[GJM] [Radical Economics] Transfinancial Economics - not clear to me, part II

[robert searle]

Dear Donald Vreeland,

       Yes, the prices are "pegged". But unlike the
attempts of price controls in the past advanced
computer technology can allow for a high degree of
price flexibility which would make it compatable with
the present capitalist system....that is the
revolutionary part. 

Money during transactions would not be devalued in
this system as it would be subjected to continous
computer checks. This can be a complicated subject but
some indication of how it could work is explained in
the paper. 

Though businesses would resent super-flexible price
controls at first they would soon realize it is to
their own benefit because direct, and indrect taxation
would no longer exist. Interest on loans would no
longer exist, and ofcourse the business cycle of
"boom", and "bust" would no longer exist either. 

As for Corporations in the Third World they could
become more ethical, and sustainable as they could be
"bribed" by huge financial incentives in the form of
grants, and interest free loans. In other words, they
could be paid to convert their technologies to complex
sustainable ones, and their products, and services
could also become safer, more ethical, and in keeping
with the environment in some manner, or other. Profits
would ofcourse be heavily subsidized by authorized
transmissions of new unearned money. 

Poor workers could have their wages subsidized, and
health, and safety for them could be monitored by
relevant NGOs who would financially empowered as never
before. Ideally, ofcourse, this should be the job of
government agencies in the Third World but this is
unlikely to happen for the time being.

One of my contacts described Transfinancial Economics
as being akin to the "discovery" of the Theory of
Relativity in physics. It is revolutionary when you
start to understand it properly

Regards,


Robert Searle. 


--- Donald Vreeland <dutchvreeland at yahoo.com> wrote:

> I'm fascinated...  Hmm... Very interesting.  Are you
> saying that the prices are, for lack of a better
> term,
> 'pegged' somehow, according to... well, I'm not sure
> about this... a certain wage that is also 'pegged'
> so
> that there is never loss of purchasing power?  
> 
> Keynesian economics continually expands the economy,
> hopefully raising standard of living faster than
> inflation.  As I understand your system, inflation
> is
> eliminated and 'pegging'?  No?  
> 
> I'm trying to understand.  I'm interested. 
> Fascinating.  Your language seems etherial.  
> 
> Forgive the informalities.  No formalities needed
> for
> me.  
> 
> --- robert searle <dharao4 at yahoo.co.uk> wrote:
> 
> > Dear Donald Vreeland,
> > 
> >               I think you need to re-read the
> > section
> > dealing with inflation controls. It is really very
> > simple.
> > 
> >  What I am saying is that money existing mainly as
> > electronic transactions is indexed linked to
> changes
> > in inflation levels, and these can be continually
> > tracked. If certain registered products, and
> > services
> > go above the maximum inflation level then the
> > inflated
> > portion is automatically subtracted. In other
> words,
> > a
> > "fine", or cap. As indicated super-price
> flexibility
> > is possible allowing for competative capitalism to
> > exist but within the boundaries of the maximun
> > inflation level.
> > 
> > Most products, and services would have to by law
> be
> > registered as already suggested. Exemptions would
> > exist, and cash to a certain extent could still be
> > around but it would as now make up a near
> > non-existent
> > portion of the entire money supply which ofcourse
> > exists as electronic records held by bank
> computers.
> > 
> > Excess monies as electronic transmissions cannot
> be
> > devalued as they are ofcourse indexed linked.
> > However,
> > certain situations may arise in which dormant
> > accounts
> > perhaps totalling billions in rare cases might
> exist
> > simply because there is a shortage of certain
> > products
> > and/or services.
> > 
> > I am sure you must realize that there are many
> other
> > aspects to this yet to be worked out.
> > 
> > Regards,
> > 
> > Robert Searle
> > 
> > 
> 
> 
>  
>
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