Why? Because it increases purchasing power while simultaneously transforming chronic erosive inflation into beneficial price and asset deflation, and it also reduces debt and consequently increases the velocity of money so its a win/win/win.

What about interest rates? Raising or lowering interest rates is a ham-handed, ineffective tool to control inflation and make buying bonds attractive to the banks and wealthy individuals instead of democratizing the money supply. If you control inflation with beneficial deflation and supercharge and greatly stabilize the economy with the 50% Discount/Rebate policy it frees the monetary authority/central bank to issue bonds to rationally investigate and resolve problems like the energy and ecological crises looming up before us.

Steve Hummel 09/10/2026