Stuart,

Yes, I have pointed out to the gold bugs over on Mish Shedlock’s blog for years that gold is only good so long as you cash it in BEFORE the powers that be confiscate it or make it 1/10 what you bought it for by fiat. Money is basically accountancy and an idea, an agreement. We just need to cognite on the idea….that is a universal solvent…and then base policy on that.

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Me:  Yes they come up short, and the social credit macro-economic expression of that metric (a scarcity of total individual incomes in ratio to total costs and so prices) is the moment to moment reality of modern economies. And the only way to keep the economy’s nose above water is to continually extend more and more credit, (enter the Banker) except that this means debt builds up and up until it reaches “un-repayable” status.

DSGE (General Equilibrium Theorists) thought they had solved the economy for costs and time….except they hadn’t. But before Steve Keen de-bunked nearly everyone of their basic assumptions they went wild with derivatives etc. because “the economy always tends toward equilibrium anyway…so no problem, right?.” Keen thought discovering disequilibrium via Minsky was correct history except Douglas posited it and much more 35-40 years before Minsky. Actually right after I posted on Keen’s Debtwatch site that philosophy was a priori to understanding economic theory and hence the place to start Keen came out and announced that Austrians had a coherent philosophy (except it was wrong) and that New Keynesians needed a new philosophy/philosophical concept to describe the essence of a new economic theory. And by the way Keen’s call for “a modern debt jubilee” is just an expression of the basic concept of Social Credit which is Grace as in gifting. I suspect that Keen will soon cognite on the policy integration of disequilibrium theory and thermo-dynamics which is to reverse the individual monetary scarcity ratio and make it what I refer to as “the higher Disequilibrium” of an abundance of individual incomes in ratio to costs/prices which just coincidentally integrates the Austrian (inverted) obsession with price deflation into a wider, more comprehensive and unified theory. Integration/Wisdom and Grace/Consciousness are the process and basic concept that the monetary and economic systems need to evolve. Thus Wisdomics/Gracenomics.

Robert:  So, Liam, are you proposing that social credit be instituted in the present system, or within the context of a publicly owned banking network?

Me:  Liam can answer for himself, but I say both. That is the process of integration/Wisdom after all. And as for the .00001%…when it gets so bad that hunger drives everyone into present time enough that the answer in a high tech economy becomes obvious, namely Free Gifting of income….we billions will be a force the .00001%….will have to deal with. And hopefully we who recognize the inevitable trends before the economists do, will bring them to cognition before the SHTF.