Me: Bob, Ellen and others, I salute Public Banking’s efforts. Finance is the structural key to resolving the money problems we face whether you begin it via the BND model or go directly to national banking as an affirmation of Occam’s razor. As cost cutting is always a valid economic thrust the elimination of usury/interest is also a correct thrust. I beseech you however to consider that what is necessary to hasten, deepen and make permanent the changes that Public Banking will enable is a change in the monetary and economic paradigm for the creation and form of credit-money’s distribution, namely Private Debt Creation and Cost Only that has plagued human civilization since its inception over 5000 years ago.
Paradigm changes are by definition dramatic and permanent changes so any argument against dramatic change is an argument against paradigm change and for mere reform.
Paradigm changes are also characterized by conceptual opposition (nomadism to homesteading) and inversions and transformations (terra-centrism to helio-centrism and in the present case monetary scarcity and systemic austerity to abundance of same).
Therefore the new monetary and economic paradigm is the change from Private Debt Creation and Cost Only to Publicly Administered Direct and Reciprocal Monetary Gifting. Bob’s book is an excellent historical and philosophical one and Charles Eisenstein’s book Sacred Economics is philosophically aligned with the new paradigm. What is required now is the continued efforts that Ellen and others have been making plus a concerted effort to market the permanent, dramatic and self interested changes for both the individual and enterprise that the new paradigm will bring into being.
The wisdom of an integrated effort for structural and paradigmatic change communicated to select large constituencies is what will bring us to the political tipping point necessary to make these changes our personal and systemic reality.
I severely like your numbers and re-distributing them reflects the new paradigm of Gifting. However, to avoid the inevitability of inflation when an abundance of money is re-cycled into the economy which has an inherent scarcity of same and that by definition is chaotic because it has no bound to the lower end of costs or the upper bound of price it is necessary to provide a rational, ethical and effective means of controlling or reversing such. Such an alternative is best and politically most likely when it serves the interests of all agents as the ultimate survival occurence of a paradigm change does, and the dual policies of a universal dividend and a 50% percent discount/rebate at the point of sale throughout the entire legitimate economic/productive process does exactly that because it:
1) Takes, rational, ethical and unobtrusive control of the expression points for any and all forms of inflation (the points of sale and final retail sale) and in fact actually accomplishes what is currently considered impossible, namely painlessly and beneficially integrating price deflation into profit making systems.
2) By making the discount/rebate percentage 50% it immediately doubles everyone’s potential purchasing power which is stupendously and unprecedentedly great for the individual and for enterprise because enterprise suffers from the same scarcity of individual income…..as the indiviual does. Communicating this empirical fact is also the secret to making it politically acceptable to sane and reasonable people on both sides of the aisle. You’re just as sick and tired of being sick and tired of no real change occurring the same as everyone else here is my best guess so I would also bet that you can see the efficacy of an integrative political approach to communicating the general rational self interest in these paradigm changing policies.
One more thing. Spending or re-investing the monies in CAFRs makes sense regardless, but it is a form of “eating your own seed corn”. In other words when it comes time to repair/build new roads etc., without such funds being available the only way to create them is via the old paradigms of Debt Only and Re-distributive Taxation Only….unless you transcend these with Monetary Gifting and Direct Distribution….and then you can do so without taxation or inflation by implementing the above two policies.
The third rational and integrative alternative is always the signature of wisdom.
JR: Carl, Ref. your “response” comment, that has been the situation in N Z for years.