[GJM] [gang8] Transfinancial Economics Project/ Revealing Comments 1.

[robert searle]

Dear All, 

        I managed to get my project on Transfinancial
Economics accepted onto the moderated Gang8 discussion
yahoo group site. This  is connected with the Michael
Hudson website on creditary economics. This seems to
attract economists, and their kind. Unfortunately, TFE
stretched their intelligence too far..and the piece
below did not appear on their Gang8 yahoo discussion
site. 

Evidently, the basic right of reply is a no go area
especially if it REALLY exposes the inadequacies of
the academics concerned......

I include critique 1, and critique 2 in a separate
email...if indeed, they could be seen as critiques at
all..as many people make superficial,and ignorant
comments on TFE simply because they have not read the
present essay on TFE properly on the internet.

R.Searle



Dear Gang8,

       It was revealing what comments were made by the
two academics. One thing is clear at the outset is
that we are dealing with the old guard of the economic
world who are probably also right wing if they are
honest enough.

i) The project may seem at first sight to be "nutty"
but actually it is not if one has the time, and
patience to read through it carefully, and
sensibly...ideally without preconceived notions
ofcourse!. Certainly, TFE is radical in extremis
especially for old guard economists though I have come
across more enlightened beings. 

ii) It is quite clear that the issue of money creation
in spite of what has been published is still a grey
even among those who claim to be economists. This does
not bode well. It is as if a veil of secrecy were
placed over it!!

iii) Fractional Reserve Banking is not a concept but a
reality of most (note the word most) countries. This
is backed up by any number of sources, including
textbooks at graduate level by people who are NOT
so-called monetary cranks.

iv) I would agree that my presentation of the
Fractional Reserve Banking was deliberately
simplistic, and undoubtely there will be variations of
it, plus certain "systems" quite dissimiliar to it in
a minority of countries in the world. This is still
subject to research, and clarification with the aid of
relevant literature, and "experts".


v) Ofcourse, I am NOT necessarily suggesting that
interest free loans should be created by state banks
as opposed to private ones. This would probably be
undertaken by commercial banks but the profits
(including services charges of one sort, or another 
would be generated by an independent public body, and
this would depend on the customers business/account
records).

However, on the other hand, unlike the State Banks of
the old Soviet Union there would be tighter controls
to ensure money was not wasted. Incidently, in TFE the
amount of credit creation would in theory be infinite
without fear of inflation as this would be controlled
by advanced computers systems.



I have to confess certain comments about banking made
by the two learned gentlemen seem "fantastical", and
they should have know better not to have made them in
a public forum. I am not going to repeat them here as
it is pretty obvious to anyone as to what I am
referring to.

It would be interesting to see if the forum gives me a
right of reply on all this (which it did not ofcourse
but Michael Hudson made the point that banks can lend
to NON-BANK customers). 


Regards,

Robert Searle.


PS. I remember talking to an old guard Economist(!!!)
at the LSE in the UK, and when I mentioned about the
possiblity of state banks he went beserk. He likened
the idea ofcourse to the failed Soviet experiment in
monetary reform. Ofcourse, there is no reason to
believe that in the future there could be public
bodies which could create credit interest free. Yet,
the right accountable legislation would need to be
developed to ensure their success!


--- "D.J.Bezemer" <d.j.bezemer at rug.nl> wrote:

> Goeffrey,
> 
> Agree, I had not even replied to this idealistic
> project since it 
> seemed nutty to me -  plus people would presumably
> start to create 
> their own forms of credit if the state did not
> extend it to them.
> 
> But: > Banks are only intermediaries. They do not
> create money for
> >themselves but for their depositors.??
> 
> 
> Not so sure. Here we return to an old debating
> issue. If the credit 
> market is truly quantity rationed then, as Richard
> Werner argues, 
> banks have a remarkable ability to ' push loans',
> far beyond the 
> abiltiy of clients to demand loans. Effectively,
> banks' not client 
> preferences determine the creation of loans.
> > 
> > 'Fractional Reserve Banking' is a concept, not a
> reality. It does 
> >not exist in the British monetary system. The
> reserves a UK bank 
> >keeps are not a fraction of its deposits but its
> estimated liquidity 
> >requirements in the next few days. The supply of
> liquidity is totally 
> >under the combined control of the Central Bank, the
> FSA, and the 
> >Treasury. The liquid reserves consist of Bank of
> England debt and no 
> >other bank can force the Bank of England to go into
> debt.
> > 
> > As a good rule of advice, if you find a 'monetary
> reformer' talking 
> >about 'fractional reserve banking', you can take
> that he does not 
> >understand the system and should be ignored.
> > 
> > 
> > 
> > GWG
> > 
> >  ----- Original Message ----- 
> >  From: dharao4 
> >  To: gang8 at yahoogroups.com 
> >  Sent: Thursday, September 27, 2007 10:13 AM
> >  Subject: [gang8] Transfinancial Economics
> Project.
> > 
> > 
> > 
> >  Dear All,
> > 
> >  Some of you may like to comment about my
> research, and 
> >  development project which offers a radical, but
> possible solution 
> >to 
> >  many of the worlds problems. It is called
> Transfinancial Economics, 
> >or 
> >  TFE.
> > 
> > 
>
http://kheper.net/essays/Transfinancial_Economics.html
> > 
> >  Regards,
> > 
> >  Robert Searle
> > 
> > 
> > 
> >   
> 
> 












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