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

Mon Mar 10 06:26:25 MDT 2008

Dear Rodney, and Company,

          I have to admit I do not comprehend Ashish
Sharmas ideas on "inflation controls" if it can be
called that at all. I have also done a check on the
internet and there is not much in the way of entries
concerning his subject which is a shame especially if
he does have something truly wonderful to offer. He
has suggested a demonstration would clarify things but
somehow I doubt it...............

You are right in suggesting the need for the efficient
use of resources. However, in our present capitalist
system financial inducements can be a powerful
incentive to bring about change. This is where TFE
comes into the picture especially in connection with
non-viable environmental projects both large, and
small....

And yes, who, and what owns money, is very important
too. Again, in TFE helping people to help themselves
especially in the Developing World would be possible
because Corporations, and other Western business (plus
relevant NGOs empowered by grants via new
non-repayable capital, and interest free loans) with
knowledge, and experience would be keen to do that
simply because of the huge financial incentives on
offer to modify their behaviour...........otherwise
using earned money all the time will achieve little...

As I have indicated before we could have
Transfinancial Binary Economics(!!)in which people
could have a share of profits created via productive
activity from the Developing (notably), and Developed
World. 

With TFE we  probably have the most important
breakthrough in monetary reform. It would also act as
the BASIS OF GLOBAL JUSTICE when used in the right
hands ofcourse. Though it may be seen to be very
pro-capitalist it could ironically lead to a fairer
system of wealth distribution...

Robert Searle

--- Rodney Shakespeare
<rodney.shakespeare1 at btinternet.com> wrote:

> Dear Robert and Ashish,
> Alas, I did not understand the "clarification".
> 
> A very important aspect of life on this planet is
> the efficient use of 
> resources, physical, animal and human.  Other
> aspects include questions as 
> to who owns what and why and the consequences of
> that ownership (or not).
> 
> Rodney Shakespeare
> 
> 
> ----- Original Message ----- 
> From: "robert searle" <dharao4 at yahoo.co.uk>
> To: <discussion at globaljusticemovement.net>
> Sent: Sunday, March 09, 2008 11:30 AM
> Subject: Re: [GJM] CONTROLLED "HYPERINFLATION, "
> BUSINESS UNDERSTANDING,AND 
> PRICE PSYCHOLOGY IN TRANSFINANCIAL
> ECONOMICS(MARCH2008).("solution to the 
> financial system and theproblems ofthe world.")
> 
> 
> > Dear Ashish Sharma,
> >
> >         Thank you for your "clarification." It
> would
> > be interesting to see if Rodney, or our bright
> spark
> > Mr. Johnson fully understands it, or not.
> >
> > But I do feel you need to explain things in the
> least
> > number of words so that everyone fully understands
> it
> > instantly. This is the trick!
> >
> > Most people are too busy to be interested in such
> > stuff, and/or  they are often put off by simple,
> or
> > complex  use of numbers, and even letters! This is
> the
> > way of the world I am afraid!
> >
> > However, I have tried to explain my Automatic
> > Inflation Deduction (or AID) as clearly as
> possible,
> > and why it is unlike a normal tax, and hence, not
> a
> > tax!! To understand it requires only a few words,
> and
> > then it should be self-evident in the light of my
> > project on Transfinancial Economics, or TFE.
> >
> > Anyway,you should take the above as friendly
> advice.
> > Personally, I am not sure whether you are onto
> > something, or not. Thus, I retain an open mind,
> and
> > hopefully things may progress.
> >
> > R.Searle.
> >
> >
> >
> > --- Ashish Sharma
> > <ashishsharma at electroniccurrencytime.com> wrote:
> >
> >> 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
> 
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