recently posted on your Debtwatch website by a poster there roughly reflect what would be the  lines of the A + B theorem of Social Credit graphed. It illustrates the insight that the rate of flow of total costs always tends to exceed the rate of flow of individual incomes simultaneously produced, and also how, on the lower bound of price and in the case of virtually every enterprise, the dynamic cost/price inflationary nature of the economy is currently enforced with the cost accounting convention that all costs must go into price.

I like the three dimensional way you show the reality and relevance of the increase in debt and how Debt incurs an additional cost. (interest of course is but one way that the gap between total incomes and total prices becomes the moment to moment reality of our disequilibrated economy) If I may suggest, the policies of a direct universal dividend and a retail discount to consumers which is rebated back to participating merchants solves the gap problem for both the individual and the system in each moment of Space and Time by both its present time immediacy (dividend) and also through its dynamic flow through space-time (discount mechanism).

Finance has so obviously been the problematic business model since forever, and is so asymmetrically powerful today because of its unbalanced monopoly paradigm of Debt. You fight an idea, a paradigm effectively only with an idea/paradigm of equal (or greater) strength, and you balance a financial monopoly by implementing a structurally competitive agent in the economy like Public Banking and also as a central bank that operates in the actual interests of the individual and the other traditional business models by issuing a universal dividend and a retail discount to consumers. It’s time to “hit the streets” en masse and end the failed experiment with homo economicus enforced by the paradigm of Debt, and live up to our actual species designation, homo sapiens, wise and discerning man. Wisdom is the integrative process, Grace as in mental balance, equilibrium, flow and Gifting/forgiving is the pinnacle concept of Wisdom and synonymous with the goals of economic theory and policy . Integrating the above grace reflecting policies into modern technologically advanced economies aligns the economic and monetary systems with who and what we are and fits seamlessly within profit making systems. Paradigmatic and elite Power will bend to the right idea and policies…and the overwhelming numbers of an indignant and focused populace. Project Grace and Public Banking…an idea and movement whose time has come.

If I may point out, all of the recent posts on the Debtwatch thread How Rising Debt Causes Inequality and Crisis are looking at only the exogenous and upper bound monetary inflationary factors and missing/ignoring the ubiquitous, ever present in every enterprise and hence dynamic effects on the lower bound of of cost/price. Not modeling this inherently cost/price inflationary nature of the economy is what makes the FED’s “dog chasing its tail” inflation targeting policy apparently “necessary” even though  the anatomy of equilibrium policies of a universal dividend and a compensated retail discount to prices would both solve the individual income scarcity and inflation problems…in one fell swoop.

By utilizing only the debit/credit  two dimensional framework of accounting you are still “playing on the field” of DSGE theorists. In order to better establish disequilibrium and decipher the underlying three and four dimensional problem afflicting the economy and economic theory you need to look at the subset of double entry bookkeeping known as cost accounting whose conventions rule it, and how the Banking/Financial system utilizes/exploits their monopoly paradigm/product of Debt to dominate the economy and the individuals inhabiting it. Time is running out. With the recent fast tracking of the TPP trade agreement the corporate and financial powers that be are internationalizing the economy and weakening even further the national authority that could remedy the real problem…the disequilibrium caused by the scarcity of individual incomes in ratio to prices simultaneously produced….by the system in its normal unfettered operations. The concept of subsidiarity is enlightened, and centralization of power without it is not only mistaken it is in the american vernacular bass ackwards.

Posted to Mish Shedlock’s blog in response to a poster who wonders why Mish is “so jazzed up” about roboticism: Because it is economically relevant. The only thing holding him back from realizing the solution to the economy’s problems is his Austrian/libertarian belief in general equilibrium. When he finally concedes his buddy Steve Keen is correct that the economy tends toward disequilibrium…is when his Austrian/libertarian motto “there ain’t no free lunch” will also flip around from being a truth and a solution….to the recognition that it indeed describes the actual problem. And when you Dr. Keen realize that the above misperceived as a truth/solution Austrian/libertarian motto is indeed an accurate observation of Austrians looking at the cost accounting convention that all costs must go into price…is when you will realize that the Social Credit insight is what is missing in macro-economic theory. Why? Because it is the perfect and actual integration of both Keynesian and Austrian, left and right economic theory. Integration is always an expansion and elevation of truths.

Another post to Mish Shedlock’s blog regarding the economic effects of robotics and AI: The logics of both profit making systems and innovation, particularly AI, are efficiency. Robotics is going to happen and it will become more and more economically disruptive. Capitalism which is more about power and control than even profit will have to evolve and become Distributism which is a much more integrated, humane and workable profit making system.  All of the theorists on both the left and right will just have learn to think a new thought and accept that. The future belongs to the open minded, more intellectually and philosophically nimble and more ethical. The orthodox, rigid and irrationally obstructive will just have to eat some humble pie when those changes become apparent to everyone including even themselves.