@Tony Bennett

You don’t count or follow the money flow very well. IF THE DEBT HOLDER GETS PAID OFF….HE GETS HIS MONEY BACK. And of course he is free to place that money back into whatever vehicle he so chooses. In the case of that bondholder being a bank that created debt out of thin air to purchase the treasuries that paid off debt instrument will become reserves which they will have a much better market condition into which they can lend….so no problem.

Keen’s modern debt jubilee is not much aimed at treasury debt actually, but where it really matters….the inflated housing etc. asset prices that remain as debt over hang on assets which the Banks bear primary responsibility for creating back when due to their deluded General Equilibrium theory they were enticing everyone and your dog’s uncle to invest in housing and creating derivative vehicles which got rehypothecated so many times who owned the original collateral….got lost.

So its a race against the idiocy of holding onto debt over hang to irresponsible Banks that threatens to create perfectly rhyming social conditions for world war in an age of modern weaponry where no one’s life and no one’s productive capacity is safe…..or the pinnacle concept of Wisdom, Grace as in monetary free Gifting. Most people here I understand are conditioned by the society to be ethically challenged enough to go for continuation of idiocy, but the idea that their assets, productive capability and the lives of their children and grand children, not to mention themselves….might just be enough to jolt them into present time reality.

@peterblogdanovich

That is why the tri-level banking system in my Wisdomics/Gracenomics is so important to implement. Leaving a private self interested monopoly in control of the money system is sheer historical folly. The central Bank has become the puppet/hand maiden of the TBTF Banks. My tri-level banking system restores sovereignty/sovereign control to the money system, governs that sovereign by mandating its policies express and enact the pinnacle concept of Wisdom, namely grace as in ethics, balance as in stability and integrates grace as in monetary Gifting into the digital debt based system. It therefore integrates both debt and Gifting, ethical sensitivity, sovereign control and prudence as in balance into a unified and holistic system. Wisdom is the very process of integration which is combining only what is ethical, only what is applicable and only what actually works.

@ Tony Bennett

Nope. You’re not counting right. The money system is digital in nature. Debt paid off by individuals disappears from the economy and becomes bank reserves…WHICH AREN’T ACTUALLY IN THE ECONOMY. TREASURIES PAID OFF TO BANKS BECOME RESERVES AS WELL.

CONSEQUENTLY, NO INFLATION/HYPERINFLATION.

What does happen is the debt overhang disappears so that individuals can spend into the economy again and make it functional. And of course if you implemented a universal dividend to everyone 18 and older and a retail discount that created price deflation you’d have the Austrian wet dream of having a roaring economy that was stably profitable for businesses even with prices falling.

wisdomicsblog.com

Wisdomics/Gracenomics is the precise, comprehensive and freeing monetary and economic theory and aligned set of policies to do it. I am the person who first recognized that every one of the leading/cutting edge theories and reforms have as their basis….an aspect of the philosophical concept of Grace, and Wisdomics/Gracenomics is the integration of those theories/reforms as well as my philosophical and policy extensions of those theories/reforms.

wisdomicsblog.com

@ Tony Bennett

“So, trading public debt for private debt? Who will pay down public debt?”

You’re still not comprehending. The Debt created by the government agency WOULD BE A GIFT OF MONEY, THAT IS, NOT DEBT, but still able to nullify debt.

“Now a days TBTFs make/buy loans of all sorts … then package them into securities which are peddled to investors (including banks). But there is also shadow banking…..”

And we’re going to let them continue in control of the money system????????????? Only an idiot who is blind to history would think or suggest such a thing. A sovereign agency would take that control away from the private banks. That’s sovereign agency as in sovereign grace as in benevolently powerful and yet restrained by policies THAT ACTUALLY EFFECT a gracious ethical sensitivity to the freedom of the individual and the free flowingness of the system.

wisdomicsblog.com