Counter intuitively the answer to excess production is guaranteeing an adequate and relatively abundant income for everyone that makes the economy actually able to attain and maintain an equilibrium….without the necessity for continual growth. Balance both for the economy and for the individual is never going to happen without a sense of personal security for the individual and with the continual erosion of profit and the value of money due to inflation. That is why the dual mechanisms of Social Credit are what they are….the guarantee of a secure income and the elimination of inflation. Now, right along with these transformational monetary and economic policies incentives for investment in traditionally productive enterprise, research on resource efficiencies and disincentives and outright bans on certain financial vehicles will also be necessary.

Transformation First! Rational and ethical regulation…right along with it!

Ellen Brown: Good point.

Me:  Thanks. One needs to understand what a policy of a retail discount actually does, actually accomplishes.

First it reduces the price of everything everyone purchases by a much larger percentage than the false metric of CPI (consumer price index) which even in economic “good times” is usually computed to be in the 2-4% range. Thus if the discount is 25% that actually increases the individual’s purchasing power by 21%!!! You see the discount is a macro-economic device THAT CAPTURES AND ELIMINATES ALL EXCESS COSTS FOR THE PERIOD IT IS CALCULATED IN AND IN FORCE FOR. That’s all as in ALL. Interest costs, depreciation costs for business, the cost of waste in the normal operation of commerce AND particularly from production that is redundant and for which the individual is taxed like much of the defense budget.

Secondly the discount is totally refunded back to participating merchants which has the effect of increasing their profits AND TO A SIGNIFICANT DEGREE REDUCING THEIR DEPENDENCE ON BORROWING IN ORDER TO FINANCE ONGOING OPERATIONS AND EXPANSION. So it short circuits that money going back to the Banks and a large part of it then being extinguished and hence not being available to remain in circulation in the economy. It also smalls up the the market for finance generally as does a sufficient dividend to the individual because he/she could then either save for a short period of time and not have to finance big ticket items at all or at least shorten the term of loans and actually own those big ticket items much faster than they can now.

Such a policy is proactive and win-win for both business and the individual…and serves to curb and diminish the millenial problematic power of Finance. More individual freedom, an actually cooperative and beneficial relationship between business and the individual and effective balancing of the power of the financial monopoly. I think that’s what we all want.