Post To Stephanie Kelton’s Substack Newsletter 02/17/2023

Me: The only reason it’s debt is because the plain old MONEY created is immediately transformed into debt by making it become treasuries. Just change the law. Keep it what it actually is A GIFT OF MONEY TO GOVERNMENTCONTRACTORS AND EMPLOYEES.

What everybody needs to wake up to is 1) the new monetary paradigm is GIFTING

2) that strategically implementing GIFTING into the Debt Only based system in the various ways I’ve posted here many times is not only the political football resolution to the ignorant and demagogic right’s blather but

3) mathematically the end of inflation which is the biggest problem in economics

4) the freeing of the individual from enforced austerity,

5) the greatest boost to GDP in history

6) the opportunity to form the greatest political coalition the country has ever seen, which will enable the bulk of liberal reforms unrelated to money/economics to be enacted

7) Clear the way for the kind of fiscal “deficits” necesarry to upgrade the infrastructure and confront climate change

8) create a solid everyday individual opportunity and temporal universe reality to feel gratitude everytime you purchase something instead of grudging resentment toward business and government. Imagine an economy based on and evocative of grace as in Gifting.

And that’s why the new monetary paradigm is a MEGA-paradigm of which there has only been 2 others in human history.

JB: Steve

I have no idea what you’re talking about here. Do you ??

And, please, what does any of this have to do with MY comment? Please, any reference to something I said here ??

I have not read whatever you wrote here repeatedly, so these memes mean nothing to me. Sorry

And this …

“”The only reason it’s debt is because the plain old MONEY created is immediately transformed into debt by making it become treasuries. “”

Wow ! First, I thought, in error I guess, that you understood that all money created BY BANKERS, MUST BE in the form of a DEBT, before it is entered into the account of the Borrower – where it first enters circulation as part of the nation’s money supply (M-1). It’s called ‘debt-BASED money’,

Or to Adair Turner ( an Uber central banker), called Debt-Contract Based Money.

BEFORE that ‘money’ can happen, the Borrower must sign the Promissory Note (Debt to Lender) to make all the (Debt-Service ) payments in the loan contract . THAT bank-money requires the DEBT as a pre-condition to making the loan and deposit, MEANS that everything you wrote there is a WAN, supported by neither proof nor logic.

And then, the Math. Although Treasury borrows a $TRILLION each year now in ordinary(*) times, that would only be less than 5 percent of the money put into circulation BY THE BANKERS that year, so the notion that the money issued becomes Debt “by making it become Treasuries” …. I mean, WOW!

(*) Neither Crisis nor Pandemic)


Me: “I have no idea what you’re talking about here. Do you ??”


“what does any of this have to do with MY comment? “

1) It’s obvious that you cannot think outside of the present monetary paraigm of Debt ONLY as the sole form and vehicle for the creation and distribution of new money.

2) Neither the Fed nor the Treasury are private banks, and other than to be a legalized handmaiden of the private banks and to obscure the private banks’ monopolistic paradigm there is no actual necessity to immediately transform the money of the deficit into treasuries, i.e. debt.

Money as Debt as in a burden to repay is a concept. Monetary Gifting as in no necessity to repay is conceptually in complete opposition to the Debt ONLY concept. One of the signatures of historical paradigm changes is that they are always in complete conceptual opposition to the present paradigm.


Me: Joe, I’m with you in so many respects. Minsky? Yes via listening to every one of Steve Keen’s videos for the last 10 years. Stephen Zarlenga? Yes, bought and read the book, and yes whoever controls the money system controls the nation. I even agree that MMT has some definitional and hence communication problems with their policies and presentation…but its a progressive reform, so lets not pick at it so much as find a way for it to integrate with the rest of the reforms and theorists.

All of Minsky, Keen, MMTers, Hudson, Graeber, UBI advocates, Public Banking want the same things. So how do you consolidate and integrate their reforms? You awaken to the new operant paradigm concept and how it is best applied. But you have to start analyzing on the paradigmatic level in order to do that. That is the missing link in the chain that will win the day for progressive economists and reforms. New paradigms change the nature of ENTIRE PATTERNS and resolve the major problems of the present/old paradigm. Lets do that.

WG: Steve, You may disagree with everything I’ve written on this site–and you may be right–but I have attempted in my own ham-fisted way to write in plain English. For the life of me I don’t understand a word of what you’re trying to say. If you think you have something profound to say, then say it plainly. I’m not suggesting that you don’t have something important to add to the conversation, but your post gives me no guidance. If you do have a keen insight, I don’t want to miss out because I can’t decipher your difficult prose. Please help me out by writing in the simple words I can understand. Thanks, Wally

Me: Wally, I’m in agreement with virtually everything you say and want to see happen. The only difference between Stephanie, Mosler, Keen, Hudson, Graeber, Minsky, Ellen Brown etc. and me is they are talking about separate reforms and I am analyzing on the paradigmatic level and advocating for the best/resolving applications of that single new concept.

Visualize a blank piece of paper. On that page put pencil points labeled with all of the above names. Then make a big circle around those names and label that entire circle New Paradigm Concept. The circle’s concept and its resolving policies is what I am talking about. The labeled points are all valid researches, theories and reforms…but they’re separate, aligned in many ways in their pursuit of solutions, but they’re still missing the new concept and its applications which, if its an actual new paradigm concept, changes the nature of the ENTIRE pattern, system, body of knowledge, area of human endeavor and resolves the problems/orthodoxies that have grown up around the old/current paradigm.

The Copernican cosmological paradigm concept was from geo-centrism to helio-centrism. The paradigm change from nomadic hunting and gathering was accomplished by homesteading, urbanization and agriculture. The current paradigm for the creation and distribution of new money is Debt ONLY. The new paradigm concept integrated into the current debt based system is Direct and Reciprocal Monetary Gifting.


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