Posted To Stephanie Kelton’s Substack Newsletter 12/04/2022

GM: I agree that an increasing money supply is not a cause of inflation, or, as you at least admit, not the primary cause.

Thanks for the meandering trail into why some may have failed to grasp the cause, but one is no more enlightened on cause in reading your nonsense than one who didn’t.

So what is the cause of inflation, if its so simple, but yet invites derision?

And there is no Space-Time because there is no such thing as Time, or at least not what one knows as Time.

Me: The primary cause of inflation is economic theorists advocating the rigid orthodoxy of free marketism when free marketism actually leads them to advocate chaos, that is no or in the case of liberal theorists palliative regulation. The new applied paradigm concept implemented at retail sale with a 50% Discount/Rebate policy mathematically ends any possibility of inflation and ushers in so many immediate and “knock on” benefits for virtually all economic agents that it is a paradigm change in economics and the money system all by itself. There is an entire new paradigm policy program of course because in the temporal human universe even a legitimate paradigm change can be idiotically and/or ethically gamed.

If you don’t think the 50% discount/rebate policy at retail sale will end inflation just keep doing the simple math until it clicks into your mind. And no other economic agents before retail sale won’t just inflate prices 50% because 1) if they did and just one of their competitors didn’t also wildly inflate just how much market share would the unethical, anti-social CEO lose??? And 2) the incredible tax cuts all enterprises will receive as one of the “knock on” benefits of the new paradigm program will be forfeited, and any revenue garnered or not by inflating their prices will be taxed at a rate of 100%. Wonderful carrots and and awesome sticks that align with a new paradigm concept. Now that is the kind of regulation all but a terminally orthodox or nutso businessman can go for…big time.

By the way the second most conceptually aligned policy of the new paradigm program is a 25-50% Discount/Debt Jubilee policy at the point of loan signing. That means that a $400k home gets reduced to $200k at retail sale and at point of loan signing its price and final amount financed is $100k. A $60 k Tesla becomes $30k at retail and $15k at loan signing. A $40k internal combustion auto becomes $20k at retail and $15k at loan signing.

Just keep doing the simple math. Eventually it blows any lingering economic or financial orthodoxies away.


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