Trump is definitely a phenomenon because he is tapping into both frustration at the lingering economic downturn and the up till now amorphous sentiment that the establishment doesn’t give a sh!t about the individual. It’s hard not to sympathize even if you have democratic leanings. And this is probably why Hilary will not make history in November, although it may be close because there are almost as many democratic orthodox idiots as there are conservative orthodox idiots.

The only way for Hilary to beat Trump is to use an old trick like Dick Nixon did with his “secret” plan for the Vietnam war. She needs to say she has “a secret plan to free the individual and bring free flowingness to our glorious profit making economy.” This of course would be my Wisdomics/Gracenomics policies including a tri-level banking system that is a true alternative profit making system that thinks past and avoids the inevitability of the conscious socialism of orthodox idiot democrats and the unconscious socialism of orthodox idiots on the right.

wisdomicsblog.com

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Mish and Jacobsen are saying the very same things I’m saying politically and socially. Now if Mish would simply consider that if a business borrows $1 million to get up and going and its capital costs are $600k that means it has to get $1.6 million in the prices it has to charge the consumer or go bankrupt ….and there’s only been $1 million actually created to liquidate those costs/prices. Furthermore this is essentially the same problem faced by every enterprise so it is a flow of costs not some one off, anecdotal or static situation. And of course in a modern technologically advanced economy where capital costs are increasing (high tech ain’t cheap) and innovation and AI are willy nilly destroying aggregate demand. Voila! Social Credit has been right since Douglas observed it 90 years ago and Wisdomics/Gracenomics with its price deflationary retail discount mechanism is the perfect integration of Austrian economics and the ideology looking for self justification called General Equilibrium theory. So when are Mish and you guys going to open your minds and confront these realities?

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Half baked ideas are bad I agree. Blanchard a DSGE guy par excellance only has it half right because like almost every economists he is unconscious of the costing/pricing system that is a necessary and essential part of every enterprise’s toolkit. Keynesians are clowns because they think they can ignore or overcome the inflation modern economies manifest. Thus they go for such nonsense. Of course inflation is half of the problem with the economy but it primarily comes from systemic cost inflation. The scarcity of individual incomes in ratio to costs inherently produced by modern economies is the exact problem so a free gift of income is definitely called for and then to make the economy incredibly stable you have to implement a discount to retail sale (after each business has already discovered their best price which means it is not intrusive price controls at all merely seeing the economy as a whole and dealing with it in an adult fashion). Because retail sale is the terminal end of the entire productive/economic process and consequently all costs are summed for any item or service at that point as well discounting prices (again after businesses have already found their best competitive price) is free to do a discount percentage that actually creates the wet dream of every Austrian economist, namely price deflation. These two, a universal dividend and price deflationary discount at retail sale are the fully baked/fully thought out policies that will accomplish the best of the economic agendas of both the left and right and so is the integration economic theory direly needs.

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IICS:  Keen’s proposal is the only one that makes sense if they want to go this route. It’s simple, it’s a one-off solution (effective like a currency devaluation) and it will work.

Me:  Sorry, but Keen is still splashing around on the surface of the problem by looking at only debits and credits. He should know better because he’s a disequilibrium theorist and has thoroughly debunked General equilibrium theory. Debits and credits only make it appear that General equilibrium theory is correct because they apprently balance each other. That’s why it is so important to get to the real time 3 and 4 dimensional level of the economy by looking at the cost accounting datums and realizing that as a flow there are more costs/prices then there are possible individual incomes with which to liquidate those costs/prices and equilibrate the economy. After I posted on his sites that a new philosophy was necessary in economics Keen started saying the same thing. He’s guilty of doing the same thing that General Equilibrium theorists do….that is not looking where the data will enlighten you.

I will say Keen’s proposed “modern debt jubilee is spot on. Why? Because philosophically it aligns with the concept of grace as in giving, gifting and forgiving…in this case forgiveness of debt. That is Wisdom. And monetary grace as in the free gift resolves the economy’s most basic problem, that is a scarce flow of incomes in ratio to a simultaneous flow of costs and so prices, and also de-throne the glaringly inconsistent monopoly powers of the Banks/Banking system….is an even more comprehensive Wisdom as well.