Posted To Ellen Brown’s Scheer Post 12/07/2022

Me: An excellent article on the FED, the current problems (inflation and malinvestment) and a good policy in an infrastructure bank. However, it still doesn’t go to the true core of our economic and monetary problems. Even good reforms like what is suggested will eventually be gamed and morphed into entities that benefit the banks and big investors…the same way Keynesianism got morphed into the neo-classical “synthesis”. To have permanent change you have to awaken to and effectively change the operant concept of the entire pattern, that is the paradigm of money and hence the economy.

All of yourself, Steve Keen, Michael Hudson, MMTers and David Graeber have been pointing at the core problematic area since 2008, namely “money-finance, debt and banks”. Now all you need to do is up your game to the actual paradigmatic/operant concept/pattern level of analysis, and decypher the most efficacious policy ways to implement the new operant concept. I’ve done this in my book.

R: Everyone has at least a little fear of a ‘trillion dollar’ coin, seemingly conjured from the Nothingness, but who is afraid of a $1000 Pacman coin, appearing and disappearing, at high speed?

Unless, of course, you are the debt bankers, who will soon realise, they are losing their profits, from the interest streams.

Me: Or, why not utilize the same method that the banks do to create our money, namely via reciprocal accounting entries and then unlike the prestidigitation they also use to immediately create it ONLY AS DEBT, you instead create it as a gift of 50% of the price of everything at retail sale and then reciprocally the monetary authority rebates every cent of the discount they granted to the consumer back to the merchant? The equation formula of equal debits and credits summing to zero is so powerful.

That way every economic agent individual and commercial benefits, you macro-economically implement BENEFICIAL price and asset DEFLATION into profit making economic systems, (holy mind and orthodoxy blowing that is!) and the unconscious paradigmatic power of the banks to create our money ONLY as debt is inverted into a new paradigm of Gifting that frees everyone and the system as well.

R: Sounds complicated, Steve.

Banks loan bank credit, created by the value of their customers’ collateral.

Why not have nationally-owned asset banks, holding the collateral Titles, in Trust, during the loan periods, with the loan funds, created as bank credits, and as interest-free customer assets.

Our nation’s monetary supply then arises in the form of asset lakes, and the people are their own central banks.

Too simple?

Me: It’s the essence of simplicity actually. Its simplicity is wed to power as in the operant/most significant problem solving concept applied at the single most universally participated in point in the entire economic process (retail sale) via the tool that the banks currently use (equal accounting entries) to create upwards of 97% of our money (but ONLY AS DEBT while in the case of a 50% discount of the price of virtually everything is a GIFT) and finally double entry bookkeeping is the infrastructure within which the entire economy is embedded, thus giving the new paradigm concept hard, mathematical temporal universe reality.

Monetary Gifting doesn’t negatively effect collateral because every commercial agent gets their full price. Again, the power of accounting.

Everyone and every commercial enterprise gets an account at the central bank…not just the banks. The recent gifted checks given during COVID took very little time to distribute and the 50% Discount/Rebate policy would be even easier to set up. The commercial entity simply opens a new T account labeled Sales Discounts and the monetary authority credits it with the total of their discounts to consumers. Simplicity and powerful PARADIGMATIC effect on the money system and the economy…for both the individual and commercial agents.

A: I appreciate the writing on this subject. While not an expert myself, it does seem as though these rate increases by the Fed are being called “aggressive” but relative to what Paul Volcker did in the early 90’s to curb inflation, they’re actually quite tepid…. so tepid, in fact, that the endgame may be more about producing hyper inflation in defense of legacy finance and government solvency than it is saving Main Street. The Fed is governed by elites who spent their lives attending prep schools and ivy leagues, and Wall Street investment banking so there’s really no basis to think they are acting in anyone’s self interest but their own. Hyper inflation will hurt everyone except those at the top.

Me: There is virtually no chance that we will have a hyper inflation. As the late Stephen Zarlenga accurately documented in his book The Lost Science of Money hyper inflations never occur without at least several disastrous decisions are made first like 1) going to war, 2) losing the war and in the process losing most of one’s productive capabilities, 3) having the winning side impose onerous reparations and debts on you and which makes it politically viable for the economic and political elites in your country to okay the most disastrous occurance and which transforms bad 8-12% inflation into a hyper inflation and that is 4) the private banking system leverages up speculators who short the currency thus ushering in a true hyperinflation.

Having said this, inflation like we’ve seen recently is still painfully erosive of the purchasing power of 95% of the general populace and needs to be stopped and forever prevented again. To wit, the 50% Discount/Rebate policy at retail sale which is actually a paradigm change in a single policy because it is the very temporal universe expression of the new monetary and financial paradigm concept implemented at the most potent and workable point in the entire economic process (retail sale).

I’m all for research and reforms, and every one of the leading reforms conceptually align with the new paradigm concept and have been dancing around the problematic area that needs to be addressed (money, debt and banks) since before the shite hit the fan in 2008, they just haven’t recognized the specific new paradigm concept (Abundantly Direct and Reciprocal Monetary Gifting) or the best places to implement the new concept so as to have most positive and problem solving effect (retail sale and the point of loan signing) and finally making that policy mathematically powerful enough (with a high percentage of discount at retail sale) that it is irresistibly beneficial to all economic agents as well as “an offer they cannot refuse” to participate in, and immediately solves 3 of the deepest problems of our current system (1 chronic individual and systemic purchasing power and thus 2) demand scarcity and 3) inflation).

If anyone here can show me better results for everyone and more problems solved with only a handful of policies I’ll be happy to jump on their bandwagon. Otherwise, get on the bandwagon of the new monetary paradigm. All it needs is a platform to communicate its benefits and “its time will have come”.

TV: Steve Hummel: Maybe hyperinflation has not occurred without the extraordinary situations you list, but not only is the USA in jeopardy of losing both hegemony and overseas wars (hot and proxy), but also owes 30+ trillion dollars. It remains to be seen what multipolarization will impose. You’ve got the Exceptionalism thing going on bigtime.

Me: The national “debt” is a complete side show and non-issue which is used to keep the political and economic debate in perpetual suspension. Steve Keen has mathematically proven that if we don’t have deficits the economy will inevitably fall into recession. Of course there are plenty of other reasons why we have recessions like what Ellen refers to in this thread, but fiscal austerity is the problem NOT the solution.

I’m not only not advocating for American exceptionalism, I’m trying to get the current refrom movements to analyze on the operant concept/paradigmatic level so that we can solve the deepest reason empires have invaded their neighbors, namely because with the present 6000 year old monopolistic paradigm of Debt Only the inevitable build up of PRIVATE debts destabilizes their domestic economies so elites think that invading and stealing their neighbors assets will fix it.

So what I’m actually advocating is the end of that 6000 year old geo-strategy…and implementing the new paradigm so that no matter whether its a hegemonic or multi-polar world the deepest cause of aggression is eliminated.


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