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The following is a brief paper which also appears in a respected academic book edited by Dr Debesh Bhowmik. It is entitled ''An Approach Towards Central Bank Digital Currency'' published by Kunal Books, New Delhi, 2022. In Chapter4 the material below is presented. Also, it should be mentioned that a paper published in 2016 entitled ''Orthodox Monetary Theory: A Critique From Post-Keynesianism and Transfinancial Economics'' by Dante A. Urbina appears in a book called ''International Monetary System. Past, Present, and Future'' Regal Publishing, India. RS


'''Transfinancial Economics,or TFE is a concept for economic and financial reform developed by Robert Searle. It is concerned with the possible introduction of a Non-Debt Based Economy replacing the present Debt-Based Economy of Taxation, and Interest on Credit. TFE can be seen as a very advanced form of Heterodox Economics. It may well one day replace out-dated Neo-Classical Economics which still dominates academia, and the policy making of many governments in the developed world, and elsewhere.'''


                  _____________________________________________________
== FUTURISTIC ECONOMICS FOR THE 21ST CENTURY? ==
                   
by [[Robert Searle]]


         
             
'''Basic Summary of TFE'''


=== Abstract ===


Transfinancial Economics or TFE believes that taxes, and interest on loans are no longer necessary in the 21st century. It believes in two types of capital "flows" or rather electronic transmissions of money in the economy.
''The following is in brief concerned with the very basics of an emerging paradigm known as Transfinancial Economics or TFE. It can be seen as a form of Keynesian Economics. Basic to it is the huge relevance of the use of computers and information technology in finance. This would act as a means of notably influencing the economy towards a more ethical, and greener environmentally friendly economy as never before. Many will regard TFE as being similar to Modern Monetary Theory or MMT which has gained a large amount of publicity in recent years. However, the latter is regarded as being a precursor and possible stopgap to TFE which is far more advanced. At the time of writing what follows is still “work in progress”. Of course, it raises many questions which may be answered in the near future such as TFE’s connection with exchange rates and of course the possible emergence of Central Bank Digital Currencies, or CBDCs.''
A. New Non-Repayable Money:
This is created, and transmitted into the economy to replace taxation of the government, and grants which could partly, or fully fund NGOs, and similiar type organizations. It like the non-orthodox method known in economics as Quantitative Easing notably used in the credit crunch.
Since reformed banks of the future would have a highly accurate scientific understanding of the workings of the entire economy they would also be able to produce enough new non-repayable money to ensure that serious inflation cannot in the main occur. Thus, any direct price controls would probably be largely superflous as the equilibrium, or balance  between supply, and demand would on the whole be maintained. Hence,the Free Price System continues to exist.
 
However, as prices gradually rise the value of peoples money would also do likewise. This national adjustment to inflation would be achieved easily, and electronically via the banks computers.
 
It should be clearly indicated again that there is a measured creation of enough new non-repayable money which cannot, and does not lead to hyperinflation (eg. the Russian Revolution,the Weimar Republic, the French Revolution,et al). In other words, it cannot, and does not flood the economy way beyond its rate of growth which is obviously insane.  
 


Keywords: Transfinancial Economics, Modern Monetary Theory, Inflation Taxation, Digital Price Controls, Climate Change
B. Earned Money;
This is simply money which is in circulation or saved in the economy. This is received by business people, and their employees as profits, and/ or wages through productive commercial activity, and work. Both new non-repayable capital, and its earned equivalent exist together in the economy.


It is interesting to point out here to that there is a huge amount of non-repayable money already in circulation. Here, we are referring to funding given by government in rich countries.This ofcourse is earned money. But, interest bearing loans which exist in todays economies are created largely out of thin air electronically by banks via the process of fractional reserve banking. This is not earned money but is like non-repayable money of TFE except ofcourse it is repayable over a period of time. Huge donations too exist as well for NGOs. These can be seen as being non-repayable but they originated as earned money.
JEL Classification Codes: E42,F33,F65,G00,O3,Q54


What we are trying to say here is that it is clear that the last paragraph indicates that if enough new-non repayable money is created it would lead to some inflation but to nothing more serious (ie. hyperinflation).  
=== 1. Nationwide Electronic/Digital Price Controls ===


Here, is how Transfinancial Economics in brief works.
Essentially, Transfinancial Economics or TFE believes notably that new unearned repayable and non-repayable money can be digitally created ex nihilo and phased into the economy safely without leading to uncontrolled levels of inflation or indeed hyperinflation. This is simply done with the aid of highly flexible electronic digital price controls used for nearly every kind of financial transaction in real time. Thus, if there is a concern about some rise in the prices of certain goods and services these could be digitally capped temporarily. This would be an instantaneous process and could occur automatically in any part of the economy. This could be undertaken with the help of supercomputers or more likely by quantum computers (Clegg, 2021).  
i)Most self-employed people, and entrepreneurs would have to register their businesses with the inflation authority (replacing the taxation authority, and ofcourse, its legislation).
ii) Each product, and/or service has to be registered with special ID codes, and accounting procedures by law would have to be undertaken ideally on a daily basis. This would involve the use of a number electronic devices (eg. cash registers, laptops etc)which could transmit accounting data, and in certain cases money to the inflation department of bank.
iii) The bank monitors the incoming the electronic info of the ID codes of registered products, and/or services. This happens on specially programmed computers which would have powers to instantly compare the market prices.
iv)In the unlikely event that there are serious prices rises in part of the economy electronic intervention maybe necessary via an array of super-flexible price controls targetted  at certain registered products, and/or services.  


There are a number of key implications in Transfinancial Economics
Of course, such digital price controls are not the ideal way of doing things but they are better than nothing. Some form of compensation could be created for retailers if desired. However, it must be stressed here that with the right algorithms the market price is allowed to change naturally as much as possible. Whether we like it or not most of the money exists as digital data in a bank. It is used in any number of transaction but “real” money like cash and coin can still be used (unmonitored or possibly monitored in some way) but it would make up only a tiny fraction of the overall economy, and hence, would have near zero significance in our understanding of the whole economy. This is an important but basic point to understand.  
           
a) New non-repayable money (largely monitored or otherwise, and possibly paid in instalments electonically) would be able to  successfully increase productivity, and prosperity more quickly for businesses in a continous fashion. As such economic growth within a sustainable context would be able in the main to deal with the possible increase of consumer demand. Interest free loans would also exist but play a far lesser role in business.
b) Special financial incentives or schemes where necessary would ensure that businesses become genuinely sustainable, and environmentally friendly. Those projects which are commerciallly unviable but vital to the world would receive the necessary subsidies, grants, and interest free loans created ofcourse out of new non-repayable money.
c) Charities, or NGOs concerned notably with high ethical issues,(eg. transparency in government, and business, human rights abuses, direct democracy,fairer wealth distribution, etc) and humanitarianism (eg.food relief, AIDs research, heart disease, etc) would probably be partly, or fully funded without the need for fundraising.
There are other positive implications in TFE which are discussed in brief in the text of this p2p foundation entry.  


It should be said that some people believe that there is more than enough financial wealth to change the world. This may well be true. But since fairer redistribution is unlikely to happen then the best, and easiest way forward is to create new non-repayable money in a responsible manner, and allowing legal access to it whenever there is a genuine need.
Also, in connection notably with vital climate change projects a legally binding agreement should ideally be undertaken to use certain algorithms to track funding. They could detect and instantly ” freeze” in real-time any money that may be involved in fraud.


=== 2. Big Data and Real-Time Economics/The Uncloaking of the “Invisible Hand”. ===


What follows now is a more detailed enlargement of what has been stated here along with other relevant information.
As one might well realize it would be possible to understand the entire economy in real-time (or near real-time). This colossal accounting data would be created 24/7 with virtually every transaction notably using barcodes, or something similar. The central Inflation Authority would be programmed to instantly check the inflation status of each product or service and if at all necessary instant temporary price capping may occur. Hence, a huge picture of the economy would be possible and could prove invaluable for future economists. Also, such incoming real-time economic indicators would be totally up to date and as such would have no long-time lags unlike conventional economic data.


Please also note that the kheper essay on TFE is out of date ,and should be replaced as its understanding on inflation controls is no longer fully relevant, or authorative in the light of new understanding, and research.
In spite of this though such information cannot fully rule out uncertainty in the economy. Yet, the data emerging instantaneously should at least give us a far better idea of how it is “working” and this could be important for decision-making. AI or Artificial Intelligence could also play a vital role in all this. Apart from identified transaction data there are what are referred to as Faster Indicators. These use various types of economic activity to be factored in to give us an even wider understanding of the economy in real time (Salina, 2020; Haldane, 2018).  


Please also note at present this p2p entry is being updated giving clearer insights..
It must be made clear that what we have been saying so far is a capitalist economy. TFE though can also be adapted into a socialist or communist type of economy because it can notably make central planning a lot easier and more likely to succeed unlike conventional economics. Indeed, Economic Cybernetics is an example of this kind of approach, and it is also possible in some future time to have an economy which is “completely” automated and where money is no longer necessary (Cockshott & Cottrell, 1993).  


The concepts of TFE are like those proposed by Clifford Douglas and his Social Credit Movement but they have the added dimension of using Big Data and instant digital price capping which did not exist in his time. If he were around today, he would have been impressed by the use of computers, smart phones, plastic cards, et al in developing a futuristic economy. Modern Monetary Theory or MMT is to some extent similar. It should be added too that the term “Social Credit” has nothing to do with the dystopian system of the same name in China (Heydorn, 2014).


Finally in this section of this brief paper it should be said that in time the financial industry will hopefully be powered more and more by sustainable (non-fossil fuel) electricity, and it should be said too that it is possible
to have a high degree of commercial confidentiality in connection with the digital transaction data instantaneously going to the Inflation Authority 24/7 for specific businesses of one kind, or another.


'''Key Decision-Making Bodies'''
=== 3. Maintaining the Value of Money in Real-Time. ===


TFE would be able to maintain the value of money in real-time at the point of sale (POS). For example, person T buys product A in a shop and its retail price is instantly checked for its inflation status. It is found to be above the inflation rate by 50p and the customer though has already spent this amount but is compensated for it digitally by having it recreated into his or her account. This is called Above Inflation Adjustment. In another instance, person T buys product C which is 30p below the inflation rate and it is the retailer who gets the extra 30p by a digital recreation of it in her or her account. This is called Below Inflation Adjustment. (McDermott,2004).


Here, we shall briefly explain who, and what does the decision making as far as the creation, and transmission of new non-repayable money is concerned.
=== 4. Dynamic Pricing in Real-Time ===


a. Open Democratic Governments:
Fintech is short for Financial Technology. It is a critical part of the TFE paradigm without which it cannot exist. A good example of such financial technology which exists now is Dynamic Pricing. Essentially, it can automatically deal with variable pricing due to changes in supply and demand. It has been successfully utilised in areas such as transportation, hospitality, professional sports, retail, and the like. Even Amazon uses it along with many other companies (Sharda, 2018). All this adds greater credibility to the idea of developing a genuine real-time economy on a national and ultimately international scale. Of course, it has to be realized and remembered that real-time data is used by financial markets around the world in which investors can keep an eye on the value of their shares, or securities. Traders can use such information to make “bets” on the rise and fall of prices of the various companies such as Apple, Google, Unilever, and many other lesser-known ones.  


In TFE exists in the context of an open democracy. Future national governments, and local governments could order the creation, and transmission of new non-repayable money from an independent public authority, or from banks, or indeed, the Central Bank. Relevant electronic checks would among other things be necessary to see what the short term, medium term, and long term potential effects of inflation. Moreover, overspending would be curbed to a high degree.
=== 5. TFE and the Climate Change Emergency ===


b. The Banks:
At present the greatest challenge facing humanity is the climate change emergency. Tragically, it seems highly likely that it will become irreversible (if it is not already). As such governments, Bigtech companies, and smaller businesses must try if possible to make serious efforts to create credible resilient adaption and mitigation projects on a scale never before known in human history. All this ultimately costs money. Hence, TFE. With this emerging paradigm it would be possible to create new money to fund credible and “feasible” green projects. Of course, investors could be invited to invest venture capital into such investments which could prove lucrative. Such projects may seem in some cases more like “science fiction” but now is the time to think outside the box otherwise we could see the global demise of the human race. It is simple as that. Climate change emergency is not just a physical challenge it is also a spiritual one of the highest order.  


It is expected that banks, and banking will remain largely in private sector in spite of the credit crunch. They could be nationalized in full, or in part but this is not a serious issue in TFE. However, they would have powers to create, and transmit new non-repayable money to various businesses and at a decreasing extent interest free credit. The interest would not be paid for by customers but by the Central Bank, or some independent public authority.
Here are a few examples of potential green projects which need to be undertaken (though some of them are in the making or have already been done but not on a scale ultimately necessary for human survival) and they include more solar and wind and solar power facilities; more factory plants and mechanical trees to suck carbon emissions out of the atmosphere; more electric cars; more advances in Nanotechnology in which atomic structures could create new materials in a world of limited resources; possible underground cities and even underground agriculture may be a required to some extent; natural solutions; sun dimming which may be necessary but a controversial move; more flood defences; more recycling centres and so on. At the same time with all this going on the likes of entrepreneurs such as Bezos and Musk can “wisely” continue with the possible colonisation of the moon and even mars (Gates, 2002; Carney, 2021).


A business model could be created to ensure enough high profitability in other commercial schemes which would replace the former charging of interest to loans to customers. In other words, banks could become more powerful than before but with better regulation but not "over-regulation". Incidently, the creation of new non-repayable money would be at cost. The cost like the interest would be paid for by the Central Bank, or some independent authority.
=== 6. The Basic Differences between Transfinancial Economics and Modern Monetary Theory ===


Modern Monetary Theory is at the time of writing been in the public spotlight for several years and has attracted much public attention. It is similar to Transfinancial Economics or TFE. MMT claims that the government is the sole issuer of the national currency and can fund public expenditure and only raises taxation, if necessary, as a means of controlling inflation at some future date. In this respect, TFE is in agreement. Infact, something like MMT already exists. It is called Deficit Spending. This is when governments need more money and can borrow it and (or) create new amounts of it (Kelton, 2020). This of course works but only to a limited extent. Now, the key differences are:


c. Independent Grant Giving Bodies to NGOs.
a) TFE uses digital price controls to monitor and if necessary, cap the market price. These would cover the entire economy and not just tiny sections of it. MMT though would use taxation to control inflation instead but may ultimately use price controls.  


These, like the above already exist. They notably come in the form of trusts, and foundations. Their job is to decide which NGOs get new non-repayable capital as grants. Their efficiency in doing this could be reformed where necessary.  
b) Unlike MMT TFE has a very advanced understanding of the economy via Big Data in real-time whilst the former would probably largely rely on old outdated understanding of economics.


Thus, donations, and fundraising will be largely unnecessary for most NGOs as they would receive the vital funding to continue their work.
c) As MMT continues to create new money into the economy a point may be reached that too much money will circulate and could lead to not just gradual rises in inflation but to a sudden mass catastrophic state of hyperinflation. With TFE such problems are dealt with directly by digital controls that would instantaneously control the situation at a touch of a button or indeed happen automatically.  


d) Since TFE would have a far more accurate comprehension of the economy in real-time it can assess the potential inflation tax liability (possibly as an online sales tax) months or years ahead. On the other hand, MMT could find itself in a situation in which the overall inflation tax liability would be too heavy, and could even cause social unrest. Incidentally, it should be added that a tax rebate is possible in which the inflation taxation paid could be digitally recreated in full, or in part at a future date.


e) Unlike MMT TFE can adjust the value of money if necessary and instantaneously when products and services are bought in real-time at the point of sale (POS). This of course is when the inflation status is checked by the Inflation Authority. Thus, the purchasing power of money is largely or wholly maintained. This was explained in brief early on using two examples.


f) In MMT the government is seen as the key issuer of currency as something which is non- repayable. However, special private banks could be had in which such grants or (non-governmental) “subsides” could be created digitally.
=== Key References ===


'''Basic Ethical Arguments for the Creation of New Non-Repayable Money'''.
[1] Carney, Mark. (2021). Value (s), Building a Better World for All. William Collins.  
 
 
 
There are a number of key points which make the concept of new non-repayable money acceptable along with its earned counterpart.
 
i) All money originates from an unearned source of creation. As such from an objective viewpoint it has equal value to its earned counterpart as it would be legal tender.
 
ii) So-called Free Money already exists to a limited extent (eg government grants, donations, wills leaving money).
 
iii) Critics would like to point out that if new non-repayable money could be created, and transmitted without uncontrolled inflation it would mean that earning it in the first place would no longer be necessary. This ofcourse would lead to the collapse of the economy, and social chaos.
 
TFE though sees itself as a transitional, or evolutionary process in which we should have the mental maturity to realize that earning money is still essential until the time comes when "full"automation exists, and society becomed "jobless" in a traditional economic sense. It is then that new non-repayable money could play a vital role by helping to bring into existence "leisure-like employments" which would be possible either in a profit, or/and non-profit context. Ultimately, in some future time money itself would be abolished altogether. In other word,a hi-tech gifting economy similiar to proposals as the Venus Project developed by Jacque Fresco who notably draws his direct inspiration from Technocracy.
 
iv) Some critics would say that new non-repayable money is Funny Money. Yet, they fail to realize the fact that it already exists as most of the banks create it out of thin air as a loan which is repayable...
 
v) TFE should be seen as a kind of ethical economics because it sees money as having a High Human Value other than just a medium of exchange because its social, economic, and political implications are huge, and all-encompassing.
 
 
 
'''Important Moral Arguments for Non-Taxation.'''
 
 
 
There are a number of key arguments for the abolition of direct, and indirect taxation. They are;-
 
i)Tax raising is absurd especially as it is very possible for new non-repayable money to be created, and transmitted safely into the economy using advanced computer programming.
 
ii)Everyone should be entitled to all their earned money as a human right.
 
iii)It is highly unethical to finance any misuse of government spending.
 
iv)People should be rewarded by a policy of Non-Taxation as they are the actual creators of real wealth.
 
v)Evidence suggests that many rich, and super-rich people are finding loopholes to escape the taxman notably off-shore accounts. This means that people on lower incomes have to "subsidize" the well off so to speak which ofcourse is unfair.
 
Moreover, it has become very easy to transmit bank accounts to other countries thus making the investigation by tax inspectors difficult in extremis.
 
vi)Quite a number of wars, and revolutions were caused directly, or indirectly by unfair taxes.
 
 
 
 
'''Electronic Business Accounting, and Regular Capital Transmissions.'''
 
 
 
Inflation legislation would replace taxation regulations. The former would involve by law highly accurate electronic accounting by most businesses. One common form of it are checkouts at supermarkets (ie. EPOS/ Electronic Point of Sales).
 
Business people would have ideally on a daily basis to report their accounts electronically to the inflation department of the bank which would also be overseen by the public National Inflation Authority. Moreover, putting money from profits emanating from registered products, and/or services into the bank would require declaring their relevant ID Codes, or else it cannot be processed.
 
In certain cases, the actual electronic transmission of such data can be legally interpreted not only as an accounting communication but also as money simultaneously. The latter it should forever be remembered is at the end of the day electronic data though we hate to think of it as such.
 
The business accounts in the banks are closely monitored to avoid false accounting, and fraud. This could involve a number of electronic checks, and if any company is found wanting it could be directly fined electronically. This in the main would be largely an automatic process run by advanced bank computer programming.
 
 
'''An Electronic Profile of the entire Economy.'''
 
 
As  accounting data, and profits are received together or separately as electronic transmission at the bank from various businesses a highly accurate electronic macroeconomic picture of the entire economy of a country can be built up. Thus, future economists would have far better data to forecast trends unlike the Economic Indicators of present day Neo-Classical Economics. All this is ofcourse revolutionary. Such an electronic profile of the entire economy could include a whole host of other things apart from identified transactions of specific goods, and services...notably the electronic monitoring of fluctuations in wages, and many other forms of income in peoples electronically identified bank accounts. Admitedly, all this raises questions of privacy, and disclosure. Thus,good thought-through legislation would be necessary to deal with such issues.
 
 
'''Advanced Computer Programming'''
 
 
With the influx of accounting, and transaction data of registered goods, and services the banks banks computers would be well-programmed to include the following:-
 
1. Instantly compare prices of registered goods, and services.
 
2. Be able to monitor changes in the monetary supply that are seen as inflationary in parts of the economy due to registrated transactions, and accounting data received electronically by the bank.
 
3.  Be able to detect higher risk inflation changes, and be able to target the relevant prices of the registered goods, and services concerned which may be causing "problems". After informing the relevant bank customers an instant temporary electronic control, or controls may be used to alleviate the situation. This is discussed a little later.
 
Apart from the above the computer programmes should be able to do the following whenever there is need for the creation, and transmission of new non-repayable money.
 
4. To electronically work out from existing data to see the sort of inflation levels which could take place in relation to specific transmissions of new capital for businesses, and other concerns. A set of low, high, or higher risk assesments on inflation could be given automatically due to the computer programming. In other words, an electronic model could be used to "stress test" the robustness of the economy.
 
Whether to create, and transmit new non-repayable money to the relevant bank accounts could be decided by computers, or by the human decision-making process, or ofcourse a bit of both.
 
 
 
'''The Importance of the Free Market Price'''
 
 
TFE is not to be confused with command/control economics as used notably in the old Soviet Union. We are ofcourse discussing a capitalist system in which most of the time the market price is set freely.To what extent this remains depends on  the quality of the computer programming to ensure that only enough new non-repayable money is created responsibly. Thus, elasticity of supply, and demand will probably continue, and ensure steady efficiency in the market.
 
However, the prices of registered goods, and service will start to slowly rise mainly because taxation, and interest on credit (though taxation, and interest would be slowly phased out to zero at the transition phase)would no longer exist. In order to accomodate this the value of peoples money would also rise correspondingly via an instant electronic adjustment to inflation of the entire country.
 
If any problems do occur there is a number of temporary super-flexible electronic inflation controls which can electronically target monetary, or accounting transmissions ( or alternatively ofcourse accounting data + monetary transmission = one transmission to the bank). This is explained in brief in the following section of the p2p foundation entry on TFE.
 
 
 
 
'''Possible Electronic Controls Over Inflation if Necessary.'''
 
 
The following gives us some insight as to how registered products, and/or services could be subjected to instant inflation controls if necessary ofcourse. These measures are like price controls of the past but are far more advanced because
 
a)they are super-flexible,
 
b) they do not require a huge bureaucracy
 
c) they can give instant compensation, and/or instant subsidization
 
d) they can  correct anything instantly if necessary, and thus any money lost as a result can be re-created by electronic means as money itself is essentially electronic data
 
e) they could if necessary fine people, and companies directly, and electronically from their banks accounts to ensure compliance to some aspect of inflation legislation.
 
 
 
''Please note that what follows is still subject to further development, and more detailed treatment. This would require the help of relevant experts.''
 
 
There are a number of inflation controls as described below:-
 
 
i) Selective Inflation Adjustment.
 
 
This is when the inflated portion of a specific registered product, or service has been electronically targetted as being "over-inflated". It is subjected to an instantaneous, or late inflation check either at the point of sale, or at the bank. If whatever has been bought happens to be over-inflated to say 10% this amount is instantly created electronically into a subsidy which goes straight into the account of the customer.
 
 
 
ii) The National Inflation Adjustment.
 
 


This has already been mentioned but not by name.Here, virtually all bank accounts are indexed-linked electronically to the changing value of money during inflation. Something like this already exists to a limited extent(ie index-linked products, or services).  
[2] Clegg, Brian. (2021). Quantum Computing; The Transformative Technology of the Qubit Revolution. Icon


In TFE new non-repayable money could be created electronically for the bank accounts of customers. This would give rise to what Keynes referred to as the "money illusion" that one has more to spend, and buy. Yet, the bank account has been adjusted to take into account inflation,and thus, ones purchasing power remains largely the same as before.
[3] Cockshott, W. Paul., & Cottrell, Allin. (1993). Towards a New Socialism. Spokesman Books.  


[4] Gates, William Henry. (2021). How to avoid a Climate Disaster; The Solutions we have and the Breakthroughs. Allen Lane.


[5] Haldane, Andy. (2018, April 30). Mapping the economy in real time is almost within our grasp. Financial Times.https://www.ft.com/content/58190dc2- 4c79-11e8-97e4-13afc 22 d86d4


iii) Automatic Inflation Deduction.
[6] Heydorn, Oliver. M. (2014). Social Credit Economics. Canada: CreateSpace Independent Publishing Platform.  


[7] Kansas, Salina. (2021, October23). The Real-Time Revolution; How the pandemic reshaped the dismal science. The Economist.https:// www.economist.com/briefing/2021/10/23/enter-third-wave-economics


[8] Kelton, Stephanie. (2020). The Deficit Myth: Modern Monetary Theory and how to build a Better Economy. John Murray.


This is when the inflated portion of a registered product, or service is subject to an instant inflation check in which it is reduced to its real value relative to the entire economy of a nation. In other words, the "inflated portion" is destroyed. This can be seen by some as a "tax" but it is not because money in real terms (ie.its real value as opposed to its inflated value) retains its purchasing power as if nothing had happened to it at all.
[9] McDermott, John. (2004).Economics in Real Time, a Theoretical Reconstruction. The University of Michigan Press.  


[10] Sharda, Sahaj. (2018). The Extinction of the Price Tag; How dynamic pricing can save you. New Degree Press.


iv) Electronic Price Capping.


Price capping usually comes in the form of Price Floors,and Price Ceilings. In mainstream Neo-Classical Economics they are not highly regarded as they have potential to distort the pricing system, and interfere with the free hand of the market.Furthermore, they should be used only as a last resort. TFE has a like view but because of the super-flexible nature of the inflation controls it is not really a problem.


Bank intervention rather than government intervention in many cases could be involved if temporary Price Floors, and Price Ceilings are absolutely necessary for any part of the economy. This would come in the form of instant subsidies created electronically out of new non-repayable money by the bank (or government).  
Important. Many people reading the above may realize that the concept like a “Blockchain”  would be used in Transfinancial Economics to monitor transactions in real time…. it would not though use cryptocurrencies.
                                                 


Price capping can lead to artifical shortages (ie Price Ceilings) and surpluses (ie.Price Floors), and the balance can be easily redressed with the right planned intervention, and financial incentives. This can involve price subsidies, and where necessary instant compensation for any business concerned (eg. if a control price goes below the level of profitability it can ofcourse be subsidized by new non-repayable capital from the bank so the commercial operation(s) involved does not go out of business). In other words,it should be said again that such temporary price cappings are not really a problem but TFE in the main is keen to maintain a Free Price System..as this is the natural way of the market.


The benefits of a Non-Debt Based Economy compared with the Debt Based Economy of taxation, and interest on credit are a real marvel for businesses as the following points reveal because it is...




a)free of taxes


b)free of interest on loans though they would largely be phased out quickly, or slowly.
== Some key Points to understand in brief ==


b) The greater possibility of commercial grants.


c) There are no "boom" and "bust" cycles but rather a continous process of growing prosperity. Thus, businesses benefit enormously in a Transfinancial Economy.




'''The Vital Importance of Sustainability.'''
I. One possible problem with TFE is ofcourse shortages due notably in connection with food security. This is not mentioned in the above paper in detail. This could be alleviated to a large extent with forward thinking and credible planning using special monitored non-repayable money. However, as Climate Change worsen governments will probably be forced to introduce manual price controls but such a  measure though would largely be resisted by mainstream economics. Ofcourse, conspiracy theorists would  come out of the wood work if and when this happens. Another issue is that highly flexible digital price controls unlike their manual counterparts would be far more efficient (though
they could be better termed as inflation controls).But the latter could act as a stopgap for the former if absolutely necessary.


The world does not have infinite resources. As such it is vital to encourage businesses with the right incentives (created out of new non-repayable money)to introduce a variety of ways which reduce, re-cycle, and re-use the products, and services they produce. To some extent, all this is being realized. Moreover, a number of businesses recognize the growing reality that green sustainable products, and services can be profitable. Some, like a number of corporations are involved in "greenwash" in which the products, and services are not really as environmentally friendly as they appear.


In TFE there would have to be a huge push to try, and bring change into businesses into becoming green. This would involve bank intervention, and to a certain degree of government intervention. The former could along with credible consultants be able to create a comprehensive array of incentive schemes backed up by new non-repayable money.Any loss of profits could be compensated if necessary. Indeed, if certain projects involving sustainability in whatever form were commercially unviable these could if there were a serious business plan be fully funded.


The banks (or governments) themselves could also be involved in a degree of demand management in which they could have powers to prevent the overuse of certain limited resources.


II. Apart from the Central Bank creating new green non-payable money which ofcourse is already happening to some extent new green repayable money can also be created. Special private banks or indeed, existing ones could also be used in part and would have an operating fee as profit instead of charging interest. The source of such funding would come from the Central Bank or some other kind of legal entity.In other words, the private sector could profit greatly via TFE.




'''From Competative Capitalism to more Advanced Socio-Economic Alternatives.'''


 


It should be said that capitalists would make much profit in Transfinancial Economics especially in the first few decades of its introduction. But, later on it would become increasingly difficult to find new business opportunities as they would be very thin on the ground (ie. resource scarcity). Thus, take-over bids may become increasingly common for existing commercial enterprises (but special NGOs, and possibly willing governments could buy up such assets as they would now have the financial clout).  
II. In the normal state of affairs green goods and services should as time goes by become cheaper and hence more attractive as demand naturally increases from the public. However, this process is already happening somewhat "slowly" but there are marketing stratagies which could artificially alter this situation, and this needs to be developed to create green competition using small or large subsidies. Companies that could loose out at first would be compensated using new capital created ex nihilo. The details of exactly how green artificial "competition" works is still being developed in detail at the time of writing.Moreover, shortages of certain products may occur and there may be a degree market distortion. This could be dealt with to a large extent via "instataneous"compensation.  


At the same time there would probably be extensive education especially of the younger generation. This would notably come about via certain NGOs (better financed ofcourse in TFE)concerned with democracy,sustainability, localization,altruism, fairer distribution of wealth and non-competative/co-operative forms of "capitalism" and other economic alternatives. If the pressure of this becomes great enough it may lead to turning the present system into something far better, and more advanced in a more moral sense. As capitalism becomes more technically advanced, and automated in terms of production it  would then possibly be ready psychologically to phase itself out altogether as money would no longer be necessary. In other words, a process of "rapid"evolution.


Hence, the business elite or the super rich would not be overthrown by revolution (as envisaged by Marx), or indeed, ofcourse via a global financial meltdown but simply discarded as a stage of advanced automation, and green technology would be reached making money itself redundent as a means of exchange. In other words, the "unfair" capitalist system could ironically form the Hi-Tech basis for a more ethical kind of economics based on real wealth.






'''Interest-Free Monetary Reform.'''
IV.The originator of TFE is very much aware that Transfinancial Economics would increase emissions. This is unfortunate but hopefully with further funding the way or ways to deal with this problem would be better funded as never before. There are ofcourse a number of so-called carbon capture programmes in the world, but much more like this needs to be done. Anyway, all this means is that if we have Rapid Green Growth or RGG many people would still die during the Climate Change Crisis. This is tragically unavoidable. But if this were slowly undertaken (as is the case now) it is more probable that the death toll would be much higher in the long run.  






Radical monetary reformers tend to concentrate on banks, and the banking elite.These commercial enterprises create most of the money of the world out of thin air as a loan, or credit with interest of course via a process known as fractional reserve banking. Cash produced by governments only makes up a near non-existant portion of the present financial system. The aim of the monetary reformers in question is to try to bring about interest-free loans which would be beneficial to society, and the economy. Obviously, this is unlikely to happen due to the power of the banks, and the power so to speak of Neo-Classical Economics.


In TFE though banks (along with other "non-financial" companies)could continue to lend at interest but this would not be paid for by the customer but rather by an independent public body, or the Central Bank as mentioned earlier. In a similiar fashion they would receive more money via their daily use of Electronic Inflation Management. They could also benefit from a whole variety of other business investments as never before making profits from interest on loans largely a thing of the past.
V. It is important to understand that when TFE becomes a reality there is no direct or indirect of taxation. The reason is simple. Since money can retain its value in real time it cannot be inflated to a serious degree, and cause  devaluation of money. This means ofcourse that more money can be transmitted into the economy safely. All  this has notable implications for charities, and NG0s, or non-governmental organisations as it would mean that raising money from earned sources would no longer be absolutely necessary. This is revolutionary. The only limits ofcourse for this are limited human and natural resources at any point in time.


Ofcourse, it should be said that banks could create their own wages for their employees via the production of new non-repayable money. This though would be seen as fraud, and prosecution would result. It could also  undermine confidence in TFE.


The Central Bank, or an independent public body could electronically track, and monitor a banks activity to avoid anything like this. They can legally pay banks on their behalf with money...which would ofcourse be created "out of thin air".
'''Some Major Implications of Transfinancial Economics.'''
These can be briefly listed:-
1. Transnational Corporations especially in the Developing World could be transformed into truly ethical, and sustainable businesses with powerful financial incentives for change including profit subsidization on a massive scale.
2. Universal healthcare would be possible irrespective of whether private businesses are involved or not.
3. Generous pensions would be possible for an aged population without the need of income created by taxes, and/or by private long-term investments in the stock market. However, the latter could continue to a large, or larger extent if desired.
4. Grassroots NGOs concerned with poverty reduction in the Developed, and Developing World would be better financed as never before to bring about positive change. Moreover, powerful financial incentives could be created for small and large companies (including Corporations)from the Developed World to bring about serious economic growth in the Developing World. Money ofcourse would be supplied responsibly, and would avoid where possible the pockets of corrupt government officials, and their representatives.
5. NGOs concerned with fairer wealth distribution (or redistribution) such as Binary Economics, and Co-operatives and the like would be financed as never before to become a greater influence on society.
6. Small "zero growth" self-sufficient, and high-tech sustainable communities could be initially financed with non-repayable capital if the relevant but financially enhanced NGOs put pressure on banks, and governments.
7. Corporations concerned with oil production, and indeed, the arms trade could be bought up in stages by new non-repayable money via a friendly, or hostile takeover. At present democratic governments plus certain relevant NGOs seem powerless to do much about them but with TFE we have a very powerful solution. This concept is referred to as Ethical Business Conversion, or EBC.
8. A huge, and dangerous problem facing the world is ofcourse global warming. Capping emissions would certainly help but with EBC it would be possible at the sametime to gradually buy up polluting businesses, and replace them with low carbon, or decarbonised ones mass producing green sustainable goods, and services. This could come about by government intervention, and/or banks, under pressure from better financed NGOs.
Of course, there are other implications which we shall not go into here. At the same time, Positive Human Politics could be developed as a global paradigm which brings together as one the best, and most advanced democratic thinking into how a better, and more civilized world could be brought into existence. This subject is not discussed here.
'''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 not debt based a campaign would be necessary. However, a grassroots organization for the masses is unlikely to work though we may be wrong. Instead it is suggested here that a professional website would be set up to spread the word. It would be sent to people, and organizations that have power, and influence such as government policy makers,academics,financial companies, et cetera. This is probably the way forward.
The TFE website itself would include the following features.
i) A news update about the campaign progress.
ii) Commissioned papers (initially) by willing economists using econometric models to show the efficacy of TFE in technical terms, including detailed studies on Electronic Registration, Electronic Macroeconomic Accounting, and the possible Inflation Controls.
iii) An online Journal of Transfinancial Economics.
iv) A powerpoint presentation of TFE for downloading.
v) Any endorsements for TFE by any willing experts.


vi) Possible field trials of the electronic technologies involved in TFE.


VI. Originally, the above entry included a lengthy piece on TFE but this is not included here, though it may re-appear. It maybe found elsewhere probably on The Economics Realms blogspot.




PS A paper on TFE with direct references was actually accepted by a peer review journal. However, due to a dispute with the editor/publisher I withdrew it from publication, and at the time of writing (April 2008) a new version has been sent elsewhere.


Robert Searle  email address dharao4@yahoo.co.uk


Intelligent, and constructive dialogue is welcomed from anyone via email.
VII.  Furthermore, over the years TFE has been circulated around on the internet, and has attracted a number of influential people including the noted rebell  economist Steve Keen (and some of his followers), Ellen Brown, Stephen Zarlenga, Baron Prem Sikka, Richard Murphy, Hazel Henderson (who was especially keen on TFE), and even the present Lord Nathan Rothschild and his family seem to be interested in the new economic paradigm to some extent. There are also some indications that certain commercial entities (ie potential private investors) may be taking some interest in TFE and ofcourse, they could help attract relevant  funding for the emergence of TFE into the world.






PLEASE NOTE. Apologies for any errors in the above text if they exist.




[[Category:Encyclopedia]]
VIII. Another aspect of this subject is that notably big oil and gas companies could possibly be legally "bribed" and bought up and phased out to make way for an economy run by clean sustainable energy. Admitedly, this may not be the most ethical way of doing things but humanity must come first rather than powerful vested interests.


[[Category:Movements]]


[[Category:Business]]
Finally, it should be said in this brief introduction the originator (ie. Robert Searle) of the TFE System hopes to write a few more papers on some aspect(s) of this subject. At the same time he hopes to fully research and complete a book probably to be entitled Towards Economic Revolution, subtitled Global Financial Reform and the Survival of the Human Race. This may take two years or so and would require help from a whole array of experts including those in economics, business, politics, law, computers, et al.


[[Category:Money]]
[[Category:Economics]]

Latest revision as of 11:05, 30 June 2025

The following is a brief paper which also appears in a respected academic book edited by Dr Debesh Bhowmik. It is entitled An Approach Towards Central Bank Digital Currency published by Kunal Books, New Delhi, 2022. In Chapter4 the material below is presented. Also, it should be mentioned that a paper published in 2016 entitled Orthodox Monetary Theory: A Critique From Post-Keynesianism and Transfinancial Economics by Dante A. Urbina appears in a book called International Monetary System. Past, Present, and Future Regal Publishing, India. RS


FUTURISTIC ECONOMICS FOR THE 21ST CENTURY?

by Robert Searle


Abstract

The following is in brief concerned with the very basics of an emerging paradigm known as Transfinancial Economics or TFE. It can be seen as a form of Keynesian Economics. Basic to it is the huge relevance of the use of computers and information technology in finance. This would act as a means of notably influencing the economy towards a more ethical, and greener environmentally friendly economy as never before. Many will regard TFE as being similar to Modern Monetary Theory or MMT which has gained a large amount of publicity in recent years. However, the latter is regarded as being a precursor and possible stopgap to TFE which is far more advanced. At the time of writing what follows is still “work in progress”. Of course, it raises many questions which may be answered in the near future such as TFE’s connection with exchange rates and of course the possible emergence of Central Bank Digital Currencies, or CBDCs.

Keywords: Transfinancial Economics, Modern Monetary Theory, Inflation Taxation, Digital Price Controls, Climate Change

JEL Classification Codes: E42,F33,F65,G00,O3,Q54

1. Nationwide Electronic/Digital Price Controls

Essentially, Transfinancial Economics or TFE believes notably that new unearned repayable and non-repayable money can be digitally created ex nihilo and phased into the economy safely without leading to uncontrolled levels of inflation or indeed hyperinflation. This is simply done with the aid of highly flexible electronic digital price controls used for nearly every kind of financial transaction in real time. Thus, if there is a concern about some rise in the prices of certain goods and services these could be digitally capped temporarily. This would be an instantaneous process and could occur automatically in any part of the economy. This could be undertaken with the help of supercomputers or more likely by quantum computers (Clegg, 2021).

Of course, such digital price controls are not the ideal way of doing things but they are better than nothing. Some form of compensation could be created for retailers if desired. However, it must be stressed here that with the right algorithms the market price is allowed to change naturally as much as possible. Whether we like it or not most of the money exists as digital data in a bank. It is used in any number of transaction but “real” money like cash and coin can still be used (unmonitored or possibly monitored in some way) but it would make up only a tiny fraction of the overall economy, and hence, would have near zero significance in our understanding of the whole economy. This is an important but basic point to understand.

Also, in connection notably with vital climate change projects a legally binding agreement should ideally be undertaken to use certain algorithms to track funding. They could detect and instantly ” freeze” in real-time any money that may be involved in fraud.

2. Big Data and Real-Time Economics/The Uncloaking of the “Invisible Hand”.

As one might well realize it would be possible to understand the entire economy in real-time (or near real-time). This colossal accounting data would be created 24/7 with virtually every transaction notably using barcodes, or something similar. The central Inflation Authority would be programmed to instantly check the inflation status of each product or service and if at all necessary instant temporary price capping may occur. Hence, a huge picture of the economy would be possible and could prove invaluable for future economists. Also, such incoming real-time economic indicators would be totally up to date and as such would have no long-time lags unlike conventional economic data.

In spite of this though such information cannot fully rule out uncertainty in the economy. Yet, the data emerging instantaneously should at least give us a far better idea of how it is “working” and this could be important for decision-making. AI or Artificial Intelligence could also play a vital role in all this. Apart from identified transaction data there are what are referred to as Faster Indicators. These use various types of economic activity to be factored in to give us an even wider understanding of the economy in real time (Salina, 2020; Haldane, 2018).

It must be made clear that what we have been saying so far is a capitalist economy. TFE though can also be adapted into a socialist or communist type of economy because it can notably make central planning a lot easier and more likely to succeed unlike conventional economics. Indeed, Economic Cybernetics is an example of this kind of approach, and it is also possible in some future time to have an economy which is “completely” automated and where money is no longer necessary (Cockshott & Cottrell, 1993).

The concepts of TFE are like those proposed by Clifford Douglas and his Social Credit Movement but they have the added dimension of using Big Data and instant digital price capping which did not exist in his time. If he were around today, he would have been impressed by the use of computers, smart phones, plastic cards, et al in developing a futuristic economy. Modern Monetary Theory or MMT is to some extent similar. It should be added too that the term “Social Credit” has nothing to do with the dystopian system of the same name in China (Heydorn, 2014).

Finally in this section of this brief paper it should be said that in time the financial industry will hopefully be powered more and more by sustainable (non-fossil fuel) electricity, and it should be said too that it is possible to have a high degree of commercial confidentiality in connection with the digital transaction data instantaneously going to the Inflation Authority 24/7 for specific businesses of one kind, or another.

3. Maintaining the Value of Money in Real-Time.

TFE would be able to maintain the value of money in real-time at the point of sale (POS). For example, person T buys product A in a shop and its retail price is instantly checked for its inflation status. It is found to be above the inflation rate by 50p and the customer though has already spent this amount but is compensated for it digitally by having it recreated into his or her account. This is called Above Inflation Adjustment. In another instance, person T buys product C which is 30p below the inflation rate and it is the retailer who gets the extra 30p by a digital recreation of it in her or her account. This is called Below Inflation Adjustment. (McDermott,2004).

4. Dynamic Pricing in Real-Time

Fintech is short for Financial Technology. It is a critical part of the TFE paradigm without which it cannot exist. A good example of such financial technology which exists now is Dynamic Pricing. Essentially, it can automatically deal with variable pricing due to changes in supply and demand. It has been successfully utilised in areas such as transportation, hospitality, professional sports, retail, and the like. Even Amazon uses it along with many other companies (Sharda, 2018). All this adds greater credibility to the idea of developing a genuine real-time economy on a national and ultimately international scale. Of course, it has to be realized and remembered that real-time data is used by financial markets around the world in which investors can keep an eye on the value of their shares, or securities. Traders can use such information to make “bets” on the rise and fall of prices of the various companies such as Apple, Google, Unilever, and many other lesser-known ones.

5. TFE and the Climate Change Emergency

At present the greatest challenge facing humanity is the climate change emergency. Tragically, it seems highly likely that it will become irreversible (if it is not already). As such governments, Bigtech companies, and smaller businesses must try if possible to make serious efforts to create credible resilient adaption and mitigation projects on a scale never before known in human history. All this ultimately costs money. Hence, TFE. With this emerging paradigm it would be possible to create new money to fund credible and “feasible” green projects. Of course, investors could be invited to invest venture capital into such investments which could prove lucrative. Such projects may seem in some cases more like “science fiction” but now is the time to think outside the box otherwise we could see the global demise of the human race. It is simple as that. Climate change emergency is not just a physical challenge it is also a spiritual one of the highest order.

Here are a few examples of potential green projects which need to be undertaken (though some of them are in the making or have already been done but not on a scale ultimately necessary for human survival) and they include more solar and wind and solar power facilities; more factory plants and mechanical trees to suck carbon emissions out of the atmosphere; more electric cars; more advances in Nanotechnology in which atomic structures could create new materials in a world of limited resources; possible underground cities and even underground agriculture may be a required to some extent; natural solutions; sun dimming which may be necessary but a controversial move; more flood defences; more recycling centres and so on. At the same time with all this going on the likes of entrepreneurs such as Bezos and Musk can “wisely” continue with the possible colonisation of the moon and even mars (Gates, 2002; Carney, 2021).

6. The Basic Differences between Transfinancial Economics and Modern Monetary Theory

Modern Monetary Theory is at the time of writing been in the public spotlight for several years and has attracted much public attention. It is similar to Transfinancial Economics or TFE. MMT claims that the government is the sole issuer of the national currency and can fund public expenditure and only raises taxation, if necessary, as a means of controlling inflation at some future date. In this respect, TFE is in agreement. Infact, something like MMT already exists. It is called Deficit Spending. This is when governments need more money and can borrow it and (or) create new amounts of it (Kelton, 2020). This of course works but only to a limited extent. Now, the key differences are:

a) TFE uses digital price controls to monitor and if necessary, cap the market price. These would cover the entire economy and not just tiny sections of it. MMT though would use taxation to control inflation instead but may ultimately use price controls.

b) Unlike MMT TFE has a very advanced understanding of the economy via Big Data in real-time whilst the former would probably largely rely on old outdated understanding of economics.

c) As MMT continues to create new money into the economy a point may be reached that too much money will circulate and could lead to not just gradual rises in inflation but to a sudden mass catastrophic state of hyperinflation. With TFE such problems are dealt with directly by digital controls that would instantaneously control the situation at a touch of a button or indeed happen automatically.

d) Since TFE would have a far more accurate comprehension of the economy in real-time it can assess the potential inflation tax liability (possibly as an online sales tax) months or years ahead. On the other hand, MMT could find itself in a situation in which the overall inflation tax liability would be too heavy, and could even cause social unrest. Incidentally, it should be added that a tax rebate is possible in which the inflation taxation paid could be digitally recreated in full, or in part at a future date.

e) Unlike MMT TFE can adjust the value of money if necessary and instantaneously when products and services are bought in real-time at the point of sale (POS). This of course is when the inflation status is checked by the Inflation Authority. Thus, the purchasing power of money is largely or wholly maintained. This was explained in brief early on using two examples.

f) In MMT the government is seen as the key issuer of currency as something which is non- repayable. However, special private banks could be had in which such grants or (non-governmental) “subsides” could be created digitally.

Key References

[1] Carney, Mark. (2021). Value (s), Building a Better World for All. William Collins.

[2] Clegg, Brian. (2021). Quantum Computing; The Transformative Technology of the Qubit Revolution. Icon

[3] Cockshott, W. Paul., & Cottrell, Allin. (1993). Towards a New Socialism. Spokesman Books.

[4] Gates, William Henry. (2021). How to avoid a Climate Disaster; The Solutions we have and the Breakthroughs. Allen Lane.

[5] Haldane, Andy. (2018, April 30). Mapping the economy in real time is almost within our grasp. Financial Times.https://www.ft.com/content/58190dc2- 4c79-11e8-97e4-13afc 22 d86d4

[6] Heydorn, Oliver. M. (2014). Social Credit Economics. Canada: CreateSpace Independent Publishing Platform.

[7] Kansas, Salina. (2021, October23). The Real-Time Revolution; How the pandemic reshaped the dismal science. The Economist.https:// www.economist.com/briefing/2021/10/23/enter-third-wave-economics

[8] Kelton, Stephanie. (2020). The Deficit Myth: Modern Monetary Theory and how to build a Better Economy. John Murray.

[9] McDermott, John. (2004).Economics in Real Time, a Theoretical Reconstruction. The University of Michigan Press.

[10] Sharda, Sahaj. (2018). The Extinction of the Price Tag; How dynamic pricing can save you. New Degree Press.


Important. Many people reading the above may realize that the concept like a “Blockchain” would be used in Transfinancial Economics to monitor transactions in real time…. it would not though use cryptocurrencies.




Some key Points to understand in brief

I. One possible problem with TFE is ofcourse shortages due notably in connection with food security. This is not mentioned in the above paper in detail. This could be alleviated to a large extent with forward thinking and credible planning using special monitored non-repayable money. However, as Climate Change worsen governments will probably be forced to introduce manual price controls but such a measure though would largely be resisted by mainstream economics. Ofcourse, conspiracy theorists would come out of the wood work if and when this happens. Another issue is that highly flexible digital price controls unlike their manual counterparts would be far more efficient (though they could be better termed as inflation controls).But the latter could act as a stopgap for the former if absolutely necessary.



II. Apart from the Central Bank creating new green non-payable money which ofcourse is already happening to some extent new green repayable money can also be created. Special private banks or indeed, existing ones could also be used in part and would have an operating fee as profit instead of charging interest. The source of such funding would come from the Central Bank or some other kind of legal entity.In other words, the private sector could profit greatly via TFE.



II. In the normal state of affairs green goods and services should as time goes by become cheaper and hence more attractive as demand naturally increases from the public. However, this process is already happening somewhat "slowly" but there are marketing stratagies which could artificially alter this situation, and this needs to be developed to create green competition using small or large subsidies. Companies that could loose out at first would be compensated using new capital created ex nihilo. The details of exactly how green artificial "competition" works is still being developed in detail at the time of writing.Moreover, shortages of certain products may occur and there may be a degree market distortion. This could be dealt with to a large extent via "instataneous"compensation.



IV.The originator of TFE is very much aware that Transfinancial Economics would increase emissions. This is unfortunate but hopefully with further funding the way or ways to deal with this problem would be better funded as never before. There are ofcourse a number of so-called carbon capture programmes in the world, but much more like this needs to be done. Anyway, all this means is that if we have Rapid Green Growth or RGG many people would still die during the Climate Change Crisis. This is tragically unavoidable. But if this were slowly undertaken (as is the case now) it is more probable that the death toll would be much higher in the long run.



V. It is important to understand that when TFE becomes a reality there is no direct or indirect of taxation. The reason is simple. Since money can retain its value in real time it cannot be inflated to a serious degree, and cause devaluation of money. This means ofcourse that more money can be transmitted into the economy safely. All this has notable implications for charities, and NG0s, or non-governmental organisations as it would mean that raising money from earned sources would no longer be absolutely necessary. This is revolutionary. The only limits ofcourse for this are limited human and natural resources at any point in time.



VI. Originally, the above entry included a lengthy piece on TFE but this is not included here, though it may re-appear. It maybe found elsewhere probably on The Economics Realms blogspot.



VII. Furthermore, over the years TFE has been circulated around on the internet, and has attracted a number of influential people including the noted rebell economist Steve Keen (and some of his followers), Ellen Brown, Stephen Zarlenga, Baron Prem Sikka, Richard Murphy, Hazel Henderson (who was especially keen on TFE), and even the present Lord Nathan Rothschild and his family seem to be interested in the new economic paradigm to some extent. There are also some indications that certain commercial entities (ie potential private investors) may be taking some interest in TFE and ofcourse, they could help attract relevant funding for the emergence of TFE into the world.



VIII. Another aspect of this subject is that notably big oil and gas companies could possibly be legally "bribed" and bought up and phased out to make way for an economy run by clean sustainable energy. Admitedly, this may not be the most ethical way of doing things but humanity must come first rather than powerful vested interests.


Finally, it should be said in this brief introduction the originator (ie. Robert Searle) of the TFE System hopes to write a few more papers on some aspect(s) of this subject. At the same time he hopes to fully research and complete a book probably to be entitled Towards Economic Revolution, subtitled Global Financial Reform and the Survival of the Human Race. This may take two years or so and would require help from a whole array of experts including those in economics, business, politics, law, computers, et al.

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