[GJM] Likely Final Draft of TFE Paper.

[robert searle]

Dear All,
       I thought I might as well send my revised draft
on TFE....though I expect some of you may be getting a
bit bored with it. I hope not. The projected book
entitled The Non-Taxation Revolution; Monetary Reform,
and Global Justice will be more informative, and
interesting. It will also be well referenced.


R.Searle.



A Brief Summary.

The following should give one a very brief overview of
Transfinancial Economics, or TFE which then leads on
to a more detailed article, or "paper". It is should
just take a few minutes to read for those pressed for
time. Also, please note that TFE at the time of
writing is a research, and development project. The
same is true of Positive Human Politics (PHP) which is
not discussed here. 

TFE is also known as Non-Taxation Monetary Reform. It
believes that new unearned money could be created for
democratic governments both local, and national
without raising taxes. Many NGOs, or independent
non-governmental organizations could also be funded in
a similiar manner either in full, or in part. Thus, in
most cases, fundraising, and donations should be
largely unnecessary.

This can also lead to greater decentralisation of
power from central government. Responsible direct
participatory democracy at a local, and national level
should be recommended as the way forward as politics,
and politicians have clearly lost much credibility.

The creation of new unearned money without taxes, or
fundraising would not lead to uncontrolled inflation,
and devaluation of currency.This would be directly
controlled by advanced computer technology. However,
anonymous cash transactions would still be possible.

There is more than enough money to change the world.
The problem notably for NGOs is legal access to it. 

In TFE there is no redistribution of financial wealth,
but NGOs concerned with fairer wealth distribution
such as Binary Economics would be financially
empowered as never before. Thus, their influence on
public opinion would be far greater.

TFE is a arguably a transitional system that would
hopefully lead from the greed of competative
capitalism to fairer economic systems both large, and
small which would cooperate with each other.
Ultimately, as human nature evolves to a higher level
of development, and understanding money as electronic
transmissions, and as cash would no longer
exist.Everything would be free on demand.

However, TFE realizes that the present competative
capitalist system is too well entrenched in the
society for it to be removed. As such it does not
waste time opposing it but uses its new understanding
of money to allow it to flourish. More importantly,
and at the same  time, there is also the new financial
empowerment of NGOs concerned with social, economic,
and political reform.  They would be able as never
before to speed up the pace of positive change which
may well lead to part, or wholescale replacement of
competative capitalism. Co-operative type economic
systems may then take their place.

Apart from the creation of new unearned money interest
free loans could also be created. In TFE we are also
dealing with a high, or higher growth economy. With
the introduction of a tax, and interest free world
research, and deployment of various simple, and
complex sustainable technologies would be speeded up
as never before to ensure that total resource scarcity
cannot happen..

The possible social, economic, and political
implications of TFE are massive. The creation of new
unearned money can solve many problems including:-

i)The financing of pensions.

ii) Better social security.

iii) Powerful financial empowerment of NGOs concerned
with corporate responsibility in connection notably
with the environmental destruction, and the rights of
workers. These   would be challenged as never before
on an equal playing field.

iv) Huge high risk projects which may have great
social,economic, and political value (eg. an
environmental programme perhaps vital for the planet)
would be possible with the creation of new unearned
money.

v) The creation of more business grants, plus interest
free loans allowing for continous material prosperity.

vi) If desired, more public services could be
provided, and would be better financed.

vii) With the advance of automation the future will
become increasingly jobless. Yet, if necessary it
would be possible to have special businesses, and/or
NGOs which could be created out of new unearned money.
They would supply more advanced types of paid work
which may be more akin to "leisure-type" pursuits than
what  we have now.

The above are key examples of what TFE could, and
would achieve. Success would also ofcourse crucially
depend on excellent creative planning, and ofcourse,
relevant resources.





Introduction to Transfinancial Economics. 


                 The Main Article.




This is a brief "non-technical" introduction to a
"new" futuristic monetary reform. It is called
Transfinancial Economics (TFE), or Non-Taxation
Monetary Reform. It revolves around the concept that
new non-repayable unearned money can be responsibly
created without raising taxes, or even  fundraising in
many cases. This is a "revolution" in our
understanding of money, and the world. In the right
hands, this concept could be one of the greatest
breakthroughs of the 21st century, and beyond.

It must be made abundantly clear from the start that
TFE has nothing to do with the so-called New World
Order, or conspiracy theories, or anti-semitism. What
we are dealing with here is the positive progressive
development of genuine open democracy which favours
the voting public rather than politicians, and big
business.

Moreover, TFE is neither right wing, or left wing.
Yet, it ultimately aims towards a fairer world.





Legal Access to Financial Power,and Decentralisation.
 



There are four main organisations that could
responsibly order the creation of new money. They are
as follows:-

i) National Democratic Government: This organisation
instead of raising direct taxes on income, and
indirect taxation on goods, and services could order
the production of new funds in a measured way via
special Treasury Banks which are genuine independent
public authorities. Thus, programmes like the health
service, the military, the police, social security,
the law courts, and other expenditures would be
properly financed. Reform of such concerns would also
be stepped up as never before. Cost-effectiveness, and
cost-cutting which can cause various social, economic,
and political problems would become a thing of the
past.

However, all this does not mean more government waste,
or abuse of money. On the contrary, more powerful
legislation would be introduced to curb this.
Moreover, it must be remembered, and understood that
such future democratic governments would not have a
massive lump sum of tax money to draw upon. This would
only encourage overspending but with TFE it is simply
created in a measured way, and only after scrutiny
from a Treasury Bank which would have genuine legal
powers.

Also,import duties,and taxes on tobacco, alcohol, et
al would still exist but would  be re-defined as
special charges, or civil fines. 

ii) Local Government: This organisation could
responsibly order the creation of new money from a
Treasury Bank without the need to raise  county taxes.
Hence, various community progammes would be properly
funded, and reformed where necessary.

iii) NGOs, or Non-Governmental Organisations: Many of
them  would would no longer have to largely rely upon
the public, or wealthy donors. Instead, they could
receive new funds via a foundation ,or trust (as is
the case today)which would order the creation of new
money from a  Grant Generating Bank. These financial
institutions would be independent of governments, and
transnational companies, or TNCs.

The resulting money originating from the Grant
Generating Bank would be given by the trusts, and
foundations in full, or in part to various NGOs.
Charities concerned with the Third World, heart
disease, cancer, AIDs, and other humanitarian causes
would more than likely be fully funded. Yet, other
NGOs would only be in part financed by new money. The
implications of all this for democracy, and humanity
are stupendous.

With the greater financial empowerment of NGOs
decentralisation of power from central government can
be achieved. This point is especially relevant at the
present time as politics, and politicians have clearly
lost all credibility, and new alternatives are
desparately needed. The way ahead  would probably be
the quick, or slow introduction of direct, or
participatory democracy in which people could in a
responsible, and civilized  manner create new laws,
and amend existing ones via electronic voting.
Ofcourse, this would be a revolutionary step forwards,
and would with proper planning ensure that "mob rule"
cannot take over. Such a system would have to be open,
and transparent. However, present day democratic
representative governments should still be reformable
in spite of their bad reputations. 


The above represents the Human Financial System of
Transfinancial Economics, or TFE. On the other hand,
the Economic Financial System is where money is
actually earned by people working as employees, or
employers of a business. Both Systems interact with
one another. 
 
It is important to understand that from an objective
viewpoint unearned new money is just as valuable as
that which has been earned many times over. In TFE we
are trying to create a more advanced financial system
which tries to put humanity first, rather than just
money when it comes to important social, economic, and
political problems. 

Ofcourse, finance itself is useless without effective
planning, and relevant resources. This is true of
goverments, NGOs, and indeed, everything else in life.
But, at the end of the day no matter how advanced our
social, economic, and political ideas, and reforms may
be ultimately it has to be financed by somebody, or
something. This is the simple, and inescapable truth.
 
In TFE money is regarded as a power which controls the
use, and abuse of limited resources. By reforming it
we change the world. The aim is to maximise the good
it can achieve for humanity.

It is also important to understand that there is such
a thing as a free lunch. Government departments
receive "free" money as grants which they have not
been earned. Similiarly, a Will in which a beneficiary
gets a large amount of money (though originally earned
ofcourse) is  something "unearned". Thus, it  is an
example of a free lunch.
 




Inflation, and Advanced Computer Technology




Inflation can be defined as the persistent rise in
prices. As money outstrips the production of goods,
and services their retail cost to customers starts to
go up. At the same time, this can lead to the
devaluation of the currency. Thus, someone on a fixed
wage may find that their cash buys less than before.
In mainstream economics this basic concept of how
prices rises occurs is referred to as Monetarism, and
there are a number of theories on how excess money
actually enters into the financial system.

In the past, there have been attempts to control
inflation directly via policies on prices, and wages.
These had mixed results, and were only temporary
measures. At present, indirect methods to control
inflation are used by raising, and lowering interest
rates discussed later on.

Anyway, in TFE super-computers are used to keep an eye
on serious persistent prices rises. It is a direct
attempt at controlling inflation itself, and far more
advanced, and effective than the old direct approach
just mentioned.Essentially, the market continues to
determine price, and wage changes. Such financial
interactions are recorded on super-computers. However,
if there is a serious persistent rise in inflation of 
prices, and/or wages they are automatically fined.
This appears on a bank statement.  

The above has nothing to do with a centrally planned
economy as understood in the old communist world. We
are dealing here with a competative capitalist system
in which Super-Price Flexibility is allowable, and
possible. This is where one is given a higher range of
retail prices for a product, or service which has to
be registered under law (compulsory like Income
Tax).Admitedly, a certain amount of price distortion
may occur but with Super-Flexible Pricing this would
be largely minimised.  

At first the introduction of direct electronic
controls to tackle inflation effectively would be
unpopular. It would require strong democratic
governments to implement it. Yet, businesses will
learn to accept it, and would find it by far more
beneficial than taxation on their profits. Indeed,
they would experience rapid commercial expansion. To
further enhance the situation, business loans would be
interest free too..

Anonymous cash transactions would still be possible.
As is the case in our modern economy this makes up a
near non-existent portion of the entire money supply,
and thus, it would have little, or no effect on
inflation. Products, and services (including certain
wages) which have no obvious monetary value would be
exempt from price registration. These too would have
little, or no effect on inflation as they would only
make up a small portion of the entire productive
economy. However, most products, and services have to
be registered by law.


Super-computers when properly programmed can ensure
the value of peoples money when certain products, and
services are purchased. To understand how this works a
simple example should be enough. Lets say Mr. T buys
product X which happens to be 10% above inflation then
this very same percentage is created as new money, and
is actually added to his bank account automatically.
In TFE this is referred to as Inflation Interest.

Some people have wondered what would happen if there
was an excess money supply that would outstrip the
production of goods, and services. The answer is
simple. Such "wealth" would easily be saved for the
time being in deposit accounts indexed-linked to
inflation. With rapid economic growth more, and more
products, and services become available, and the
"dormant" funds due to excess money supply would now
be able to buy them. In effect, they would become part
of the productive capacity of the country. 

Some people have suggested that the weakness of TFE is
its reliance on advanced computer technology. Yet, we
forget that our present banking system relies on it
all the time. Out of necessity security is continually
improved, and no hacker has yet brought down the
entire network permanently. If that had been the case
we would have all known about it!

Other critics have pointed out the problem of privacy.
Yet, is it really such a problem.....especially when
we realize that in our present world it  hardly exists
at all? In this respect, TFE is not necessarily going
to make things any worse, or better as far as legal,
and "illegal" access to personal information, or 
privacy is concerned.

Anyway, there are many other aspects concerned with
electronic controls over inflation which cannot be
discussed here, and at the end of the day they would
have to be hammered out by experts in economics, and
information technology.
 
 



The Problem of Redistribution.
 



In TFE there is no redistribution of financial wealth.
Rather there is a greater distribution of new money.
The problem of redistribution at the present time is
that the money involved is earned, and based on the
productive capacity of the country. TFE goes beyond
this to make sure that most social, economic,and
political programmes, and projects carried out by
democratic governments, and NGOs are properly funded
as never before.

Let us take an example of what we are actually saying.
The Tobin Tax on currency speculation is intended to
raise funds for the Third World, and if it were
implemented the resulting monies would probably not be
enough. On the other hand, TFE would be able to
maximise funding initially created by the Grant
Generating Banks.To do this by taxation, or by
fundraising is unnecessary, and backward. The best,
and most effective means of achieving these aims is to
have new money created responsibly.

The financial genius, George Soros has suggested that
the Special Drawing Rights (or SDRs) of the
International Monetary Fund could be created as grants
rather than loans. These would help the Third World,
and the idea is strikingly similiar to the concept of
the creation of new unearned money in TFE.

Ofcourse, people make the valid point that there is
more than enough money to change the world many times
over. The problem lies with legal access to it
whenever there is a genuine need for it. This is the
key point to grasp. 
 
 



The Major Anti-Tax Arguments.
 



There are a number of excellent reasons for the
abolition of direct, and indirect taxation. They are
as follows.

1. It is now a gross absurdity to raise money through
taxation when it can be easily created in a measured
way by the relevant authorities without fear of
hyperinflation.

2. Everyone is entitled to all the money they earn,
and as such it is morally wrong to have some of it
deducted for tax purposes when it is no longer
necessary.

3. It is highly unethical to fund any waste, and abuse
of government spending.
 
(This incidently includes the National Debt which is
created by governments borrowing from private
commercial banks. This is mainly paid for by the
taxpayer.With TFE though this could be paid off, or
destroyed as the elected authorities would have legal
powers to do so via a Treasury Bank.)

4. Increasingly, the super-wealthy are finding legal
loopholes to avoid tax, and as such they are not
paying their fair share into the system. As a result
all this means that the less well off are having to
make up for the shortfall which is wrong. The
situation is further made worse when  bank accounts
can be easily switched from one country to another 
thus making the life for the tax inspectors hell. 

5. It is we, the people who create the real wealth of
the country in  the form of products, and services.
Why then should we continue to be ripped off by a tax
system when we can now at long last be rewarded by a
democratic government with a policy of Non-Taxation?
Why should we continually have to pay for everything?

6. Many wars,and revolutions have been directly, or
indirectly caused by taxation. Its abolition would be
popular, and a potential vote winner....as most people
are more interested in their financial status than in
politics, and politicians. TFE would thus be highly
attractive to the masses.
 




Interest Free Monetary Reform.
 



At the present time radical monetary reform is
concerned with the power of banks. These private
commercial companies create virtually all of the money
of  the world as loans, or credit.  Strictly speaking,
governments issue the rest as coins, and paper. The
banks though produce it "out of thin air" by simply
adding figures of a higher monetary value onto paper,
and computers.  There is also meant to be a limit on
how much they can create, and this is based on "money"
 kept in reserve. This whole set-up is called
fractional reserve banking. The banks ofcourse make
huge super-normal profits on their loans for
commercial, governmental, and private use (eg.
mortgages).

Some critics of fractional reserve banking have stated
that it is a fraud in that it counterfeits the
national currency. More seriously, it produces
non-existent "funny money" which is unwittingly
accepted by all, and sundry. As with TFE they are able
to create new unearned money on daily basis but as
something which is repayable.

Since virtually all of the money in the world is
produced  by banks it is believed that changes in the
interest rates of their loans may well be the real
cause of inflation. When the economy is not doing well
the interest rate on borrowing notably for businesses
is reduced to encourage a high take up. This in turn
means expansion of commercial enterprises, and
increased employment leading to a general material
prosperity. As more, and more money is allowed to
circulate it has to be somehow reduced to avoid
serious degrees of inflation. This is done by raising
interest rates on loans so that they discourage
commercial take up. This results in less business
expansion, decreased employment, and a certain amount
of economic depresson. The whole cycle is then
repeated. 

Anyhow, the aim of monetary reform itself here is to
have loans created without interest. This could put a
complete end to the business cycle of "boom", or
"bust" just described. Interest free loans would be
highly beneficial for the economy, society, and
politics.It would also mean that the banking system
itself would no longer be a massive commercial
enterprise. Instead, an independent public authority
would issue interest-free credit.

The big problem here ofcourse is that the banks are
very powerful indeed. They would take immediate legal
action against any country if they felt that their
huge global monopoly was being seriously threatened.
One way then to successfully undermine their great 
power is to use Simultaneous Policy. This is the
modernization, and popularisation of an old concept.
In it people can at election time vote for those
candidates who are willing to accept their policy
proposal. The aim here ideally is to get most
countries to try, and implement it simultaneously.
Such an approach could be used against banks who would
have little, or no choice but to comply to their own
demise. This could make way for independent public
authorities which would lead to an interest free, and
indeed, a tax free economy.

More controversially, there is another approach
suggested by TFE. Banks could still make super-normal
profits but without charging their customers. How? The
answer lies with the concept of auto-profit companies.
These receive new unearned money as profit. Their
calculation is directly based on the business records
of their clients. Yet, interest free monetary
reformers would be horrified by such a proposition,
but at least it could make the transition from a
interest based economy to an interest free one alot
easier.

This brings us to another point. Non-Taxation Monetary
Reform (ie. TFE) is far more important that
Interest-Free Monetary Reform as its social, economic,
and political benefits are totally outstanding. The
latter should be united with the former if it is to be
truly successful, or have any real impact on the
public. As such Interest-Free Monetary Reform is seen
as being of secondary importance compared with
Non-Taxation Monetary Reform. Thus, both proposals
make up Transfinancial Economics, or TFE. 
 
 



Sustainable Economics, and Resource Scarcity.
 
 


In the present era we live in a high growth economy.
Green Sustainable Economics believes that this has
lead to over-production, and over-consumption. It
suggests that people should simplify their lives, and
reduce their wants so that little, or no more natural
resources are used up. In other words, it sees the
zero, or stationary growth economy as "the way
forward." In such a world people would live in small
self-organising, and self-sufficient communities
consisting of family businesses, and cooperatives. A
LETS (Local Exchange Trading Scheme)could also be
included, and this is simply a made up alternative to
money which would be acceptable to those in the area.
Food would largely be grown locally. Here, ofcourse,
we are not discussing socialism, and redistribution of
wealth but rather a fairer distribution of it.

All this sounds fine in principle but it would take
many decades before it became a national, and indeed,
an international reality. By then most, or perhaps all
natural resources would have been used up. The ideas
presented in the last paragrah are understandable
reaction to governments, and big business. It is an
attempt to be free of them, and instead take on the
laudable mantle of self-sufficiency, and a more
simple, and slower pace of life. Unfortunately, it
does NOT change the big problems of the world which is
far more important. TFE is in the main concerned with
this, and nothing else. Big changes require big ideas
that must seriously address, and challenge the status
quo no matter how difficult it may be.  

The reality is that in  the present high growth
economy much of the earths wealth is being massively
depleted at an unprecedented rate. Non-renewable oil,
and coal are classic examples of this. But, all is not
lost. New ideas, and green technologies are emerging
which could help our planets plight. 

In TFE it is believed that sustainability is indeed
possible in a high, or rather higher growth economy.
With the huge influx of new unearned money, and
interest free loans, NGOs, and businesses will be able
to speed up as never before the research, and
deployment of various "safe" complex (eg.
nanotechnology), and "simpler"  clean, cheap,
renewable technologies (ie. wind power, solar energy,
biomass, and wave power) to "save the planet."
Moreover, such funding can come independently of
governments, and transnational corporations, or TNCs. 
In a like manner, future democratic governments, and
even certain NGOs along with businesses would be able
to undertake any gargantuan environmental (or
non-environmental) project that might  be vital for
the survival of the human race.

Space research itself could be stepped up to find any
alternative resources on other planets that may be
invaluable for our world, and environment. This would
involve massive injections of capital to be
worthwhile, and successful. Ultimately, other planets
would be colonized.

Alternative community currencies such as LETs (already
mentioned) are fine for possible small-scale projects.
Yet, they are not legal tender, and cannot effectively
deal with the really big problems of the world.
 





The Third World, and theTransnational Corporations.
 
 



Year in, and year out millions of people mainly
children die in Africa. This is a wholly unacceptable
situation. To help relieve poverty a number of NGOs
notably exist, but if they had legal access to
continous funds they  would be able to do so much
more. At the same time many lives would be saved from
useless, and pointless death. With TFE this would be
possible without public donations, or indeed,
government aid. The ultimate aim of such Third World
NGOs is to help the poor help help themselves.


A key factor to the terrible poverty in Africa, and
elsewhere in the Third World are the unfair trading
laws, and the gargantuan power of the Transnational
Corporations, or TNCs. The former does not fully allow
the poor to export its goods to rich countries due to
restrictions. Thus, they are unable to earn their way
out of poverty. The TNCs themselves on the other hand
benefit from this situation as it gives them  a huge 
monopoly over the production of goods, and services in
the Third World. This earns them billions in exports
to rich countries as they can get everything on the
cheap (notably labour). At the same time, they have
caused a large  amount of environmental destruction
which is is totally unacceptable.

What is needed are genuine enforceable international
trading laws which favour the poor as well as the
rich. This could happen via Simultaneous Policy
already mentioned.Yet, even if this were to come about
it may still be difficult to enforce such legal
measures. In TFE, there is a vital solution
irrespective of whether they would exist, or not..
 
NGOs concerned with such matters of corporate
responsibility (or lack of it!) would be able to
successful challenge, and indeed, reform the TNCs with
various business tactics (eg.buying up shares). The
reason being ofcourse is that they would be
financially empowered as never before so that they
could deal with them on a level playing field unlike
now. This would be a big step forward for global
justice.

Another problem with the Third World notably in Africa
is getting aid to the right people. Much of it has
gone instead into the pockets of corrupt officials,
and dictators. However, with financially empowered
NGOs concerned with such issues would be able to fully
fund new, and existing ways of avoiding this as far as
is possible. 
 
The arms-trade which has sold many weapons to the
Third World where wars have been known to erupt could
be curtailed by future democratic governments. The
reason being is that these elected authorities  would
no longer have to rely on existing businesses to bring
in great economic prosperity. If necessary they would
always have the funds to stimulate more acceptable
alternative enterprises which could be more profitable
via business grants, and interest free loans. Also,
the "corrupt" link between governments, and big
businesses would be broken. The needs of the people
will become paramount.
 
As can be seen here the Third World is a complex issue
with no easy solutions. But with TFE so much more
could be done which is positive, and progressive, and
indeed, in keeping with the Universal Declaration of
Human Rights.





Greater Equitable Income.
 




Though not as appalling as the Third World a certain
amount  of poverty exists in the rich nations of the
globe. With TFE there is always the finance available
to governments, and NGOs to alleviate it. At the same
time, there are a number of ideas which exist on
paper, and in reality to deal with this. These include
the basic re-occuring theme of people owning a fair
share of the profits of a company (as well as possibly
receiving a working wage). The Co-operative Society,
and Binary Economics could be seen as instances of
this kind of thinking. Because of their high ethical
nature their creation would probably be aided with
interest free loans, and indeed, new unearned money
where capital may be difficult to come by. 

In a genuine cooperative where money as profit, or
wages is shared equally there is a possible problem.
It could well result with having no capital to fund
greater expansion. In TFE, it could well be eligible
for new unearned money as a business grant.

Anyway, apart from this there is a  more radical
approach to poverty alleviation. It is the Universal
Basic Income, or UBI. This is intended for everyone as
a human right irrespective of their means. With TFE
such a policy would be easily implemented. Another
similiar idea which exists in the developed world to
varying degrees is income support for those who are
under-employed. Here, TFE could top up the amount of
money people were getting in this manner, and also
give them a greater range of courses, along with new
jobs, or business oportunities. 

It is interesting to point out that the social stigma
of being a "parasite" living off the state when
receiving such benefits would disappear. In TFE there
is no "robbing" of anybody via taxation.
Significantly, any new money sent for  the Third World
 would loose its shame as it would no longer come from
an earned source (ie taxation, donations,and
fundraising)but from an unearned one (ie. the Grant
Generating Banks).

Furthermore, pensions in the future could be funded
properly with new money. Thus, those who have worked
all their life for the economic betterment of the
community would  benefit.

A more astonishing aspect of TFE is that special
businesses, and and/or NGOs could be created in the
future. With increasingly automation jobs would become
very difficult to find until a stage is reached where
most of the population is jobless. In Binary Economics
a large number of people could live off the profits
generated.
 
However, in TFE  new forms of "work" could also appear
where, and when necessary which may be more akin to
"leisure-type" activities. This would all be paid for
by new unearned money rather like the Auto-Profit
concept described earlier on with banks. This ofcourse
would be a revolutionary step forward, as it would
mean that in the future people would still have more
than enough money to buy products, and services.
Ultimately, this medium of exchange would  be
abolished, and everything would be free on demand.





Non-Taxation Past, and Present..




Transfinancial Economics, or TFE is a a new paradigm
in so far as it is a modernization of an old concept.
Self-supporting communities have always existed with
little, or no taxation.

Social Credit which was founded back in the early 20th
Century by Clifford Douglas believed in new money, or
rather what it termed debt-free money. It claims that
if sufficient amounts of it were created there would
be no serious inflation. The key point to understand
about Social Credit is that its debt-free money does
not appear to replace taxation and is thus limited. .

A book with the misleading title of Public Finance
Without Taxation by Ronald Burgess exists. It deals
with Henry Georges economic  reform. This involves the
notion that a rent, or rather more accurately, a
property tax on land could be levied to fund
governmental programmes. In other words, it does
involve a form of taxation which contradicts the title
of the aforementioned book!

Interestingly, an advanced socialist system has been
suggested in which everything is run by co-operatives.
Since all the wealth would be fairly redistributed
there would be no need for any taxation. However, in
genuine utopian socialism there is no money. Instead
all necessary activities are done out of  service to
the community. 

Abba Lerner the founder of Functional Finance appears
to have believed that savings could lead to a
situation of lower taxes, or indeed, zero taxation.
John Gelles came up with the same ideas independently,
and is a prolific emailer on monetary reform, and
related topics. 
 
John DeSantis, in Baltimore USA had a vision of
economic reform in which taxes would not exist. His
ideas appear on a website, but as he himself admits
they require improvement. Shauna Mckay has similiar
notions  with her ideal of the Perfect System.
Xat.community org. is a LETS group, and believes in
Non-Taxation, and has even made the claim that
alternative currencies would ultimately replace legal
tender!Also, an engineer called Theodore Thoren used
mathematics to claim that zero taxation was possible.

Ofcourse, in times of emergency, and revolution
governments have been forced to partly, or even fully
finance their expenses via the printing of new
unearned money. Examples include the American War of
Indepedance, the French Revolution, the American Civil
War, and the Russian Revolution.

Finally, to end our section on TFE there is a claim
circulating on the internet that  Benjamin Franklin 
spoke  of  Colonial Scrip which was a successful
monetary currency that was actually  free from
taxation, and acted as the national medium of
exchange. It could also be borrowed without interest.
This financial arrangement occured just before the
American War of Independence but research has yet to
admitedly  confirm these claims.

Transfinancial Economics (ie.TFE), or Non-Taxation
Monetary Reform does not pretend to be the ultimate
panacea of all the ills of the world. But, it does lie
at the very foundation of global justice itself.
 



Some Key References.
 
 
An exhaustive listing is not presented here.


Adams, Charles, For Good, and Evil; The Impact of
Taxes on the Course of Civilization. Madison Books,
1999.

Bunzl, John. The Simultaneous Policy; An Insiders
Guide  to Save Humanity, and the Planet. New European
Publications, 2OO1.

Hertz, Norena, The Silent Takeover; Global Capitalism,
and the Death of Democracy. Heinemann, 2001.

Rowbotham, Michael, The Grip of Death; A Study of
Modern Money, Debt Slavery, and Destructive Economics.
Jon Carpenter,1998.

Sabine, B.E., A Short History of Taxation. Lexis
Publishing n.d.

Stanlake & Grant, Introductory Economics, Longman,
1995


Zarlenga, The Lost Science of Money; The Mythology of
Money..the Story of Power. American Monetary
Institute, 2002.





	
	
		
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