Transfinancial Economics

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. Please note too that corrections, and additions may be necessary.

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)

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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 funding mechanisms, or Facilitation 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 could 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 aboveis primary TFE, and the amount of new money created is more limited unlike advanced TFE.To avoid any serious inflation the planning of any large, or small project could if at possible take into account the productive capacity of suppliers. Thus, products, and/or services could be planned beforehand so that there is as far as possible 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 TFE it would be possible to gain a near perfect knowledge of the entire economy. The data via Electronic Transaction Monitoring (or ETM) would be collected 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 not just be useful to the companies (which happens already to a great extent in the developed world) but could be simultaneously transmitted to a resource/inflation agency. It is there that supercomputers could be used to instantly check the Free Market Prices of goods, and services. Due to comprehensive programming price comparisons are made in "real-time", and inflationary pressures would be detected. 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, and without any serious inflation. As we would have a highly accurate understanding of the real economy inflation risks could be accurately assessed via computer simulations of the economy itself. This is revolutionary when fully understood. However, it cannot totally rule out uncertainty within the economy.

Another aspect of all this is taxation itself could be phased out altogether. Moreover, with advanced 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 as far as possible, and with advanced TFE a "clear" picture of it could emerge.

If, at all necessary there would be direct electronic controls to ensure inflation, and currency devaluation can never get out of hand.This would involve an instantaneous intervention with little, or no time-lag...Interest rates, and taxation could be phased out. The direct controls concerned would in the main would probably involve the electronic creation of subsides (ie. new money not earned from taxes at all) at the point of sale, and the cashier may inform the customer of it. In other instances, at the point of transaction, an instant inflation "tax" might be necessary in which the deducted amount could be recreated electronically in the bank account of the customer, and/or the retailer depending on the situation. However, as far as income tax is concerned it is allowed to continue via conventional means for its collection rather than by some form of "instant" electronic deduction.

It is also important to point out that we are not discussing a Soviet style command 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....... 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 out of thin air as loans with interest. The amount of capital created is based on a fraction of existing reserves held. This is aptly termed fractional reserve banking....

http://www.positivemoney.org.uk/

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. But official documents exist which seem to suggest otherwise.In other words, some form of fractional reserve banking may exist.

Also, the kheper site version of TFE is out of date, and may be replaced shortly.

R.Searle...........

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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 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 const 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.