Money creation is entirely accounting. Paradigms are single concepts and paradigm changes are single operant applied ideas. Operant means core effective factor for change. The best way to have a universal operant effect is to find a place and time where everyone participates in the problematic area under analysis and then apply the new paradigm concept at that point and related points. I’ll give C. H. Douglas credit for identifying the single macro-economic/universally participated in point in the entire economic process, i.e. retail sale, to use accounting debits and credits. I simply innovated his policy of a smallish single digit percentage that mirrored inflation into a high percentage (50%) Discount/Rebate policy whose beneficial opting into could not be resisted out of the realization that to do so would mean going bankrupt because even a stupid consumer is going to quickly realize that he’d rather only have to pay half the price of everything instead of 100% with the non-opting merchant. Nor could it be gamed by malfactors raising their prices by 20-30% because if just one of their competitors played by the rules and didn’t inflate….just how much market share is the greedy CEO going to lose to the one whose healthy response of gratitude for the fact that a 50% discount (debit) given to his customers means the demand for all of his goods and services just got doubled…and with the rebate(credit) of the entirety of those discounts back to him he receives his full price. And of course if businesses collude thats legally actionable.

Paradigm changes are always beneficial, problem solving, permanently progressive, reality changing moments in entire bodies of knowledge/areas of human endeavor. Let us have the new monetary paradigm of Direct and Reciprocal Monetary Gifting at retail sale….with post haste.

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Yes, debt, that is, the monopolistic paradigm concept of Debt ONLY as the sole form and vehicle allowed for the creation and distribution of new money, has always been the problem. Always as in for the entire length of human civilization. Consult Steve Keen and Michael Hudson on that. What they however don’t get is even with the periodic debt jubilees….private and commercial debt just kept coming back to strangle the economy…and we haven’t had a thorough debt jubilee since before Rome (Germany after WW II was as you note actually in the interest of ascending Finance Capitalism).

In other words what we need is not just another palliative reform, but a genuine paradigm change. If you look at historical paradigm changes you see that new paradigm concepts are always in complete conceptual opposition to the current anomalous concept and effect complete inversion of temporal universe reality. Examples: Nomadic Hunting & Gathering to Homesteading, Urbanization and Agriculture, Copernican cosmological paradigm change from Religious Egoistic Geo-centrism to Secular Helio-centrism. And last but not least we have Alternately Goosed and Strangled Unethically Dominating Debt Only to Ethically Ascendant Direct and Reciprocal Monetary Grace As In Gifting.

Kalen, why did “the revolt of the bourgeosie” never happen? Mostly because Private Finance and their monopoly paradigm was never thoroughly changed by an integrative new paradigm concept…that would integrate the self interests of consumer and merchant AGAINST Finance and that ultimately could be wielded by the people in a populist mass movement against oligarchy and any and all other usurpers. Indeed a concept whose many aspects has been the primary one behind every historical paradigm change and that has everytime been the NATURAL PHILOSOPHICAL concept of grace as in love in action, and as policies are the actions of systems, systemic policy. Thats why Monetary Grace as in Gifting hits the spot. Thats why a gymnast flipping and turning across the mat in dynamic, integrative physical and mental flow is considered graceful and beautiful. Thats why grace as in ethically and rationally directed sovereignty is what we need in politics. Thats why the wisdom of historical paradigm changes that integrate conceptual and temporal opposites into a resolving thirdness greater oneness is aspect of grace. Mentally contemplate and temporally implement grace in whatever relevant systemic way fits…and you’ll have true progress.

EB: I agree in part, but Kelton says the US government can simply spend money into existence: the Federal Reserve will then electronically credit bank accounts with brand new dollars. That’s not actually true. The Fed is not allowed by statute to “monetize” the debt directly. It has to borrow federal securities on the open market like everyone else. I’ve written on that before with citations. Arguably, Congress could change the law and mandate the Fed to monetize the debt. The Fed returns its profits to the Treasury, so the debt would then be interest-free. And since the Fed is (more or less) a federal agency, there would be no need to repay the debt to itself; it could just be carried on the books and rolled over (as it always is). But that’s not the law at the moment.

Me: Precisely. Broadcast the individual and commercial benefits of the policies I advocate with a mass movement and ignore the misinformation, disinformation, the terminally cynical, and the rest of the present orthodoxies that the new paradigm destroys or renders irrelevant and you could elect a coalition big enough to change the FED’s charter to create money as MONEY and distribute it so that it had the mathematical effects and solved the biggest problems of the economy.

Look at it. Do the simple math and let yourself experience the logical and positive result…gratitude for a gracious monetary gift everytime you went to buy potatos or a house. In fact in my book I remark that the economic benefits of Wisdomics-Gracenomics aren’t the best part of the paradigm change. Its actually that they create an everyday experiencial infrastructure for the massive self actualization of grace as in gratitude.