This article is a brief, non-technical presentation of a project called Transfinancial Economics, or more simply TFE. It is a concept under development that is now becoming seriously accepted by enlightened academics who are engaged in cutting-edge knowledge.
1. The basic concept.
Transfinancial economy, or TFE or non-tax monetary reform, believes that new undeserved money can be created to replace direct and indirect taxes. Thus, future Democratic governments would no longer have to raise funds, but instead get them set up responsibly through a truly independent public authority known as a central treasury. Every government funding order is carefully checked and sent. The important point to understand here is that it reduces excess expenses as there is no existing fixed sum of tax money that can be deducted. It is simply created in a carefully measured way. All this, of course, has enormous social, economic and political implications.
Aside from the central government, (and indeed local governments as well) non-governmental organizations or NGOs would also have new undeserved money set up for them through Grant Generating Banks. Many of them will be partially or fully funded without the need for funding. This has extraordinary humanitarian implications for various social, economic and political issues. Incidentally, appropriation-generating banks would be independent of governments and transnational corporations.
In TFE, there are two systems. The human financial system is what has already been discussed above, while the economic system is where money is made in the normal way.
2. Hyperinflation and Supercomputers.
With electronic transmission of new undeserved money as legal figures of value to our world, there is the great opportunity for hyperinflation. This, if not checked, could lead to total devaluation of the national currency. In other words, the amount of money would exceed the production of goods and services. Thus, retail prices would skyrocket and those who are particularly on a fixed income will find that they can buy less than before.
What is the solution? The answer is the development of a credible program for supercomputers that could track retail price levels in banks. Previously, there have been attempts to gain price control, but these turned out to be unpopular and had mixed results. However, in the case of TFE, super flexible pricing would be possible and this would allow for competitive capitalism as we know it today. This would be “unimaginable” with the controls of the past.
3. Three basic electronic controls on inflation.
They are discussed as follows.
a) Super-flexible price.
An entrepreneur, and his company is trying to sell a product or service to the public. It has to be priced. Once agreed, it must be registered with a legally responsible centralized or decentralized independent public authority and / or a bank. The company in question then receives confirmation of retail prices for the product and / or service, and higher price ranges are provided until the ultimate is reached where it is automatically fined. This is shown on a bank statement. However, the higher price ranges allow for super flexible prices.
By law, most products and services must be registered. There are those who have no obvious value and can be exempted from the electronic control of inflation. Anonymous cash transactions would still exist if democratically desired. The reason is that it forms an almost non-existent part of the entire money supply and therefore would have little or no effect on inflation.
The introduction of such electronic controls would initially be unpopular for businesses. First, they can try and cheat the supercomputer systems. Still, they will fail, as a graduated system of automatic fines could be temporarily brought in to ensure that retail prices do not rise too quickly. However, such controls would be eased as companies learn to adapt to responsible pricing of registered products and services while allowing a high level of competition.
With TFE, such legislation, as explained, would be a small disadvantage for businesses compared to the introduction of income tax and other taxes as these would no longer exist. Thus, their growth and profits would grow like never before. In addition, loans could be created interest-free. Civil and criminal purposes of one kind or another would still exist.
b) Excess accounts.
These are specific bank deposit accounts where saved money is indexed to inflation levels in an economy. When monetary supply exceeds production of goods and services, it is simply stored but does not lose its value. This can be a short or long term situation. In other words, the money cannot be used simply because the resources are not there !! With greater economic growth as more products and services become available, more money can be saved. In TFE, such deposit accounts are said to be “in excess”.
c) Inflation rates.
This can be summarized with a simple example. If person T buys a registered product, or a service that is 10% above the national inflation level, that same percentage can be created as new undiscovered money by the bank. Thus, the purchase to the customer has not been devalued. This is called inflation rates and is an essential feature of the entire economic system.
The above constitutes the basic controls in TFE, but there are other aspects of this topic not discussed here. In fact, it will eventually require the help of experts in finance, finance and IT to hammer out a credible program for controlling inflation levels.
3. Some major arguments for taxation against TFE.
Here we show the arguments for non-taxation.
i) Everyone has a basic human right to all their earnings and these should not be deducted from a government.
ii) Taxes are no longer needed in the 2nd century as we now have the technology to control inflation levels. It belongs to the past and not the future.
iii) It is morally reprehensible for people to fund the mistakes and abuses of any government of power.
iv) Taxation has been the direct or indirect cause of many wars and revolutions.
v) While it is right for people to make money and pay for most of their lives, they should also be rewarded with a policy that does not tax. The reason is that they are the creators of REAL VALUE (ie products and services). Without this money, it would be worthless if such resources did not exist.
4. The issue of redistribution.
In TFE, there is no reallocation of existing assets. Instead, there is the massive creation via electronic transmission of new undeserved money. Through the programs and reforms of democratic governments and NGOs, such funds were able to finance old and new ways of combating poverty and a more equitable distribution of economic wealth as never before in human history. Trying and achieving this through taxation and other methods is an old hat and clearly does not work fully. The most effective approach is to create new undeserved money where and when there is a real need. The ultimate goal of all this is for the beneficiaries to become independent and self-fund in some way. Thus, new undeserved money can lead to greater productivity and economic growth like never before. The only limits to all this, of course, are effective planning and natural resources.
5. Interest-free monetary reform.
Virtually all of the world’s money supply is created by private commercial banks as a loan or credit. Super-normal profits are created by the interest rate that the customer pays for it. However, governments create coins and paper money as something that is used debt-free in society. Banks create the rest of it “out in the air” through what is technically called a fractional reserve bank. Thus, money exists on paper and computer as an electronic transmission of digits, which of course has legal force.
Some people think it is possible to make money as a loan without interest. This would have great benefits for society and the economy. Yet it is very limited compared to TFE or monetary reform, which is not taxation if social, economic and political consequences would be quite noteworthy. As such, interest-free monetary reform should be reconciled with TFE, and this would undoubtedly ensure its success.
6. Green Transfinancial Economy.
Green or sustainable economy makes the crucial point that there is a finite amount of natural resources on the planet. At present, they are being exploited at an unprecedented rate by the greed of humanity, especially in the rich countries. Ideally, everyone should radically reduce their consumer desires and live in small self-organizing societies that respect nature and the earth. However, such a development will certainly not happen quickly enough to “save the planet” from total scarcity of resources. The only way forward is to create a lot of different kinds of complex and simple sustainable technologies at record speed. With TFE, this can happen with the huge influx of new unearned money such as business grants / interest-free loans and financial strengthening of relevant NGOs. A new and advanced understanding of money is crucial if we are seriously considering a sustainable (but high-growth) economy, as it is the power that controls the use and abuse of limited resources.
7. The Third World and the transnational corporations or TNCs.
This in itself is a complex issue. With the economic authority of third world charities or NGOs, many many lives could be dramatically improved and many deaths avoided altogether. An “indirect” factor in all this is the transnational corporations or TNCs that have shunned poor workers and destroyed much of the natural environment in the name of profit. The NGOs dealing with corporate responsibility (or the lack of it!) Would eventually be able to challenge their power on a fair game play like never before. With financial empowerment in TFE, they would have a range of business and non-business tactics to make them more ethical and ecologically more friendly than never before.
8. One last comment.
What has been presented here about trans-financial economics or tax-free monetary reform is only the tip of the iceberg. In the right hands, it will do wonders. Furthermore, it can prove to be very popular with people in general, as it has all sorts of social, economic and political benefits. Interestingly, the basic concept of non-taxation is not entirely new, but what is presented here is its most advanced expression.
Finally, Humanity Politics, associated with TFE, is also engaged in research and development.