Posted To Steve Keen’s Substack Newsletter 10/13/2022

Money’s creation is most basicly accounting. Currently the paradigm for the creation and distribution of money is Debt Only which marks it as a monopoly paradigm. MMT’s Fiscal deficits, as small as they are in relation to total money creation are contrary to the current paradigm in that they are gifts of revenue/money to government contractors. The banks and their allies obviously fight this fact because it points at their monopoly paradigmatic power.

In addition to MMT all of the leading reformists/movements either align with the monetary gifting concept or point at where the problem most clearly exists like:

Michael Hudson (debt jubilee/monetary gifting), Dr. Keen’s insight that neo-classical macro ignores money, debt and banks because if they didn’t they’d have to concede that the money system destabilizes the economy, David Graeber (5000 years of the unconscious acculturation of Debt Only), UBI (monetary gifting), Positive Money (monetary gifting) Ellen Brown’s Public Banking (bringing competition to the overweening power of private finance’s monopolistic monetary paradigm).

I would like to suggest a policy that perfectly mimics finance’s money creation accounting operation of equal debits and credits summing to zero, and that by its very point in the economic process has aggregative mathematical effect and universal benefit to virtually all individual and commercial agents. That policy is a 50% Discount/Rebate at retail sale.

A 50% discount at the point of retail sale (all of which discount would be rebated back to the merchant by the FED or another monetary authority mandated to do so) amazingly would macro-economically implement beneficial price and asset deflation. If we didn’t have to worry about inflation any more there would be no legitimate argument for fiscal austerity and hence we would be able to run the kind of deficits necessary to fund the mega projects necessary to confront climate change. A 50% discount at retail sale immediately doubles everyone’s purchasing power and so potentially doubles the demand for every enterprise’s goods and services. This would integrate the self interests of the traditionally opposed economic and political constituencies of business vs consumer and individual vs the system. It would also isolate the interests of the bourgeosie from finance therefore isolating the latter.

A universal dividend of say $1000/mo. paired with the 50% Discount/Rebate (in other words a guaranteed $2000/mo of purchasing power for everyone 18 and older) would enable the elimination of the payroll taxes for welfare, unemployment insurance and even social security that every working person and enterprise currently pay.

The retail discount/rebate policy fulfills and effects two of the historical signatures of paradigm change namely 1) complete conceptual opposition to the present paradigm (Copernican cosmological paradigm change: geo-centrism to helio-centrism. Current monetary paradigm: a) Debt Only as in burden to repay to Monetary Gifting and b) monopoly power to competition)

and 2) complete inversion of temporal universe reality (Copernican example: inversion of the positions of the earth and the sun. Current monetary paradigm example: inversion of wide spread austerity with inflation to universal relative monetary abundance and yet price and asset deflation).

I respect all of the insights of the theories and movements above. But please let us consider the integrative effects and ultimate efficaciousness that paradighmatic/entire pattern change analysis can produce.


Hegel was indeed enlightened. His dialectic is a precise codification of the process and mindset of wisdom which being the intellectual impulse of integrating/synthesizing opposites is the superior human mental discipline. Lack/refusal to integrate the truth(s) in opposites leads to the obsessive-compulsive dualism and hence rigid orthodoxies we increasingly see today, particularly in economics and politics. Wisdom should not (necessarily) be confused with religion which far too often has ended up simply being the creation of another orthodox and contentious dualism. Again, wisdom is the integrative/synthesizing mental process.

New paradigms like wisdom insights are deep truthful simplicities in that they are single operant concepts, that applied, synthesize opposites and create and change entire patterns. They are cybernetics, helio-centrism and agriculture, homesteading and urbanization. Authentic new paradigm concepts are the ultimate mental and temporal universe integrative phenomena.

Let us have a new paradigm in economics that deals with what you Dr. Keen have correctly identified as the area that neo-classical macro would have us ignore, namely money, debt and banks.


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