FB. Ofcourse, it would be possible to have the relevant products (and services) on order to be electronically monitored whenever money is transmitted. In effect, we could have to some extent an Advanced Market Commitment in which a more "Protected" Economy would emerge within the present "Free Market" System.

With the aid of experts it is hoped that Facilitation Banks, and indeed, Facilitation Finance in the context of TFE will become a serious proposition. This innovative financial model would certainly be more advanced than such controversial global institutions as the World Bank, and the International Monetary Fund, or IMF.

Indeed, FBs would not lead to "competition" with "normal" mainstream banks as the latter could possibly have equal shares in the FBs, or some other legal arrangement(s). Understandably, some NGOs may regard them with suspicion but hopefully this will be dispelled if everything goes to plan "successfully".

Some critics will probably point out that elected governments alone should have the power via an independent body to have Facilitation Finance created rather than mainly by companies such as the FBs (possibly existing mainly as private companies, or as indicated here be owned by the state in full, or in part). The reason for emphasis on the latter (unbracketted) approach is that it is hard to see that a country notably like the US would frown on the idea of greater government interventionism in the "Free Market" Economy.

Thus, something like FBs could be more acceptable, and their influence towards more environmentally, and ethically centred businesses would be more agreeable. Arguably, more regulations could do this to some extent, and this would be a more ethical approach rather than greater financial incentives (eg The European Union regulation for design of Energy Related Products Directive 2009/125/EC).

However, many companies including a certain corporations are taking the initiative as they realize for example that recycling, and reusing resources in the Free Market makes good business sense as the planet has finite resources. A good example of this is the promotion of the so-called Circular Economy. To some extent, this already exists as more, and more "rubbish" is being recycled rather than sent to landfill.

Another instance of the Free Market at work is Ethical Investment. People can decide for themselves in which shares, or securities they could invest in. Such investments should ideally go into companies with a good environmental/socially ethical track record.

All this, is very well, and good, but sufficient amounts of new non-repayable money (plus interest free loans ideally)could also be created to speed things up in a Free Market Economy. Ofcourse, to a very limited extent, a number of governments have been doing just that, but ofcourse using earned money from green taxes. A huge amount needs to be done though as there are many complex aspects to this subject.

Democratic Governments, and Taxation

In TFE, taxation could possibly be phased out over time. In other words, earned money from the people would be gradually reduced in terms of tax liability as new non-repayable money is slowly phased in. In other words, Facilitation Finance by democratic governments.

At the present time, democratic governments could arguably create money electronically directly. This could come about with the relevant legal changes as indicated earlier. However, an independent public body could also be ideally created to ensure that such funding was spent properly.

At present though, if there are shortfalls in tax revenues, governments can issue bonds. These are IOUs mainly bought up by the rich, and super rich companies, and corporations in which money is lent to governments. When paid back by government the bonds also carry interest which act as profit for lenders in the private sector. In other words, a good example of our present Debt-Based Economics.

In Quantitative Easing, or QE governments again create bonds (with the right legal arrangements), and these though are bought up by the Central Bank electronically creating new unearned money ex nihilo. This could be seen as a form of Primary TFE.

Incidently, bond trading itself is a huge global market. With TFE it could continue if necessary, or be gradually phased out (if desired). If the latter happened, investors could receive compensation, or alternatively other kinds of financial instruments, or investments could be found. These could be far more lucrative. In other words, vested interests would not find TFE a threat, thus making global change quicker, and easier to achieve. This seems to be the most sensible, and practical way forward. Trying to do otherwise would probably be too slow, and "virtually impossible" to do.

The Electronic Profile of the Economy, and Big Data in Real-Time/Advanced Stage TFE

Most products, and services in the business world have codes for the ease of accounting. Small shops, and supermarkets often, or not have barcodes which are used at checkouts to electronically account for sales transactions of customers. This is known as the Electronic Point of Sales, or EPOS. This notably gives retailers an accurate understanding of the demand of barcoded products along with their identifications, or IDs.

Such a method known as Electronic Transaction Monitoring, or ETM could also be used to create an electronic profile of the entire economy in Real-Time (or near Real-Time if necessary). What we are also ofcourse talking about here is Big Data,and instant Data Mining. Morever, even so-called Deep Learning, and Artificial Intelligence could also possibly play a part.

Anyway, under new regulations, retailers would not only account for their sales, but would also at the same time transmit their information to a public, or semi-public, or private inflation authority (which could be a part of the banking system, or independent of it). With modifications in barcodes,such transaction data (largely identified but not always,and would allow for commercial confidentiality where necessary) would be able to build up a highly accurate electronic Global Domestic Product, or GDP of the entire economy on a daily basis(ie.24/7) essentially in near Real-Time, or rather in Real-Time par excellence.

The question now is this. Why is it vital to know the economy as far as possible in Real-Time? The answer is basically three-fold.

i) To electronically monitor, and track, and compare price changes of specific groupings of most products, and services to help check inflation status.

If serious rises in prices occur they could be monitored, and targetted by direct electronic controls rather than always using indirect controls of taxation, and interest on loans which could be phased out over time. This process would involve advanced, and highly credible algorithmic programming, and the possible use of supercomputers of the inflation authority. A more "decentralized" version of this could also exist.

ii) To create a highly accurate electronic "inventory" of resources used to make up products, or goods.

This will become increasingly vital as resource scarcity increases. Such data would be good for democratic government planners, and more importantly for private business planners who have a profit motive as their incentive. In other words, improved traceability.

iii) To bring about a greater understanding of the dynamics of the economy itself.

This may be very useful for future economists. With continuous computer simulations garnered directly in Real-Time (ideally) from ETM of the Real Economy itself it may be possible to "accurately" forecast the potential inflation impact involved in the creation of new unearned money (ie. Facilitation Finance) for certain vital projects. It could also ultimately give us direct data of the productive capacity of various "small" companies, and corporations as never before.

Indeed, the origins of potential business cycles of boom, and bust could be tracked, and resolved. This is a very important point. In other words, recessions, and depressions could become things of the past. This could notably involve a Quantitative Easing for the People, as well as a Quantitative Easing for Businesses.

Anyway, Transfinancial Economics, or TFE itself is an IT Megaproject. Unfortunately, at the present time though management of such Projects can fail. However, there is no reason in the world why they cannot be achieved with total persistence in the future with greater, and greater insight gathered from the analysis of past experience. Thus, ETM on a national scale represents a big technical challenge, but it is one well worth undertaking as the social, economic, environmental, and political implications of it would be colossal.

Incidently, cash transactions, or something similiar could still exist, and be adapted to Advanced TFE in some manner, or other.

It should be said that such an "Electronic Economy" would be "fully" protected against cyberattacks. Indeed, there would always be the funds to ensure that security is continually reviewed to the highest possible standards.

Finally for this section it must be added that data mining involved would (like the Cryptocurrency Bitcoin) require a huge amount of electricity. One way of dealing with this is possibly to reduce the amount of "mining" needed, and this in turn would mean less electricity used. Solar power could be utilized instead, or alternatively some other innovation could come about.

Super Flexible Instantaneous Electronic Controls

With the continous electronic monitoring of the Free Market Prices of the transaction of most goods, and services the data which results is transmitted to the inflation authority where supercomputers could be programmed to notably check any inflationary problems.

However, economists would recognize the direct electronic controls mentioned above as being like "price controls," but a far more advanced version of them. The key feature of them is that in Advanced TFE they are super-flexible, and instantaneous. They are also notably super-sensitive to the changes in Real-Time to inflationary pressures in ways unimaginable to the old clumsy, and "rigid" price controls of the past.

Ofcourse, their correct programming using algorithms is absolutely vital, and this could be based with likely modifications on existing formulas, and equations known in Econometrics. Naturally, such an arrangement could take into account many factors in Free Market Pricing such as the value added to a product, or service. It should also be said that a producer of goods, or services would have to register online by law to ensure that their offerings can be correctly identified at the point of transactions by special barcodes, or like means.

Such electronic, or digital transactions would occur in the main with smartphones, or indeed, by debit, or credit cards, or something similiar. These can transmit, and receive money electronically. Ofcourse, to a growing extent, this already happens in many parts of the world.

Anyhow, there are a number of things which the electronic controls (open to further modification, and development) could do, and they would naturally enough require specific algorithms to be programmed carefully, and properly :-

i) Above Inflation Adjustment

A Free Market Price of a product being bought at a checkout is found to be above the inflation rate. An example, should make it clear as to what happens. Lets say that the price of product X is instantly checked by the inflation authority using supercomputers at the Point of Sale. It is found that X is 2p above inflation. As a result, the 2p is instantly added to the customer's bank account electronically (ie. Inflation Interest). However, the retailer still retains the 2p on product X. The extra 2p for the customer is an adjustment, or instant subsidy created electronically with newly created money.

Ofcourse, an instant electronic inflation tax could be created to deduct the inflated value of money. This though is avoided unless it is absolutely necessary. TFE aims to be as business friendly as possible otherwise attempts to introduce it would be blocked by commercial interests.

ii) Below Inflation Adjustment

This is when a price of a product may be below the inflation rate, and an instant subsidy, or adjustment is created electronically. Again, to take a simple example. A customer wishes to buy product Z at the Point of Sale. The price is checked instantly by the inflation authority. It is found that Product Z is being sold below inflation by 2p. As such, the retailer, and not ofcourse, the customer gets 2p straight into their account.

What is described above is deliberately "simplistic" as there may well be many aspects to all this that are beyond the scope of our presentation.

iii) Instant Price Drop Subsidy

This may be necessary if the Free Market Price is rising too quickly. If so, a price drop may be undertaken instantaneously. At the same time, a subsidy, or adjustment is instantly created with new money which creates a "progressive" profit to a certain level for the retailer instead of a profit "loss". In effect, it creates an incentive to drop prices if, and when necessary.

iv) Electronic Price Capping.

Here, a maximun price may be set by a government, or by an FB in certain circumstances. If the price of production starts to exceed the maximun price, the producers would recieve instant financial help, or compensation where necessary as long as they stick to the temporary "control" price. Ofcourse, electronic price capping should be avoided at all cost as it could in certain instances lead to serious shortages, and price distortions.The aim in TFE is to allow as far as possible for the laws of supply, and demand to be maintained naturally.

It should again be added here that similar methods to the above could possibly be used to help control "bubbles" in the economy (eg."runaway" rising prices in the housing market being the classic example).'

(PS. The ideas of Transfinancial Economics concerning super flexible electronic "price controls" are more advanced than the Compensated Price known to Social Credit (similar to TFE). The latter presents a Just Price, or "Control" Price for a product set at a certain level which covers production. This is paid for by the customer. The rest of the price including profit for the retailer is paid for by new non-repayable money, or Facilitation Finance acting as a kind of "unconventional" subsidy)

The Question of Economic Growth

As many realize the planet has finite resources. Thus, continous exponential growth cannot go on indefinitely. In Advanced TFE there is a long temporary period of rapid economic growth but it is heavily influenced notably by the power of FBs, and Facilitation Financing making the present capitalist system far more environmentally sustainable, more ethical, and energy efficient as never before in human history.

Yet, how finite is our planet really? This is arguably at present an "impossible" question to fully, or accurately answer. But, it has also been pointed out that most of the resources of our planet lie under sea beds. To actually "mine them"(with robots) is prohibitively expensive but there appear to be small initial attempts to do just that. With Facilitation Finance this process could be speeded up, but it must be undertaken in a responsible manner.

Apart from mining sea beds, there are other ways to deal with the potential resource scarcity question. They could include the following:-

i) The development of safe Nanotechnology which could create new resources out of thin air via the manipulation of atoms.

ii) Space exploration with the aid of Facilitation Finance could find resources from other planets. These could be brought to our terrestrial world.

iii) Again, with Facilitation Finance it would be possible to create colonies on other planets, and hopefully, use their resources responsibly.

iv) Inventions could be developed to create more out of less, and less. For example, miniaturization of certain devices/products would require little in the way of resources for their creation. In economics this is sometimes referred to as dematerialization.

v) Digital Abundance is an awareness, and indeed, a growing reality that online/internet information is "infinite" and not subject to mainstream resource scarcity as we would understand it.

It should be said here that people (especially the young) should become more, and more educated in that we must live simpler, less materialistic lives. This does not mean going back to the "stone age" but instead to an advanced technological world in which higher values, or ideals should take their place of unnecessary overconsumption, or "affluenza". This is not a question of ideology. It is a question of practical necessity. This would all be part of GEMs, or Global Education Movements mentioned later on.

Some Other Key Benefits of Transfinancial Economics.

Apart from the above section there are many other benefits with TFE. They would include the following list.

a) Poverty.

With TFE, NGOs concerned with this issue would become increasingly empowered financially by Facilitation Finance which could be had directly from a FB, or possibly a government agency. It could also come from one, or more "independent" grant-making body (ie. a foundation, or trust). Such better financed NGOs with good strategies, and logistics(ie good planning) could thus help reduce inequality in the world more quickly than at present.

Indeed, some of them could modify microfinance in the developing world to include an UBI, or Universal Basic Income, or subsidy of sorts without having to borrow money all the time (except possibly for the development of some form of self-employment/business ofcourse). It could be electronically created by FBs, or by genuine governments, or by both of them in partnership.

It should be stressed that every effort would be made to ensure that new money does not go into the wrong hands especially in the developing world. What is notably required here is a very credible "full-proof" system for the electronic tracking of funds which could lead to instant fines, and/or freeze of relevant targeted accounts. This was mentioned earlier on in the text in connection with FBs, but is worth repeating. Moreover, NGOs could get Facililtation Finance to help fund regular spot checks on people, and organisations involved in some socially ethical project be it social, or environmentally important.

Moreover, such financing could also be invested in making sure aid workers are "fully" protected, along with their convoys from terrorist attacks in countries under crisis.

b) Health Care.

Irrespective of whether health care is largely in private hands, or not, Facilitation Financing could help enhance the existing system in which everyone in spite of their economic status has access to high quality medical intervention. This process could happen in both the developed world, and the developing world. Again, efficient planning plays a vital role in all this ofcourse.

One vital potential application of all this is that TFE could fund in full, or in part new antibiotic drugs to help save the lives of huge numbers of people in the present, and in the future. Such medicines make little, or indeed, no real profit for the big corporations, and their ilke, and hence, an "unconventional" approach to funding may be required.

c) Food Security.

Here, innovative but safe production of more food could be funded in full, or in part by Facilitation Finance. Moreover, like their developed world couterparts, farmers in the developing world could receive in full, or in part subsidies notably via closely monitored new non-repayable money created electronically.

d) Population.

NGOs with ideas, and projects concerned with this matter could be funded in full, or in part by Facilitation Finance. These would probably be largely educational in nature (ie. family planning advice).

e) Climate Change, and Potential Global Warming.

This is probably the most important challenge facing the human race,(apart from potential resource scarcity) and could infact, threaten its very existence. A huge amount needs to be done in the quickest space of time. "Science Fiction" type projects should be considered seriously such as Geoengineering (eg.Sun Dimming Management), and various adaption, and mitigation projects such as special dams, underground cities/towns, artificial underwater dwellings, underground agriculture*, "unusual" technological "fixes" to reduce carbon emissions (causing Climate Change) and the like could become serious possibilities with the aid of Facilitation Finance. Governments need to take climate change very seriously, along with global warming irrespective of whether such "scenarios" ultimately happen, or not. To do otherwise is totally irresponsible, and could lead to the future deaths of thousands, or indeed, millions of people on the planet. It should be stated that most scientists believe that Climate Change is largely man-made, and could lead to serious Global Warming.

It aught to be added that though the market price of renewables (notably for wind, and solar power)are falling the need for greater, and greater capital investment would still be necessary in projects notably mentioned above. This is very important to understand, and appreciate. Dealing with Climate Change, and potential Global Warming is a complex multi-faceted problem. Moreover, even if humanity manages to reach a largely low, or zero carbon state, there is no telling whether we have actually reached the so-called tipping point in which "irreversible" Global Warming occurs. Hence, the need to turn our planet into Fortress Earth which could largely withstand extreme weather conditions, and the like.

* It should be noted that there is some evidence in connection with below ground "human-induced" activity causing minor earthquakes (so-called "HiQuakes").

Possible National, and International "Compensation" with Facilitation Finance

One aspect of TFE is that any "unethical" environmental activity undertaken by some company, or transnational corporation could if absolutely necessary be paid "compensation" (depending on the situation) to stop, or correct itself from going ahead, or continuing with something which may be "wrong" for the people, and the planet. Such an approach has already been undertaken by a number of governments on certain issues (eg. protecting threatened forests), but ofcourse using earned money (ie.via taxation) on a limited scale. With TFE though such "compensation" can be undertaken on a massive scale by FBs, and possibly governments via an independent public authority.

In an ideal world there should be a credible global environmental agency which could ensure that corporations, and smaller business organizations are regulated in ways which are legally binding, and truly enforceable on an international scale. This is the high ethical approach.

However, the lower ethical approach of legally "bribing" them to move in the right directions would probably be necessary in a large number of cases. Ofcourse, we are not discussing here a friendly, or hostile takeover bid, or indeed, disinvestment ofcourse. The aim again is to be business friendly as possible without sacrificing many important ethical/environmental principles. This should speed up change which is vital in our present time.

An important example, of all this is the possible implications for over consumption of certain products (even where there may be a demand for them). Some lines of environmentally "wasteful" productions (eg particular types of goods with planned obsolescence) could be quickly phased out altogether where necessary, and profits lost as a result could be compensated using a one off payment, or alternatively as continuous compensation as if the products concerned were still being created, and sold. In other words, a lower ethical approach which may seem "utterly outrageous" for some, but may for practical purposes be deemed necessary.

All this has profound importance for humanity. But it should be said that TFE is not the panacea for all the problems of the world. Yet, it can certainly help solve many of them in a "surprising" manner.

"Full" Automation, the Future, and Global Citizenship

During the transition from a debt based economic system to a non-debt based one in which taxation, and interest could ultimately be phased out, many momentous, and simultaneous socio-economic, and political changes would probably occur. But the rates at which this evolutionary process would happen will vary from one country to another.

One of the future momentous events is the phasing in of "full" automation on a huge scale. This could lead to growing "unemployment". However, something like an UBI, or Universal Basic Income (mentioned earlier on) could be introduced irrespective of whether one is employed, or not. This would not require means testing. Moreover, it could be financed in full, or in part by new non-repayable funds without fear of serious inflation.

In the light of the above paragraph, other kinds of "leisure-like" forms of work, or employment could come into being. Alternatively, for some, a green business could be created but with a high degree of automation included. The finance for such things would not be a problem. Ultimately, the only problem with developing such "enterprises" would no longer be financial capital but rather good efficient small-scale, or large-scale planning, plus relevant resources. Ideally, such "businesses" should also be genuine cooperatives.

Naturally enough, TFE has great implications for NGOs. These Civil Societies could expand, and be able to bring aboard new recruits as money would become easier to find, and fundraising itself could also be ultimately phased out altogether in many cases. Hence, progress of socio-economic, and political issues (eg. Fair Trade, Human Rights, Poverty Reduction, Globalization, Racial Discrimination, Campaign Finance, et al) will gain far greater momentum, influence, and power as never before in human history. Thus, Advanced TFE can lead to greater, and greater Democracy rather than to some dystopian future.

Certain better financed NGOs would find it easier to challenge elitist plutocratic power structures if they feel that their activities to a certain extent are unethical in some manner, or other.

...But, TFE may make the wealthy richer notably with genuine green, and socially ethical type investments. It could also ironically lead to their own demise when automation begins to take over most work activities. This could be accelerated with new non-repayable money. When near "full" automation, is achieved on a largely global scale money itself could become largely, or wholly unnecessary. This is very important to try, and grasp.It is revolutionary. Essentially, TFE can be seen as a transitional stage from a money based system to something more akin to a non-money based one.

With the growing financial empowerment of NGOs for a new, and hopefully a better, and fairer world the following could be included notably.

i) The continuance of Open Democracy, and respect for Universal Human Rights.

ii) Growing altruism, and more humanitarian action in society should act as the key incentive rather than the profit motive. This is very important. Indeed, so-called Hedonic, or Happiness Economics can play a part in all this via its "scientific quantification" of "well-being" of people through the further creation of special Indexes. This ofcourse goes beyond the mere material wealth accumulation of the Gross Domestic Product, or GDP of an entire country. Happiness Economics can present a more fuller, and more advanced picture of the economy in relation to human beings.

iii) Possible evolution towards direct/digital Democracy in which a Universal Debating Project could be part of a "Global Brain", or "forum" could be credibly created on the internet on a P2P Open Source basis to show clearly "all-known" arguments notably for, and against social, economic, and political issues (presented without too much verbal padding). In other words, an objective, and holistic approach to information. This could be updated continually in Real-Time.

iv) The need to move towards a society in which cooperation, and high ideals rather than competition, and greed should be the incentive to drive the world forwards. At the same time, there should be greater growth in the development of a "genuine" Sharing Economy in which products, and services could be shared for non-financial gain.

v) There should be a greater emphasis for "smaller" human-scale communities which could be highly self-sufficient. This is important, but huge "smart" eco-cities could also possibly be developed, and expanded simultaneously. Also, there should be a drive towards more, and more decentralised energy systems.

vi) As already indicated, NGOs notably concerned with inequality would become increasingly empowered by Facilitation Finance in the form of grants, and interest free loans to improve the lot of the poor. One aspect of this is the creation of more social housing which could be funded in full, or in part with new non-repayable money.

vii) Greater decentralisation of power especially at the top.

viii) Society should become less, and less hierarchical.

It is ultimately envisaged that something like an advanced technological world will emerge. The Venus Project inspired by Jacque Fresco, a noted populariser of something akin to Technocracy could be seen as an example of what could be done. Unfortunately, it does not seem to have any real, or credible transition plan, unlike Transfinancial Economics.

The ideas above could help form the basis of a new global order of existence. They are progressive, and humane. They also indicate the need for the entire world to move towards Global Cooperation, and Global Citizenship.

Indeed, there should over time be the creation of Global Education Movements (or GEMs)which could inspire the young especially, to bring about change in the world. Ofcourse, there are many groups already which are similar to GEMs. They could join in, and work together more, and more to bring about a "saner" reality in the spirit of genuine cooperation. This could notably occur with P2P-like computer networks.

Naturally enough, GEMs could be funded in full, or in part with new money electronically created.

PS. It should be stressed that automation (including robotics ofcourse) should be totally suited to a low carbon, or "zero carbon economy," and as such would qualify for Facilitation Financing.

Campaign Activism for Transfinancial Economics.

In order to bring about the serious possibility of change from our present debt based economy of taxation, and interest to one which is largely non-debt based, a campaign would be necessary. Unfortunately, at the present time, a grassroots organization(s) to directly challenge banks, and their kind is unlikely to work. A more pragmatic approach is needed.

To promote TFE a campaign is required. Initially, it is suggested here that a professional website would need to be set up to spread the word of Transfinancial Economics as a serious, and credible proposal. It could be sent to people, and organizations that have real power, and influence such as government policy makers, banks, specialized financial companies, progressive think tanks, et cetera. Other such strategies could be utilized. This is probably the way forward, and there are a number of other key aspects to this process notably in connection with the main website. They are:-

I. News update about the campaign progress, notably the lobbying of certain governments.

II. Commissioned papers (initially) by willing forward thinking economists (and others, notably computer scientists) possibly using econometric models to show the efficacy of TFE in technical terms, including detailed studies on various facets of the subject.

III. A scholarly online Journal of Transfinancial Economics.

V. A powerpoint presentation of TFE for downloading.

VI. Monitoring advances in technology, notably in connection to dynamic algorithmic pricing, and developments in Big Data would help to give TFE greater, and greater credibility. Indeed, it aught to be added that there are now initiatives to electronically track to a limited degree, the Free Market Price of products, and services in Real-Time.

VII. Possible field trials of the electronic technologies involved in TFE. This could be partly, or fully funded by governments, and/or by corporations, or possibly by some other source such as a NGO(s).

At some point, the concept of TFE would probably have to go before the US authorities, the European Parliament, the UK Parliament, and other democratic governments. Ideally, most countries especially in the developed world should work in consort to introduce something like TFE. However, certain developing countries which may have corrupt governments may only be helped indirectly, and would not necessarily be allowed to create full Advanced TFE. Hence, possible geo-political implications.

Anyway, a "good," but controversial idea is to try, and market TFE to certain corporations(and ofcourse, other smaller businesses) as a huge global "business opportunity" of colossal importance. Ideally, such massive businesses though should ideally have some serious, and genuine interest in sustainability. They could form a special alliance to put pressure on governments for revolutionary financial reform, possibly in Washington to carry out Primary Stage TFE at least (though QE has been, or is being undertaken indirectly financially supporting the economy via certain businesses rather than a direct QE for the people)

Advanced TFE (ie Electronic Transaction Monitoring, or ETM)would be more difficult, and controversial to "sell," and become law on a national, or more international scale. But it has a huge number of social, economic, and political benefits. It is this that should help to "easily" sell it not only to the rich, but more importantly to the masses who could find that their financial problems could be "progressively" eased.

Basic Glossary

What is presented here are the basic definition of key terms in TFE. New ones may be added in the future, but most of the terminology would ultimately come from mainstream economics.

  • Transfinancial = The latin word trans implies something above, or beyond. In this case, it can be interpreted as being beyond conventional finance, and indeed, economics itself (ie Transfinancial Economics). In another context, transfinancial can imply money being transferred across borders to other countries.

  • Facilitation Banks (FBs) = These would be quite unlike their mainstream "counterparts" in that they have a licence to create new non-repayable money directly, and indirectly into the economy. Moreover, their regulatory framework is far more tighter than an ordinary bank. Ideally, they could among other things closely track, and monitor electronically where newly created money goes, and can instantly override, and fine an account holder if it is deemed that certain funds have gone to a "wrong" account (ie. fraud prevention). The aim of FBs would be notably concerned with creating finance for environmental projects, and high social/ethical concerns. Ofcourse, it should be added that Central Banks could do the "same" work as FBs if necessary.

  • Primary (Stage) TFE = Here, very limited amounts of mainly new debt-free non-repayable money could be gradually created electronically into the economy directly, and indirectly. Repayable money, or loans could be created as well if necessary. Economic Indicators (ie.GDP, and Inflation Indices) could be used to decide whether more new money could be created, or not. If inflationary pressures grow the conventional methods of raising taxation, and interest on loans could be undertaken. This is intended to help reduce the money supply, and hence, inflation. Primary TFE can also be largely equated with concepts of QE for the People, so-called Helicopter Money, Overt Monetary Financing, Emergency Money (term used in Numismatics for governments notably creating their own money), Debt-Free Money (term usually used in Social Credit), and a Modern Debt Jubilee (suggested by Steve Keen, a noted economist)

  • Advanced (Stage) TFE = This is when most goods, and services would be tracked electronically, and have instantaneous checks undertaken at the point of transaction. This is done to find out their inflation status, and also to ideally discover the IDs of most goods, and services. The latter aspect is used to instantly create a profile, or electronic GDP of the economy in Real-Time. At the point of transaction electronic checks are undertaken by supercomputers (and/or quantum supercomputers as indicated at the very end of the first section of this presentation)when the relevant pricing data is sent to an inflation authority. It is then that the inflation status, and IDs of most goods, and services can be ascertained. The resulting data is transmitted to the cashier, and certain "unconventional" electronic controls may be used to adjust the Free Market Price.

  • Electronic Transaction Monitoring (ETM) = This is explained above. It is simply the monitoring of most goods, and services of products, and services.

  • Facilitation Finance = The circulation of mainly new Debt-Free non-repayble electronic money by special Smart Banks, or Facilitation Banks(FBs), and/or possibly by governments. This Facilitation Finance can be seen as the result of a money creation process known in economics as Quantitative Easing, or QE. Ofcourse, repayable money could be created electronically sans interest ideally.

Some Key References

The following is not exhaustive ofcourse. The literature on finance, monetary reform, economics,and sustainability, is vast with an array of well-known, and little-known authors.

Steve Keen, Debunking Economics - Revised and Expanded Edition: The Naked Emperor Dethroned? Zed Books, 2011

David Colander (Author), Paul Ormerod (Author), Dave Ramsden (Author), Paul Seabright (Author), John Sloman (Author), Edward Glaeser (Author), Andrew Haldane (Author), John Kay (Author), Andrew Lo (Author), Diane Coyle (Editor), What's the Use of Economics? Teaching the Dismal Science after the Crisis, published 2012.

L. Randall Wray, Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems, Palgrave Macmillan, 2012

Stephen Zarlenga,The Lost Science of Money: The Mythology of Money, The Story of Power, AMI, Dec 2002

J.W. Hughes,Major Douglas: The Policy of a Philosophy, Wedderspoon Associates,2002

Ellen Hodgson Brown and Reed Simpson, Web of Debt: The Shocking Truth About Our Money System and How We Can Break Free, 2012 edition (among many other interesting things, it includes some rare info on "experiments" used by early American Colonists to create "enough" new money to fund various projects)

Josh Ryan-Collins (Author), Tony Greenham (Author), Richard Werner (Author), Andrew Jackson (Author) Where Does Money Come From?: A Guide to the UK Monetary and Banking System, New Economics Foundation, 2012

Jeffrey D. Sachs,Common Wealth: Economics for a Crowded Planet,Penguin Books, 2009

Jeffrey D. Sachs, The Price of Civilization: Reawakening American Virtue and Prosperity, Random House Trade Paperbacks, 2012

Joseph Stiglitz, Freefall: America, Free Markets, and the Sinking of the World Economy, W. W. Norton & Company, 2010

Noreena Hertz, IOU: The Debt Threat and Why We Must Defuse It, Fourth Estate, 2010

Mckenzie Funk, Windfall, The Booming Business of Climate Change, Penguin, 2014

Viktor Mayer-Schonberger, and Kenneth Cukier, Big Data: A Revolution That Will Transform How We Live, Work and Think, John Murray, 2013

Jeremy Rifkin, The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism, Palgrave Macmillan, 2014

Naomi Klein, This Changes Everything: Capitalism vs. the Climate Simon & Schuster, 2014

Vasilis Kostakis, Michel Bauwens, Network Society and Future Scenarios for a Collaborative Economy Palgrave Pivot, 2014

Some Links Of Possible Interest.

The following links may be of interest.

1) TFE is notably similiar to Social Credit. The following link may be of interest, and a French version also exists.

2) An introduction to MMT, or Modern Monetary Theory which is also similiar to TFE.

4) Trond Andresen connects electronic money to MMT in his working paper. He may have drawn some of his inspiration from TFE. A link here is also included on Steve Keen's Modern Debt Jubilee

5) The following link to a NGO is concerned with how money is created, and used.

6) The idea of businesses working in a possible future Real-Time monitored economy has been mooted at. Ofcourse, TFE ultimately goes beyond this to include a deeper, and far more accurate understanding of the actual workings of the economy itself. This is revolutionary, and turns economics on its head. Indeed, it could be argued that TFE is the most important breakthrough in the history of economics, and this may one day be recognized. Certain initiatives are being undertaken to a limited degree to track the Free Market Prices of goods in Real-Time. Some examples are as follows (Finnish academic organization concerned with the possibility of Real-Time economics)

7) Kenya, of all places have been using the mobile phone as the main means to transmit, and indeed, recieve funds electronically.

10) High Frequency Trading is an example of the power of advanced automated computer technology.

11) The idea of something like a cybernetic economy has been around for sometime. The following links may be of interest, and appear to offer "techno-economic" ideas within a genuine socialist, or communist type system. With TFE though we are discussing an economy that exists within the framework of a more "ethical" futuristic capitalist system which would ideally have genuine open democracy, and respect for universal human rights rather than some dystopia, or totalitarian system. This is always important to remember. Yet, if society decides it can evolve into a "higher," or more "advanced" social structure similiar to one envisaged by Technocracy. In this respect, TFE can be seen as a "credible" transitional system to a "better" world. Reference is also made to Paul Cockshott, and his Cybersocialism

12) Professor Richard Werner was the originator of the term Quantitative Easing, or QE. But it has been completely misinterpreted as the following link reveals

14) The use, and development of Big Data appears to be growing apace in the world. It has huge significance for TFE

15) The use of dynamic pricing, and algorithms is becoming a serious reality.

16) Serious problems may be faced with ageing bank computer systems. With TFE it may be possible to help in full, or in part the financing of new IT systems.

17) The Resource Based Economy may be of interest.

18) The Universal Debating Project

19) The idea of the Industrial Internet is similar to the concept of ETM in TFE.

20) The Internet of Things could have relevance to TFE.

21) Jeremy Corbyn, leader of the UK Labour Party has expressed some interest in a direct form of Quantitative Easing for the people, and possibly businesses as well. Richard Murphy who wrote the article on the last link above seems to have written a lot on QE as revealed in the link on the following link so to speak...

22) The following are links to searches concerning possibilities for the future. TFE could play a big part in their realization.
xvii) Big Data/Economics (The huge importance, and relevance of Big Data in economics is slowly dawning in mainstream, and heterodox economic circles)
xviii) Inflation in Real-Time (There is now a growing "literature" on attempts to track inflation in Real-Time. This is a vital of Advanced Stage TFE)

PS. Robert Searle is the originator of this "work in progress" project. His email address is . Admitedly, my bio below is to some extent "unconventional," but it is hoped it will not detract from any interest in the above project.