Posted To NewEconomic Perspectives.Org 02/28/2018

You’re exactly right that it borders on criminal that economists and politicians have been so confused and/or complicit with vested interests and private finance to deny/obscure the mechanics of sovereign money. Now all MMT needs to supercharge the significance of same is to recognize the incredibly powerful effects of tying monetary policy directly to the point of retail sale with a discount/rebate policy. This recognition is not just some data point, it is a summing point and ending point for total costs and so total prices for every consumer product or service including all capital costs. Pair that insight with the fact that both the pricing system and the money system are both digital and a 50% discount to consumers at that point that is rebated back to the merchant giving it by a monetary authority specifically mandated to do so and you’ve immediately doubled everyone’s potential purchasing power, created the possibility of enterprise to double their sales, eliminated the possibility of price and mortgage asset inflation and done what has been considered impossible, namely the integration of price deflation painlessly and beneficially into profit making systems. This single policy would so stabilize the economy and make for a great employment and investment climate that it would be recognized as a virtual paradigm change in economics and money systems, and in fact it would dramatize the very expression of the new paradigm of direct and reciprocal monetary gifting.

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