Posted to Mish Shedlock’s Blog 07/10/2015

Implementing freedom with freedom creating policies is…..freedom. A = A.

The macro-economy is cost inflationary by virtue of the enforcement of the cost accounting convention that ALL costs MUST go into price..for ALL enterprises. Capital equipment and facilities replacement costs plus a host of other normal operations costs must be recouped in the lower bound of price…over and above the total of ALL financial costs….and yet no additional individual income is produced to liquidate these additional costs/prices…except by borrowing….which of course adds an additional cost…so it is not the solution to the above enforced convention of cost accounting.

A costless Gift as a supplement to individual incomes is thus required because it virtually equates individual incomes and consumer prices, and then a periodic discount to retail prices is required to maintain that equilibrium…because the system will still tend to disequilibrate in its normal operation and flow through Time.

Leave a comment