The inevitable result of not making finance a unitarily sovereign governmental power guided by grace is the situation we live in presently which is that the Federal Reserve is actually the hand maiden of the private banks, albeit with a wink. Foolishly, there are in fact no real reserve ratios which is how in the run up to the “Great Financial Crisis” the banks were delusionally able to loan everbody and their dog’s uncle money at “tickler” rates and create and re-hypothecate derivative debt products 20 or 30 times until title to the original collateral got lost in the delusion that “the economy always tends toward general equilibrium anyway”.

And that’s precisely why not only must finance become a public utility guided by the natural philosophical concept of grace, but we must also realize that the aspects of a paradigm of grace are abundance, free flowingness and an empowering “higher disequilibrium” of OVER flowingness, not merely statistically balanced, halting/non-proceeding/coming to a stop at a temporally delusional general equilibrium and disempowering MERE theory.

I don’t disagree with any of the accounting, banking activities or that interest itself is not the problem. I DO object to the near absolute power of private finance and the fact that it is treated as if it were a legitimate economic/actually productive business model…..which it isn’t. It must be a servant, not a master and certainly not a multi-headed master. Occam’s Razor DOES apply in this regard. I believe the latter day advocates of social credit have unconsciously fallen back into the classical idea of general equilibrium and hence taken what could be a paradigm change based on a full understanding of the aspects of grace and the temporal universe, and made it into a mere theory.

The one thing Social Crediters have overlooked is the incredibly integrative and resolving potential of the CRP/Discount/Rebate policy. The one bugaboo that all theories have never effectively come to grips with is inflation, and a high percentage discount/rebate policy at the point of retail sale resolves it in spades. In fact it does what every genuine paradigm change does, and that is invert current realities into their conceptual opposites. In this case erosive price/asset inflation is inverted into its opposite of painless and beneficial price deflation.  Again, due to competition and the high costs of modern technologically advanced fixed capital intensive economies, garden variety inflation is a relatively small single digit number and hyper-inflations never occur except under very extreme conditions where the means of production have been destroyed, indebtedness is onerous and a compliant central bank is allowed to leverage up and short the currency which is what finally kicks off the hyper aspect of inflation.

Me:  “So where DO they put any money over and above what’s still needed to live?”

JT:  Why not just get all the funds needed for investment directly from the Public Bank?  At 0% interest?  You’re not telling me that ‘some’ investments might be too risky for the Public Bank to fund, are you?  That ‘interest’ still might be necessary to attract capital to those investments, even for relatively short term funding?

Sixty years ago we here in BC produced a far larger array of products of BOTH types that were primarily for consumption or use HERE.  If we had surplus capacity, which was quite often the case, we exported the surplus.  Today, this is no longer so.  We make product primarily for EXPORT.  And, as the saying goes, “We export the best, and sell the locals the rest.”  Often a genuine sore spot amongst the ‘locals’, I can assure you.  But  that is what the industries that are here now, the large businesses, because they had to consolidate and rationalize what they do to survive, actually do.  Statistically our productivity may be greatly expanded over what was the case overall sixty years ago.  But of the plants themselves?  They’re not geared to producing a wide variety of consumer items for local consumption any more.  To get back to that takes TIME.  It won’t just happen, just like that.  So I think you should well anticipate there are going to indeed be initial shortages, and just the kind of activities I’ve previously described.  And that’s only the half of it.  The other unknown is how paying a large enough stipend that’s supposed to be a “living income” through a National Dividend will affect the organization of any kind of “program of production.”

Me:  Joe,