Me:  Yes, it’s basically the MMT (Modern Monetary Theory) approach to the problem. Problem is if you simply keep pouring additional money into the economy, especially if they are bonds that exact an additional cost to the economy…you’re going to get monetary inflation. Not that monetary inflation is THE problem, it isn’t. The more underlying problem is the PRICE inflationary nature of all of commerce itself (the social credit insight)…but monetary inflation IS a subsequent reality of merely pumping more and more money into the economy VIA a loan to businesses OR via the government to businesses…both of which are NOT DIRECT…and so exact an additional cost. Heaven forbid that we simply directly distribute a dividend which more effectively and efficiently fixes the problem they’re all running around in circles trying…and failing to fix….namely a lack of available money in the hands of the individual…to purchase production and so attain an equilibrium!!!!!!!!! And of course if we also implemented a retail discount based on statistics and the simple mathematical tool of ratio…we could also maintain that equilibrium despite the fact that even with a dividend the economy is going to tend toward disequilibrium (because again, that’s its nature, as the nascent social crediter and Disequilibrium theorist Steve Keen has so iconoclastically shown) A dividend and discount? Horrors! Social Credit and the de-throning and de-toothing of Finance…so that it can take its proper smaller and yet still profitable place in the overall economy. We can’t have that…can we?

Just to add here. The Social Credit concept of a National Credit Office serves the same financial purpose that a Central Bank/MMT issuance of bonds does…except it is mandated to distribute interest free credit directly to the individual….as a supplemental gift. The commercial financial paradigm can still remain loan only, but when you simply mandate a completely and utterly concrete policy of gifting to the consumer financial paradigm…..it enables the economy to be truly free for the individual and systemically free flowing as well. Nothing mystical about that policy…except perhaps that it finally brings a continuing simultaneity (a temporal universe aspect/effect of mysticism) of the equality of individual incomes and consumer prices.  *****************************************

Bob:  Which scenario is right? I don’t believe we have enough evidence to say. Let’s see what happens when the Saudi’s agreement to drop prices has reached its’ expiration (say three or four months from now).

Me:  It’s all just action/reaction…and never an actual solution to the underlying problem. It’s an old, old and very tiresome story. This is not to say that wringing cost and/or profits out of the system isn’t a good thing for the economy and for the consumer…but as you say Bob, after the smoke clears it’s right back to the status quo higher prices and elite control/domination. Let’s try an actual solution…for a change.

Ann: The right reaction could be….?

Me:  The right “reaction” would be an integration of all relevant economic theories AND the correct assessment that the economy/commerce itself tends not toward equilibrium, but rather toward disequilibrium…as Steve Keen has RE-discovered…WITH the policies that reflect and effect the pinnacle concept of Wisdom, namely grace the free gift. That solves the actual deepest problem.

That integration actually needs to be done by BOTH the Russians AND the Western economies, but one side or the other doing it is still the best and most thorough course for either regardless of whether both do it or not.