| This article is a brief, non-technical presentation of a | | | | The above constitutes the basic controls in TFE, but |
| project referred to as Transfinancial Economics, or | | | | there are other aspects of this subject not discussed |
| more simply TFE. It is an evolving concept which is | | | | here. Indeed, it will ultimately require the aid of experts |
| now starting to be seriously accepted by enlightened | | | | in economics, finance, and IT to hammer out a credible |
| academics conerned with cutting-edge knowledge. | | | | programme for controlling inflations levels. |
| 1. The Basic Concept. | | | | 3. Some Major Anti-Tax Arguments for TFE. |
| Transfinancial Economics, or TFE, or Non-Taxation | | | | Here, we list the arguments for Non-Taxation.i) |
| Monetary Reform believes that new unearned money | | | | Everyone has a basic human right to all their earnings, |
| can be created to replace direct, and indirect taxation. | | | | and these should not be compulsorily deducted by any |
| Thus, future democratic governments would no longer | | | | government.ii) Taxation is no longer necessary in the |
| have to raise funds but instead have them created | | | | 2lst century as we now have the technology to |
| responsibly via a genuine independent public authority | | | | control inflations levels. It belongs to the past, and not |
| known as a Central Treasury Bank. Every finance | | | | the future.iii) It is morally reprehensible for people to |
| order from a government is carefully checked, and | | | | fund the mistakes, and abuses of any government in |
| passed. The important point to understand here is that | | | | power.iv) Taxation has been the direct,or indirect |
| it makes overspending less likely as there is no existing | | | | cause of many wars, and revolutions.v) Though it is |
| lump sum of tax money from which to drawn upon. It | | | | right for people to earn money, and pay for most |
| is simply created in a careful measured way. All this | | | | things in life they should also be REWARDED by a |
| ofcourse has immense social,economic, and political | | | | policy of Non-Taxation. The reason being is that they |
| implications. | | | | are the creators of REAL WEALTH (ie. products, and |
| Apart from central government,(and indeed local | | | | services). Without that money as a medium of |
| government too) non-governmental organisations, or | | | | exchange would be worthless if such resources did |
| NGOs would also have new unearned money created | | | | not exist. |
| for them via Grant Generating Banks. Many of them | | | | 4. The Question of Redistribution. |
| will be partly, or fully funded without the need for | | | | In TFE there is no redistribution of existing wealth. |
| fund-raising. This has extraordinary humanitarian | | | | Instead, there is the massive creation via electronic |
| implications for various social,economic, and political | | | | transmission of new unearned money. Through the |
| concerns. Incidently, the Grant Generating Banks would | | | | programmes and reforms of democratic governments, |
| be independent of governments, and transnational | | | | and NGOs such funds could finance old, and new |
| corporations. | | | | ways of poverty alleviation, and fairer distribution of |
| In TFE there are two Systems. The Human Financial | | | | financial wealth as never before in human history. To |
| System is what has already been discussed above | | | | try,and achieve this via taxation, and other methods is |
| whilst the Economic Financial System is where money | | | | old hat, and is clearly not working to the fullest degree. |
| is earned in the normal fashion. | | | | The most effective approach is to create new |
| 2.Hyperinflation, and Supercomputers. | | | | unearned money where,and whenever there is a |
| With the electronic transmission of new unearned | | | | genuine need. The ultimate aim of all this is for the |
| money as legal digits of value into our world there is | | | | beneficiaries to become independent, and self-financing |
| the great possibility of hyperinflation. This, if unchecked | | | | in some manner. Thus, new unearned money can lead |
| can lead to total devaluation of the national currency. In | | | | to greater productivity, and economic growth as never |
| other words,the amount of money would outstrip the | | | | before. The only limits to all this is ofcourse, effective |
| production of goods,and services. Thus, the retail prices | | | | planning, and natural resources. |
| would shoot up, and those notably existing on a fixed | | | | 5. Interest Free Monetary Reform. |
| income would find that they can buy less than before. | | | | Virtually the entire money supply of the world is |
| What is the solution? The answer is the development | | | | created by private commercial banks as a loan, or |
| of a credible programme for supercomputers which | | | | credit. Super-normal profit is created by the interest |
| could track retail price levels in banks. In the past, there | | | | paid on it by customer. Governments though create |
| have been attempts to bring about price controls but | | | | coins, and paper money as something which is spent |
| these proved to be unpopular, and had mixed results. | | | | debt-free into society. Banks create the rest of it "out |
| However, in the case of TFE super-flexible pricing | | | | of thin air" through what is technically called fractional |
| would be possible, and this would allow for | | | | reserve banking. Thus, the money exists on paper, and |
| competative capitalism as we know it today. This | | | | computer as an electronic transmission of digits which |
| would be "unimaginable" with the controls of the past. | | | | ofcourse have legal force. |
| 3. Three Basic Electronic Controls Over Inflation. | | | | Some people believe that it is possible to create |
| They are discussed as follows.a) Super-Flexible Pricing. | | | | money as loans without interest. This would have |
| An entrepreneur, and his company tries to sell a | | | | great benefits for society, and the economy. Yet, it is |
| product, or service to the public. It has to be priced. | | | | very limited compared with TFE, or Non-Taxation |
| When this has been agreed upon it has to be | | | | Monetary Reform the social,economic, and political |
| registered with a legally accountable centralised, or | | | | implications of which would be totally remarkable. As |
| decentralised independent public authority, and/or a | | | | such, Interest-Free Monetary Reform should be unified |
| bank. The business concerned then receives retail | | | | with TFE, and this would arguably ensure its success. |
| price confirmation for the product, and/or service, and | | | | 6. Green Transfinancial Economics. |
| higher price range levels are given until the ultimate one | | | | Green, or Sustainable Economics makes the vital point |
| is reached where it is automatically fined. This appears | | | | that there is a finite amount of natural resources on |
| on a bank statement. However, the higher price range | | | | the planet. At present, they are being used up at an |
| levels allow for Super-Flexible Pricing. | | | | unprecedented rate by humanitys greed notably in the |
| By Law, most products, and services have to be | | | | rich countries. Ideally, everyone should radically reduce |
| registered. There are those ones which have no | | | | their consumer wants, and live in small self-organizing |
| obvious value, and can be exempt from the electronic | | | | communities which would respect nature, and the |
| controls over inflation. Anonymous cash transactions | | | | earth. Such a development though is clearly not going |
| would still exist if democratically desired. The reason | | | | to happen fast enough to "save the planet" from total |
| being is that it makes up a near non-existent portion of | | | | resource scarcity. The only way forward is the |
| the entire money supply, and hence, would have little, | | | | creation en masse of various forms of complex, and |
| or indeed, no affect on inflation. | | | | simple sustainable technologies at record speed. With |
| The introduction of such electronic controls would be | | | | TFE this can happen with the massive influx of new |
| be initially unpopular with businesses. At first, they may | | | | unearned money as business grants/interest free |
| try, and cheat the supercomputer systems. Yet, they | | | | loans, and the financial empowerment of relevant |
| will fail as a graduated system of automatic fines could | | | | NGOs. A new, and advanced understanding of money |
| be temporarily brought in to make sure that retail | | | | is absolutely crucial if we are serious about a |
| prices do not rise too quickly. However, such controls | | | | sustainable (but high growth) economy as it is the |
| would be relaxed when businesses learn to adapt to | | | | POWER WHICH CONTROLS THE USE, AND |
| responsible pricing of registered products,and services | | | | ABUSE OF LIMITED RESOURCES. |
| but allowing at the same time a high degree of | | | | 7. The Third World, and the Transnational Corporations, |
| competition. | | | | or TNCs. |
| With TFE such legislation as explained would be a | | | | This in itself is a complex subject. With the financial |
| small inconvenience for companies compared with the | | | | empowerment of Third World charities, or NGOs |
| imposition of Income Tax, and other taxes as these | | | | many many lives could be dramatically improved, and |
| would no longer exist. Thus,their growth, and profits | | | | many deaths avoided altogether. An "indirect" factor in |
| would expand as never before. Moreover, loans could | | | | all this are the transnational corporations, or TNCs who |
| be created interest-free. Civil, and criminal fines of one | | | | have ripped off poor workers, and destroyed much of |
| sort, or another would still exist.b)Excess Accounts. | | | | the natural enivironment in the name of profit. Those |
| These are specific bank deposit accounts in which | | | | NGOs concerned with corporate responsibility (or the |
| saved money is indexed-linked to the inflation levels of | | | | lack of it!) would at long last be able to challenge their |
| an economy. When the monetary supply exceeds the | | | | power on a fair playing field as never before. With |
| production of goods, and services it is simply saved | | | | financial empowerment in TFE they would have a |
| but does not loose its value. This can be a short, or | | | | variety of business, and non-business tactics to make |
| long-term situation. In other words, the money cannot | | | | them more ethical, and ecologically more friendly as |
| be spent simply because the resources are not there!! | | | | never before. |
| With greater economic growth though more products, | | | | 8. A Final Comment. |
| and services become available, and thus, more of the | | | | What has been presented here on Transfinancial |
| saved money can be spent. In TFE such deposit | | | | Economics, or Non-Taxation Monetary Reform is only |
| accounts are said to be "in excess".c)Inflation Interest. | | | | the tip of the iceberg. In the right hands, it will work |
| This can be summed up with a simple example. If | | | | wonders. Furthermore, it could prove to be very |
| person T buys a registered product, or service which | | | | popular with people in general as it has all sorts of of |
| is 10% above the national inflation level this same | | | | social,ecnomic, and political benefits. Interestingly, the |
| percentage can be created as new uneared money | | | | basic concept of Non-Taxation is not totally new but |
| by the bank. Thus, the purchase for the customer has | | | | what is presented here is its most advanced |
| not been devalued. This is referred to as Inflation | | | | expression. |
| Interest, and is an essential feature of the entire | | | | Lastly, Humanity Politics which is associated with TFE |
| economic system. | | | | is also in the process of research, and development. |