Posted To a Steve Keen Podcast 04/27/2026

The way to end inflation is to recognize the power and potential mathematical and macro-economic effect of what you’ve (correctly) long pointed out about how money is created, namely the double entry bookkeeping operations of equal debits and credits that sum to zero…at the strategic points of regular consumer and financial retail sale. So with a policy of a 50% Discount/credit Rebate (debit) policy at retail sale everyone gets $100 worth of groceries or other goods and services…for $50, and then with the rebate/debit created and distributed by the central bank back to the merchant granting the consumer the 50% discount they get their full price. The effect is transformation of chronic erosive inflation into beneficial price and asset deflation. Apply this same policy at the point of financial retail sale (one’s monthly mortgage, automobile, insurance or other big ticket item’s monthly payment) and the consumer who just bought a $500k house for $250k gets 50% of their monthly payment paid by the central bank to the private bank so the consumer gets that $500k house for the equivalent payment of a $125k loan. So you integrate the normally opposed self interests of merchant and consumer, out capitalism the capitalist and out socialism the socialists, turn the Calvinist libertarian punitive wet dream of deflation into the the greatest opportunity for EVERYONE to self actualize gratitude for a gift…into a temporal universe activity that EVERYONE must and does participate in (purchasing something in the economy).

Wisdomics-Gracenomics: The next mega-paradigm change.

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