[GJM] PRICE CEILING BREACH, AUTOMATIC FINES, AND INFLATION ADAPTION IN TRANSFINANCIAL ECONOMICS, OR TFE ( FEB 2008)...............................

[robert searle]

Dear All,

       The process of developing ideas for inflation
control is on-going. Even if the most "perfect", and
"acceptable" system is found the economists of the
future may well improve upon it. Here, I reveal one
likely model that may be of interest.............


As soon as mandatory price registration is introduced
replacing income tax certain sectors of the economy
may start to have price rises. How rapid, and how
comprehensive this would be is difficult to estimate.
The following could be undertaken.

I) At certain intervals the whole or certain parts  of
the enconomy could have its retail (and trade)prices
raised in real terms electronically. This is Keynes
famous "money illusion".

II) The Price Ceiling could be electronically lowered
(or raised) in parts or even the whole of the economy.
This means that as soon as the PC is breached it is
recorded by a simple inflation check at the point of
transaction, and an automatic fine is issued. Very
quickly these fines become very heavy (rather like the
late payment of income tax dues, and the ensuing
fines!!!)and the business(es) involved have no
alternative but to comply to inflation legislation, or
else face the serious possibililty of bankruptcy. In
other words, they have to lower their prices below the
PC. This would ultimately lead to responsible pricing,
and more stable market prices. This process is known
in TFE as inflation adaption.

c) Possible Price Distortions.

This may lead to some price distortions in the market.
However, no doubt some kind of automatic electronic
control could be created to deal with such situations.
Indeed, a certain amount of price subsidization
transmitted by banks using debt-free non-repayable
money could be undertaken. This has yet to be fully
thought out like much of the stuff on inflation
legislation in TFE....

d) Electronic Inflation Value Converter.

It should perhaps be said that banks could
automatically, and instantly translate hyperinflated
prices into their "non-inflated" equivalent. This is
radical, and probably not really acceptable a notion
to society, and businesses!!


e) Proposed Inflation Controls "Draconian" like Income
Tax Legislation.

Admitedly, the PC breach fines discussed a little
earlier is arguably draconian but is possibly the best
way forward. More "complicated" methods for preventing
"run-away"inflation could be used.


f) Greater Demand for Products, and Services.

It is likely that within a transfinancial economy  the
demand for certain registered products, and services
may well increase. This could lead to problems (ie.g).


g) Temporary Shortages.

With the initial introduction of a tax, and interest
world there may be a time period in which shortages
occur for certain registered products, and services.
Businesses which find it increasingly difficult to
supply demand would get special commerical help from
democratic governments, and certain NGOs which could
notably help provide, or train skills; transmits
non-repayable grants, and/or interest free loan; 
source products,plus new, or alternative raw materials
etc.. but within the context of genuine SUSTAINABLE
DEVELOPMENT that makes the best uses of limited
resources of the planet within a high growth
economy....big subject!!!


What I am trying to show here is that there is every
possibility that a new credible financial system is
indeed possible ...with the full support of advanced
technology, and indeed, capitism (to achieve a fairer
world). TFE is the most important monetary reform in
the world, and needs to be taken more seriously even
though it is still in research, and
development...especially the super-flexible inflation
controls....................


Robert Searle. 







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