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Revision as of 10:58, 24 December 2013
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Essentially, TFE claims that new largely monitored non-repayable money could be created electronically by special transparent, and credible funding mechanisms, or Facilitation Banks (and/or by governments to some extent) This could notably fund in full, or in part environmental, and socio-economic projects of high ethical value. This would help to '''speed things up''' unlike repayable loans....though interest free ones could also be created electronically when necessary.The aim of all this is also to give powerful financial incentives to businesses that could profit with genuine projects, and more importantly help save the planet, and its people as far as possible from extreme weather events which could possibly occur via climate change, and global warming.
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Essentially, TFE claims that new largely monitored non-repayable money could be created electronically by special transparent, and credible funding mechanisms, or Facilitation Banks (and/or by governments to some extent) This could notably fund in full, or in part environmental, and socio-economic projects of high ethical value. This would help to '''speed things up''' unlike repayable loans....though
possibly
interest free ones could also be created electronically when necessary.The aim of all this is also to give powerful financial incentives to businesses that could profit with genuine projects, and more importantly help save the planet, and its people as far as possible from extreme weather events which could possibly occur via climate change, and global warming.
''None of the above would lead to serious inflation, or indeed, hyperinflation (eg. Zimbabwe) as the phasing in of new unearned money would be a gradual process, and the checks, and "controls" would be most effective in monitoring, and controlling inflation. This point is most notably true of Advanced Stage TFE explained a little later. Thus, there is no mad flooding of the real economy which ofcourse is absurd in extremis.''
''None of the above would lead to serious inflation, or indeed, hyperinflation (eg. Zimbabwe) as the phasing in of new unearned money would be a gradual process, and the checks, and "controls" would be most effective in monitoring, and controlling inflation. This point is most notably true of Advanced Stage TFE explained a little later. Thus, there is no mad flooding of the real economy which ofcourse is absurd in extremis.''
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In contrast to Primary Stage TFE, Advanced Stage TFE itself can create far greater amounts of new financial capital for projects mentioned in the first paragraph of this section. This should become clear shortly.
In contrast to Primary Stage TFE, Advanced Stage TFE itself can create far greater amounts of new financial capital for projects mentioned in the first paragraph of this section. This should become clear shortly.
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Among other things, Advanced Stage TFE can gain a "near perfect" knowledge of the entire economy of the country. Such data would come via full Electronic Transaction Monitoring(or ETM)and could be collected 24/7 in Real-Time. This is done via the ID codes,and barcodes of most products, and services at the point of sale, or later transactions with banks.
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Among other things, Advanced Stage TFE can gain a "near perfect" knowledge of the entire economy of the country. Such data would come via full Electronic Transaction Monitoring(or ETM)and could be collected 24/7 in Real-Time. This is done via the ID codes,and barcodes of most products, and services at the point of sale
(EPOS)
, or later transactions with banks.
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It is also important to point out that we are not discussing a full Soviet style top down command economy, because the Free Market Price is largely determined by private businesses, and capitalism in an increasingly more ethical form (due to increasing powerful financial incentives notably created by newly created non-repayable money)would still continue until there is "full" automation when money, and wage slavery would no longer exist.
It is also important to point out that we are not discussing a full Soviet style top down command economy, because the Free Market Price is largely determined by private businesses, and capitalism in an increasingly more ethical form (due to increasing powerful financial incentives notably created by newly created non-repayable money)would still continue until there is "full" automation when money, and wage slavery would no longer exist.
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During the above process, pressure groups, or NGOs would become increasingly more influential as they would gain greater, and greater access to mainly newly created funds from independent grant making bodies, and possible other sources. Thus, the process of socio-economic, and political reform should grow apace.
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During the above process, pressure groups, or NGOs would become increasingly more influential as they would gain greater, and greater access to mainly newly created funds from independent grant making bodies, and possible other sources. Thus, the process of socio-economic, and political reform should grow apace.
''
Hopefully, a more advanced technological, and more moral human civilization will largely emerge based on improved democracy, universal human rights, and greater fairness.In other words, global justice.....As can be seen TFE is concerned essentially with a systems change to achieve these lofty goals.
Hopefully, a more advanced technological, and more moral human civilization will largely emerge based on improved democracy, universal human rights, and greater fairness.In other words, global justice.....As can be seen TFE is concerned essentially with a systems change to achieve these lofty goals.
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Unfortunately, Neo-Classical Economics still has great influence over the economics profession. Essentially, it believes in the Free Market in which little, or virtually no regulation is needed, as capitalism appears at large to do well by being largely unimpeded. Yet, such ideology received a battering with the Great Financial Crisis, or GFC (2007-2008, and the following Global Recession) in which the entire world banking system nearly collapsed and was notably saved by massive bailouts. Many commentators pointed out that this was largely due to a lack of real, or good quality regulation of banks though ofcourse other factors were implicated.
Unfortunately, Neo-Classical Economics still has great influence over the economics profession. Essentially, it believes in the Free Market in which little, or virtually no regulation is needed, as capitalism appears at large to do well by being largely unimpeded. Yet, such ideology received a battering with the Great Financial Crisis, or GFC (2007-2008, and the following Global Recession) in which the entire world banking system nearly collapsed and was notably saved by massive bailouts. Many commentators pointed out that this was largely due to a lack of real, or good quality regulation of banks though ofcourse other factors were implicated.
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Transfinancial Economics, or TFE itself is a form of Heterodox Economics which deals with mainly non-mainstream economic thinking. At the time of writing many governments notably in the Eurozone have resorted to varying degrees of austerity rather than the Post-Keynesian Economics in which governments spend their way out of recession
(due to the GFC)
.
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Transfinancial Economics, or TFE itself is a form of Heterodox Economics which deals with mainly non-mainstream economic thinking. At the time of writing many governments notably in the Eurozone have resorted to varying degrees of austerity rather than the Post-Keynesian Economics in which governments spend their way out of recession.
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In TFE ofcourse, money is recognized as being largely digital, or electronic data which can be transmitted from one bank account to another at the touch of a button. Governments create it as paper cash, and coins. This makes up a near non-existent portion of the entire money supply itself, and is spent into the economy as something non-repayable. Moreover, the rest of the money is created electronically out of thin air by mainly private banks via Credit Creation as repayable loans with interest charged on it. In other words, unlike what many people may think they do not actually lend out existing money from their reserves. The amounts they can issue are meant(!) to be limited by a fraction of the reserves held. This has been aptly called on occasion "Fractional Reserve" Banking. NGOs, such as Positive Money, and the American Monetary Institute are concerned with this, and other related matters.
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In TFE ofcourse, money is recognized as being largely digital, or electronic data which can be transmitted from one bank account to another at the touch of a button. Governments create it as paper cash, and coins. This makes up a near non-existent portion of the entire money supply itself, and is spent into the economy as something non-repayable. Moreover, the rest of the money is created electronically out of thin air by mainly private banks via Credit Creation as repayable loans with interest charged on it. In other words, unlike what many people may think they do not actually lend out existing money from their reserves. The amounts they can issue are meant(!) to be limited by a fraction of the reserves held. This has been aptly called on occasion "Fractional Reserve" Banking. NGOs, such as Positive Money, and the American Monetary Institute are concerned with this, and other related matters
. Many such groups usually believe that banks should not be able to create new money which they do not have, and be fully constrained by their reserves. This is often called Full-Reserve Banking
.
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Anyhow, a
small minority claim that banks as soon as they create new money try to back it up with borrowed money from elsewhere. This seems more credible, but official documents appear to suggest that some form of "fractional reserve" banking persists...though the reserve "limits" are probably ignored altogether by banks to leverage their "assets" (translated here as the amount of new money created ex nihilo). As can be seen it is clear that the topic of how banks "create" money as credit, or loans is subject to controversy.
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A
small minority claim that banks as soon as they create new money try to back it up with borrowed money from elsewhere. This seems more credible, but official documents appear to suggest that some form of "fractional reserve" banking persists...though the reserve "limits" are probably ignored altogether by banks to leverage their "assets" (translated here as the amount of new money created ex nihilo). As can be seen it is clear that the topic of how banks "create" money as credit, or loans is subject to controversy.
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Some radical monetary reformers also believe (like the Muslims) that loans should be free of interest, and of "excessive" interest, or usury. Others though claim that interest should still exist, and could
either
go
to private banks, or
to the government. A number of reformers like the idea of banks possibly being nationalized
, and others believe they should remain in the private sector
.
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Some radical monetary reformers also believe (like the Muslims) that loans should be free of interest, and of "excessive" interest, or usury. Others though claim that interest should still exist, and could go to the government. A number of reformers like the idea of banks possibly being nationalized.
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It is also claimed that new non-repayable debt free money could be created by governments, and this could reduce taxation. As the evidence seems to indicate if enough of it is produced it would not lead to serious inflation.
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It is also claimed that new non-repayable debt free money could be created by governments, and this could
help
reduce taxation. As the evidence seems to indicate if enough of it is produced it would not lead to serious inflation
(ie Primary Stage TFE)
.
Certain radical monetary reformers believe in the development, and the usuage of free local currencies which strictly speaking are meant to be tax free, and interest free. These have obvious limitations, but they are easily set up, and are workable. However, new virtual currencies notably Bitcoin have a more global reach.
Certain radical monetary reformers believe in the development, and the usuage of free local currencies which strictly speaking are meant to be tax free, and interest free. These have obvious limitations, but they are easily set up, and are workable. However, new virtual currencies notably Bitcoin have a more global reach.
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TFE is also regarded by many as being very similiar to Social Credit(Socred), and Modern Monetary Reform, or MMT (notably based on Chartalism, or Neo-Chartalism). Both notably believe in the responsible creation of new debt-free money.
Inflation could be controlled by conventional means (ie. the raising of of interest rates, and notably direct, and indirect taxation to reduce money in the economy).
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TFE is also regarded by many as being very similiar to Social Credit(Socred), and Modern Monetary Reform, or MMT (notably based on Chartalism, or Neo-Chartalism). Both notably believe in the responsible creation of new debt-free money.
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Yet, whether we like it, or not
, Advanced Stage TFE
ultimately
gives policy makers, and technocrats ''full confidence'' that
new
money could be "safely" created in contrast arguably to "conventional" methods notably suggested in MMT, and Social Credit. Moreover, in TFE they would be electronic, and instantaneous unlike raising (inflation)taxation,and interest rates. The latter methods could be phased out altogether.
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However
, Advanced Stage TFE gives policy makers, and technocrats ''full confidence'' that
newly created
money could be "safely" created in contrast arguably to "conventional" methods notably suggested in MMT, and Social Credit. Moreover, in TFE they would be electronic, and instantaneous unlike raising (inflation)taxation, and interest rates. The
two
latter methods could be phased out altogether.
Some people would say that the notion of creating new non-repayable money is funny money. But as we have seen here in connection with banks they themselves create it ex nihilo as something repayable. Moreover, we are not discussing easy money because controls on its electronic issuance would be legally credible, and transparent.
Some people would say that the notion of creating new non-repayable money is funny money. But as we have seen here in connection with banks they themselves create it ex nihilo as something repayable. Moreover, we are not discussing easy money because controls on its electronic issuance would be legally credible, and transparent.
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To some, the notion that new money could be created at the push of a button is socially unacceptable. Yet, social,economic, and political injustice is also unacceptable especially if there is a lack of conventional earned funding available to back up NGOs, (green) businesses, and governments to deal with it.''This gives newly created money a new higher value, and ethical dimension as never before.''
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To some, the notion that new money could be created at the push of a button is socially unacceptable. Yet, social, economic, and political injustice is also unacceptable especially if there is a lack of conventional earned funding available to back up NGOs, (green) businesses, and governments to deal with it.''This gives newly created money a new higher value, and ethical dimension as never before.''