TriConomics is my totally new way of looking at economics and turning it from a trial and error practice, that is reminicent of alchemy in the dark ages, into a very simple, accurate and predictable science.

No wonder that governments are creating horrible economic disasters on frequent occasion. They have no knowledge of the simple rules and guidelines by which economies should be operated as explained by TriConomics.

TriConomics consist of three parts:

1. TriConomics Operating Manual (operating manual for the economy).
2. TriConomics Maintenance Manual.
3. TriConomics Repair Manual.

Since we are currently in a government created economic breakdown, the TriConomics Repair Manual is the most important manual for immediate application.

It is the emergency response to our current economic disaster and it should have been implemented in January 2008 already because this recession started in earnest in December 2007. The economy had been in gradual decline from about February 2007. If the TriConomics Repair manual would have been consulted and applied immediately in January 2008, we would not be in the mess we are in today. Of course Triconomics was not as yet created at that time.

I am assuming that all the people in Washington are trying to do the right thing with advice from dozens of people that call themselves Economists, but they just do not have the correct understanding of Economics to arrive at the right conclusions. There is of course also the reality that many special interests benefit from allowing this economic chaos to continnue for as long as possible at the cost of all the rest of "We the People". Economics are not near as complicated as all these "experts" make it out to be. Even if you assume that you know nothing about economics you can easily understand the following proposal that will cure the current economic crisis in a record 90 day time.

There are two immediate actions that have to be taken and they will stop the downward spiraling of the economy instantly. Our current economic problem is that consumer spending is at a very low level and that kills all the consumption of goods and services which causes all the unemployment. To get the consumer spending back to normal the Federal Government must immediately do the two things explained below. Not wasting time by talking for months about it in Congress and thinking about it and do nothing about it, and allow unemployment to increase ever more. It must be done immediately to save all those jobs. These two actions will fix the problem immediately. Keep in mind that we do not have the time to fix all the problems all at the same time. The only short-term goal is to stimulate consumption to where we get back to a somewhat manageable 6% unemployment. Here are the two very important measures that must be taken IMMEDIATELY:

1. The Federal Government must fund all the Governments at all lower levels (State, County, Local Governments) with massive amounts of money to cover the shortfall these local governments have in their budgets so that they need not do layoffs of their employees and they should be given enough additional money so that they can start up all the local infrastructure projects that they have previously put on hold because they ran out of money. They have all these infrastructure projects ready to go. That will immediately increase employment with all the subcontractors that perform the work on these infrastructure projects. Governments will typically cut costs on all the services they are supposed to deliver before they will lay off any of their own employees.

Increasing employment through all the infrastructure projects that are started or re-started will get money immediately into the economy and into the consumption cycle and stop further unemployment and actually create additional new employment. These are not the lame large infrastructure projects that the Federal Government is proposing that will be 24 months in the preparation stages before any significant money is fed into the economy. That is way too late to do us any good right now.

It is unimportant that part of the money will not be used properly and that it might get into the pockets of corrupt officials and their cronies. That is nothing new and it is happening all the time anyway. The only thing that is important here is that the money gets into the economy and the consumption cycle even if it is money that is fraudulently spent. There should be no specific instructions given by the Federal Government on how the money should be spent, because to make a lot of rules by bureaucrats in Washington will only waste a lot of time in which thousands more people will become unemployed and the corrupt public officials will find a way around the new rules anyway. The stealing of public funds has always been with us and will continnue to be with us. The only remedy against corruption in government is to reduce the corruption by reducing government involvement in the economy by reducing the functions and scope of things that Government is involved in and receives a budget for. There are only few comptrollers of local governments that are thoroughly hated by the politicians whose financial dealings they are expected to oversee.  

The only instructions that should be given are that the money must be spent for proper purposes (and what proper purposes means should be trusted to the same people at local government level that are making those kind of decisions currently, whether they are honest or corrupt) and it must be made clear that auditing will be done later, that would uncover improper spending and that such improper spending would lead to prosecution and severe punishment of the perpetrators.

Local government officials will be made responsible and will determine how and on what the money will be spent. Local citizen oversight can or will be called upon. But foremost we do not care whether some of the money is misappropriated, as is done routinely all the time anyway, as long as there is severe punishment for such and as long as the money arrives at the local governments right now so that the layoffs and downward spiraling economy is stopped immediately. What we need is speed. We cannot afford the inaction and endless discussions in Congress and the Senate and the widely differing stories and theories of expert economists that are wasting our time. They have not gotten us very far with all their ideas so far.

2. The second important thing the Federal Government must do immediately is to issue National Debit cards to the 300 million Americans and residents that have a Social Security number (that includes infants and small children). Then the Federal Government must fund those debit cards on a monthly basis with amounts ranging from $100 to $200 per month with the mandate that this money MUST be spent within the next 30 days after which the next funding will take place. Whatever has not been spent will be forfeited because the next funding will take place by resetting the amount on the Debit card to the exact amount of the new monthly funding and no more. What will these debit cards do to get the economy back on track again and stop the current downward spiraling? The recession/depression was caused by a lack of consumer spending. Consumer spending is the major driving force of an economy and this lack of consumption of goods and services is the cause of this severe recession and the massive increase in unemployment. As soon as we drastically increase consumption again the recession will stop and that will instantly heal the economy. The National Debit cards will infuse $30 billion dollars into the consumption cycle for every $100 that the debit cards are funded with. This funding of the debit cards must be done very carefully so that the consumption will not be more than what the product and service providers can produce. If there is too much money thrown at consumption, heavy inflation will be the result. More about that below in the text where Triconomics is explained in more detail.

3. Where does the money come from to fund these local governments and the National Debit Cards? Same place as where the money comes from that is thrown by the truckloads at all those clever financial institutions that helped get us into this mess in the first place. The money will of course come from the money printing presses. That is where all money comes from.

Yes, yes, I know that this printing of money will devalue the currency, but printing bonds and treasury bills that are purchased by the Fiddling Reserve will devalue the currency even more because we (the people) will have to pay the Fiddling Reserve all that interest and that loads the next generations up with mountains of debt. So, let's just do without those very clever Fiddling Reserve people that seem to have all the power over us in the Country. Tea parties are not very effective to change our lot. A good fun party to turn the Fiddling Reserve Building into the USA TriConomics department would be a lot more effective.

If the Federal Government (we the people) prints money then that money is our money. We printed it, it is ours. So if we now distribute our printed money to ourselves by giving it to our local governments and directly to us via our National Debit cards, we are creating no debt. Very simple and it will instantly stop this insanity, and no debt that is passed on to our children. Sounds too simple for you? Well, simple solutions are very difficult to dream up Complication is a lot easier and vastly more profitable to the politicians and their cronies. I have a very simple proposal as well to reduce the IRS Tax Code from 65,000 pages down to less than 10. You can see that proposal on the website of the United States Patent Office and also here: http://www.google.com/patents?id=DgCaAAAAEBAJ&dq=alf+temme

The problem with these simple proposals is that it sounds way too simple and it is near impossible to get this information to any member of Congress. The reaction to solutions that sound too good to be true are nearly always: Things cannot be as simple as that, and if they were this idea would have been implemented a long time ago. Or another favorite of mine is: "What makes you think that a simple manufacturer (me Alf Temme) should be able to come up with ideas and solutions that Nobel Prize winning economists have not even thought of? (there actually is no Nobel Prize for economics, the prize for economics is a Nobel Memorial Prize in Economics awarded by Sveriges Riksbank in memory of Alfred Nobel).

All these people that are supposed to govern the country and the economy arrogantly believe that they know everything there is to know about economics and that a simple but equally arrogant small manufacturer in California could not possibly have a solution better than theirs.

So please do all of us a favor and try to help me get this info to some of these people in Washington that could actually do something with it.

The question is: Which country will have the least arrogant and smartest politicians and then have the guts to make a quick decision and become the first country to adopt TriConomics as its policy to optimize its economy? The guts to be a leader has largely left the United States, so I am not holding my breath, but I like to be wrong. Surprise me.

(You are encouraged to copy this proposal in its entirety and distribute it widely so that some members of Congress may become acquainted with TriConomics sooner rather than later).

A Proposal for Rapid Economic Reversal from Recession to Prosperity in under one year. Give the money to "We the People" .  The People have generally more wisdom than the Financial Institutions on what to do with the money.

A website by Alf Temme, Economic Theorist and creator of the new economic insights named  http://www.triconomics.com/

The immediate following TriConomics instructions are only needed one single time to stop the current economic deterioration in its tracks within 3 months and bring the economy back to its 4% unemployment level within the following 3 months. After that the full application of TriConomics will result in a recession proof economy with ever increasing standard of living to the highest level of optimization possible and the crisis intervention measures of TriConomics will not be needed ever any more when the regular standard insights of TriConomics are followed by governments and their politicians.

The present economic crisis dictates that drastic and rapid actions must be taken to avert a national financial catastrophe that could plunge the country deep into depression, and cause a similar impact to global markets.  Drastic times call for drastic measures, and the current stimulus proposals, although significant in their scope, are not a guarantee or cure-all for these dire economic straits.  There is, however, a simple, creative, and easy-to-administer solution that could stimulate almost instant reversal of the present conditions.  All it would take to turn this situation around is a forward-thinking, action-oriented, concerted effort between the administration and congress to fast-track this very simple and tactical TriConomic solution.

The idea is to establish a National Debit Card program, funded by the U.S. Government.  Every American citizen and legal resident alien regardless of their age will be issued a National Debit Card that will be funded from time to time by the Federal Government with amounts to be determined appropriate to the need for injecting money into the economy at amounts that would not exceed the ability of the market to satisfy the delivery of goods and services matching the sudden increase in consumption. It is proposed that the immediate first funding of the National Debit Cards would be for $150 with a stipulation that the funds must be spent on goods and services within 30 days of receipt of the card.

The funds would not be convertible to cash or available for deposit into savings, nor could they be used to purchase securities or investment products such as stocks or mutual funds.   The cards would be valid for purchases of goods and services only, and the rapid expiration date would create an almost immediate boost to the national economy and a return to prosperity for many businesses and people through the instant injection of billions of dollars directly into the consumer markets.  The cards should be issued immediately to every person with a Social Security number and that would include small children and poor and rich alike.

Assuming 300 million people with Social Security cards, the economy would receive an instant $30 billion shot in the arm for every $100 funding of the debit cards.  It means that during the first $150 funding cycle the economy experiences a potential influx of $45 billion that go immediately into the economy and evenly disbursed to all businesses that consumers wish to do business with. And these $45 billion will flow into banks as well in the form of merchant deposits and helping the banking sector with the same $45 billion in new additional fund deposits. The following month a large percentage of these extra $45 billion will circulate again and ongoing every month thereafter. In addition the Banks can now again use these extra $45 billion to create their vicious 900% increase of the money supply by means of their Fed/Government permitted lending of 90% of their deposits (in future this currently allowed 90% lending percentage must be scaled down very gradually from 90% to 50% with the help of Government grants to the financial institutions to achieve the maximum bank created increase of the money supply to be 100% instead of the current 900% and raise the reserve requirement from the current 10% to 50%). The first $150 funding must be done with the projection and assurance of  additional funding of at least $100 funding increments at 30 day time intervals for at least 10 months in a row to create the certainty of  continued consumption to retailers and manufacturers and service providers so they can do proper long term planning for such continued increase of consumption in the many months to come.

This will boost income and confidence in the retail and service sector and prevent further store closings and loss of jobs in those sectors of the economy. The assurance to the manufacturing sector will also stop further decay of jobs in manufacturing as well. The rate at which money will continue to be funded onto the National Debit Cards can be adjusted according to the size of the funds and expiration times by which funds must have been consumed. This fine-tuning will be based upon the feedback data received from banks as to how fast the funding is being absorbed and the ability of production and services to cope with the sudden larger demand. If the supply of goods and services cannot meet the increase in demand, prices will rise and there will be a price inflation. As long as supply can meet the increased demand and prices do not rise, the amount of funding of the debit cards can be incrementally increased in order to promote an even faster rate of economic recovery.

This very simple solution will be easy to implement, and can be put together in as little as three weeks.  Cards will be mailed to every U.S. citizen, rich and poor alike, with a social security number and mailing address.   Citizens and resident aliens who did not receive cards by mail can pick them up in person at government offices, while registering fingerprints to prevent fraud. Illegal aliens who make up significant parts of the economy will also be able to receive the National Debit Cards with the possible stipulations of future total expiration of their cards. The number and identity of these illegal aliens can be captured at the same time and used in the future for other practical purposes. Remember that the first objective is to feed money into the economy. The objective is not to do social engineering within these National Debit cards and thereby delaying the process of economic recovery. The funding of debit cards for all at the same amount of funds should please and satisfy Socialists and Capitalists alike even though Socialists often know no bounds to satisfy their desire to take from the rich and give to the poor whereas Capitalists rarely can be kept from complaining about Socialism. What is called for here is to agree to disagree and get the ball rolling as fast as possible.

Card activation will be accomplished via the same electronic processes currently used by Visa, MasterCard and other providers.  Whatever account balance remains after the stipulated expiration periods may be returned  to the government or can be lowered by an ongoing percentage as long as the money remains unspent.  During the first 30 day cycle the immediate economic impact can be monitored on a daily basis from merchant bank  deposit data provided by the banks to the federal government. During the first 30 day $150 card funding cycle, it can be measured how fast the money is boosting the economy and which sectors are most favorably affected while the stimulus reverberates through the economy. Based upon these data , if the first funding did not cause inflation and the supply of goods and services was able to meet the increase in demand, the second funding round can be accelerated in time and increased in size and the expiration time for use of the funds could be shortened. Conversely if the first round funding did cause inflation and the supply of goods and services was unable to cope with the increased demand, then the second round would not be funded earlier and would not be increased in size and the expiration time would be increased as well.  It is  an essential aspect of the plan that the amounts funded to the cards expire after a predetermined period of time (30 days for the first $150 funding round), to maximize the speed and positive impact of each round of stimulus funding. 

After the first two rounds of funding, significant improvements in the economy should be noticeable.  Subsequent funding rounds could be issued at lower levels on an as-needed basis, to ensure that the rate of consumption does not overtake the production of goods and services.  Creation of new money to fund the National Debit Cards would be done electronically, essentially “printing” new money specifically for this program.  This can be accomplished without the danger of runaway inflation as long as production of goods and services keeps pace with the increase in consumer demand. 

There is probably no other way to achieve an instant economic boost of this significant magnitude .  Money is the lubricant of the economy, the enabler of commerce, and without it the economy grinds to a halt.  The National Debit Card program is the fastest and best way to get the economy back on track quickly and it should be given serious consideration at the highest levels of government.  Please call or write your congressional representatives and urge them to draft and approve a National Debit Card program. 

The initial National Debit Card act must be devoid of political manipulation or regulations. As soon as politicians get into regulation of this very effective way to stop the recession/depression, they will surely delay the implementation and regulate the effectiveness of the stimulus to death with endless regulation to prevent fraud and other irregularities and possible improvements they envision. All these sort of prevention measures would slow the process of the recovery in a critical way. Every second counts and endless negotiation and deliberation in Congress leads us ever faster into depression and delay the process of getting out of it. Immediately after the first passing and implementation of the National Debit Card act the deliberations for amending and improving it can start, not before. There will guaranteed be abuses immediately after the first funding and issuing of the cards, and they can still be prosecuted and further abuses can be prevented by immediately amending the National Debit Card Act. Even the fraudulent use of the cards will help the economy because even these fraudulently obtained funds will enter into the economy and will stimulate consumption.

To underscore the extreme urgency of the injecting of money into the economy as fast as possible I might illustrate that urgency with the fact that even throwing buckets of money from rooftops in public places would be a faster way toward economic recovery than giving billions to financial institutions or giving tax breaks to people and businesses  or drafting plans for massive infrastructure projects and legislating funding for them. Those tax breaks and infrastructure projects are also good tools to stimulate the economy, but they take way too long to immediately stop the continuing decline of the economy with job losses and business closures. The first order of business is to stop the further decline in its tracks with the National Debit Card money infusion. This needs to be done immediately without the annoying delay from people in Congress that like to hear themselves talk without  understanding the basics of TriConomics. 

For more information on this and other economic think tank insights from economic theorist Alf Temme, visit other pages on the website of www. TriConomics.com in the near future.

Additional writings on TriConomics are a work in progress, so check back on a frequent basis to learn more. There is however first a great urgency to implement this National Debit Card plan of TriConomics before starting to learn and implement the other simple measures with which any economy can be fine-tuned into an http://www.economicmiracle.com/