Steve Keen the economist and Mish Shedlock the Austrian/libertarian pundit and investment advisor both have blogs which I have posted to often over the last 9 years. Both of these men are very competent and well meaning, and excellent spokespersons for their respective economic philosophies and policies. This essay shows that an integration of their opposing viewpoints is possible and necessary.

Keen, as I complimented him many times on his blog, has done an excellent job of iconoclastically deconstructing the current ruling macroeconomic ideology Dynamic Stochastic General Equilibrium (DSGE), its just that he is unaware of the fact that everything he has determined is true was exactly what C. H. Douglas said over 90 years ago. A quick review of his book shows no mention of Douglas even though he was a contemporary of Keynes and Social Credit was a world wide movement before WW II. This is really not a critique of the fact that he is unconscious of it, it’s much more an indication of how thoroughly the truths expressed in Douglas’s Social Credit have been buried and invalidated by the Financial powers that be.

Mish Shedlock  has very little light between his own and Austrian/libertarian economic theory. As I said he is a good observer of economic trends and knows how investments under the current incomplete economic ideology will generally turn out. The problem is that, being Austrian/libertarian his ideas on how to rectify the economy are a complete misidentification of problem and solution. The proud Austrian/libertarian and DSGE statement “There ain’t no free lunch!” is a correct observation on the economy/commerce itself, but they think it is a solution instead of an accurate observation of the basic problem. Hence their motto and philosophy actually ends up being and becoming a cultish declaration of economic mereness and refusal to integrate the discipline with a philosophy that accurately reflects the individuals who inhabit the system. If profit making economic systems and the billions of individuals who inhabit them are to survive this present crisis a new philosophy, and policies that accurately reflect it must be enacted, and that integration is Social Credit.  Why is Social Credit, monetary grace the free gift of income the only solution? Because more costs/prices than incomes is the economic reality and a free gift to the individual is the only way incomes can equal the flow of costs/prices….without adding an additional cost to the individual or the system.

New Keynesian theory is also not up to the task of resolving the most basic economic problem we face. Keynesianism is a palliation of Finance’s monopoly powers on the creation and vehicles for distribution of credit. With its government stimulus that goes first into the economy of private enterprise and bureaucratic salaries It has enabled the obscuration of the deeper instability which is that the rate of flow of total costs/prices always tends to exceed the rate of flow of  total individual incomes simultaneously produced. “The great moderation” was actually analogous to a baggage strewn, vomit bag bursting turbulent flight of The FED attempting to put out recessions, “viruses” and instabilities all over the world that culminated in its and the world’s crash in 2007-2008. In other words the world’s economies have never actually been stable and tending toward equilibrium as Keen, and C. H. Douglas 90 years before him, have postulated, but a tweaking or increased amount of Keynesian stimulus will never actually stabilize them, only macroeconomic policies of a direct to the individual monetary gift such as a universal dividend and compensated retail discount is up to the task of doing that….because the problem exists within the economy/the processes of commerce themselves and so any attempt to resolve the problem by injecting money, even at 0% interest, into the economy will not equilibrate costs/prices and individual incomes with which to liquidate those costs/prices and so create an equilibrium. Only a direct gift, by its costlessness can rectify the situation….and save profit making systems from collapse, chaos, likely war and god knows what reactionary system rising from those ashes.

flight as controlled falling, and baggage strewn, vomit bursting analogy, and straw that broke the already unstable back of the economy/commerce itself…and why