AT: In a move that will spark fears across the EU of an “Italexit”, three of the country’s political parties are backing the introduction of “Fiscal Credit Certificates” as an alternative to the euro.
The complex plan has the approval of the European Central Bank.
Among the parties backing it is Silvio Berlosconi’s Forza Italia, which has enjoyed an astonishing comeback in the polls.
The revelation comes as Martin Schulz, the leader of Germany’s Social Democratic party who is tipped to become Chancellor Angela Merkel’s deputy, last week called for the creation of a United States of Europe by 2025.
The certificates, known as CCFs, give workers and businesses tax breaks to boost income and productivity.
Although not legal tender, everybody can use them to pay taxes, buy government services or exchange them for goods or euros.
Me: Every little move toward monetary abundance instead of austerity is a step in the right direction, but why not implement a 50% discount to retail consumer products by having a monetary authority rebate half the money used to purchase whatever back to the individual? That way everyone gets an immediate 100% increase in purchasing power…and as consumer price inflation is expressed and measured at the point of retail sale if you implemented the policy at that exact point and time you’d not only not have any possibility of inflation you’d be integrating price deflation beneficially into profit making systems.
The ECB, FED, et al don’t mind palliatives and reforms that leave them firmly in control, but I doubt they’d look kindly toward a single policy that had the potential to reduce their market for Debt by half.
JR: Three reasons Steve:
1. The discount scheme is the one of Douglas’ ideas that he never explained properly. Either of the two ways he stated it. I don’t believe it is workable.
Me: Well discounts have been around for a long time and have worked just fine for merchants, just not ones that are monetarily fixed to the exact point of retail sale and benefit both merchants and consumers. Two of the signatures of paradigm change are inclusion/integration of opposites and extension/saturation of effect.
JR: 2. Anyone doing a simple calculation could work out that, under present circumstances, at least 80% of the value would go towards rich boys toys.
Me: Well, the politics and economics of envy are not very effective or edifying. I suggest you delete them.
JR: 3. A 50% estimate for it is the sort of startling fairy story that suggests in serious peoples’ minds that we are simply a group of the lunatic fringe.
Me: John, you’re a good ole guy that cares, but you need to get over the embarrassment and disappointment of Social Credit’s defeat at the hands of the deluded and merely self interested so that you stop projecting their invalidative tendencies on people with innovations that will “sell” and who you should thus be backing.
Me: Yes, that confirms Douglas’s most basic insight. The problem though was Douglas, as much of a genius as he was, still had traces of orthodoxies like General Equilibrium inhibiting his economic vision, (although I understand there was occasional debate between Douglas and early Social Crediters about the size of the Gap and hence what might be the proper percentage rate of the discount policy and the size of the dividend). At any rate his followers fell back into the General Equilibrium theory mindset thus making an easily gamed palliative out of the paradigm change that Social Credit actually could be. That’s always been the problem with orthodoxies, they lose track of the process of Wisdom (integration of the truths in apparent opposites) and the pinnacle NATURAL concept and TEMPORAL application of Wisdom whether you call it satori, samadhi, atonement or grace…two of the aspects of which are process and flow as in conscious and continuous open mindedness, and thus they lose their original vision.
RB: I’m not a big fan of “the gap” and Social Credit, which seems to base it’s theory on accounting analysis, which is the tail wagging the dog of economics. Accounting is a tool to track economic activity, and can be manipulated endlessly to prove anything. We’ve been through this discussion a thousand times. But as we see here, there is some common ground.
Me: Double entry bookkeeping and its subset cost accounting are not just “bean counting”. They are the tools along with calculus…that help reveal the economy’s deepest problem….if one also brings actual economic looking/analysis to the day to day operations of commerce instead of either ONLY looking at the macro economy, or not looking at all and just repeating dogmas like the labor theory of value…which Marx by the way actually came around to acknowledging wasn’t really true.
Unfortunately the “discussions” here have been a combination of orthodox replies and refusals to engage while ignoring my acknowledgement of the truths in PB and the need for integrating the various monetary and economic reforms in a way that would resonate with the large constituencies that are needed for political implementation of the best parts of their separate agendas.
JR: Robert, Don’t be put off by some who make ridiculous claims about its extent.
Me: “Don’t be put off by some who make ridiculous claims about its extent.”
Correct John. Instead pay attention to the paradigmatic, philosophical and policy extension of Social Credit aka Wisdomics-Gracenomics.
MK: Greece is next to leave the EU
Me: Yes, the EU is disintegrating right before our eyes as is America and by contagion the rest of western civilization. And the remedy is a higher re-integration of its institutions, economies and values, a part of which is the thrust of Public Banking in its structural balancing of the power of private finance. All PB, MMT and the theorists of Steve Keen, Michael Hudson and others need is integration of their separate truths under a clear philosophical and paradigmatic vision.