Thursday, 4 April 2013

The Shift Movement......With Reference to Transfinancial Economics

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    Tek Kof said 3 months ago:

    A white paper (excerpt)

    How Do The Concerns Occur?
    Within our current, western economic system, arriving at levels of near full-employment almost invariably brings an escalating volume of monetary transactions into the marketplace in a given period of time— drawing-down a purveyor’s on-hand supply of merchandise, time and labor. The rising speed of transactions encourages vendors to raise their prices— if only to slow and control the distribution of their product / service inventories. Resultant Cost Of Living (COL) price hikes provoke workers to demand more compensation for their work. In response to these increasing wage demands, employers might well reduce their largest, most expensive, single category of overhead: people– their workforce.

    Starting well before The Great Depression the Banking Industry began fashioning its own set of strategies for surviving economic turmoil. It treats its inventory (deposits, property, contracts, currency and other financial instruments) in a similar manner as it might manage commodities (such as precious metals & stones). During a monetary downturn, profiting financial institutions may readily withhold their assets from the marketplace of transactions to protect their organization from global shortfalls, “bank runs”, and income loss. They may then call in delinquent loans; require higher qualifications for further loans; lay off staff; bribe, coerce, or corrupt employees, rivals, politicians or regulatory officials; inside trade; repurchase their own stock; perform market “nano-trades” in far less than a microsecond; create exotic financial instruments to sell or loan; foreclose on distressed / defaulted properties; raise miscellaneous (“junk”) bank fees; buy or sell surplus, business assets; make hedged “bets” on assets they don’t own; merge with other firms; fund propaganda or violent attacks against perceived “enemies”; hire lawyers and CPA’s to find “work-a-rounds” to regulations; “trick & trap” uninformed borrowers into signing onerous loan contracts; turn a “blind eye” to the receipt of laundered monies; and even afford multimillion dollar fines, if any of their business practices happen to abridge the laws governing their enterprise. The Banking and Finance Industry might well take these and other bold actions at the expense of their rivals and customers alike. Each tactic occurs as a reaction to, or a recovery from financial apprehension, inflation / deflation, high unemployment, diminished labor force, wide spread disease, weather / climate calamity, poor crops, lost knowledge, high bank loan interest, high war loan debt, or military domination. Select members of the banking and financial institutions [generally those "Too Big" to tolerate the loss] calculate their strategy to reign in and hold money tightly, thus removing cash from public circulation– bringing lending, hiring, and spending to a crawl. By contrast, with the advent of high capacity “Super Computers”; multi-story data server farms; and broadband, ultra-fast, internet / intranet connections– financial institutions can now perform these strategies at speeds literally approaching the velocity of light.

    © COPYRIGHT 2011-2012 Solutiθns™ Service Systems™ for $TAKEHOLDERS™ Independent Professionals™ –All Rights Reserved STAKEHOLDERS@USA.COM

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    Renee Orth said 3 months ago:
    You might find this interesting …
    Do you have supporting evidence for this statement?: “The rising speed of transactions encourages vendors to raise their prices— if only to slow and control the distribution of their product / service inventories.”

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    Tek Kof said 3 months ago:

    Yes. In addition to anecdotal (story based upon rumor or casual observation– not rigorous or scientific) and basic economic, academic text books, working economists and statisticians rely on a hand full of theories accounting for the cause(s) of inflation:


      –caused by aggregate (total) demand exceeding the actual supply. Factors that commonly lead to demand-pull inflation include 1) a sudden “flood” of money in an economy, as well as, 2) a possible fall of tax amounts on goods. Purchasers with more money to spend, subsequently buy more, encouraging vendors to raise general prices of goods and services


    Cost-push inflation happens in the wake of supply of shortages, or to cover a rise in production costs– such as shipping or labor expense. Business normally just pass such costs to their customers.


    Built-in inflation occurs as a reaction to one or both of the above previous causes leading to workers demand for higher wages, which of course, increases production cost which, again are passed on to customers– starting a cycle of inflation.


    Quantity theory says inflation is caused too much or “excess” money in circulation leading monetary experts to anticipate inflation, so that institutions increase their prices in anticipation– kind of a self-fulling prophesy.

    Circumstantial Causes

    Other causes include natural disasters, wars, temporary scarcity (a run on goods), climbing labor costs, and loss of commodities supplies.
    All of the above Causal descriptions share a common element: money transactions increase IN REACTION to one or more causes, sometimes abruptly.

    1. ^ “Median Price Changes: An Alternative Approach to Measuring Current Monetary Inflation” (PDF). Retrieved May 21, 2011.
    2. ^ Bulkley, George (March 1981). “Personal Savings and Anticipated Inflation”. The Economic Journal 91 (361): 124–135. doi:10.2307/2231702. JSTOR 2231702.
    3. ^ Encyclopædia Britannica, “The cost-push theory”.

    External links

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    Daniel LeBlanc said 3 months ago:
    So where are the practical, concrete ways of generating money?
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    Tek Kof said 3 months ago:

    First, for those of us who have not spent enormous amounts of time and energy studying this subject, we must contrast how currency is now (and for centuries) created world-wide for Western and other developing nations.
    Again, i beg your indulgence, here, your background on this may well exceed mine or extend beyond the experience of some of the over 117 Members who have signed on to this Group in the past four (4) hours that we open up this can (of worms?)– this volatile Forum Topic of Conversation. In short, i request that we all grant all of our best patience as we all sort through this.
    A white paper (excerpt)
     Executive Summary
     This Project Proposal Brief attributes the past, debilitating macro-economic “Boom and Bust” fluctuations, to the traditional means for coining wealth, and for generating “Legal Tender”, which acquires its existence through various methods of instituting debt.
    © COPYRIGHT 2011-2012 Solutiθns™ Service Systems™ for $TAKEHOLDERS™ Independent Professionals™ –All Rights Reserved STAKEHOLDERS@USA.COM
     Now, that is a short (and partial) answer to your question, which now begs a series of legitimate, subsequent questions, which i will let you deliver as they occur to you– such as:
    is this the only method for “generating money?”

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    Wim Lauwers-Schittko said 3 months ago:
    Hello Renee, Solutions and Daniel,
    Yr talking about the “old” moneysystem, I suppose? Thats oke´. There R many ways to the CHANGE.
    I see the fall down of this moneysystem and the raise of new systems, as there R: exchange of talents, local banknotes and so on.
    I´m very interested in this subject “money”, cause I have my own company. My experience: since I started thinking positiv about my future, living in the now, money is there for me, as much as I need to live. Its becoming more and more. Slowly :O)) But I live. Lol, Wim.
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    Antje Cobbett said 3 months ago:
    Yes, Tek, I agree, most people don’t know very much about the real working of finance and money. So it’s good to state how the old system works and then go from there into new suggestions that are acceptable for the masses. Unless the masses change, there won’t be any significant change.
    Some ask how to live without money. It is easy. 10 years ago we moved to our self-sufficiency homestead and indeed, we learned to make everything that we really need to keep our body in good shape. That is one thing, but how would I get a netbook and an internet connection without spending money? The service providers don’t want my organic food (yet).
    I’ve also been raised in a middle class society with running warm/cold water and all the mod/cons. They are cons! I feel much happier now without all this humbug that we are made to believe we need to buy. The important thing here is that we don’t live like they lived 300 years ago. We have more knowledge and can produce food in much easier ways. We can construct small houses using natural material, it is easy to learn and easy to do. And so it goes on. We can afford to live without bills and mortgages, because we’ve learned and tried out new ways of living.
    BUT, unless others do the same, I have no means of exchange than money. Yes, we make craft objects we sell on local markets, yes, we sell some organic food produce, but at least here in Spain there is a situation of massive unemployment and even supermarkets selling the cheapest junk food seem to get into financial problems.
    So we simply carry on living frugally, without the mod/cons, earning the few Euros we think we need (we think! ;) ), but know we can do without them. It’s just nice to write a few articles on the internet as well and get another few dollars in. Ticking over.
    Ticking over here means definitely living a healthy and happy lifestyle. Others moan about fair wages, wanting work etc. No, they don’t want work, they want somebody to pay them money for doing as little as possible to buy the goods industry forces on them with pure propaganda. That is the mind of the industry slave. But those times are over! In an up-economy those “workers” can be supported, but in a down-economy they cannot.
    I will state it now for the umpteeth time! There is work for everybody. Enough work, enough food, enough to sustain life and be happy and healthy. It is a matter of wanting to. “Oh dear, I’m unemployed, I have to sit all day in front of the tv set and do my boring computer games, there is no work!” Humbug, total humbug. There is enough work, so work! The rest will fall into place. Don’t believe me? – Too bad.

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    Cherie Johnson said 3 months ago:
    Actually, has anyone visited the one peoples trust site or listened yet to the interview with the trustee on Removingtheshackles. We are the way money is created. It is a long story for those who don’t know the history but all we have to do is massively reclaim our sovereignty by declaring ourselves via our birth certificate to be sovereign citizens of the corporation of the united states and return to citizens of the republic of the united states. Yes folks, we are debt slaves-a neat little deal cooked up by some twisted people to pay the banks back for the loss during the depression. There are legal forms to be filed and if we all do it at once we have a ton more power. So first issue is reclaiming our sovereignty then we decide together how the system works. The system has already been foreclosed on which is why things are falling apart. They can no longer print any new money at the Federal Reserve and our money is n the trust waiting to be claimed. Check out the sites and interview.
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    Renee Orth said 2 months, 4 weeks ago:
    Hi Tek,
    Not sure if you’ve had a chance to check out the link I posted earlier ( it’s to a project that, IMO, doesn’t throw the proverbial baby out with the bathwater – in other words, it appreciates the vital role of money as a means of communication and organization, but recognizes and addresses the shortcomings of the current paradigm based, as it is, on debt and elite, centralized control.
    I still question your notion that rising transaction speed results in inflationary pressure. Transactions are faster throughout the system, so the speed of transactions is not a factor contributing to inflation. I doubt this claim is central to your thesis, but placing such a statement as fact so early in your essay probably doesn’t serve you well.  I hope I’m not coming across as nit picky :)  but I’ve read/thought a lot about money and monetary policy, so thought I’d offer my 2 cents.
    Here are two very short YouTube videos I’ve recently released that touch on the role of money in evolution …

    Another one is in the works that addresses one specific idea for using technology to improve the intelligence of our economic system by expanding the communication power of price/money.
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    Tek Kof said 2 months, 4 weeks ago:

    [A partial Re-Posting]

     Thank you for your price observations regarding Inflation Theory. 
     We particular appreciate your reference to P2P Foundation and Robert Searle’s procedural tool, the “Automatic Inflation Deduction” for effecting his “Transfinancial Economics” (“TFE”) Project.
      We take your point and accept your questioning our notions regarding transactional velocity, [or VT = nT/M], where—
    VT is the velocity of money for all transactions.
    nT is the nominal value of aggregate transactions.
    M is the total amount of money in circulation on average in the economy].
     You probably side with Austrian School Economists– Henry Hazlitt and Ludwig von Mises— who both point out that the increase in the money supply is NEITHER directly, nor immediately proportional to price rises.
     – In our cautious defense, I did not actually say that the “…the speed of transactions is…a factor contributing to inflation…” [though i did imply the same— given the text book definition of inflation]. My intent {and believe me, “I knew the job was dangerous when I took it”} lay more in suggesting a plausible human motive and reaction to the “…drawing-down [of] a purveyor’s on-hand supply of merchandise, time and labor…— if only to slow and control the distribution of their product / service inventories…”
     As i am sure you are aware, for several generations, nailing down the “original” cause(s) of inflation has proven the economist’s “chicken and egg” puzzle in a spiraling chain of events that ultimately feeds upon its own momentum. Here, in the USA, we still argue whether it was Hoover’s panicked monetary tightening, or those greedy, Florida real-estate speculators who were more at cause for the 1929 Crash.
     Let us not allow the veracity of any of these assertions divert us from addressing “…the shortcomings of the current paradigm based, as it is, on debt and elite, centralized control…”  Let’s not miss who’s operating from “behind the curtain”— or what can you and I do to, yes, fix this thing; because, we can and we must.

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    Robert Searle said 4 days, 19 hours ago:
    By chance, I happen to come across this site. I am glad that there is some interest in TFE. It is an “all-encompassing” subject, and yet, it could hold the “solution” to a large number of socio-economic problems.
    I hope to be in phone contact with Tek Koff fairly soon. Good luck with the site

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