Posted To Stephanie Kelton’s Substack Newsletter 12/10/2022

Me: How do you create all of a roaring economy, accomplish the goals of Andrew Yang/UBI, Stephanie Kelton and every other MMTer, Steve Keen, Michael Hudson, Ellen Brown, enable us to effectively confront climate change, integrate the best aspects of the economic and political agendas of the right (tax cuts) and the left (economic democracy) and completely slay inflation…all in one fell swoop?Answer: Become a system’s philosopher and change the current monetary and financial paradigm which has been in effect for the entire course of human civilization, and has be-deviled humanity on many levels as a result.Every one of the above movements and areas of activism are reforms, EXCELLENT reforms, reforms that in fact point at and conceptually align with the new paradigm concept…but they haven’t recognized the specific new paradigm concept or the most efficacious points in the economic process to apply the new concept and hence temporally implement and change the ENTIRE PATTERNS of economics and the money system.Reforms are good…and always incomplete and temporary. Only genuine paradigm changes are permanently progressive. Let us begin to analyze on the operant concept/paradigmatic level and integratively solve the key problem, namely the current pattern, not just (ineffectively) hit at it with various reforms. Please.

DC: This is crazy insane.

Me: Yes, that is the way all new paradigm concepts are initially perceived because they are always in complete conceptual opposition to the present paradigm and its problematic set of orthodoxies. Nomadic Hunting and Gathering was in complete conceptual and temporal opposition to Agriculture, Homesteading and Urbanization. Likewise, helio-centrism required us to conceptually and temporally think in terms of complete inversion of the positions of the earth and the sun. It’s not easy to buck orthodoxies especially when they are coming from both sides of a duality, but when the new concept works to resolve the major problems
of the current paradigm and makes everything in the pattern under analysis function better all you have to do is keep looking at its actual effects…until it blows your mind.

The 50% Discount/Rebate policy at retail sale is such because it is the very expression of the new paradigm concept, Abundantly Direct and Reciprocal Monetary Gifting and its executed at the single point in the entire economic process (retail sale) that is universally participated in. Hence its mathematical effects are macro-economic. Those effects are an immediate doubling of everyone’s purchasing power, the potential doubling of available demand for every enterprise’s goods and services and not only the end of inflation, but the implementation of BENEFICIAL price and asset DEFLATION. Now that is an orthodoxy busting set of effects if I ever saw them.

SG: You should read Michael Hudson on the financial paradigm which has been in effect for the entire course of human history. I’ll bet that you will find that history is not what you assume. Why assume what that history has been when there are people who have actually studied that history and have written about what they have found? Did I mention Michael Hudson?

Me: I included Michael Hudson in my original post. I don’t know if Michael has actually expressed a specific new paradigm concept. I do know that he considers private finance to be a parasite which I totally agree with, and his research regarding the ancients doing periodic debt jubilees (which is what? Oh yes, a form of monetary gifting) is accurate and aligned with what I’m saying.

The only problem with debt jubilees was they were basically one-offs and hence palliatives, because ever rising private debt just went right back to being inevitable. We need to be smarter than the ancients, not stupider like now…and integrate debt jubilee directly and continuously into the economic process with my second most primary policy which is a 25-50% Discount/Debt Jubilee policy at the point of loan signing.

Put the retail sale and loan signing policies together and a $60k Tesla becomes $30k at retail and when you go to sign the note its reduced to $15k. If you buy a $40k internal combustion auto its $20k at retail and $15k at note signing (only a 25% debt jubilee). Likewise a $400k home is $200k at retail and $100k at note signing. As I said, the new paradigm and its policies resign inflation to the dust bin of history.

SG: The debt jubilee written into the Hebrew bible was periodic. Did you miss this part of Michael Hudson’s writings? Your ideas for writing in a jubilee into a loan may be novel. Let’s see some experts opine on how likely your ideas will work in the real world. I see problems with them myself, but I am not going to argue with you here.

Me: It WAS periodic. That was its problem. We need to integrate it continuously into the economic process. And that is what the 25-50% Discount/Debt Jubilee policy at the point of note signing does. Just do the simple yet macro-economically effecting math.

I’d welcome the opportunity to discuss and defend what I’ve posted here, particularly from Stephanie and from anyone else. Just remember two very important truths, new paradigms always explode orthodoxies and cynicism never solved a problem because it is about 5 microns above apathy and it’s exactly what the ruling elites with their paradighmatic control are hoping is everyone’s reaction to something actually new.

SG: New paradigms tend to explode orthodoxies. However, every idea that explodes orthodoxies is not necessarily a good idea. Let me explode another old saw. If I don’t have a better idea, that does not promote your idea to be a good idea.

Me: I wouldn’t dispute that last statement. However, if you or anyone else can find an applied concept that temporally and mathematically accomplishes more than everything I listed in my original post here and with only four basic policies (there is much more to the entire policy program in my book) …then I’m all ears.


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