Posted To Steve Keen’s Podcast 08/19/2024

Inflation is terminally summed at retail sale so a 50% Credit-Discount/Rebate-Equal Debit back to the merchant ends inflation by implementing painless and beneficial price and asset deflation. In return for the merchant opting into this policy (which doubles the demand for their goods and services) they agree not to inflate or they lose their rebate privileges and are taxed at a rate of 100% of any revenue they may have garnered on any price rise. Like-wise any business model before retail sale will also be taxed at 100% if they inflate. The policy mathematically doubles everyone’s purchasing power so the general populace will love it, and businesses don’t incur a penny in increased costs with that doubling. Repeat the effect at point of loan signing with a 50% Gift of Interest to the bank/50% Reduction of principle and the rate of debt increase is reduced by 75% (A $500k house is $250k at retail and $125k at point of loan signing.)

I really do not understand why you aren’t out there advocating for these policies and regulations when they eliminate all of the major problems you correctly have identified within Neo-Classical Macro, as well as shown that money is created with equal debits and credits that sum to zero. You’re theoretics are all spot on and brilliant, but lets have the wonderfully beneficial and problem resolving temporal universe effects of the new monetary paradigm of Gifting. No?

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