Unfortunately economists have not perceived the primary reason for inflation which is the human civilization-long monetary paradigm of Debt Only as the sole form and vehicle for the creation and distribution of new money wed to the largely delusional body of free market theoretics which is a complete misnomer for what it actually is which is alternately goosed and strangled and continually dominating monetary/financial chaos. The proof of this, which has been repeated many times historically according to Ms Kelton’s colleague Michael Hudson and others, is the great financial recession of 2008 where finance’s “innovation” screws up the economy and then they are bailed out while the individual is forced to “go scratch”.

A new monetary paradigm of Direct and Reciprocal Monetary Gifting strategically integrated into the Debt Only system with the same accounting operations the banks use to create money only as debt, namely equal debits and credits that sum to zero, specifically at retail sale with a 50% Discount/Rebate policy and a 50% Gift of Interest/Debt Jubilee at point of loan signing and the spell of finance’s monopoly monetary paradigm is ended while the individual’s purchasing power is mathematically doubled, chronic erosive inflation is transformed into beneficial price and asset deflation and the delusion of free market theorietics is replaced by universally abundant monetary free flowingness which is the goal of economic theory. A few more regulatory and taxation tweeks with real teeth, and the new monetary paradigm is a temporal universe reality observed and experienced by all.