Posted To Steve Keen’s Substack Podcast 04/23/2023

Inflation could be mathematically and macro-economically resigned to the dust bin of history with a 50% Discount/Rebate policy at the point of retail sale. No need to do all the calculus that makes people’s eyes glaze over because universal participation in retail sale guarantees macro-economic effect. Just do the simple math. Ending inflation for ever by implementing BENEFICIAL price and asset deflation (inversion of problematic temporal universe reality and thinking in terms of complete conceptual opposition to the present paradigm are cardinal signatures of paradigm change…think geo-centrism and helio-centrism for instance) is a solution not a palliative.

Debt jubilee is an excellent idea, but why make it just a one-off which gives a little relief and then wait another 10+ years for Finance to come up with some loopy scheme for re-enslaving us and then have to fight the pols they stuff millions in campaign funds to again, again and again? No, integrate debt jubilee directly and continuously into the economic process with a policy of a 25-50% debt jubilee at the point of loan signing. Think solution, not just palliative reform. Think mass socio-economic and political movement instead of trying to convince ego involved “authorities” and then bitching that things “change one funeral at a time”. New paradigms always being universally beneficial phenomena sell themselves. Yeah, yeah, yeah, humans not being an entirely rational or ethical species you’ll need some additional regulations and tax incentives and dis-incentices etc., but why not go for the gusto with paradigmatic analysis and paradigm changing policies instead of reform? You’ve got a platform, use it and expand it. Just don’t forget to cite me.

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Paradigms being long acculturated concepts are mostly unconscious. Reformists like yourself, Michael Hudson, David Graeber, Warren Mosler/MMTers and Ellen Brown have completely surrounded the area of the the present paradigm (money, debt and banks), but not being completely conscious of the necessary and exact new paradigm concept you’ve not been able to visualize its benefits and most strategic points of implementation. For instance your insight that “economists can get their PhD in economics without ever having to take an elementary course in accounting” and that banks create money with accounting entries is spot on, but you fail to follow through with that insight by mimicing/applying that same accounting process with a 50% gift of price at retail sale all of which is rebated back to the merchant by the monetary authority‚Ķand hence it breaks up Finance’s monopoly paradigm for the creation and distribution of new money, namely Debt ONLY (the word Only designates it as a monopoly paradigm concept). As retail sale is universally experienced and participated in a monetary policy using reciprocal accounting entries there would have immediate and macro-economic effect. The benefits of this single policy are 1) the end of inflation and the beginning of beneficial price and asset deflation, 2) a redressing of the lost purchasing power the middle class has endured since the 1970’s because it would immediately double everyone’s ability to purchase, 3) the integration of the self interests of the consumer and commercial agents because there is now a potential doubling of demand for every enterprise’s goods and services which is the definition of good economic times and last but not least 5) as inflation would forever end it opens up the ability to run the kind of fiscal deficits necessary to fund the mega-projects necessary to confront climate change and research alternative sources of energy. Repeating the accounting process at the point of loan signing with a 25-50% debt jubilee policy further benefits everyone and further breaks up Finance’s monopoly concept of Debt Only.

As you can see becoming completely conscious of a new paradigm better enables its visualization and application.

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