The Benefits of Major/Paradigmatic Changes

For instance the 50% Discount/Rebate policy makes it much more difficult for anti-social commercial agents to try to de-stabilize the new monetary paradigm by inflating their prices. If a greedy CEO says, “Oh wow, there’s now potentially double the demand for my product, I think I’ll raise my prices by 25%”, but if only one of his competitors says, “No, I’m going to compete on price and maybe even lower my price a little” …just how much market share is the cooperative CEO going to take from the anti-social one?

Of course there will also be regulatory tax incentives to abide by the rules of the new paradigm and tax disincentives for not doing so as this is simply recognizing that its not an entirely ethical world we live in, but the point is that major/paradigmatic changes solve problems and make further problem solving easier by changing the operant/most important problematic aspects of a current paradigm.

Re-visiting Hegel and His Trinitarian Dialectical Concept

That’s what the dialectic is afterall. It’s not just conflict between thesis and anti-thesis forever and always for specific problems and particularly for new paradigms/paradigm changes which are the quinessential integrative phenomenon.

Wisdom has always been “the third way”, the integrative thirdness greater oneness of only the truths, the highest workabilities, most relevant applicabilities and highest ethical considerations of a seeming unresolvable duality/problem.

Learning to think in terms of trinities, unities, onenesses and processes aligns with the natural philosophical concept of grace because these are all aspects of grace, and also are perfectly applicable to and descriptive of temporal universe reality.

Post To Stephanie Kelton’s Substack Newsletter 08/02/2022

The truth is private for profit money creation is not a legitimate business model at all. Why? Because loans/money creation is always a very costly occurence pre-production (as in business start ups and business expansion) or post retail sale (as in mortgages, auto loans and other big ticket items). Thus it exposes private for profit money creation as a wholly exterior parasite on the actually productive process. Investment banks that only utilize already created money/savings and other such financial services are legitimate business models.

Money creation needs to become a public utility guided by the most beneficial and ethical concept humanity has ever self actualized, namely the natural philosophical concept of grace, not grace as in some religious, sectarian orthodoxy, but grace as in as in love in action/systemic policy.

The way to herd the political apparatus toward economic abundance and ecological sanity is to communicate the incredible benefits of the new monetary paradigm of Direct and Reciprocal Monetary Gifting most specifically a 50% Discount at retail sale all of which discount is Rebated back to the enterprise granting it to the consumer so that they can be made whole on their overheads and profit margins. This single policy has the following empirical/mathematical effects: 1) ends inflation forever for every individual agent by implementing BENEFICIAL price and asset DEFLATION into profit making economic systems. “Holy orthodoxy exploding and temporal universe reality inverting occurence. That’s a paradigm change all by itself. 2) Thus it ends any argument for fiscal austerity enabling running the kind of fiscal deficits necessary to confront climate change. 3) It immediately doubles every individuals purchasing power so if you’re making $20/hr. you can now purchase at a rate of $40/hr or maintain your present lifestyle and save/invest at a rate of $20/hr. 4) It potentially doubles demand for vitually every enterprise’s goods and services integrating the self interests of enterprise with their consumers. 5) It consequently isolates Finance from every other legitimate business model making it a huge economic and politically powerful issue. Finally, and most importantly it breaks up private banks’ monopolistic paradigm of Debt Only as the sole form and vehicle for the creation and distribution of money.

I’m all for MMT, UBI, etc. etc. They’re all very good reforms, but why not deal effectively and terminatedly with the truly operant factor in the economic system, namely the current monetary paradigm???

Why My Book Is Titled Wisdomics-Gracenomics

Because Its Economic Wisdom, because it is the very expression of the natural philosophical concept of grace…in the economic system.

Ok, what is Wisdom? Wisdom is the integrative mental process itself, and so the means of garnering wisdom on any discipline, science or situation. Thoroughly integrate what are seemingly unresolvable opposites into a thirdness greater oneness and you have accomplished a wisdom insight. A wisdom insight is the realization of an operant factor and where, how and when it resolves a problematic duality. Wisdom insights are deep simplicities because they resolve problematic dualities. And that’s why my books title begins with the word Wisdomics, because it is about economic wisdom, economic integration of problematic dualities.

New paradigms/paradigm concepts are the quintessential integrative phenomena because they always resolve problematic dualities and point the way toward thirdnesses greater onenesses. That, by definition, also makes them wisdom insights.

Okay, what is the natural philosophical concept of grace? It is the most integrative concept/experience that homo sapiens can have. The definition of grace is: love in action, toward oneself, toward others, in human systems and (if you’re going to be wise and thoroughgoing about it) in your conscious perception of everything in every moment of one’s life.

Grace/graciousness is the concept/experience behind every human progressive moment including moments of paradigm change/mega-paradigm change. This is because grace is the natural state of…the cosmos. Yes, it’s that panglossian…except it’s also trinitarian, that is it includes all opposites (and your unconscious or conscious ability to choose them) entirely integrated to the point of thirdness greater oneness. The natural state of the temporal universe is grace and your nascent ability to experience each moment of it and whatever is momentarily in it, is what has always been known as the ecstatic experience of god.

Mega-paradigm changes, of which there have probably only been two previous occurences, are direct, universally experienced and continuous expressions of grace/graciousness that not only effect paradigm change in a specific system, body of knowledge and/or area of human endeavor, but they also have beneficial “knock on” effects in other such areas that are apparently unrelated.

The above is why I used the term Gracenomics in the title of my book. Because it is the way to implement a direct, universally experienced and continuous expression of an aspect of the natural philosophical concept of grace (Monetary Gifting) in the economy.

In other words because it is potentially the next mega-paradigm change in human history.

Policies Incentivising Ecologically Rational Investment Rather Than Simply Increasing Consumption

Eco-bonds at attractive rates (5+%) used to confront climate change.

Incentives to create generalized organic gardening and discourage lawn watering.

High percentage debt jubilees for eco-rational big ticket items.

Create Department of Eco-Rational Policy Actions.

Create staging areas insuring decent/dignity levels of lifestyle on both sides of national borders in order to humanely prepare for climate refugees.

Vastly increase research on programatic ways to slow/reverse climate change.

Consciously cultivate ways to increase the self actualization of grace as in love in action.

Study the history of the non-sectarian natural philosophical concept of grace as in love in action and its various aspects being the core concept underlying all paradigm changes and human increased survival.

Post To Ann Pettifor’s Scheer Post

Me: Love this analysis Ann. It’s another (and even deeper and more hidden systemic) layer examining money and financialization that all of the other leading economic reform movements like MMT, Keen’s Minsky’s Financial Instability Hypothesis, Hudson’s financial parasitism, UBI/Positive Money and Ellen Brown’s Public Banking revolve around.

It’s becoming ever more clear that the money system and its current paradigm of Debt Only as the sole monopolistic form and vehicle for the creation and distribtion of money, and its shadowed, increasingly abstract, unregulated and crazy financialized derivative products ARE the problem.

So how do we change the current paradigm and its non-survival effects? I would say find a way that isolates finance and yet benefits all other economic agents individual and commercial. A “third way” that integrates the self interests of traditionally opposed economic and political perspectives, could lead to the rational empowerment of governments and that could super charge the kind of ecological sanity we’ve failed to generate for the last 50 years.

AP: Thanks Steve…tell more about ‘isolating finance’..

Me: You’re welcome Ann. There is an entire policy program that will regulate and stabilize the new monetary paradigm that is necessary, but the single most important thing we could do is implement a 50% Discount/Rebate policy at the point of retail sale where retailers give consumers a 50% discount on virtually every consumer product from a package of chewing gum to an automobile or a house. The monetary authority whether the FED/Bank of England or some other authority mandated to do so, would then rebate the entirety of that discount back to the retailer making them whole on their overheads and margins of profit. All the retailer would need to do is open a T-account labeled Sales Discounts and the monetary authority would debit or credit (whichever is the opposite of the normal balance) the retailer’s books. What does this single policy do? It breaks up Finance’s monopolistic paradigm for the creation and distribution of money, namely Debt Only with Direct (to the consumer) and Reciprocally (back to the enterprise) Monetary Gifting. The obvious, immediate and continuous benefits to individual agents (a 100% increase in their purchasing power because they can now buy $100 worth of goods for $50 and hence save $50 they would otherwise have to spend) and commercial and retail agents a potential doubling of demand for their goods and services. When was the last time a single policy doubled purchasing power without harming enterprise? Short answer never. The policy integrates the normally contentious self interests of business and the consumer, and in such a beneficial way that what retailer could resist opting into the policy because if you don’t you have to get 100% of your price from the consumer while your competitor who does opt in only needs to get 50% of their price. It’s “an offer enterprise cannot refuse”. Likewise the consumer also could not resist going to whatever retailer was gifting them 50% of the price of virtually everything. And who would oppose these wild benefits? Why Finance of course because they are not in the market of Gifting money…ONLY creating it as Debt. So the policy exposes Finance’s monopoly paradigm to create money only as debt and the beneficial effects of the policy isolates them from virtually all other economic agents individual and commercial.

The policy also ends inflation forever by implementing BENEFICIAL price and asset DEFLATION. Holy orthodoxy exploding temporal universe and mental inversion of reality! Phenomenon of which is the cardinal signature of a genuine paradigm change.

As I said there is an entire regulatory program and set of tax incentives and disincentives that accompany the main policy of the 50% Discount/Rebate policy so as to stabilize and protect the new paradigm.

Me: Finance/Money is where the real problem in economics exists. We live in Finance capitalism after all. As the senator from Illinois has put it regarding the senate: “Finance owns the joint.” The truth is private money creation is not a legitimate economic business model. Why? Because profit making money creation adds cost and is always either pre-production (like for business loans) or post retail sale (as in a mortgage). Thus it is exposed as a wholly exterior and costly parasite on the actual and legitimate economic/productive process.

It is stupid and an ignoring of Lord Acton’s dictum that power corrupts and absolute power corrupts absolutely to grant Private Finance the virtual monopoly power to create the life’s blood factor for every individual and every enterprise, namely money. But it is even more stupid to allow them to virtually monopolize the paradigm/pattern of money, that is create it ONLY as Debt.

Two of the signatures of accomplished paradigm change are complete conceptual opposition and inversion of temporal universe reality. For instance, the the paradigm change from Nomadic Hunting and Gathering For Food was Agriculture, Homesteading and Urbanization. Likewise, the Copernican Cosmological paradigm change was nothing more and certainly nothing less than the inversion of the positions of the earth and the sun in other words from geo-centrism to helio-centrism. Again, conceptual opposition and inversion of temporal universe reality. Hence, the present problematic monetary and financial paradigm is Direct and Reciprocal (as in accounting debits and credits) Debt Only, and the new paradigm is Direct and Reciprocal Monetary Gifting…and the policy of a direct to the consumer 50% Discount at retail sale and a reciprocal rebate of the total of that discount back to the retailer granting it to the consumer not only fulfills the signatures of complete conceptual opposition (Debt as in Burden to repay to Gifting) and inversion of temporal universe reality (from chronic erosive inflation to beneficial price and asset deflation) but is the very expression of the new paradigm itself.

Finally, the keys to perceiving paradigm concepts are integrative of opposites thinking, simplicity not complexity and problem resolution not problem discovery and discription. This is because paradigm changes are the quintessential integrative phenomena. That is they are single operant factor concepts that resolve the problems and thus alter an entire pattern of a complexity. In other words an integration of the opposites of single/simple and complex and a change of emphasis from problem discovery to problem solution usually in a way that is integrative of the particles of truth in otherwise considered present opposite orthodoxies.

Post To Matt Taibbi on Scheer Post

Your outrage at the dishonesty and greed of the Banks is well taken. The truth is these problems will continue until we have a change in the monetary paradigm. All of the current leading reforms circle around money and finance. UBI, MMT, Ellen Brown’s Public Banking, Keen’s Minsky’s Financial Instability Hypothesis, Hudson’s Financial Parasitism and Rentier Domination, Graeber’s Debt: The First 5000 Years come to mind. We do live in FINANCE capitalism after all. But let us not get caught up in the dualism that finance would love for us to puzzle in for another 5000 years. The problem is NOT capitalism vs socialism. It is THE MONETARY PARADIGM, that is the entire pattern of money and finance, and the current paradigm for the creation and distribution of money is DEBT ONLY, ONLY as in a monopolistic paradigm. All monopolies are problematic because they ignore Acton’s dictum that power corrupts and absolute power corrupts absolutely.

So what is the new monetary paradigm concept, that applied and strategically integrated into the debt based system, accomplishes all of the above well intentioned reforms and permanently changes the entire pattern of money? Well, paradigms historically have always been in complete conceptual and temporal universe reality opposition to the current paradigm (the Copernican Cosmological paradigm was the change from Geo-centrism to Helio-centrism, and the original human species mega-paradigm change was from Mere Struggle For Survival to Self Awareness and Hence the rational consideration of Morality AKA Ethics). So the opposite of Debt ONLY, Debt as in burden to repay, is MONETARY GIFTING.

What is UBI? It’s monetary gifting. MMT’s fiscal deficits? Monetary gifting to government contractors.

Public Banking? It’s a reform that saves economic agents money, i.e. a monetary gift of costs.

Minsky’s Financial Instability Hypothesis? Empires have always invaded their neighbors to steal their assets in the (vain) hope that it will stabilize their debt burdened domestic economies. So stop the inevitable debt build up with monetary gifting and end the human civilization long geo-strategic habit of invasion and theft of assets.

As Graeber showed us no matter whether the monetary paradigm was wielded by the Palace/Government or the Private Banks as now money and finance was always created and distributed ONLY as Debt. Even the smarter than us ancients who utilized occasional debt jubilees to reset their economies and social contracts merely palliated the 5000 year old paradigm of Debt Only…because the debt always came back and overwhelmed economies. Change it forever by integrating debt jubilee/monetary gifting directly and continuously into the economic process.

Hudson’s financial parasitism is enlightened. Why? Because when you look at the entire economic/actually productive process you see that Finance is always either post retail sale (which violates the ideas of consumption as ownership and the idea that retail is the terminal summing point for all costs including profit for all legitimate business models, except Finance of course…but where and what is the problem?) or pre-production (which violates the additional cost mandate above) and so it exposes the business model of Finance as a wholly exterior parasite to the otherwise legitimate economic process.

You can read up on the latest edition of the policy program of the new monetary paradigm here: https://www.amazon.com/dp/B07PLNJLRN/ref=sr_1_1?keywords=wisdomics-Gracenomics&qid=1552358772&s=books&sr=1-1-catcorr

Thread on Stephanie Kelton’s Substack Newsletter

Me: All of your suggestions are valid, but why not go to the heart of our economic problems and solve more than just inflation? We can do this by implementing a single policy that has instantaneous, universal and ongoing macro-economic effects. That policy is a 50% discount at retail sale, the entirety of which is rebated back to the retail merchant granting it to their customers by the FED or some other monetary authority. Not only will this immediately reverse all of the present inflation, but it will (amazingly) implement beneficial price and asset deflation into profit making economic systems. It will also immediately double everyone’s purchasing power and potentially double the demand for every enterprises goods and services so its integrative of the self intersts of the traditionally opposed economic constituency of consumer and enterprise.

I’m surprised that Modern MONETARY Theorists have not recognized such a policy and latched onto it because it ends inflation forever and hence shuts the mouth of every conservative/libertarian who says fiscal spending is inflationary. If you end any possibility of inflation that means you can fund every rational socio-economic and climate/ecological mega project…exactly like MMTers and others would like to see. What do you think Stephanie?

Me: Any response? A critique even. Happy to respond either way. All I’m interested in is the resolution of economic, social and political problems. Money DOES make the economic world go ’round, and Direct and Reciprocal Monetary Gifting will finally enable us to right things economically and accomplish the general Good.

GM: So everyone just doubles their prices.

And money doesn’t make the world go round. Production does!

Me: “So everyone just doubles their prices.”

No, that is the typical response by someone who thinks they know what free markets are. Free market theorists have confused the chaos of alternately goosed and strangled financial dominance by the current monetary paradigm of Debt Only with freedom. What you want is economic free flowingness and that is exactly what doubling everyone’s purchasing power and hence demand for every enterprise’s goods and services. In the temporal universe that we all live in there is only freedom amongst known and enforced barriers. That’s being honest and real. Free market theorists make a fetish out of freedom that accomplishes nothing but distracting people from the real economic problem, namely the monopolistic monetary paradigm of Debt Only that the private banks wield to dominate everyone.

In my book in order for retailers to opt into the 50% Discount/Rebate privilege they must submit their books to forensic accounting analysis that shows they have not incurred additional costs. Their costs will be massively decreased by massive cuts in payroll, personal and corporate taxes enabled by the new paradigm so there is virtually no possibility of them incurring additional costs from before the new paradigm. Also, any business model/enterprise prior to retail sale who arbitrarily raises their prices will be taxed at a rate of 100% on any revenue they may have garnered from such inflation. If any retailer becomes a serial inflater they will lose their 50% Discount/Rebate privileges and any prior enterprise to retail sale who is a serial inflater will lose their payroll, personal and corporate tax cuts. No retailer can resist opting into the new 50% discount/rebate policy because even the stupidest consumer is not going to pay 100% of the price of everything when they can walk next door and only pay 50%. Such extortion is totally justified by the general good the new monetary paradigm bequeaths to every economic agent individual and commercial. That’s what sovereign and ethically redeemed control looks like.

What enables production? That’s right…money. And the new monetary paradigm and its philosophically aligned policies will enable us to wake up and die right in so many ways.

GM: You wrote a book?????

Everyone in a free-market economy is just going to happily open up their books to hard audits by the authorities???

Resources enable production. Money enables exchange. And Venezuelan Bolivars paper streets.

Me: “Everyone in a free-market economy is just going to happily open up their books to hard audits by the authorities???”

Yes, if they want to participate in a policy that will double the amount of purchasing power for their products and services…and consequently if they want to survive because as I said what consumer is going to pay them 100% of their price when they can get the same amount of consumption for 50% of it…from their competitor. And of course when the can also get like a 75% cut in their personal and corporate taxes by playing by the new gracious rules…you don’t think thats enough incentive to turn even the socio-pathic CEO into a balanced actor??? Even socio-paths can compute and understand survival.

Historically paradigm changes are marked by conceptual opposition as in Debt Only to Monetary Gifting and geo-centrism to helio-centrism. They are also marked by complete inversion of temporal universe reality as in geo-centrism to helio-centrism and Debt Only to debt and Monetary Gifting. Same with nomadic hunting and gathering to agriculture, homesteading and urbanization. My policy program for the new monetary paradigm accomplishes every one of the classic signatures of historical paradigm changes. In fact it accomplishes the signatures of only the two mega-paradigm changes that humanity has evolved through.

GM: Well that is some free market!! The Commies would love it.

And who tames the psychopaths in government?

Me: The new monetary paradigm has nothing whatsoever to do with communism. In fact it not only leads to a rational form of industrial capitalism it goes a long way toward ending the bitch that right wingers always throw at progressives, namely excessive re-distributive taxation.

It’s better than the delusion of free markets. It’s abundant economic free flowingness.

“And who tames the psychopaths in government?”

A mass movement that communicates the universal benefits of the new monetary paradigm’s policy program will herd the entirety of the political apparatus toward economic, social and ecological sanity. That’s who. That’s how Ghandi, MLK, Jr and others have made such progress. The trick is to keep the analysis on the paradigmatic level instead of settling for the theoretically complex but palliative reform level. Theoretical analysis is all well and good of course, but the key to perceiving and implementing a new paradigm is actually not complexity, but simplicity. Why is this? Because paradigms are always SINGLE concepts. Single concepts that describe the operant factor(s) of a present or new paradigm. Analyze and isolate the operant factor of a system or area of human endeavor that has many problems that have grown up around it, utilize integrative, synthesizing thinking (the very process of garnering wisdom itself) and if you’re perseverant and a little lucky you might discover the right concept, way and place to implement the new paradigm. A new paradigm usually occurs after the discovery of a new tool and/or insight. Like the telescope and the discovery of the ellipse like with the Copernican cosmological paradigm change. In the present case it’s the discovery of the universal, macro-economic significance of the point of retail sale…which has escaped recognition by virtually all economists because they are so into complexity, analyzing problems instead of solutions and because they are so distracted by abstraction that they have failed to look directly at the economic process and its terminal ending point at retail sale…which has the above macro-economic effects with a policy that is the exact expression of the new paradigm. Again, I’m not knocking less integrative forms of analysis. The fact is all of the leading reform movements like Keen’s financial instability hypothesis, Hudson’s financial parasitism, UBI, Public Banking and Modern MONETARY Theory all align philosophically with the new monetary paradigm concept…it’s just that they haven’t cognited on the exact concept of the new paradigm and found how, where and when to most efficaciously implement it.

GM: And where has your plan been implemented, assuming the requisite herd has convinced a government somewhere of its sage thinking.

MLK’s ideas have not had much success and Ghandi exchanged one tyranny for another as well as Partition.

I have no idea how a retailer shall willingly give up 50% of his revenue, even assuming that his markup is 100% of his cost. And this army of auditors should operate as cleanlyand efficiently as the IRS?

Me: This is a paradigm change. If it had been implemented somewhere you definitely would have heard about it.

Retailers do not give up a single cent of their revenue as the monetary authority rebates the entirety of the discount they give to consumers…back to the retailer. An army of forensic accountants as thorough and as ethically inclined as Bill Black’s group could only be a sanctifiying way of keeping the new UNIVERSALLY beneficial paradigm from being gamed by those who have habitually done so under the old paradigm. I’m sorry, you really should work on your cynicism. It’s a good purgative, but a poor lifestyle.

Again, paradigms/paradigm concepts are largely unconscious things so they are a lot like breathing. When you can’t breath it suddenly dawns on you how important and real breathing is…but you have to have a mind that is open about examining present orthodoxies which the paradigm change has invalidated and/or made irrelevant. Otherwise you’re just an apologist for an outmoded concept. For instance, the technological paradigm change of the Gutenberg press was undoubtedly initially rejected by the church whose monopoly on hand written bibles would have made many say, “What about all the monks being thrown out of work?” Of course the church now made many more bibles and the monks went back to praising god more and/or admiring their fellow monks backsides. Paradigm changes are virtually universally beneficial changes which is another signature of paradigm changes and also why it is a historical truth that everything adapts to a new paradigm…not the other way around.

DT: If you increase everyone’s spending power it seems there would be no control over the availability of resources. Some may be deleted rapidly causing assured inflation of some products.

Me: Doubling everyone’s purchasing power does not necessarily equate to a doubling of consumption/economic throughput. The poor will have an increase in consumption for sure and even a substancial increase in over all consumption can probably be handled without any significant inflation even under a non-monetary paradigm change. If we have a 3-4% rate of inflation even with the regulatory and tax carrot and stick program I advocate in my book all you’d need to do is index the discount/rebate percentage to it. In other words if its 3% then the discount is 53%.

Now resource conservation and even reducing consumptiion level is an excellent idea, but that is a much easier thing for all consumers to agree about doing in an abundance situation with the new monetary paradigm than an austerity/scarcity of demand one like now. Paradigm changes have always resolved more problems than they later create, and because they always integrate the self interests of traditionally opposed constituencies, cooperation is also one of its signatures. Regardless, if we forever resolve inflation with the 50% Discount/Rebate policy then there is no longer any reason not to fund the fiscal mega-projects necessary to confront climate change like off and under planeting the dirtiest of production. All kinds of addional ecologically sane things can occur like incentivizing turning lawns into gardens to save water, re-enrich the soil and de-centralize/disinvest the agri-business cluster fuck that has destroyed our soil, reduced the vitamin and mineral content of what we eat by up to 80% and fostered numerous auto-immune diseases like Parkinson’s and Lupus. Paradigm changes are the ultimate integrative phenomenon which is exactly what we need because we’ve wallowed in idiotic dualisms for so long that we are now in a disintegrative trend. The key to accomplishing the thirdness greater oneness of the truths, workabilities and highest ethical considerations in seeming opposites is thinking and acting on the paradighmatic level. Most specifically the monetary paradigm which hasn’t changed for the entire course of human civilization. As I said before all of the leading economic reforms are well and good, but they haven’t recognized the biggest, most underlying economic problem that needs to be resolved is the current monopolistic monetary paradigm that the private banks now own and control.

GM: So this is really just some aethereal desire dancing about your little head.

So the Fed reimburses the retailer the full amount of the discount given to the consumer! And an army of ethically inclined accountants shall oversee the entire operation!

It’s a paradigm shift, right into the looney bin.

Me: No, this is a paradigm change in a single policy that mathematically forever ends inflation, doubles everyone’s purchasing power and potentially doubles the demand for every enterprise’s goods and services…all of which benefit and integrate the self interests of constituencies that currently are opposed. YOU’RE NOT LOOKING AT THOSE EMPIRICAL, MATHEMATICAL, AND ONGOING TEMPORAL UNIVERSE EFFECTS. LOOK AT IT!!! I’m afraid you’re stuck in a number of already invalidated orthodoxies that have the effect of making you a cynical non-looking troll. I’m sure you mean well, but cynicism never accomplished anything. Again, look at the immediate and ongoing effects of that single policy…let alone the rest of the paradigm change program.

GM: The only way everyone’s purchasing power doubles is an increase in the real value of money, that is half of it disappears, or production doubles.

Any other ideas are just nonsense, ‘temporal universe’ nonsense!

Me:

That’s a nice abstract, no longer relevant in the new monetary paradigm…orthodoxy. Like nearly every economist or economic pundit on the planet you are out of touch with temporal universe reality. When you go to the grocery store and buy a 12 pack of Bud Light that is priced at $15 for only $7.50 …THAT MEANS YOUR PURCHASING POWER HAS JUST DOUBLED. GOT IT??? And the retailer gets his $7.50 discount rebated back to him so he’s not punished in any way, but like every other economic agent benefits from the new paradigm for the creation and distribution of money. The Discount/Rebate policy is in fact a doubling of the value of money. Can’t you see that? Or are the mind filters and acculturation of economic orthodoxies just too much for you to see past?

Can you see this Stephanie? You want to get the most thorny of 3 or 4 of our economic problems completely resolved? Break up the monopolistic monetary paradigm of Debt Only by integrating the policy program of the new paradigm of Monetary Gifting into the debt based system. The monetary system and its present paradigm IS the root of the problem. Modern MONETARY Theory is about money after all.

GM: The private banks are heavily dependent upon depositors or lenders. If depositors or bondholders don’t like what the private banks are doing, that is frivolous lending, they pull their money. The banks own and control very little.

Me: The private banks create upwards of 97% of our money. Loans create deposits, and ONLY IN THE FORM OF DEBT. The banks are so powerful because of this monetary paradigm of Debt Only that they rise like a Phoenix from the ashes of every downturn or even disaster like in 2008…while every other busiess model and individual economic agent is forced to bow and accept the pain the private banks themselves create by liar’s loans and incredibly stupid things like the derivatives mortgage back securities, credit default swaps and synthetic credit default swaps. The “lonable funds” theory of money creation is false.

Utilize the new monetary gifting paradigm and its primary policy of a 50% discount/rebate policy at retail sale…to forever end erosive invlation and the policy door is open to resolving our other economic problems, creating abundance for all, the integration of the most desired aspects of both the left and the right’s economic agenda (economic democracy and tax cuts) and last but not least the ability to fiscally fund the mega-projects necessary to confront climate change.

Stephanie you really need to engage with me on this. MMT has the mechanics of money creation absolutely correct, but it still remains fully within the present paradigm of Debt Only. Reform is well and good, but a paradigm change is forever and a much deeper change. The clock for Chinese economic dominance is ticking because they take a much more pragmatic attitude toward debt and its elimination. And accelerating climate change is of course even more of a disaster…unless we can end the fiscal austerity we’ve been ignorantly following.

********************************************

Me:

Neo-classical macro no longer “works”, actually never did. Learned that from about 10 years of listening to every video/podcast of Steve Keen, Michael Hudson, Stephanie, Warren, Randy, etc. Every present leading reform movement focuses on how the money system de-stabilizes the economy, but they’re too caught up in the theoretical and abstract complexities of the system when they should instead be hunting for the operant factor/concept in the current system that keeps all of its problems in suspension. That’s what a paradigm concept is, a description of the essence and operant factor of a system, body of knowledge or area of human endeavor. Paradoxically the key to perceiving and understanding paradigms is simplicity not complexity. That’s because paradigms are the quimtessential integrative of opposites phenomenon. It’s a single new concept…that learned how to apply changes an entire complexity.

Stephanie, are you aware of the mass movement between the two world wars started by a guy named C. H. Douglas. It was called Social Credit. Douglas first came up with the idea of a universal dividend, what is referred to now as UBI, and he also suggested we have what he called a compensated retail discount. This second policy (UBI and a job guarantee are also good ideas and a part of my new paradigm policy program) was a potential game changer. The problem was Douglas still lived in the equilibrium mindset of economics and he pre-dated Kuhn’s elucidation of the paradigm. I’ve taken the compensated retail discount and simply made it a high percentage point at retail sail. Such a policy has macro-economic effect because it is at the terminal ending point of the entire (legitimate) economic/productive process where production exits the economy and becomes consumption. It is also hence the terminal summing point for all costs including profit for every item or service and also the terminal expression point for inflation. Hence a 50% discount to the consumer at retail can forever slay inflation (garden variety inflation is generally a smallish single digit percentage, bad inflation like now as Stanford accurately describes is generally less than 10% yoy and hyperinflations never occur unless several disastrous circumstances take place first including finally with the banks leveraging up currency speculators who short the currency and that is when the true hyperness kicks in. All of the disastrous circumstances can be avoided most especially the final stage by a sovereign currency nation declaring that any attempt to anti-socially profit from de-stabilizing its money system be “null and void”.).

As stated here before a 50% discount to the consumer 1) immediately, empirically and continuously doubles everyone’s purchasing power by implementing beneficial price and asset DEFLATION into profit making economic systems (holy orthodoxy busting reality that is), 2) with the rebate of the discount back to the merchant it makes them whole on their overheads and profit margins and doubles the potential demand for every enterprise’s goods and services, the very description of good economic times and 3) ends any rational objection to fiscal deficits to upgrade infrastructure, re-industrialize the US and fund the mega-projects necessary to fight climate change. Let’s stop palliating the problem (the current monopolistic monetary paradigm) and change it…before its too late.

Posted To Mish Talk 06/021/2022

Me: The problem with gas rebate cards is not that it’s the wrong thing to do it’s that its just another palliative and not a universally beneficial economic gift to both consumer and enterprise…in other words a PARADIGM/ENTIRE PATTERN CHANGE in the money system and economy…like my 50% Discount/Rebate policy at retail sale is. If you’re not smart enough to do the math and see how that single policy doubles everyone’s purchasing power, doubles the available demand for every enterprise’s goods and services AND macro-economically ends inflation forever…then you must have flunked 6th grade math. Wake up you deflationista libertarian economists and learn to think a new thought instead of simply bitching in an orthodox way. Sheesh!

Sebmurray: The problem with the tax holiday is that what happens if the price still keeps going up? At some point the holiday ends, and consumers are slapped with a massive increase. That’s what happened where I live.

Guess they’ll just have to stick to fighting inflation with more inflation

Me: Our taxes DO NOT ACTUALLY FUND OUR GOVERNMENT PROGRAMS. They are rubbished as soon as they reach the IRS. We are monetarily sovereign and create all of our money out of thin air. If we had the 50% Discount/Rebate policy at retail sale and didn’t tax anyone or any business we’d still be able to fund every government program and also have beneficial price and asset deflation. Taxation IS a legitimate right of government when it is utilized to guarantee compliance with the government’s rational goals which means its only 95% theft. Tax relief is just another aspect of the new monetary paradigm. Do the math so you actually understand the money system and how a new monetary paradigm would change the entire economic PATTERN. Also, stop making a fetish out of free market theory. Free market theorists have mistaken freedom for chaos. There is only freedom amongst known barriers in the temporal universe. That’s why you can’t walk into a theater and yell “Fire!” What we need is economic FREE FLOWINGNESS. That’s what a 50% Discount/Rebate policy does by providing beneficial macro-economic deflation and universal monetary abundance

The Next Zeitgeist: Redeemed Power and Greater and More Ethically Aligned Profit As a Result of Wider Economic Markets and Their Redeemed Control

The present zeitgeist is Power, Profit and Control. The new zeitgeist, because it will finally be an active expression of the concept behind both the new monetary paradigm and the primary concept behind every historical paradigm change, namely the natural philosophical concept of grace.

Hence grace applied to Power, Profit and Control becomes Redeemed Power and Greater and More Ethically Aligned Profit As a Result of Wider Economic Markets and Their Redeemed Control. Sovereignty is an aspect of grace because it is power that is ethically redeemed. Abundance, an aspect of grace, has always been a result of every paradigm change, mega-paradigm change and zeitgeist. Zeitgeists are ethics themselves of a present or future age and refined ethical consideration is an aspect of Wisdom so the new zeitgeist aligned with these aspects of grace will result in greater profit from wider even off planetary markets. Redemption again is an aspect of grace and applied to economies will result in more fair and ethical control of same.