Response To a Questioner On Facebook

The discount is simply an accounting entry opened up by the retailer, and the rebate is the monetary authority creating the exact amount of money that balances/zeros out the account. This is how banks create our money now (with accounting entries) except it’s always ONLY in the form of debt while this policy has the monetary authority (the FED or some other body specifically mandated to execute the policy) create it as a gift of money. The beauty of the policy is it injects more money into the economy while simultaneously doing the impossible so far as orthodox economic theory is concerned, that is it empirically integrates beneficial price and asset deflation into profit making economic systems. If you do a cursury examination of historical paradigm changes you will discover that complete mental and temporal inversion of reality is the cardinal signature of paradigm changes…and that is exactly what this single policy accomplishes.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s