Tranfinancial Economics in a Nutshell
Transfinancial Economics, or TFE is a an advanced futuristic form of
Deficit Spending, and 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 or indeed Modern Monetary Theory, or MMT).
However, if further new money was required then special temporary
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 as much as
possible (ie. Advanced TFE). Such an arrangement could gradually phase
out taxation and interest rates "altogether". These are in part the
normal conventional methods to control inflation by helping to reduce
money in circulation. But the super-flexible (price) controls mentioned
are far more advanced, and beneficial. If TFE is ultimately possible it
would be essentially targeted at many high ethical/social projects, and
a highly comprehensive New Green Deal in which there would be a period
of massive green growth. The only limits to all this ofcourse would not be
money but limited natural, and human resources. But in some future
decade of such developments this could lead to a situation in which
excess money would exist in the economy. This could be dealt with by
notably saving it until a time may, or may not come when it can be more
be fully invested. Ofcourse it could be taxed or deleted out of
existence but this should be avoided.
One day TFE may be recognized as a highly important approach in
economics. 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.
It must be made clear that TFE is not fantasy economics as our
financial world is essentially a vast computing system made up of a vast
number of networks. IT, or Information Technology has become such that
something very much like TFE will inevitably emerge.
It must be stated in no uncertain terms that TFE would work
within the context of capitalism but one which is more ethical, and
environmentally friendly. But it can also be adapted to socialist type
system as well.It should be noted though that there will always be those
who will totally misrepresent it as something akin to full-blooded
communism especially Americans. However, TFE can also have some degree
of nationalization of industry if required as in the case of many
genuine democratic European countries.
PS. There is serious interest in the idea of "free" money especially
in connection with the Universal Basic Income. The originator of this
presentation on TFE is in favour of it. It could act as an essential
stopgap for the phasing in of Transfinancial Economics in its most
advanced form.
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, Steve Keen, Andy Haldane (of BoE, or the Bank of
England) and the futurist, and autodidact 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.
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 this presentation of TFE has been going through a
whole series of changes, and where, and when necessary may be subject to
further 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 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.
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, and ofcourse, Venuzuela) 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 (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 mainly new non-repayable money,
or what Douglas referred to as Debt-Free Money in the case of Social
Credit.
It should be said too that MMT seems to be gaining some traction
notably among the American progressives. It can be summed up in one
sentence. Essentially, it believes that government should create new
money to fund public expenditure, and taxation itself is only used as a
means of controlling inflation. This is a good idea. One recommends it
as a good start in the development towards a more Non-Debt Based
Economic System. On a downside note, the degree of inflation taxation
within the MMT concept could possibly become increasingly greater over
time, and hence, lead a grave social, economic, and political
situation... when the tax debt could become "too heavy". However, the
big advantage of MMT has over TFE in its Advanced Stage is that it would
require time to set up, but the amount of new money it could create,
and safely phase in would ultimately be far greater than MMT. The reason
for this is that it would be possible to gradually increase the levels
of growth and potential inflation in such a way as to retain the value
of the currency (This is explained later in the text). Such a process
can only be successfully achievable if the economy can be monitored, and
controlled in Real-Time, or near Real-Time. Furthermore, taxation
itself could be phased out altogether as a means of controlling
inflation, and only used in an emergency situation.
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, and Tridos.
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 Finance
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.
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 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. Furthermore, it should be said that
during the Great Financial Crisis the specific use of money created by
the Central Bank to prop up banks, and certain other large businesses
was severely restricted. In other words, the funding could not be used
willy nilly and hence, essentially contained within the relevant
commercial organisations. Thus, such a move did not lead to seriously
inflation, or even, hyperinflation. Also, it should be noted that such a
measure such as QE in TFE in its Advanced Stage would not ofcourse only
be used in an emergency situation (ie The Great Financial Crisis)but
could become the norm in the economy as inflation could be
electronically tracked, and controlled (when necessary and
"instantaneously") in Real-Time, or near Real-Time without serious
devaluation of currency, or even serious inflation. This aspect will be
explained later on.
To return to bonds per se the trading of them 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 possibly 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. Many of the left
will not like this but it may be necessary if not enough political
pressure is applied to the financial elites. What is far more important
is to turn TFE into reality as soon as is feasible which may take time.
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. Indeed,
something called the Blockchain (usually associated with
Cryptocurrencies) exists to a somewhat limited extent which can
electronically track the provenance of the materials used in the making
of goods in a supply chain.
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 the Data Mining involved
would require a huge amount of electricity. One way of dealing with this
is possibly to reduce the amount of "Mining" needed. However, solar
power, and other alternative energies could be utilized to deal with
this "problem" successfully. Nuclear power is obviously another possible
option but a far less popular one.
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) Temporary Electronic Price Capping.
Here, a maximun price may be set by a government, or by an FB in certain
circumstances, or by any other "organization". 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).'
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 undertaken
very carefully if necessary), and various adaption, and mitigation
projects such as the following where appropriate, and
necessary...........
1) Special smart dams..........
2) Underground cities/towns............
3) Artificial underwater dwellings..........
4) Artificial "islands"...............
5) Underground agriculture (this does seem to be possible, and could be
done on a colossal scale helping to feed the global
population)..............
6) Mass Tree planting and machines to suck carbon out of the air............
7) A whole variety of sustainable smart energy production
(ideally decentralized) such as wind, wave power, and ofcourse solar
energy, along with the development of effective long-term green reusable
storage batteries, and other like innovations...............
8) Introducing resilence in the construction of buildings, and
other kinds of structures so that they can withstand a variety of
extreme weather from Climate Change...............
9) Smart green transport such as electric vehicles, or better still cycling if one is able..............
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") However, it should be noted that there is no
reason to believe that structures such as houses underground could not
be largely protected by advanced design "technology", but this ofcourse
would require more capital investment.
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.
PS. Another way of doing things is B Corporation which issues private
certificates claiming that a corporation is being "ethical" as far as
social, and environmental issues are concerned.
"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), Deficit Spending (in
conventional economics), 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.
- Grant Interest = The creation of new money as something
non-repayable by an independent organisation (other than the mainstream
banking system) to gradually pay on behalf of a customer or company the
interest on a loan. This is a controversial concept.
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.
http://www.michaeljournal.org/plenty42.htm
2) An introduction to MMT, or Modern Monetary Theory which is also similiar to TFE.
http://ralphanomics.blogspot.com/2011/02/introduction-to-modern-monetary-theory.html
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
http://www.itk.ntnu.no/ansatte/Andresen_Trond/econ/mmt-electronic.pdf
https://www.youtube.com/watch?v=ocQWs8EteqI
5) The following link to a NGO is concerned with how money is created, and used.
http://www.positivemoney.org.uk/
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.
http://en.wikipedia.org/wiki/Real-time_economy
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 http://theeconomicrealms.blogspot.co.uk/2014/11/real-time-economic-data-tracking.html
http://theeconomicrealms.blogspot.co.uk/2014/11/mit-launches-real-time-inflation-indices.html
http://theeconomicrealms.blogspot.co.uk/2014/11/raging-inflation-narendra-modi.html
http://information.aalto.fi/en/research/rte/ (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.
http://www.bbc.co.uk/news/business-11793290
8) The links below lead to a blog developed by the author of this presentation on TFE
http://theeconomicrealms.blogspot.co.uk/2012/12/how-can-anything-rival-threat-of.html
http://theeconomicrealms.blogspot.co.uk/2012/11/paradise-or-oblivion.html
10) High Frequency Trading is an example of the power of advanced automated computer technology. http://www.en.wikipedia.org/wiki/High_frequency_trading
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.
http://p2pfoundation.net/Towards_a_New_Cybernetic_Socialism http://blog.p2pfoundation.net/why-you-should-read-the-essay-red-plenty-platforms/2013/08/20 http://p2pfoundation.net/Cybernetic_Communism
http://p2pfoundation.net/Cybernetic_Revolutionaries http://p2pfoundation.net/Cybernetic_Planning http://encyclopedia2.thefreedictionary.com/Economic+Cybernetics
Reference is also made to Paul Cockshott, and his Cybersocialism https://www.youtube.com/watch?v=LtlZys7QOO4
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
http://www.bbc.co.uk/news/business-24614016#story_continues_3
13) The problems facing the management, and possible success of Megaprojects, notably IT ones.http://blog.budzier.com/me-research/
http://www.mckinsey.com/client_service/public_sector/latest_thinking/mckinsey_on_government/seven_imperatives_for_success_in_it_megaprojects
14) The use, and development of Big Data appears to be growing apace in the world. It has huge significance for TFE
http://en.wikipedia.org/wiki/Big_data
15) The use of dynamic pricing, and algorithms is becoming a serious reality. http://en.wikipedia.org/wiki/Dynamic_pricing
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.http://theeconomicrealms.blogspot.co.uk/2013/12/banking-it-crisis.html
17) The Resource Based Economy may be of interest.
http://www.theresourcebasedeconomy.com/
18) The Universal Debating Project http://www.p2pfoundation.net/Universal_Debating_Project
19) The idea of the Industrial Internet is similar to the concept of ETM in TFE. http://gelookahead.economist.com/industrial-internet/
http://en.wikipedia.org/wiki/Industrial_Internet
20) The Internet of Things could have relevance to TFE. http://en.wikipedia.org/w/index.php?title=Internet_of_Things&redirect=no
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. http://theeconomicrealms.blogspot.co.uk/2015/08/corbyns-peoples-qe-could-actually-be.html
http://theeconomicrealms.blogspot.co.uk/2015/08/is-corbynomics-inflationary.html
http://theeconomicrealms.blogspot.co.uk/2015/08/chris-leslie-has-got-corbynomics-wrong.html
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...
http://theeconomicrealms.blogspot.co.uk/2015/08/how-green-infrastructure-quantitative.html
The following are links to searches concerning possibilities for the future. TFE could play a big part in their realization.
1) Undersea living https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=undersea+living
2) Underground Agriculture https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=underground+agriculture
3) Smart Eco Cities https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en&q=smart+eco+cities
4) Smart Technologies https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=Smart+Technogies
5) Smart Sustainable Resilence https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=Smart+Sustainable+Resilience
6) Robots https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=robotics
7) Automation https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=automation
8) Smart Sustainable Transport https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=smart+sustainable+transport
9) Future Studies https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=future+studies
10) Smart Agricuture https://www.google.co.uk/webhp?hl=en&ei=0NPyVfKqB-O17gag97egDQ#safe=strict&hl=en-GB&q=smart+agriculture
11) Geoengineering https://www.google.co.uk/webhp?hl=en&ei=7tPyVbnvJIfb7AarkpzYAg#safe=strict&hl=en-GB&q=geoengineering
12) Undersea Mining (for resources) https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=undersea+mining+
13) Supercomputers / Quantum Computers https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=Supercomputers+Quantum+Computers
14) Terraforming https://www.google.co.uk/?as_qdr=all&gws_rd=cr,ssl&ei=IrTyVcfRC4absgHSqrOgDQ#safe=strict&as_qdr=all&q=Terraforming
15) Heat Resistance/Climate Change https://www.google.com/search?rlz=1C1GGRV_enGB758&biw=1920&bih=974&ei=hKE-Xs6WAZq4gAaAmoPgBQ&q=heat+resistance+climate+change&oq=heat+resistance+climate+change&gs_l=psy-ab.12...0.0..34134...0.0..0.0.0.......0......gws-wiz.-sbQ6PdRz5o&ved=0ahUKEwjO6KLg8sHnAhUaHMAKHQDNAFwQ4dUDCAs
16) Nanotechnology https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=nanotechnology
17) Renewable Energy https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=Renewable+Energy
18) Big Data/Economics https://www.google.co.uk/webhp?hl=en#safe=strict&hl=en-GB&q=Big+Data+economics (The huge importance, and relevance of Big Data in economics is slowly dawning in mainstream, and heterodox economic circles)
19) Inflation in Real-Time https://www.google.co.uk/search?source=hp&ei=-Ks-XrqtN4PeauKoqLgH&q=economics+in+real+time+fast+indicators&oq=economics+in+real+time+fast+indicators&gs_l=psy-ab.12..33i22i29i30.1574.15491..17056...4.0..0.128.3141.37j5......0....1..gws-wiz.......0i131j0j0i10j0i22i30j0i13i5i30j33i10.X-jN5lmYEb0&ved=0ahUKEwi6idvc_MHnAhUDrxoKHWIUCncQ4dUDCAc#spf=1581165571693 (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 robertsearle46@googlemail.com
. Admitedly, my bio below is to some extent "unconventional," but it
is hoped it will not detract from any interest in the above project.
https://wiki.p2pfoundation.net/Robert_Searle
