Posted To Ellen Brown’s Public Banking Google Group 05/20/2018

My old foil Mish Shedlock has been on this development for some time now, and of course advocates against any idea of a universal basic income or government deficits. The deal between Lega and Five Star is another compromise/reform with the current paradigm of Debt Only and so will accomplish nothing in the bigger picture that actually deals with paradigms.

In fact it may actually result in a desired (by finance) invalidation of the concept of UBI/universal dividend because the Italians do not know how to implement it, and so inflation will inevitably result.

The trick is to increase individual incomes sufficiently to create a new paradigm while simultaneously implementing painless and beneficial price deflation. (It truly is tricky unless you understand the digital nature of the costing/pricing, money and accounting systems and the exact place and times to implement the policies).

The policies and structural changes (one of which is resigning private money creation to the dust bin of history and the creation of a National Public Bank with a confederate system of state public banks) of the new paradigm of Direct and Reciprocal Monetary Gifting will indeed “do the trick”.

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Keen Is Correct….

In His Critique of MMT’s Assertion That Every Nation Should and Can Run A Trade Deficit.

Of course if every nation (within its current productive capacity) implemented the policies and structural changes of the new paradigm of Direct and Reciprocal Monetary Gifting…the urge and need to be either an export platform or run a trade deficit….would largely be eliminated. Why? Because they could then create sufficient individual incomes to keep the domestic economy in a free flowing state without having to worry about unemployment or practicing the economic, historic and geo-political vice of mercantilism that modern economies find “necessary” as a means of staving off the inevitable instability, rigidity, dominance and collapse that the old paradigm makes inevitable.

National self sufficiency is an economic virtue which is inhibited by the current international coalescence of Finance’s paradigm of Debt Only, and the new paradigm ends that inhibition and enables a new international confederacy of nations that all benefit from it.

If Keen would examine the transformative policies and structural changes of the new paradigm he would see this and could then get on its bandwagon so as to do more to advance economics, rejuvenate profit making systems and prevent eventual chaos and war….than arguing with terminally orthodox academics or even progressive ones.

Posted To RWER Blog 05/20/2018

The three primary and chronic problems of modern economies are:

1) they inherently create a scarcity ratio of free and available total individual incomes in ratio to total costs and so by dint of the (correctly applied) cost accounting convention that all costs must go into price…total prices

2) the above continually occurring cost inflation accompanied by no rational, ethical or appropriate way to remedy the upper bound of price inflation and

3) the by definition totally insane (doing/allowing the same thing over and over and expecting a different result) continuance of private Finance’s paradigm for the form and instrument of monetary distribution, that is Debt Only

The policies and structural changes of the new paradigm of Direct and Reciprocal Monetary Gifting specifically address and resolve these problems.

The Problem and the Solution

All theorizing and argumentation within the current paradigm amounts to nothing more than “epicycle” “tempests in a teapot”. The recent debate between Steve Keen and Warren Mosler about MMT, replies to it by Bill Mitchell and Keen’s counter reply are excellent examples of this.

The real insight of MMT which virtually all MMTers miss is simply that fiat money systems can be directly distributive. The problem is neither of them presently or in the future will be able to ethically or systemically control them…unless they recognize the digital nature of the costing/pricing, debt based money and accounting systems, and the significances of the point of sale/retail sale in the economic system…..and then craft policies to benefit all agents and completely align with the concept behind those policies, namely the natural philosophical concept of grace, and as it applies to economics and the money system, grace as in free gifting.

I’ve observed the excellent research and debate of heterodox economists like Keen, Hudson, Mitchell, Mosler et al for going on ten years now, and I’m in agreement with probably better than 99% of it, but their nit picking with each other and address primarily to opposing academics are sure signs of being stuck in an old paradigm and an ignorance of what really counts in all political movements and what happens with all new paradigms….and that is an awakening in the minds of the individual.

What these men together need to do is diligently search for and open their minds to the new paradigm and its policies and thus become a part of the solution instead of an erudite but niggling part of the problem.

 

There’s one little historical thing about paradigm changes that all of the analyses, theorizing and cautionary thinking will not change, and that is: everything adapts to the new paradigm…not the other way around. I know that is anathema to the researcher, theorist and conservatively minded, but that’s what happened when agriculture, helio-centrism, the printing press and the Reformation changed everything in those spheres of human endeavor, and with Direct and Reciprocal Monetary Gifting the obviously increased individual, commercial and systemic workability and general progression will be the same. There’s no end to history and theorizing will pick right back up shortly after the new paradigm becomes the new integrated reality, but there is never a return to an old paradigm.

Conspiracies and Unconsciousness of Paradigms

99.99% of “conspiracies” like the shadow government are actually simply how a system has evolved and/or been set up and people unconsciously affirm it as the norm, mostly by their inaction. They are merely old/current paradigms that have gone on too long and as a result their lingering and chronic problems oppress. There may be those who consciously realize these facts and don’t care or consider the situation tolerable or simply “our culture”. The current financial paradigm of Debt Only is effectively a shadow government because it dominates every other business model and probably 98% of the general populace.

Posted To RWER Blog 05/17/2018

The economy is very complex. As opposed to general equilibrium it is actually in a state of dominatingly smothered financial chaos “controlled” by finance’s virtual monopolistic paradigm of Debt as the only form in which money can be distributed. Even government spending is currently forced into this debt paradigm, and even if it weren’t the percentage of government money creation is a small one compared to private indebtedness.

Several years ago Steve Keen lamented the fact that economists could get their Phd’s in economics without taking so much as an elementary course in accounting. He was correct in that statement. Too bad he never used his economic knowledge to examine the digital nature of the costing, pricing, money and accounting systems and so discovered how policies could be crafted to resolve modern economies’ problems within the latter. The only effective way to end the dominance of the business model of finance and its current paradigm is to use the universal track and underlying infrastructure of double entry bookkeeping and its digital nature to implement the new paradigm of direct and reciprocal monetary gifting via the twin policies of a universal dividend and discount/rebate policies throughout the entirety of the economic process and at its terminal ending point of retail sale.

Again, using the underlying track of accounting cuts through all of the complexities of the economy, linearizes the effects of these two policies and so resolves the major chronic problems of technologically advanced capital intensive economies, namely a chronic scarcity of available individual income and the tendency toward inflation when there is no depression or deep recession like we experienced in 2008.

All one really has to do to see this is play out the effects of the discount/rebate policy with the three agents involved: the monetary authority mandated to create and distribute/rebate the monies of the policies, the enterprise giving the discount to the consumer and the consumer him/herself.

It readily becomes apparent that these simple (not simplistic) and yet elegant and effective policies actually accomplish what leading edge heterodox economists say they think is needed and yet do not know how to implement.

What is “a modern debt jubilee”? It’s monetary gifting. It’s just that instead of a one off event we would have ongoing, integrated/integrative policies that kept the economy continually prosperous and much more stable with the continual individual income.

What does creating a separate monetary gifting authority do? It pulls the monopolistic and parasitic proboscis of private finance’s paradigm of Debt Only out of the economy, ends the trend toward further and further financialization of the economy and when everyone awakens to the new generalized prosperity for both the individual and enterprise resigns that monopolistic paradigm to the dust bin of history.

What does integrating price deflation painlessly and beneficially into profit making systems herald? Why, the major signatures of a paradigm change, namely

1) the end of a long entrenched orthodoxy (we must not pump money into the economy lest it cause inflation),
2) the inversion/transformation of a problematic duality (from a scarcity of individual income in ratio to total costs/prices to an abundance in ratio to same,
3) generalized progress, increased knowledge, depth of insight and human survivability in the area of the paradigm change and, if that area is general enough and has related problems in other areas of human existence “knock on” effects in those areas as well.