[GJM] CONTROLLED "HYPERINFLATION, " BUSINESS UNDERSTANDING, AND PRICE PSYCHOLOGY IN TRANSFINANCIAL ECONOMICS (MARCH2008).("solution to the financial system and the problems ofthe world.")
Ashish Sharma
ashishsharma at electroniccurrencytime.com
Sat Mar 8 10:35:23 MST 2008
Dear Robert,
How Inflation can be controlled through e currency system?
Inflation essentially includes excessive supply of money causing the
reduction in purchasing power in terms of real money.
In e currency system the intrinsic value of money will increase due to
rotation of income cycle. I will try explain the procedure.
Suppose there is 1000 units of total money in circulation. Now further
suppose this money is divided into three people A, B, and C; imagining them
the only citizen of a country "G". Now G is the Government, P, Q and R are
the citizen say "C" of the Country. That means Citizen "C" = P, Q and R.
Further suppose there is only one Bank say "B" in that Country. Now in e
currency system as I have already explained that all the money belonging to
either citizen or Government will always be deposited with the Bank without
simultaneously affacting the liquidity of the e currency transaction. That
is though the money is kept deposited with the Bank still people will be
able to transact freely having the liquidity as good as cash in paper
currency system. Now moving further this 1000 units of money (with P say
300+ with Q say 400+ with R say 300) will be also with Bank. That means Bank
= 1000 units and citizen (P,Q,R) =1000units because all the money will
always be deposited with bank. Here P, Q and R the only citizen of the
country "G" can freely transact among themselves to the extent of 1000
units. Because Bank is not required to keep any reserves therefore bank can
grant this 1000 units of currency to Government "G'. Now definitely
Government will invest this loan of 1000 units to its Projects. Citizens are
the workers in the project therefore this 1000 units of currency will reach
citizen in the form of their reward for their services to the Government
Projects. Suppose P gets 200 units, Q gets 500 and R gets 300 units. Now
their money is increased to P=300+200=500 units, Q = 400+500=900 units and R
= 300+300=600units. Final position at macro level will be 2000 units with
citizen (P,Q and R), Bank has net 1000 units [(1000 originally at the time
of introduction of e currency + 1000 further deposits by P, Q, and R their
rewards from Government totalling to 2000 units as total deposit)-1000 being
loan to the Government)], Government G has the figure of(-)1000 units as
loan from the Bank. Net position of the economy will be 2000+1000-1000=2000
units. Now Bank who has 1000 units as net deposits can further again grant
1000 units of currency to Government G. Government will invest this fresh
1000 units on to its projects, again citizens being workers to the
government projects will get 1000 units in the form of rewards to their
services making their total assets to 3000 units ( 2000 units as earlier
stated + fresh 1000 units now received). Now the position at macro level
will be 3000 units with Citizen, (-) 2000 units with Government and 1000
units with Bank. This process when repeated will create and rotate Income
cycle. This rotation can be to any number of times making citizen richer,
government taking those projects which were considered to be almost
impossible for want of funds as now fund can created internally without
depending on the Foreign Grants.
>From the above we can easily observe that (i) Citizen is getting richer,
(ii) Government is getting ample amount of funds as loan for its projects
while net deposits with the Bank remaining static. That is though no new
money is pumped in still people will enjoy greater purchasing power with no
shortage of money(as money is creating money), higher standard of living,
increased national income, no unemployment problem. When Countrys' total
assets are increased with no further introduction of the currency then I
think automatically intrinsic value will increase with no fear of inflation
problem.
I again insist that practical demonstration of the prototype will better
explain the impact on the economy.
Most Sincere Regards,
Ashish Sharma
----- Original Message -----
From: "robert searle" <dharao4 at yahoo.co.uk>
To: "Discussion Forum for Global Justice"
<discussion at globaljusticemovement.net>
Sent: Saturday, March 08, 2008 8:53 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 All,
>
> I have just noticed Mr. Johnson has woken up
> again...Personally, I was able to download the
> attachment but it did not really explain much even
> though it gave the impression of doing so.
>
> It seems that Ashish Sharma is indicating that the
> Income Cycle is like debt-free money (..but in his
> "theory" the money supply is not increased???)..though
> I may be utterly wrong. It would be interesting to see
> if he responds at all, and whether he can give a
> really satisfactory,and clear answer(s) as to how
> inflation could be controlled (in TFE the key tool is
> now an instant Inflation Deduction, or a "Tax" if such
> it can be called). Personally, I am not optimistic but
> I hope I am wrong, and that he will come up with
> something ingenious.
>
> Ofcourse, Mr. Johnson who is such a bright spark has
> not come up with anything original about how the
> world could be put to rights using a new kind of
> financial system, and approach. No suprise there!
>
>
> R.Searle.
>
>
>
>
> --- Zack Johnson <zackjohnson at louisiana.usa.com>
> wrote:
>
>> "Money supply is not required to be increased
>> additionally instead system will itself increase the
>> money supply through INCOME CYCLE as
>> explained in the attached document earlier."
>> ----------------------------------------------------
>>
>> Unfortunately, Ashish, the list software does not
>> forward attachments, so none of the subscribers
>> received it.
>>
>> Please send the document directly to my personal
>> email address.
>>
>> Thanks.
>>
>> Zack Johnson
>> Certified Public Accountant
>> Monroe, Louisiana
>>
>> ----- Original Message -----
>> From: "Ashish Sharma"
>> To: "Discussion Forum for Global Justice"
>> Subject: Re: [GJM] CONTROLLED "HYPERINFLATION, "
>> BUSINESS
>> UNDERSTANDING, AND PRICE PSYCHOLOGY IN
>> TRANSFINANCIAL ECONOMICS
>> (MARCH 2008).("solution to the financial system
>> and the problems of
>> the world.")
>> Date: Thu, 6 Mar 2008 07:51:51 +0530
>>
>> 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 through. I am
>> looking for the
>> platform to prove my contentions. I want some
>> bank to come
>> forward to adop the ecurrency system as a
>> replacement to credit
>> card. I am sure soon the system itself will
>> create its own place.
>>
>> I think people/economy do not have money/
>> economies are not just
>> because of the flaws in the prevailing economic
>> systems. We have
>> never heard of birds dying for want of food,
>> because nature has given
>> so much food in abundance that no one can die
>> because of shortage of
>> food. Birds do not die for want of food because
>> they don't need money
>> as a means to get their food. Human beings are the
>> most rational
>> creations of nature still they are poor, this
>> certainly is because of
>> the flaws in the medium they have opted to earn
>> their food. I am sure
>> ecurrency system can solve this problem. Money
>> supply is not required
>> to be increased additionally instead system will
>> itself increase the
>> money supply through INCOME CYCLE as explained in
>> the attached
>> document earlier.Regards,Ashish Sharma
>>
>> ----- Original Message ----- From: Rodney
>> ShakespeareTo: Ashish
>> SharmaSent: Thursday, March 06, 2008 3:42
>> AMSubject: Re: [GJM]
>> CONTROLLED "HYPERINFLATION, " BUSINESS
>> UNDERSTANDING,AND PRICE
>> PSYCHOLOGY IN TRANSFINANCIAL ECONOMICS (MARCH
>> 2008). ("solution
>> to the financial system and the problems of the
>> world.")
>> Dear Ashish,Have I got this right -- you propose
>> a handheld
>> electronic machine which will take money out of
>> my account (when
>> I pay) and transfer it into yours (when you are
>> to be paid).
>> Certainly in the UK today most transactions
>> (particularly in
>> terms of total value) are already electronic in
>> one form or
>> another (debit cards; credit cards etc) and so
>> your idea is not
>> too far away from present reality. So it might
>> well be a
>> practical idea for exchange of money between
>> people at some point
>> in the near future. However, it completely
>> avoids the big
>> financial and economic issues e.g:-a) who issues
>> the money
>> supply?b) to whom?c) in what way?d) for what
>> purpose? e) is
>> interest necessary where the development and
>> spreading of
>> productive capacity is concerned? Associated
>> with these
>> matters are issues about why people do, or do
>> not, have money in
>> the first place and why economies are, or are
>> not, efficient and
>> just. Of course it may be that you propose no
>> increase at all
>> (ever) in money supply but that raises other
>> issues. Rodney
>> Shakespeare.
>>
>> ----- Original Message ----- From: Ashish
>> SharmaTo:
>> Discussion Forum for Global JusticeCc: robert
>> searle ; Rodney
>> Shakespeare ; tav ; Zack Johnson ; Steve
>> ConsilvioSent:
>> Wednesday, March 05, 2008 4:19 PMSubject: Re:
>> [GJM]
>> CONTROLLED "HYPERINFLATION, " BUSINESS
>> UNDERSTANDING,AND
>>
> === message truncated ===>
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