[P2P-F] TFE, and MMT....

[robert searle]

TFE, or Transfinancial Economics has similiarities to Modern Monetary Theory. Both believe that if enough new non-repayable debt-free money can be created to deal with social, economic, and political problems it would not lead to  serious inflation, or worse. In other words, it is a non-redistributive model of a future economy like Social Credit. Redistributive models notably include Land Value Taxation, Binary Economics, and the Tobin Tax, or Financial Transaction Tax.
 
Points To Make.
 
MMT. It believes that the government should issue non-repayable debt-free money rather than rely on taxation which is essentially used to reduce excess money (if absolutely necessary ) rather than fund anything .
 
TFE. It recognizes that it is unlikely that governments would be allowed to create their own money quoting instances of hyperinflation, but conveniently overlooking the "mini", and major booms, and busts of banks. Morever, it would be argued that it would give them too much power. In TFE this problem is addressed by the creation of special Facilitation Banks which can be privately owned BUT would a legally transparent, and credible (unlike their mainstream "counterparts" which would still exist for the time being) to the highest possible degree. Such an arrangement would be more acceptable at the present time. However, FBs could also be part owned by the public interest.
 
MMT. A very big problem with this economic model is ofcourse the bond market which would obviously resist any govenment to create its own money in full overtime.
 
TFE. It takes a very pragmatic stance to the financial world in order that reform can be undertaken as quickly as possible. Thus, the bond market can remain in place for a longwhile. If governments were allowed to gradually introduce a phasing in of new money to replace taxation investors could receive compensation, or indeed, other investment vehicles which would be more lucrative than bonds.
 
MMT. Probably, the greatest weakness of MMT, and indeed, Social Credit is that if you are going to create a tax free world you need in the end to have a NEAR PERFECT UNDERSTANDING OF THE REAL ECONOMY. This would fully ensure, and give FULL CONFIDENCE that a tax free world could be successfully implemented in the real economy, otherwise there would always be doubts in many minds. Taxation as understood by MMT is an INDIRECT method of trying to achieve this, but it would still be regarded as a HUGE risk. 
 
TFE. It believes that there are two basic stages. Primary Stage TFE is simply the introduction of Facilitation Banks which are concerned with the speeding up of vital environmental, and socio-economic projects of a mainly commercial nature. They would be allowed to create a "limited" amounts of new non-repayable money electronically to fund such ventures in full, or in part. Advanced Stage TFE is the introduction of Electronic Transaction Monitoring, or ETM. This would give us a NEAR PERFECT UNDERSTANDING OF THE REAL ECONOMY AND MAKE THE IDEA OF A TAX-FREE ECONOMY A HIGHLY CREDIBLE PROPOSITION UNLIKE THE CLAIMS OF MMT, AND SOCIAL CREDIT. 
 
http://www.p2pfoundation.net/Transfinancial_Economics
-------------- next part --------------
An HTML attachment was scrubbed...
URL: https://lists.ourproject.org/pipermail/p2p-foundation/attachments/20111109/1ad51707/attachment.htm