[GJM] CONTROLLED "HYPERINFLATION, " BUSINESS UNDERSTANDING, AND PRICE PSYCHOLOGY IN TRANSFINANCIAL ECONOMICS (MARCH2008).("solution to the financial system and the problems ofthe world.")

[robert searle]

Dear Ashish Sharma,

        Thank you for the greater clarification of
your system which seems to have an understanding of
fractional reserve banking, and essentially appears to
be concerned with the continual issuance of electronic
debt-free money which ofcourse is then earned in the
normal fashion. I am not quite sure how inflation
comes into the picture.Maybe if you have time you
might explain more on that specific topic..

Good Luck..


Robert Searle



--- Ashish Sharma
<ashishsharma at electroniccurrencytime.com> wrote:

> Dear Robert,
> I thank you for your e mail. I will try explain in
> simple words but when it 
> is mathematical then equation is equation.
> In simple words, Income Cycle rotation can be
> explained as in e currency 
> system there is no leakage of money, while in paper
> currency system money 
> multiplies itself to ten times considering the
> reserve ratio as 10%. That 
> means 1000 units of currency at best can become
> 10000 units of that 
> currency. The formula in the multiplier concept is
> "deposited money/reserve 
> ratio" i.e., "1000/0.10=10000 units of currency".
> But when there is no 
> leakage in the system and Bank has all the money
> deposited with itself 
> without hampering the liquidity of the money
> transaction then the ratio and 
> the result will be 1000/0= INFINITY, where 1000 is
> the money and 0 is the 
> reserve ratio i.e., no reserve required to be
> maintained by the Bank.
> This is possible when the entire monetary system is
> e currency. There will 
> be three broad segments of the economy. 1. Bank, 2.
> Government, and 3 . 
> Citizen/ General Public. In e currency system
> because Bank is the governor 
> of the money they will download all the transactions
> on to their computer at 
> the time when citizen and Government approach them
> for fresh issue of 
> transaction codes. In other words, there will be
> parallel records of every 
> transaction First with the Bank and Second with the
> Government and Citizen. 
> This parallel record will ensure that trasnaction in
> e currency system will 
> have the liquidity equal to cash in paper currency
> system and on the other 
> hand Bank will have all the money always with them.
> In fact, in e currency 
> system bank will be doing just book entries that is
> they will just record 
> the total money some time as $500 with A and $ 500
> with B ( Total money $ 
> 1000) and some time $ 250 with A, $450 with B and $
> 300 with C ( Total money 
> still $ 1000.). Now, because Bank has all the issued
> money always with them 
> with the added advantage of liquidity as good as
> cash for A, B and C making 
> them transact without any hurdles. Bank will not be
> required to keep any 
> reserves, because all the issued money will always
> be with the Bank still 
> people don't find any hurdles for their
> transactions. As all the money will 
> always be in the system, nobody will approach bank
> for withdrawal of funds 
> making bank to not to keep any reserve funds. When
> Bank is not keeping any 
> reseves that is zero reserve then automatically
> money will multiply itself 
> to infinity that is "Money/0=INFINITY".
> In fact, I have got the prototype developed to prove
> my claims. If I am 
> given a chance to present the demonstration, then I
> will be in a better 
> position to explain the system, because seeing is
> believing.
> Regards,
> Ashish Sharma
> ----- Original Message ----- 
> From: "robert searle" <dharao4 at yahoo.co.uk>
> To: "Discussion Forum for Global Justice" 
> <discussion at globaljusticemovement.net>
> Sent: Thursday, March 06, 2008 7:03 PM
> Subject: Re: [GJM] CONTROLLED "HYPERINFLATION, "
> BUSINESS UNDERSTANDING,AND 
> PRICE PSYCHOLOGY IN TRANSFINANCIAL ECONOMICS
> (MARCH2008).("solution to the 
> financial system and the problems ofthe world.")
> 
> 
> >
> >
> >
> > Dear Ashish Sharma,
> >
> >        I would grateful if you could kindly
> explain
> > the "mechanics" of the Income Cycle rotating to
> > infinity in a few COMPREHENSIVE words and in
> SIMPLE
> > ENGLISH without having to go through diagrams,
> maths,
> > et cetera. This would be a great help to everyone.
> It
> > would also help your CAUSE. I am sure you must
> realize
> > this point .
> >
> > It is all very well having great thoughts, and
> ideas
> > but they need to be expressed in such a way as to
> be
> > fully comprehensible in the shortest space of
> time.
> > ..Like yourself, I have this problem too, and try
> to
> > explain TFE as lucidly at possible though at times
> it
> > is not easy......
> >
> > We await your cooperation.
> >
> >
> > Best Wishes,
> >
> > Robert Searle
> > --- Ashish Sharma
> > <ashishsharma at electroniccurrencytime.com> wrote:
> >
> >> Dear Rodney,
> >> Thanks for acknowledging the practicability of
> the
> >> concept 'ecurrency system'.
> >>   1.. Money supply,like the present paper
> currency
> >> system, will be originally issued and controlled
> by
> >> the Apex Bank of the country.
> >>   2..  Apex Bank of the country will through
> other
> >> banks issue electronic currency pads bearing
> unique
> >> code number to all segments of the economy.
> >>   3.. The bank will keep a computer generated
> >> register for keeping the record of the issuance
> of
> >> the electronic currency pad to the citizen. At
> the
> >> time of implementation of the ecurrency system,
> all
> >> money belonging to the respective citizen will be
> >> transferred to the electronic currency pad issued
> to
> >> them. Now the amount mentioned as money balance
> in
> >> the Electronic Currency Pad will be the amount
> >> belonging to that owner of the electronic
> currency
> >> pad. paper currency will be totally abolished
> saving
> >> huge amount of printing and minting costs. These
> >> Electronic Currency Pads will be issued to the
> >> Citizens as individual having attained a
> >> predetermined age as policy decision, to the
> >> business sector and to the Government sector.Bank
> >> will have the key role for conducting and
> regulating
> >> the economy. Now people will transact through
> their
> >> electronic currency pads.
> >>   4..  I think it is very difficult to change the
> >> entire system at one go. Therefore, I have
> suggested
> >> to implement the system initially in phases as an
> >> alternate      to credit card/debit card system.
> >> Because credit card system we all know has led to
> >> the immense fraud creation. Anybody who has the
> >> number/clone/duplicate credit card can easily
> create
> >> havoc. Electronic Currency Pad is a fool proof
> >> system. (I can prove my contention if I am given
> a
> >> chance to demonstrate). Electronic Curreny Pads
> can
> >> easily replace credit cards. Gradually as people
> >> accept the electronic currency pad system's
> >> reliability, ecurrency system will become the
> legal
> >> tender replacing the paper currency system.
> >>   5.. E currency system when implemented
> exclusively
> >> will generate the Income Cycle having the
> >> potentiality to rotate itself to infinity
> increasing
> >> the intrinsic value of the money, resulting in
> >> solving almost all the socio-economic problems of
> >> the society. Money will keep on multiplying
> itself
> >> even if  you stop charging interest. Details how
> the
> >> money will increase itself is in the document I
> >> attached to my earlier E mail in the  form of
> >> equation, balance sheets and diagram. Kindly do
> go
> 
=== message truncated ===



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