Thread On Public Banking Regarding Reform vs Paradigm Change

Me:  The anti-Fed crew on the republican side (and even democrats who don’t have a clue about money) will only result in more austerity as they believe the economy tends toward equilibrium and so does not need fiscal deficits. Of course there’s a lot better and more resolving monetary policy than fiscal deficits (Direct and Reciprocal Monetary Gifting at the point of retail sale), but that will never come about from the right which is terminally orthodox and dense on the macro-economic topic of money and the economy. What Trump fears is rate hikes slowing the economy in an election year, period. He’s too much of a tool to see any actual third alternative.

Bob is right, nothing significant and/or permanent will happen until the private Fed is replaced by a true publicly administered national monetary authority. You must know that Ellen. Even then who is going to trust ANY politician to craft policies that will free both the individual and the small to medium sized business community??? No, you have to craft a policy that changes the entire paradigm/pattern. Killing private for profit finance is necessary, but you have to kill its paradigm of Debt ONLY as well. The 50% Discount/Rebate policy at retail sale does that in spades as it completely inverts the present realities/seemingly unresolvable problems of individual monetary scarcity and chronic inflation….in one fell swoop. To paraphrase James Carville, It’s the paradigm, stupid.

As for Trump being a white hat, set aside all of his almost certain illegalities and moral and ethical shortcomings his biggest flaw is that he’s a disintegrative demagogue who, like Steve Bannon, thinks bashing ideas together to the point of systemic collapse….is virtuous, and that somehow a more enlightened elite will emerge from the chaos. Yeah, riiiiight.

Integrating the truths in opposing perspectives is required NOT disintegrative rhetoric and not the belief in disintegration itself. Trump should fall on his head and hope an actually new idea results. But I’m certainly not holding my breath.

EB:  Sure, I know the Fed has to be a public utility to make it work. But I also think Trump is pragmatic enough that if he “got it” that the Fed could create a trillion dollars to fund his trillion dollar infrastructure plan without triggering hyperinflation, he could go for it. That’s our job, to get the information out there. Old ideas die slowly. We just have to keep hammering away. It was a mass uprising against Wall Street in Occupy, then a mass divestment movement, then a divest-our-public monies movement triggered by the Standing Rock protests, that finally brought the millennials out to support a public banking movement. A mass protest among Trump’s base against the Fed would be a good start in reforming it. It is no longer the Temple; the people have seen that the emperor has no clothes. That’s the first step in change. You guys are way too negative. We need to spot our opportunities and fan the flames. AOC and the Justice Dems are also an opportunity. They just need to be coached a bit in their solutions. Again, that’s our job. We won’t get anywhere if we close the door to every opportunity that arises. Strength in unity, that’s the only way we’ll prevail.

Me:  “We won’t get anywhere if we close the door to every opportunity that arises. Strength in unity, that’s the only way we’ll prevail.”

Couldn’t agree more with this strategy, but then why not offer up a direct and reciprocal monetary policy at retail sale that reduces prices by 50% and therefore immediately doubles everyone’s purchasing power, more than doubes the actually available money for every enterprise’s goods and services, absolutely ends any possibility of inflation and in fact beneficially integrates price deflation into profit making economic systems which is the wet dream of every libertarian leaning economist and pundit, immediately accomplishes economic democracy which is the failed dream of every socialist….and is just the kind of hiding in plane sight enormous temporal universe policy breakthrough that a paradigm change is characterized by.

The true beauty of the 50% Discount/Rebate policy at retail sale is that it implements business prosperity and abundant monetary democracy directly into the very woof and warp of the economic process itself. It’s a pattern change, not a piecemeal reform. 

You want a soci-political movement, you want to integrate the self interests of traditionally opposed political constituencies as per above, you want revolution….this is evolution?

Take it DIRECTLY to students, millenials, the small to medium sized business person and every beleaguered wage earner….and herd the politicians toward paradigm change.

JR:   Just as long as crrespondents realise that anything as unworldly as this is NOT Social Credit policy.

The “gap” between incomes and prices is probably of the order of 4 to7%,   Were it 50% economies would collapse every second year or thereabouts.  Or debt would double in less than two years.

Me:  First of all the actual percentage of the Gap is completely irrelevant in the new paradigm that inverts the present reality of monetary scarcity and chronic inflation and so resolves the two deepest problems of modern economies. Secondly the idea that we must only strive for a static/statistical economic equilibrium is a hold over of that classical economic mistake, and it actually defies the dynamic nature of the temporal universe where a dynamic ongoing integrative process, i.e. what I refer to as the higher ethical and monetary disequilibrium of abundant individual incomes in ratio to costs/prices makes the economy trend toward not statistical balance, but free flowingness.

You ARE right that it’s not social credit. I have presented my book’s policies and the paradigm changing nature of them to the guys on the Social Credit list and they could not countenance it for the very reasons I post above. Social Credit was a superior THEORY. My taking its most basic philosophical insight and innovations of its policy make it the paradigm change it was meant to be.

As you got kicked off the Social Credit group for 1) (correctly) pointing out that it had gone no where in 50 years and its adherents needed to take a new look at its tenets, and for 2) (errant) critiques of the correct aspects of its orthodoxy you should be open new ideas.

JR:   Thanks Steve.  I accept that is your approach.

I just want to make sure people realise Social Credit is a responsible organisation that would be careful not to allow demand ihnflation to occur. Our independent Credit Authority would not allow governments to spend to extremes, i. e. it  would assess the “gap” and ensure that demand equalled production costs, thus stabilising the economy.  Unfortunately, the statistics presently relied on do not allow accurate assessment.  GDP is a measure of “what we spend”, not of production costs.
You have never demonjstrated any means of preventing prices being raised to, perhaps, three times actual cost levels before your discount is applied.

Me:   “You have never demonstrated any means of preventing prices being raised to, perhaps, three times actual cost levels before your discount is applied.”Yes I have. As a social crediter you must be aware of the costliness of technologically advanced capital intensive modern economies. That’s why an enterprise can make a 30% gross profit, but still have only a 1-3% net profit. Now suppose an idiot anti-social executive officer decides to inflate his prices by say 25% and even one of his competitors using his head by realizing that the 50% Discount/Rebate policy more than doubles the potential business revenue for his products/services decides to cut his prices another 10%. How long is it going to take the consumer to realize which one of these enterprises is cooperating with a system that doubles their purchasing power and which is greedily trying to game/destabilize it??? Keep in mind that the most prescious commodity a business can have is the belief in their potential consumer’s minds of the good will of their business toward them. In my book I also outline a set of regulations/tax incentives to encourage price stability and tax punishments for businesses that arbitrarily raise their prices including if an enterprise raises their prices without an actual increase in costs two times out of a three month period they lose their 50% Discount/Rebate privileges….and then it’s bye-bye business for them. I also recommend a new governmental department called the Dept. of Competition, Innovation, Ethical Enterprise and The Bully Pulpit (no kidding) whose job it is to promote the first three, oversee changes in monthly prices and when its director spots enterprises that are abusing the new system/paradigm he gets up behind a lectern and enumerates them while pointing a parentally scolding finger at the camera and finishes with a statement like: Mr. and Mrs. consumer these are the offenders who are greedily trying to reduce the doubled purchasing power we just gave you….what kind of economic message are you going to send them?

If every like similar business model colludes to raise their prices (very unlikely and easily spotted) then that is prima facie monopolistic ring fencing that is in restraint of trade and legally actionable….especially after people see how much better their lives are with doubled purchasing power.

JR:  That would certainly handle any unemployment problem, Steve.

An army of inspectors checking every item in every situation.
Me:  John,

You always come back with that tired old rebuttal that wasn’t even true before we had cybernation, software, the internet, algorithms etc. etc.

Again, in the first place businesses have very high costs which prevent them from risking high rates of inflation and hence loss of market share. Secondly the regulations and government departments I outlined in my last two posts along with the 50% Discount/Rebate policy and others will inhibit the vast majority of enterprises from arbitrarily inflating and in so doing risk loss of the 50% Discount/Rebate privilege, and will be “tickled” to have twice as much money actually available for their goods and services, the tremendous cost savings of transfer taxes lifted from their burden and the equally significant cost savings opportunity to borrow at 0% interest when we ditch the gigantic parasite of private for profit finance.

Paradigm changes are universally progressive and beneficiual events. Just go with the new thought and the totally obvious temporal universe effects. You’ll like it. It is after all what you’ve been wanting to happen all your adult life.


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