Posted To Ellen Brown’s Forum 05/02/2016

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These measures will be gamed by the operators and interests of big finance just as high speed trading is. Efficiency pushes the economy closer and closer into the present moment and will actually de-stabilize it as the inherent moment to moment reality of the monetary and economic system is a scarcity ratio of total individual incomes to total costs/prices, and so such efficiency will reveal the fallacious BELIEF that the problem is merely economic and monetary profligacy/excess….when it is inherent cost inflation instead.

Just posted to Mish Shedlock’s blog:

Of course inflation doesn’t produce growth. And wage increases will inevitably result in increased inflation…..unless of course you pair it with a macro-economic mechanism like a retail discount that automatically creates price deflation and yet, because the discounts are completely rebated back to participating merchants is not only perfectly consistent with a profit making system but also reflects its classical goals of balance, equilibrium and flow.

DSGE Finance Capitalism and Austrian economics are both fragmented theories that dramatize and fetish-ize a particle of economic truth when what we need is an integration of their particle of truth with the one concept that both humanizes economics and is the only valid economic and monetary answer to our system that has enforced austerity on the individual despite our being able to produce plenty with the accelerating minimalization of employment.

YOU’RE ALL NASCENT SOCIAL CREDITERS AND ADVOCATES OF WISDOMICS/GRACENOMICS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

And of course focusing on usury is equally such fetish-ization.

Posted in reply to a poster citing Steve Keen:

Precisely. Except inherent cost inflation has been occurring throughout the entire process and is masked by the continual monetary stimulus. Keen has unconsciously rediscovered all of the things Douglas said 90+ years ago except he doesn’t have the integrative insight to suggest the correct policies at the correct time and place….to effectively equilibrate the system….and not insignificantly free the individual from the increasingly tyrannical system.

Essentially everything in Life is fetisized to one degree or another except the direct and focused experience of self awareness which is the continual balanced flow of consciousness also known as being in a state of Grace.

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I don’t see how deciding on the credit available to the economy is not “running something.”

Correct. If there’s one thing Social Crediters tend to be somewhat culturally hidebound to and hence blind to its the current dominant belief that government is always bad. Of course any agency public or private is ultimately corruptible….unless its policies are squarely focused and aligned with the one concept exquisitely aligned with the consciousness and ethics of God him/herself, that is Grace as in Love in action. Policy being the action of systems, it is logical that such policies be so aligned.
“Compound interest is the basis of every mortgage I have ever seen in the U.S. That is why the price of a home on a 30-year mortgages more than doubles the cost. And they make you pay this up front, before the principle, even though the time on which the interest is based has not come to pass.”

Correct again.

“No one had to mangle the definition of capitalism into a derogatory term. It is the nature of the beast that capital ends up the central focus. Lenin was wrong when he said that imperialism is the highest stage of capitalism. Capitalism eventually turns into fascism, which is what we have now: corporate control over the state. Everything is commodified, including people.”

Again correct. However, in order for there to be an actual solution to the problem instead of a mere reaction to it a third unitary integration of the truths, workabilities and applicabilities of both capitalism and socialism is what is needed. And that would be a profit making system of monetary Distributism aka Social Credit and its philosophical exegesis Wisdomics/Gracenomics.

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I have no problem with the efficiencies of banking in the public interest, or with intelligent and needed infrastructure spending, but why not also go to the heart of the problem and drive a stake through the heart of the Banks’ monopoly on credit creation and their equally monopolistic restriction on the vehicle for income distribution, that is loan only, with the twin stabilizing, balancing and democratizing policies of a universal dividend and
a retail discount? If such policies were sufficient to provide a middle class income whether one worked or not The coercive hold on the individual via the necessity of employment would be gone, never to return, we could re-industrialize in the most energy efficient and environmentally sane way possible…and the rest of the world’s economies would follow out of envy. Integrate Public Banking and Social Credit…and go you’ll have Wisdomics/Gracenomics.
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Me:  Bob,

My remarks were aim at what you said as my April 26 post regarding Ellen’s article was this:

“Ellen’s article is an excellent and persuasive one regarding the efficiencies of a banking system that operates truly in the public interest. It’s just that we must not lose sight of the fact that in order to truly be in control of the both the economy and the money system we must account/compensate for all costs in the economy, not just the financial ones. Ellen seems to be more open minded and accepting of this than some here who get caught up in considering only the latter or thinking that eliminating the latter will in some vague way make the additional economic costs disappear.”

Bob said:

“It’s only possible to answer this by first setting the contextual parameters of the political economy, but let’s say we have a public banking network (that is, the Fed is a publicly owned central bank) and the Exchange Stabilization Fund (ESF) in the Treasury Department (which was built with gold that the “government” demanded from U.S. citizens in 1934)  were in control of a sovereign people, and no interest was tacked on to loans.”

My response:  You guys seldom talked about central banking here until I mentioned that it would be essential in order to effectively get and keep control of the money system without one. That is, one that was based on the concept of Grace as in Gifting and had the specific policies of a universal dividend and a retail discount as its mandated if not constitutionally mandated policies.

The money system now is controlled by the private banks despite the central bank. Why? Because they create the money first. Hence the FED is actually forced to comply or risk complete disequilibrium. Actually they “work hand in glove” in many if not all respects, but the point is the private Banks are the originators the FED just complements their powers. Meanwhile the individual is coerced into looking for employment in an increasingly scarce employment environment and those who cannot find it are forced into a rip gut, shaming and negative self esteem creating  welfare dependency. A universal dividend and price deflationary discount that amounted to a middle class income whether one worked a lick or not….would completely transform that situation mentally and economically.

What I meant by my remark (and I prefaced it with “Well I’m sorry” so as to have it not be taken as overly critical) was that nearly all of the things you assumed could occur without necessarily having dividend and discount mechanisms….would all be separate political fights that would have to be waged. In other words it not only did not confront the inherent cost inflationary nature of a modern technologically advanced profit making economy….but also did not cognite on the way the dividend and discount….would virtually completely resolve the coercive and dominating economic hold the banks have on the individual! Not to mention afterward benefits like eliminating the costs to both businesses and individuals for transfer taxes and even social security taxes could immediately be phased out. It’s all an upward win-win situation for the individual, commercial entities and the system as a whole….after the implementation of the transformative policies of the Dividend and retail Discount.

Bob:  Thanks, Steven.

Looking at the hundreds of thousands of people who demonstrated in the streets during Occupy Wall Street, and the similar numbers that done the same for Sanders’ campaign, it looks like the educational aspect of public banking has gained a lot of traction over the past five years.
So, regarding what is or is not possible, I will leave this for history to judge over the next several years. You may be right that some interim measures may go through; for example, the Minneapolis Fed and others calling for the regional Feds to become public banks and for the TBTF banks to be broken up, whatever that may mean, real or fake.
As far as the need for a publicly owned central bank, this has been something that I have supported for going on six years now, before this list-serve began, and I still see it as the key to evolutionary change. So, the fact that I use a publicly owned central bank to map out what could be done and how that would change the world is a good thing, because no matter how big one’s dream, it will never happen if you don’t put it out there.
I say this because public banking is just one (very important) aspect of a much larger change that we are facing.
Me:  Yes, every little step toward full consciousness of what is needed is good. I’m only here to stress that philosophy/thought is both a priori to action/policy and also an essential means for maintaining a better focused clarity on necessary, economic and monetary correct and hence completely resolving policy.

“I say this because public banking is just one (very important) aspect of a much larger change that we are facing.”

On that we completely agree.

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