Me: Macro-economics is a very recent body of thought that unfortunately was designed to get caught up in abstraction and complexities and so go no where forever instead of looking at the economy through the utterly integrated empirical tool of double entry bookkeeping, deciphering the significance of the fact that the pricing system, money system and accounting system are all digital in nature and hence that that digital nature is the perfect way to make monetary policy direct, immediate and beneficial for all agents…..and if such policies are sufficiently abundant they invert the scarcity ratio between total individual incomes and total costs and so total prices….into a price deflationary and hence a monetary abundance ratio….that effectively implements the new paradigm of Direct and Reciprocal Monetary Gifting.
And that is what the policies of a $1000/mo universal dividend paired with a 50% discount/rebate policy at the point of final retail sale….do in spades.
PD: Read all of Chapter 6 of my book FINANCIAL MARKETS, MONEY AND THE REAL WORLD especially p.117 where there is my written statement that certain actions in financial markets ” to a fast exit strategy at a future date could cause a horrific liquidity problem, unless the central bank is alert to the need for pouring as much liquidity into the system as necessary quickly and promptly”.
The fast exit strategy occurred in the spot market for mortgage backed derivative (and started to sill over into government bond markets– This fast exit attempt by the security holding public caused the global financial crisis [ which I had called “a horrific liquidity problem”] The solution to this crisis required the Federal Reserve to enter into its QE [quantitative easing] policy which poured billions into the spot financial markets! Similarly the Eurobank adopted a modified pouring in of liquidity to certain European government bond market.This QE policy of central banks stopped the global financial crisis from developing into the Second Great Depression — instead we merely had a Great Recession!
My analysis was developed from Keynes’s liquidity theory
Me: Yes, that’s an accurate account of what occurred. The problem with the FED’s “solution” was bailing out the bad actors/charter privileged banks…instead of doing the humane and new paradigm exposing thing of gifting the individuals who bought at the top of finance’s bubble thus bailing out the real victims and the system at the same time.
The basic macro problem is the now ongoing and inherent scarcity ratio between total individual incomes and total prices on the lower bound of costs, the greedy and systemically enabled financial system which is ecstatic to inflate prices on the upper bound of price and the complete absence of a better more rational, ethical, beneficial alternative to attempt to survive by inflating their prices by commercial agents in a monetarily scarce system…when more money is apparently entering the system.
And the two policies I’ve heralded here would effectively resolve those problems, and along with a few regulations that would encourage their positive effects and inhibit anti-social avoiding of such regulation….would transform the economy with the new paradigm of Direct and Reciprocal Monetary Gifting.