[GJM] CONTROLLED "HYPERINFLATION, " BUSINESS UNDERSTANDING, AND PRICE PSYCHOLOGY IN TRANSFINANCIAL ECONOMICS (MARCH 2008).

[robert searle]

Dear All,

       It must be remembered that the previous posts
concerning inflation controls in TFE are drafts. They
are just ideas being thrown around. These "ideas" may
not always be correct yet they are attempts to
understand, and remedy a very important subject using
existing concepts, and modifying them in an electronic
context.

Fantastic as it may seem "hyperinflation" in TFE if it
were ever to happen could be directly controlled
without damaging, or indeed destroying the economy.
The main reason for this is that virtually all
products, and services when paid for, and go through
the bank computer would be subjected to an instant
inflation adjustment (ie. an electronic inflation
check). This means the value of money rises at the
same rate as inflation on prices. If left unchecked
both consumers, and producers would be dealing with
astronomical sums of money. Yet, no devaluation of
currency!!!

However, such a situation could be avoided, and SLOW
DOWNED before it ever reached the "hyperinflation"
status. There are two key electronic methods of price
subsidization (ie new non-repayable money to
discourage price rises, and/or even part payment for
the inflated portion on the profit on some registered
product)and/or inflation "taxation". Incidently, I
have gone off the notion of lowering the electronic
Price Ceiling as this could prove to
counter-productive in the long-run. 

Anyway, so far as one can see if "hyperinflation" were
ever to arise in TFE certain novel strategies could be
implemented electronically.


1. Price Override.

      This is when prices rise, and are continually
marked down several times automatically by the banks
transction/inflation control computers. This would be
a gradual process. It is very much like an inflation
"tax" or rather deduction but the purchasing power of
such money is still maintained in relation to the
entire economy.


2. "Hyerinflation" Control.

      To some extent this may appear to be an
emergency situation. In TFE this is not so because one
method to deal with this is a general education of the
public, and especially businesses. The latter could
deal with hyperinflated money to a limited extent.
Yet, the profits, and retail prices are
instantaneously  interpreted by bank computers into
their higher inflated counterparts (as opposed to
their hyper-inflated figures ofcourse). Such an
approach would require new business understanding ,
and pricing psychology for it to be understood, and
accepted.

Thus, hyperinflation and the damage, and destruction
it would cause to the economy would no longer be
possible. Yet, in TFE such hyperinflated pricing
should still be avoided with the aid of "old", and
"new" electronic strategies of direct super flexible
controls over inflation levels. Again, it should be
repeated this would SLOW DOWN the process towards
possible controlled "hyperinflation" 

A Wikipedia article on hyperinflation might of
interest. It makes the important point that the worst
case scenarios of it was when PAPER MONEY was in use
as opposed to the electronic transmissions of it from
one account to another. 

  http://en.wikipedia.org/wiki/Hyperinflation


Robert Searle

 Please note more detailed versions of the above are
still in development...




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