What every warning about “helicopter money” and “handing out cash” completely ignores (and/or is unconscious of) is the second complimentary policy that must accompany such a policy and that is a “compensated retail discount” policy. The beauty and genius of such a policy is it comes at the terminal end of the entire productive/economic process where all costs for any item or service have already been decided upon by businesses. Thus, as every cent of the discount a merchant Gifts to the consumer, is in turn rebated back to that merchant so that they can be whole on their margins of profit and overhead payments. Thus it fits seamlessly within a profit making economic system and eliminates any possibility of inflation. And, if we’re really smart, as Wisdomics/Gracenomics suggests we do, we should make the discount percentage considerably higher than any (largely inaccurate) assessment of inflation, and in so doing create actual price deflation which integrates Austrian thinking into such policy. Such policy also breaks up the glaringly inconsistent monopoly powers of the Banks by balancing and integrating the debt based money system with free Gifting.

By the way Mish, since when did you start giving serious consideration to the opinions of a central banker?

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Helicopter money with no retail discount policy. That is the “Wisdom” of central bankers. Integration is the process of Wisdom, and the integration of a universal dividend and a price deflationary retail discount is the most ethically sound and ACTUAL MONETARY AND ECONOMICALLY VALID Wisdom and way out of this mess.

Crysangle:  May continuous change be described as stable?
Do you think retail discounts and individual bailouts solve those?

Me:  “May continuous change be described as stable?”

Yes. You just have to truly understand the meaning of process and flow.

“Do you think retail discounts and individual bailouts solve those?

THE SYSTEM ITSELF is cost inflationary. Thus giving people a COSTLESS supplementary GIFT of income in addition to what they make via employment is in actuality the ONLY valid economic solution to the system’s inherent problem. A discount to prices at retail sale AFTER businesses have discovered/decided on their most competitive price:

1) causes no agent any harm because it is the terminal end of the entire economic/productive process.
2) prevents price inflation
3) fits seamlessly within profit making systems because every cent of their discounts to consumers is rebated back to the participating merchants
4) is not wage or price controls in any way because it is AFTER the business has already determined what its price will be
5) Can be price deflationary without harm because of #3