Me: Hudson’s research is good of course, but his solutions, precisely like China’s “capitalism with Chinese Characteristics”, are still elitist affirming and empowering and so are still old paradigm. We have to be smarter, wiser and more ethical than the ancients and change the entire monetary, economic and financial PATTERN/PARADIGM from scarcity/austerity to abundance, from religious to wisdom/self actualization, from elitist to distributist, from work to purpose and from unconsciousness of culture to full consciousness of same.
And the best way to begin that urgently necessary process is not only a “modern debt jubilee” and universal dividend but the paradigm changing 50% Discount/Rebate monetary policy at the point of retail sale and followed logically with wisdom aligned regulations and structural changes. And such gracious-wise-lovING policies need be ASSISTED by government NOT paternally held down and dominated by it.
The last mega paradigm change was from Hunting and Gathering to Agriculture-Homesteading-Urbanization. A mega paradigm change is one that changes a pattern in which EVERYONE is continually and personally involved each and every day.
J: Ellen –
I want to insert an idea for your feedback and the broad wisdom of the public banking group.
I think that a scheduled debt jubilee is unworkable, because, who would lend me money in year 48, knowing that in year 49 he would lose all? I fear that as the jubilee year approached, the whole economy would freeze up.
My proposed solution is to make the jubilee a random event. Every day, a lottery is conducted and the probability is one in (365 * 49) that all debts are immediately canceled. There are technical problems, I admit, in agreeing on a random number that cannot be rigged by those with a powerful incentive to rig it. But I’m confident this is a problem that can be solved by the same kind of technology invented for blockchain.
Here’s another kind of problem: What kinds of debt are canceled in the jubilee? If I have a bank account, then, as you have taught me, I am the creditor and the bank is my debtor. Do banks get to keep all their deposits with Debt Jubilee? Are all corporate and municipal bonds nullified with Debt Jubilee? More generally, there is a danger that the prospect of a debt jubilee will motivate people to hoard their assets in whatever form won’t be reached. Certainly this will birth an industry in investments that grow, but with no risk of jubilee annulment. As my grandmother used to say, “oy vey”.
In a present debt jubilee only personal debt would be eligible for elimination. It’s private/individual debt that is the problem not corporate and government debt. You could put in a regulation like debt taken on say 6 months before the lead up to jubilee was not eligible for jubilee. In the new paradigm with a truly national banking and monetary system that funded both government and the economy there would be no reason or need for profit and so everyone could refinance at 0%. In the new paradigm it’s not the state that would “wither away” but the real problem, profit making and dominating finance. Tax hell out of irrational, unhealthy and ecologically insane elements of the economy and incentivize that which is good, wise and gracious.
Paradigm changes are always accompanied by a new insight and/or new tool. The paradigm changing insight of the power to completely invert individual purchasing power scarcity and systemic monetary austerity into abundance of same with direct and reciprocal monetary gifting at the point of retail sale is just such an insight and policy tool. Paradigm changes always explode present paradigm orthodoxies like “Government is always bad and corrupt”, “Monetary austerity is good monetary and economic policy” and “re-distributive taxation is the only way to attain economic democracy and prevent inflation”.
Reforms are piecemeal and easily reversed. Everything adapts to a new paradigm NOT the other way around.