Posted To Robert Reich’s Substack Newslatter 04/01/2022

Macro-economics is complicated. That’s actually the biggest reason its problematic, and is also a prime signature that it requires a paradigm change to the most problematic aspect of economics, namely money. Ptolemaic cosmology lingered on for centuries until Copernicus came along, the telescope was invented and the ellipse was discovered. Steve Keen, probably the foremost economist on the planet said: “The reason neo-classical macro ignores money, debt and banks is because if they had to acknowledge them it would force them to face the fact that the money system de-stabilizes the economy.” C. H. Douglas, the founder of the world wide movement known as Social Credit back between the two world wars formulated a policy known as a compensated retail discount which (unbeknownst to him because he pre-dated Kuhn and his exegesis of the phenomenon of paradigm change) isolated the single most relevant and powerful policy point in the economic process (retail sale) because it was the terminal ending point of the economic process where production exits the economy and becomes consumption, and thus is also the terminal summing point of all relevant economic factors like price, cost, profit and inflation. Thus, I realized 1) that if at retail sale you utilize the device for creating money in fiat monetary systems (the equal accounting tools of debits and credits) to reduce the price of everything by 50% you could 2) simultaneously resolve individual monetary scarcity by doubling everyone’s purchasing power, 3) forever end inflation by integrating beneficial price and asset deflation into profit making economic systems (Holy paradigmatic inversion of mental orthodoxy and temporal reality!), 4) not injure enterprise because the retailer still gets their full price with the rebating back to them of their discount to the consumer (and thus accomplishes another of the primary signatures of historical paradigm changes, that is integrates the interests of opposing orthodoxies by resolving the most problematic aspects of the current/old paradigm) and 5) because inflation is forever ended the old fiscal orthodoxy of austerity is also forever ended enabling the kind of government deficits to fund the mega-projects necessary to confront climate change…imminently doable.

Change the human civilization long monetary paradigm of Debt Only with the new paradigm concept of Monetary Gifting and its policies…and change the world.


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