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'''Please note that the shorter, more accurate, and more authorative data on TFE can be found in the discussion section. It would be best for readers to examine this first, and it may shortly replace the old "paper" here.
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


http://p2pfoundation.net/Talk:Transfinancial_Economics.


However, an attempt to explain TFE in a Nutshell maybe the best port of call before going to the above link. It should be said that there has been a degree of interest in TFE from some economists.In April 2010 it was also a subject discussed at a major scientific conference (the International Conference of Engineering, and Meta-Engineering, Florida, USA)
== FUTURISTIC ECONOMICS FOR THE 21ST CENTURY? ==
by [[Robert Searle]]




=== Abstract ===
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'''TFE in a Nutshell'''
 
The following maybe helpful for new readers.
 
Essentially, TFE claims that new monitored non-repayable money could be created electronically by special transparent, and credible banks to fund in full, or in part environmental, and socio-economic projects of high ethical value. This would help to SPEED things up unlike loans.... though interest free ones can also be created electronically when necessary.The aim of  all this is also to give powerful financial incentives to businesses that could profit with genuine projects, and more importantly help "save the planet", and its people.
What has been suggested above is known as primary stage TFE, and the amount of new money created is more limited unlike advanced stage TFE.To avoid any serious inflation the planning of any large, or small project must take into account the productive capacity of suppliers. Thus, products, and/or services would be planned beforehand so that there is no unexpected demand which might lead to inflationary pressures, and price rises.In other words, we have something akin to an Advanced Market Commitment, or AMC.
With advanced stage TFE it would be possible to gain a near complete knowledge of the entire economy. The data via Electronic Transaction Monitoring(or ETM)would come 24/7 in "real-time" via the ID codes,and barcodes of products, and services at the point of sale, or later transactions with banks. Such data would be vital to bring about wholesale sea change towards an environmentally sustainable, and socially ethical economy, as more, and more new electronically monitored non-repayable money could be created WITH CONFIDENCE without any serious inflation. As we would have a highly accurate understanding of the real economy inflation risks could be accurately assessed. This is revolutionary when fully understood.
Taxation could be phased out altogether. Moreover, with advanced stage TFE fuller funding of charitable NGOs would also become possible, and fundraising could ultimately be phased out altogether. However, as with primary TFE productive capacity is still taken into account.
 
If at all necessary there would be direct electronic controls to ensure inflation, and currency devaluation can never get out of hand.This can be instantaneous intervention with little, or no time-lag... in contrast to present day economics.
It is also important to point out that we are not discussing a Soviet style communist economy, because the Free Market Price is maintained, and Capitalism in an increasingly  more ethical form (due to increasing powerful financial incentives)would still continue until there is "full" automation when money, and wage slavery would no longer exist. 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.....
 
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The following links maybe of interest. Also, TFE can work for, or against the rich. What is presented here is to some extent "pro-capitalist". However, if the global protests are successful this position may have to be reconsidered.TFE can work for, or against the rich...... RS October 2011.
 
It should be said that this is an online "work in progress" project and "inconsistencies" and repetition might appear in the text. However,most, if not virtually all of the presentations of TFE here are consistent, and maybe subject to further research. The following should also be stated
 
i) The present page has the old TFE "paper"as already indicated (though altered from the original).
 
ii) The link (below)to an introduction of TFE are three articles collected together to form a whole, and were serialised on the p2pfoundation blog.
 
iii) As indicated, and should be stressed it would be best to FIRST read the TFE presentation in the Talk Section. This gives a good overview of the whole subject.
 
 
 
 
http://blog.p2pfoundation.net/introduction-to-transfinancial-economics-part-one-the-core-concepts/2011/07/11
 
http://www.p2pfoundation.net/Introduction_to_Transfinancial_Economics
 
TFE is very similiar to Social Credit. The following link maybe of interest, and a French version also exists.
 
http://www.michaeljournal.org/plenty42.htm


TFE is probably the most advanced form of monetary reform. At present though, interest has been growing on the implications of the seeming fact that private unelected banks create new repayable money as loans with interest.Unfortunately, there is controversy amongst "experts" as to how this happens in detail.  
''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.''


http://www.positivemoney.org.uk/
Keywords: Transfinancial Economics, Modern Monetary Theory, Inflation Taxation, Digital Price Controls, Climate Change


The above link indicates that new money is correctly created by banks as repayable loans but they are only backed up by a fraction of the reserves held as "security." However, a minority of "experts" notably Steve Keen suggests that this is not the case, and that such credit creation is fully backed up in the main by loans notably from other banks, or indeed, the Central Bank.
JEL Classification Codes: E42,F33,F65,G00,O3,Q54


http://www.debtdeflation.com/blogs/2009/01/31/therovingcavaliersofcredit/
=== 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).


R.Searle...........
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”. ===


'''Transfinancial Economics,or TFE is an emerging global paradigm for economic and financial reform. It is concerned with the possible introduction of a Non-Debt Based Economy which would be free of taxation, and interest on credit. It could replace the present Debt-Based Economy which ofcourse has taxation, and interest. However, the Non-Debt Based Economy could lead to a degree of inflation ofcourse but it could be directly, and easily contained with the use of advanced technology if necessary.
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.
               
'''At the present time there are huge growing global problems. These include food security, poverty alleviation, population growth, and most notably  global warming which if largely unchecked could lead to gargantuan economic costs, and massive loss of life.  


'''Though there is arguably more than enough money to change the world the problem lies with legal access to it. In TFE this situation is remedied, and facilitated. It can work with the vested interests notably banks, and  corporations in such as way to bring about mass environmental sustainability, and even a high degree of global justice.'''
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).  


'''Though, of course, capital in itself is not the complete answer to the problems of the world, it is at the basis of many of them. Thus, our present financial/economic system needs to be urgently addressed, and reformed into something more advanced, and beneficial.'''
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).  


'''TFE can be viewed as a very advanced form of Heterodox Economics. It may well one day replace, or rather modify
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).  
'''out-dated Neo-Classical Economics which still dominates academia, and the policy making of many governments in the developed world, and elsewhere.'''


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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. ===


'''A Further Notice to Readers on the Old TFE "Paper".'''
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).


'''Please note that what follows on Transfinancial Economics is still in the process of development. The kheper "essay" on TFE is out of date and should be replaced, or modified as its understanding on inflation controls is no longer fully relevant, or authoritive in the light of new understanding, and research. As for the p2pfoundation entry presentation here it may be updated now,and again, and if absolutely necessary any corrections will be undertaken in the text. ''
=== 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 ===


==Basic Summary of TFE==
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).


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


Bonds issued by governments to raise funds would in TFE probably be phased out with compensation to traders in this market. This point is raised again with a little more detail on the section dealing with money markets. Also, taxation, and interest on loans are gradually reduced to Zero from a Debt-Based Economy to a Non-Debt Based one. This ensures a smooth transition. Furthermore,the financial system would not necessarily loose out as will become obvious if we proceed with further basic details about TFE.
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:


''Before proceeding further it would be best to point out that though there may appear at present to be an "over-emphasis" in connection with new non-repayable money....repayable interest free money also plays a part especially ofcourse in relation to commercial green/sustainability projects.''
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.


===New Non-Repayable Money===
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.


This is created, and transmitted into the economy to gradually replace taxation of open democratic government, and grants which could  partly, or fully fund NGOs, and similiar type organizations. It is like the non-orthodox method known in economics as Quantitative Easing notably used in the Global Financial Crisis(GFC).
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.
   
   
Since reformed banks of the future would have a more accurate scientific understanding of the workings of much of the economy they would also be able to responsibly produce enough new electronically measured non-repayable money to ensure that serious inflation cannot occur. The "scientific understanding" just mentioned would be drawn from transactions (eg. utilising barcodes for Electronic Point of Sales,or EPOS in shops, and supermarkets) and other accounting data (using product codes, and other similiar IDs) transmitted ideally on a daily basis by businesses to the inflation departments of banks, or some other company, or alternatively by some government agency, or agencies.
=== Key References ===
 
Through specially programmed computers, and probably supercomputers it would be possible to build up an electronic profile of the "entire" economy. This could prove valuable to future economists, businesses, and governments. The prices of products, and services would be instantly compared as the transaction/accounting data is transmitted by business to the banks inflation department.
 
Specially programmed  computer systems would be able to assess the short, medium, and long-term risks of inflation as new non-repayable money is electronically created. This is done through computer simulation in which projected new money is created to see how it affects the existing economic accounting/transaction data. The aim here is to see to what extent it would affect free market prices in future months, or years. Of course, in spite of a highly accurate understanding of the economy there is always the problem of uncertainty. Yet,TFE would be robust, and flexible enough to deal with any future problems.What we have just discussed here is referred to as full TFE.
 
It could be argued that a more simpler system to the above could be used notably the usuage of capacity checks mentioned shortly. However, full TFE does offer a more advanced approach which would have greater benefit especially in connection with a clearer, and more scientific  understanding of the GDP.
 
Incidentally, what we have been discussing is the registered economy. A small portion of the economy could also be unregistered in which certain products, and services for whatever reasons are "unidentified" in the transaction/accounting process.
 
Direct price, or inflation controls would largely be unnecessary probably as the degree of "equilibrium", or balance  between supply, and demand could on the whole be maintained. Hence,the Free Price System continues to exist.
 
Of course, as prices gradually rise the value of peoples money could also do likewise. This is undertaken by a so-called national adjustment to inflation which could be achieved "instantaneously", and electronically via the banks computers.Furthermore, if for whatever reasons prices in part, or in most of the economy rise "too quickly" they can be easily slowed down by an electronic inflation "tax" which is activated at, or around the time of a sales transactions. This is known as an Automatic Inflation Deduction, or alternatively, the deducted amount of money could be recreated in the bank accounts during the transaction process. This latter approach would arguably be more acceptable, and would keep excess capital out of general circulation "temporarily". This could be termed an Automatic Inflation Rebate.
 
Moreover, another method is a subsidy, or subsidies which could be instantly created electronically if absolutely necessary, and if appropriate to deal with any serious price changes.It must be remembered here that new non-repayable money (ie.unearned)is involved.
 
Again, it should be clearly stated that there is an electronically  measured creation of enough new non-repayable money which cannot, and does not lead to serious inflation, or indeed, hyperinflation (eg. the Russian Revolution,the Weimar Republic, the French Revolution, et al). In other words, it does not flood the economy way beyond its rate of growth which is obviously insane.
 
It is also very interesting to point out here that in cases of hyperinflation there was a mass printing of new money which arguably more easily enters the general circulation of the economy unlike the creation of electronic money undertaken in TFE.
 
However,limited TFE,(as opposed to full TFE) or creating "enough" money is perfectly possible without any comprehensive electronic inflation monitoring (explained later in with some detail). Evidence does seem to suggest this. Thus, urgently, and dynamically tackling something like global warming/climate change in the Developing World, and indeed, in the Developed World  would be a serious possibility. This approach is referred to as Facilitation Finance, or Facilitation Banking. It is like the concept of Advanced Market Commitment.
 
Moreover, objective capacity checks of relevant suppliers, or companies would be necessary to make certain that there is enough spare capacity (which could be increased if necessary) to ensure that there are no misallocations of resources thus avoiding shortages, and price rises. Via a legal agreement for funding it might be necessary to introduce temporary price controls but this would probably be unlikely. NGOs, green businesses, and possibly governments could work in partnerships in order to see whether a project has been carefully, and effectively planned. They could then apply for grant funding from a special Facilitation Bank which would have legal powers to do this.Also, transmissions of new money should ideally start to phase in the development of electronic inflation monitoring on a national, and international scale.
 
This concept of newly created non-repayable capital may to some be "socially unacceptable" but so are many of the problems of the world "socially unacceptable". New financial thinking is desperately required to accelerate positive change...
 
It should be added that the noted financier George Soros has suggested a "novel" usuage of the SDRs (or Special Drawing Rights) These can be seen as form of "new money", or reserve asset created by the International Monetary Fund, or IMF. They could in part be donated as something non-repayable.
 
===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 spent into circulation. Here, we are referring to funding given by open democratic governments notably in rich countries such as the EU,and the UK.This, of course, is earned money. But, interest bearing loans which exist in today's economies are created largely out of thin air electronically by banks via the process of fractional reserve banking also more commonly known as credit creation in economics. This is not earned money but is like non-repayable money of TFE except of course it is repayable over a period of time.
 
Huge donations also exist for NGOs. These can be seen as being non-repayable but obviously they originated as earned money.
 
What we are trying to say here is that it is clear that if enough new non-repayable money is created it would lead to some inflation but to nothing more serious (ie. hyperinflation). Incidentally, cash could still exist, and as in today's world it would make up a near non-existent portion of the entire money supply. These claims, of course, support what has already been suggested about funding global warming/climate change project.
 
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==Four Key Implications of TFE==


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


1. New non-repayable money (partly, or largely monitored electronically, and possibly paid in installments) as commercial grants, or as repayable interest free credit would be able to  successfully increase productivity, and prosperity more quickly for businesses in a continuous fashion. The ideal as far as possible is to bring about a high degree of "simultaneous" growth so that supply, and demand are largely in "equilibrium".However, such growth in the economy would in time be largely influenced by the Facilitation Banks concerned with environmental issues. Their powers could also extend to important social ones as well.
[2] Clegg, Brian. (2021). Quantum Computing; The Transformative Technology of the Qubit Revolution. Icon


Moreover, the boom, and bust cycles would become a thing of the past if advanced electronic inflation management is undertaken properly.
[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.


2. Carefully targeted comprehensive financial incentives or schemes where necessary would ensure that businesses become genuinely sustainable, and environmentally friendly. Those projects which are commercially unviable but vital to the world would receive the "right" subsidies, grants, and interest free loans created, of course, out of new non-repayable money. This could in part come from governments, and more often, or not be created electronically by Facilitation Banks. In other words, we would have something akin to a very advanced form of "Neo-Keynesian Economics".But if desired the private sector could play a far greater role as far as this "interventionism" is concerned as already indicated. FBs, and their financial interactions could be ideally monitored electronically by an independent body, or by the Central Bank (to prevent fraud, or indeed,creating too much credit!) could profit by issuing non-repayable finance for mainly "non-viable" projects notably in the environmental arena.
[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


In fact, financial incentives would increase if any company seriously considers a green approach to their business. This would encourage others to follow suit.Going green is already something appreciated by business to some extent but a TFE stimulus package from the private, and public sector would be far more advanced, and comprehensive than anything else seen before in our world. Admittedly, this could lead to some market distortion which is partly deliberate (to notably encourage the vital need for sustainable green growth which is all-important), and could be addressed to a certain extent with the electronic creation, and transmission of new non-repayable money as instant compensation, or as a form of price subsidy.  
[6] Heydorn, Oliver. M. (2014). Social Credit Economics. Canada: CreateSpace Independent Publishing Platform.  


Of course, green taxes, or rather civil fines(as understood in TFE) could also play a role. But a more positive, and more pro-business approach is probably the best way forwards. Obviously more regulations if possible on the sustainable design of products would be desirable though these may be seen by some as being politically "unpopular".
[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
               
3. Charities, or NGOs concerned notably with high ethical issues,(e.g. transparency in government, and business, human rights abuses, direct democracy/e-democracy,fairer wealth distribution, etc) and humanitarianism (eg.food relief, AIDs research, heart disease, et al) would probably be partly, or fully funded without the need for fundraising.


4. With TFE it would be possible to reach a situation in which work as we would understand it would no longer exist, or be necessary  as technological automation would largely, or perhaps wholly replace labour. It would be possible to create, and transmit new non-repayable money to support people successfully.Taxation, or earned money can only go so far as it relies on a traditional comprehension of economic growth. In TFE it would certainly be possible because we would have an highly accurate understanding of the real economy as it relates to population, and resources. As such serious inflation would not be possible.
[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.


A more "detailed" list based on the above key implications of TFE are explained in brief near the end of this p2pfoundation entry
[10] Sharda, Sahaj. (2018). The Extinction of the Price Tag; How dynamic pricing can save you. New Degree Press.


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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.
                                                 


It should be repeated here 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 via some credible agency, or agencies.


What follows now is a more detailed enlargement of what has been stated here along with other relevant information.


==Key Decision-Making Bodies==
Here, we shall briefly explain who, and what undertakes the decision making process as far as the creation, and transmission of new non-repayable money is concerned.
===Open Democratic Government===
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.
===The Banks===
It is expected that banks, and banking will remain largely in the private sector in spite of the Global Financial Crisis. They could be nationalized in full, or in part but this is not a serious issue in TFE. However, the Facilitation Banks mentioned earlier could have special powers to create, and transmit new electronically monitored non-repayable money to certain businesses (notably those serious about becoming environmentally friendly but where there is little, or no commercial viability), and also, of course, repayable interest free credit. The interest would not be paid for by customers but by the Central Bank, or some independent public authority. As for non-repayable grants their cost, or "grant interest" could be treated in a like fashion.
It is clear that a business model concentrating on genuine green strategies via highly objective planning notably from relevant environmental experts, and NGOs could be created for FBs to ensure profits. 
FBs are not the same as the present debt-based banks. They are a breed of their own focused in investing in environmental project, and indeed where necessary social enterprises.
===Independent Grant Giving Bodies to NGOs===
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.
Thus, donations, and fund-raising will be largely unnecessary for most NGOs as they would receive the vital funding to continue their work via such independent grant bodies which could be fully, or partly funded by FBs.
==Basic Ethical Arguments for the Creation of New Non-Repayable Money==
There are a number of key points which make the concept of new non-repayable money acceptable along with its earned counterpart.
1.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.
2.So-called Free Money already exists to a limited extent (e.g. government grants, donations, wills leaving money).
3.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, of course, 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 becomes "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 words,a hi-tech gifting economy similar to something like [[The Venus Project]] (originated by Jacque Fresco,a populariser of Technocracy).
4.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...
5.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==
<!-- typos and punctuations corrected up to here -->
There are a number of key arguments for the abolition of direct, and indirect taxation. They are;-
1.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.
2.Everyone should be entitled to all their earned money as a human right.
3.It is highly unethical to finance any misuse of government spending.
4. People should be rewarded by a policy of Non-Taxation as they are the actual the main creators of real wealth.
5.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. Whether recent attempts to "crackdown" on all this largely succeeds, or not remains to be seen.
6.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 the electronic registers at checkouts at supermarkets (ie. EPOS/ Electronic Point of Sales as mentioned earlier on). Depending on the commercial situation lap top computers, mobile phones, and other like devices could also be used in this process.
Thus, business people, and/or their staff would by law have to ideally on a daily basis report their transaction accounts electronically to the inflation department of the bank which could in part, or in full be overseen by the public Inflation Authority. Moreover, putting profits into the bank from sales of registered products, and/or services 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 electronically 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 Economy==
As  accounting data, and profits are received together, or separately as electronic transmissions in real-time at the bank from various businesses a highly accurate electronic macroeconomic picture of the economy of a country can be built up (..the GDP as electronic data coming 24/7from the real economy!). 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 advanced electronic profile of the 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 identified income in peoples bank accounts. Admitedly, all this raises too 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 computers would be well-programmed to do the following which includes:-
a.Instantly comparing prices of registered goods, and services.
b.Be able to monitor changes in the monetary supply that are seen as inflationary in parts of the economy due to registered transactions, and accounting data received electronically by the bank.
c.Be able to detect potential high risk inflation, and be able if absolutely necessary 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. However, it should be stressed that all this is highly unlikely to occur if the electronic inflation management is undertaken properly.
d.Using existing in-coming accounting data it would be possible with the right computer programming to work out and see the sort of potential inflation levels which could take place in relation to specific transmissions of new non-repayable (and/or repayable)capital in connection with projects of one sort, or another. A set of low, medium, or higher potential risk assesments on inflation could be given automatically. In other words, an electronic model could be used to "stress test" the robustness of financing in full, or in part a project(s) in relation to the entire "registered" economy itself.
''Moreover, a periodic dummy run, or computer simulation (probably using supercomputers) could also be undertaken electronically of the entire registered economy based on raw electronic accounting/transaction data coming in from businesses in which new money is increased to see how much inflation could go up. On this basis, an inflation target could be created on a more scientific basis as is the case today.Ofcourse, conventional objective capacity checks of companies could be undertaken as indicated in the earlier part of this presentation.''
e.Another factor in all this is to what degree new non-repayable money is notably contained in productive, and/or non-productive assets, and to what extent it could enter the general circulation of the economy. Thus, an amount of excess capital can be "safely" created but is more likely to be saved, and this realization would be based on forecasts made on direct electronic data of "saving" accounts.
f.It should also be stated that TFE would easily accomodate "irrational behaviour," and indeed, complexity in the economy itself.In other words, Behaviourial, and Complexity Economics.
As can be see this whole subject can become complex.
==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 continue, and ensure 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 to ensure everything goes smoothly)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 price/inflation controls which can electronically target monetary, or accounting transmissions (or alternatively ofcourse accounting data + monetary transmission = one transmission to the bank as money itself is essentially electronic data)of registered goods, and services. 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. These measures are like price controls of the past but are far more advanced because
They are super-flexible.
They do not require a huge bureaucracy.
They can give instant compensation, and/or instant subsidization depending on the situation.
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 .
They could if necessary fine people, and companies directly, and electronically from their business bank 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:-
===Selective Inflation Adjustment, and Instant Electronic Price Subsidization===
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. In other words, an "accounting" adjustment. Ofcourse, registered goods could also be instantly subsidized wherever, and whenever necessary at a touch of button.
===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).
In TFE new non-repayable money could be created electronically for the bank accounts of customers. This would give rise to more money in ones bank account. Hence, the new higher amount has been adjusted to take into account inflation,and thus, ones purchasing power remains largely the same as before. This is what Keynes referred to as the "money illusion."
===Automatic Inflation Deduction===
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.
However, a better way is arguably an Automatic Inflation Rebate. The "inflated portion" would simply be recreated electronically in the bank account of the seller. Thus, it is removed "temporarily" from general circulation.
===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 hence 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 seen as a major problem of note, and if electronic inflation management is undertaken properly it is unlikely to occur.
Bank intervention (or some other licensed business)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 by a special agency of government).
Price capping can lead to artifical shortages (ie Price Ceilings) and surpluses (ie.Price Floors), and the situation 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. For example,if a control price goes below the level of profitability it can ofcourse be subsidized by new non-repayable capital from the bank (or again some other licensed business)so that the commercial operation(s) involved does not go out of business. However, certain inefficient enterprises should not be subsidized, or bailed out.
In connection with the above one way to encourage registered prices of registered goods to fall is to create an instant profit subsidy electronically. Thus, a monetary incentive is created electronically to lower prices to a certain level, or levels. The lower the price greater the profit subsidy!! This can be done electronically ofcourse, and at the point of sales transactions.
Apart from the Registered Economy of registered prices, and services discussed here there is also an Unregistered Economy. The latter only makes up a very small part of the entire economy. It consists of products, and services which are difficult to price exactly, and code with electronic IDs necessary in the business accounting process. However, if inflation adversely affects them in any way they too could be subjected to temporary electronic controls (with flexible price ranges), and become permanently, or temporarily part of the Registered Economy.
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...
Free of taxes.
Interest free loans would exist.
The possibility of electronically monitored (or non-monitored)commercial grants where necessary.
There could arguably be no "boom" and "bust" cycles as prices increase overtime "indefinitely".
==The Vital Importance of Sustainability==
The world does not have infinite resources. As such it is vital to encourage businesses with the right incentives (notably created out of new non-repayable money)to introduce a variety of approaches which;-
reduce the amount of raw materials used in production of green products, and services.....
re-cycle envronmentally friendly goods where necessary in a closed loop......
re-use green products where suitable in certain ways...
..and/or re-design such goods where necessary whilst at the sametime ofcourse reducing the carbon footprint....
To a somewhat limited extent, all this is gradually being realized, and undertaken. Moreover, a number of businesses recognize the growing reality that green sustainable products, and services can be profitable with the right business model. 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 notably could along with credible information, and 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 as registered products, and services are continually tracked electronically. Again, compensation may be necessary for certain businesses if a loss of profits are involved.
==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 full 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).
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, less "hierachical" social organization, fairer distribution of wealth, and non-competative/co-operative forms of "capitalism" and other socio-economic alternatives. If the pressure of this becomes great enough it may lead to turning the present "greedy" system into something far better, and more advanced in a more ethical sense.
The ultimate aim of TFE is to reach a stage of advanced automation in which money itself will become totally redundant. Ofcourse, work as we would understand it would be virtually non-existent, and superflous. It is expected by then that capitalism  would also no longer be needed along with its elites ideally.
Instead, a more advanced hi-tech civilization will emerge in which people rather than money becomes genuinely important. All this would be the expected result of decades of "unprecedented" pressure, and education by the work of high ethical NGOs as already indicated.Yet, ironically, it would be through the "greed" of the capitalist system that the "highest" degree of automation, and green technology would have been put in place on a global scale. In other words, capitalism should be used to ultimately end capitalism.It is also worth mentioning here again the work of the Venus Project which presents a possible technocratic "utopia."
==Interest-Free Monetary Reform==
Radical monetary reformers tend to concentrate on banks, and the banking elite.These commercial enterprises electronically create most of the money of the world out of thin air as a repayable loan, or credit with interest ofcourse via a process known as fractional reserve banking, or credit creation as it is commonly referred to. The limits of this process are said to bestrictly speaking determined by existing amounts of money held in reserve. However, such views, and those similiar to it have been challenged by groups of "experts." In other words, it is subject to controversy ...but everyone agrees that banks do actually create new money. Yet, to "back it up" they can borrow from other banks, and the Central Bank to "replace" the new capital. In other words, the money they created in the first instance for the customer is a "promissory note."
Cash though 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. It should be stressed here that there are radical monetary reformers that include interest in their equation, and in some proposals it is suggested that it should go to the government rather than to some private commercial bank.
==The Capital Markets==
The money markets would benefit greatly with the introduction of TFE. It would mean greater predictable sustainable growth, and profitability in the equity, or shares market for investors, plus other monetary benefits in connection with various financial "products" or "instruments".
However, part of the bond market (the buying,and selling of debt) could be phased out in connection with  government bonds (but corporate bonds could still exist) gradually as TFE is introduced. This could be replaced by the increasing growth of new, and old financial "products." Yet, during  the interim period special compensation could be created electronically to bond traders specialising in government bonds. The rich, and super-rich could benefit more than before...
==Some Other Implications of Transfinancial Economics==
These can be briefly listed:-
....via an Emissions Capping Facilitation Scheme as opposed to cap and trade, or anything very similiar the following could be suggested.
i) Why not have new non-repayable money (monitored electronically) created by special banking for companies to lower their emissions levels to certain targets.
ii) At the same time, investments in full, or in part by new capital as mentioned above could fund companies into changing to more "non-viable" sustainable production of their goods, and services.
iii) Again, using mainly new non-repayable money it would be possible to compensate for loss of profits to the shareholders of the above companies.
...Transnational Corporations especially in the Developing World could be transformed into more ethical, and sustainable businesses with powerful financial incentives for change including profit subsidization on a massive scale. In other words, they should be part of the solution rather than the problem..whether we like it, or not.
             
...Universal healthcare would be possible irrespective of whether private businesses are involved or not.
...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.
...Grassroots NGOs concerned with poverty reduction in the Developed, and Developing World would be better financed as never before to bring about positive change (ie. a New Global Marshall Plan). 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. Due the flexible, and advanced nature of TFE there is no reason why the International Monetary Fund, and the World Bank cannot see the light on this in which the rich, and the poor can both benefit.Moreover, money ofcourse would be supplied responsibly, and would avoid where possible the pockets of corrupt government officials, and their representatives.
The aspect of AID to central political authorities just referred to could involve improved electronic tracking, and monitoring of where money goes to. If it goes to a questionable account it could be instantly frozen, and instant swingeing electronic fines could be used to create ethical behaviour of the use of such funds. These improved arrangements would arguably be part of the AID package to most if not all governments in the Developing World.
...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.


...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.


== Some key Points to understand in brief ==


...Corporations concerned with oil production, and indeed, the arms trade could be bought up if necessary 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 if the grassroots pressure, and political will is there. This concept is referred to as Ethical Business Conversion, or EBC.




...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 rather decarbonised ones mass producing green sustainable goods, and services. Alternatively, special environmental contracts could be created.This could come about by government intervention, and/or banks, under pressure from better financed NGOs.


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.


....Ofcourse, 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 to challenge banks, and Corporations is unlikely to work though we may be wrong.  
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.


To promote this campaign it is suggested here that a professional website would be set up to spread the word of Transfinancial Economics as a serious, and credible proposal if the world is to successfully survive the global problems of the future. 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.


A news update about the campaign progress.


Commissioned papers (initially) by willing economists using econometric models to show the efficacy of TFE in technical terms, including detailed studies on Electronic Business Accounting, and the possible super-flexible Electronic Inflation Controls.
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.  


An online Journal of Transfinancial Economics.


A powerpoint presentation of TFE for downloading.


Any endorsements for TFE by any willing experts.


Possible field trials of the electronic technologies involved in TFE. This could be in part, or fully funded by governments, and/or by Corporations.


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.




==Some Similiar Notions to Transfinancial Economics==




It is perhaps suprising to know that the basic idea of a tax, and interest free economy is not new. In America for example just before the War of Independence from Britain various states were extremely poor, but they hit upon the idea of creating their own money. This in certain cases replaced taxation as we would understand it. In some states though they produced too much of it, and caused "serious" inflation whilst others produced enough of it, and thus served the public good without any economic problems.
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.


Of course, present day LETS or the Local Exchange Trading Schemes, and other similiar complimentary currencies (CCs)are strictly speaking free of tax, and interest. Silvio Gesell, and his experiment with his Free Money, or "stamp scrip" also comes to mind.Yet,such CCs are limited when compared with TFE ofcourse as they simply involve local communities accepting a made up currency as a means of exchange for a very "limited" number of goods, and service.


TFE is often misleadingly associated with Social Credit founded by Clifford Douglas. This essentially believed in the idea of the National Dividend which is also very much like the Universal Basic Income, or UBI. It appears that this could be created by what Douglas referred to as debt-free money, or in TFE as new non-repayable money. This would be based directly on certain economic data, and enough of this debt free capital could be produced so as to not lead to serious inflation. Apparently, like TFE Social Credit believes that overtime taxation could also be phased out altogether.


Theodore Thoren, and Richard Warner who were two respected engineers wrote The Truth In Money Book. It describes something very similiar to TFE, and presents the concept of a Treasury Credit System along with other monetary ideas. Shauna McKay who wrote The Perfect System suggests something similiar along with John DeSantis and his website.


To some extent, TFE can be seen as being similiar to Chartalism.
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 was actually accepted by a peer reviewed 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 is the originator of this "work in progress" project. His  email address is 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.


Bio-data, and General Blog.


http://thoughtsandvisions-searle88.blogspot.com/2010/08/introduction-to-blogger-robert-searle.html


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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