Posted To Stay At Home Macro on Substack 12/11/2022

What if I were to show you how a single policy implemented at a strategic point in the economic process not only ended any possibility of inflation, but resulted in what is considered impossible in every economic orthodoxy, that is, BENEFICIAL price and asset DEFLATION.

First a little ground work. All monopolies are problematic. Why, because they fly in the face of Lord Acton’s dictum that power corrupts and absolute power corrupts absolutely. So any time you break up a monopoly on whatever level you’re solving a major problem. Secondly, we know from Steve Keen that the basic problem with the current macro-economic orthodoxy is they ignore “money, debt and banks”. I would take that analysis a little higher by saying what is the current paradigm of new money and debt that is created only by banks/the banking system?

Think about it for a second, according to Keen’s excellent calculus and research private debt will inevitably build up and destabilize an economy unless we run fiscal deficits. This is an historically verifiable systemic truth, but it doesn’t recognize the core of that core economic problem, namely the
current (human civilization long) MONOPOLISTIC paradigm for the creation and distribution of new money. And that paradigm concept is…Debt as in burden to re-pay ONLY. The word ONLY marks it as a monopoly paradigm. In other words whether new money/credit was created by the Palace or by private banks it has ALWAYS been created ONLY as a debt that (allegedly) MUST be re-paid. That is the paradigm, the operant factor for the ENTIRE PATTERN of new money.

Historically, how do paradigm changes occur. 1) anomalies/problems build up around the current paradigm and we are deep into this process, 2) a new paradigm concept is floated and historically laughed at for longish periods of time, 3) a new tool and/or insight is discovered that enables the new paradigm concept (which concept by the way is always in complete opposition to the old/current paradigm making it apparently illogical and hence difficult for the scientific community to embrace it) 4) regardless, the application of the new concept resolves the old concepts major problems and in doing so brings virtually universal benefits while overturning orthodoxies that have grown up around it.

So what is the new monetary and financial paradigm and what benefits does its most strategically efficacious application bestow upon us? What is the opposite of burden to ALWAYS repay? Why Monetary Gifting of course, and specifically new paradigm concept is: Abundantly Direct and Reciprocal Monetary Gifting. And where and when is it implemented? At the universally participated in point in the entire economic process, namely retail sale. And what is the single policy that is the very expression of the new paradigm itself? A 50% Discount/Rebate policy at the point of retail sale.

What does this policy immediately, continuously, mathematically and temporally do? 1) it immediately doubles everyone’s purchasing power so if you make $30k/yr. you can now potentially purchase $60k worth of goods and services with that $30k, 2) with the rebating back of the discount the merchant gives to the consumer it therefore potentially doubles the demand for every enterprise’s goods and services and the “kicker” is 3) because a) every individual agent participates in retail sale and b) retail sale is the terminal summing point of all costs including profit for every item or service and c) also the terminal ending/exiting point of the entire economic process and d) hence by definition the terminal expression point for any and all significant economic factors, like for instance inflation…it not only ends any possibility of inflation it implements BENEFICIAL price and asset DEFLATION into profit-making economic systems. Holy orthodoxy and mind blowing inversion of reality is that!? But then that is what every paradigm change applied does to one degree or another.

There are a lot more enabled benefits than this in the entire policy program of the new monetary paradigm in my book, on my substack and Patreon websites.

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