[GJM] Likely Final Draft of TFE Paper.

[Martin Hattersley]

I'm not really convinced by the thrust of your paper.

I would at least like to know what program your "advanced computer 
technology"  would be running in order to save the value of the monetary 
unit when major quantities of state created money are put into circulation.


Martin Hattersley
5929 - 189 St.,
EDMONTON AB CANADA T6M 2J1
Phone (780)483-5442.
jmartinh at shaw.ca
e-mail: hattersleyjm at interbaun.com
----- Original Message ----- 
From: "robert searle" <dharao4 at yahoo.co.uk>
To: <discussion at globaljusticemovement.net>
Sent: Sunday, September 03, 2006 6:35 AM
Subject: [GJM] Likely Final Draft of TFE Paper.


>
> 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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