[GJM] REVISED INFLATION CONTROL SYSTEM IN TRANSFINANCIAL ECONOMICS "BRIEFLY" DESCRIBED( MARCH 2008).....................

[robert searle]

Dear All,

     Here, I am presenting a revised understanding of
the inflation control system to be used in a future
Transfinancial Economy. It is based on what has gone
before in this Discussion Group, and will appear
fairly soon hopefully in the revised Kheper internet
essay which is still the main port of call for those
new to it.



Intro.

     In Transfinancial Economics,or TFE inflation
levels are directly dealt with  by super-flexible
electronic controls on bank computers. This would
involve advance programming, and possible use of
superior kinds of Information Technology, or IT
ofcourse. The following is a brief description....




1. Registration, or Non-Registration.

A mandatory registration of products, and services
could be implemented for businesses which would also
involve the creation of National Electronic Price
Index. Better still would be non-registration.

 

2. Automatic Inflation Adjustment.

This is when the customer is in the process of buying
a  product, or service which is subject to an instant
electronic inflation check. This is undertaken  at the
point of sale, or on the banks inflation/transaction
computer. Thus, if a product is at certain percentage
above inflation which is "unacceptable" the amount is
electronically created as new non-repayable money by
the bank. Thus,this helps to ensure the value of 
currency...



3. Automatic Inflation Deduction.

This is not a "tax" in the normal sense of the word
but rather an instant electronic deduction of the
uppermost portion of a price which can be regarded as
being  inflated, or "hyperinflated". In other words,
it does not deduct money in real terms, and morever
the "overinflated" portion is destroyed eletronically.
Hence, the purchasing power of the price remains
"unaffected" in relation to the entire economy of the
country.

Both the Automatic Inflation Deduction, and the
Automatic Inflation Adjustment computer check
transactions instantly, and "simultaneously". Both
electronic controls maintain the inflation levels of
prices,and the value of money itself being spent by
the consumer.



4. Business Back-Up.

With the possibility of higher demand for products,
and services there is always the possibility of
natural shortages. However, with the powerful backing
of democratic governments, special NGOs, and certain
commercial enterprises concerned with genuine
sustainability, and alternative sourcing it would be
likely that such problems could be dealt with
successfully. Thus, rationing of any description
should not be necessary.



5. Supply, and Demand Maintained in TFE.

As already revealed there are two basic controls to
keep inflation "in check". Temporary Price Controls,
and Price Ceilings are not absolutely necessary as
these could lead to artificial shortages. 

However, in TFE prices adjust naturally in keeping
with the basic "laws" of supply, and demand. To help
slow down price rises one possible method is
subsidization created by new non-repayable money. This
could pay part of the profit on goods, and/or simply
be used as an incentive to stabilize prices more (as
they rise the subsidy is reduced progressively to
zero).




6. Public Education.

With the new understanding of capital the general
public especially the business would need to
comprehend the basic mechanics of TFE, and how
everyonoe  would hugely benefit in the long run. This
is vital.



7. Unregistered Products, and Services.

If it were decided that most goods, and services
should be registered onto computers this could cause
problems with those that are unregisted (These
exemptions would be items which have no obvious
value). However, their real inflated worth could be
worked instantly by a simple computer check with a
bank.

It could also be argued that if most goods, and
services were registered then this would give more
accurate details as to how accurately Automatic
Inflation Adjustment, and Automatic Inflation
Deduction would occur.



8. Coins, and Paper Money.

At present, cash makes up a near non-existant
proportion of the entire money supply. With likely
rising prices in TFE their purchasing power would soon
be deminished. In spite of this, there would always be
some alternative to cash which makes anonymous
transactions possible.




9. Excess Money.

With no direct, and indirect taxation (as we would
understand it), and no interest on loans there may be
an "excess" amount of money in the economy. Yet, most
of this would probably be saved up in "dormant"
accounts as certain resources on which it could be
spent are lacking, or non-existent..



10. The Rich, and Super-Rich.

The rich, and super-rich would benefit greatly in TFE.
New investments would be created with the notable aid
of new non-repayable money, or commercial grants, plus
interest free loans. As mentioned before taxation as
we would understand it would not exist. 

Many"investments" would be projects in the Developing
World which would otherwise be difficult, or
"impossible" to  undertake in the present financial
system based on earned money. Something akin to a
global Marshall Plan could be brought about in which
the poor, the enviroment, and the rich would all
benefit (as the subsidization, and other powerful
financial incentives would always be there notably for
projects which would otherwise be commercially
unviable but have immense implications for global
justice). 

But, as time goes by it would become increasingly
awkward for the rich, and the super-rich to increase
their wealth as ultimately there will be less, and
less in the way of business investments. Thus, fierce
competition could occur over limited resources. This
would reveal quite clearly that money itself can only
go so far, and is not ofcourse the be-all, and end-all
of everything in any "civilized" society.

Ofcourse, the above is always subject to possible
refinement, and modfification. At the end of the day
it will be hammered out with the aid of economist, and
IT experts.

Apologies for any errors in the text if they do
appear.


R.Searle.














      __________________________________________________________
Sent from Yahoo! Mail.
The World's Favourite Email http://uk.docs.yahoo.com/nowyoucan.html