Loanable funds is fallacious and double entry bookkeeping is an essential tool necessary to understand and even transform the economy and money system. Full stop.

The problems it doesn’t enlighten or resolve are inflation, the current system’s indirectness and favor for oligarcy instead of for all economic agents individual and commercial.

That’s why the directly distributive double entry bookkeeping policy of a 50% Discount/Rebate policy at the various points of final (and in the case of finance the continuous retail point) of exchange is so powerful, when wed to the new monetary and economic paradigm concept of Strategic Monetary Gifting.

Why? Because everyone participates in regular consumer retail sale and most people who want a middle class lifestyle also borrow. Thus its policy’s effect is instantaneously and continuously macro-economic in effect and also utterly conducive of economic and monetary democracy.

It (Monetary Gifting) also conceptually rhymes with debt jubilee, UBI and government deficits.

Retail sale being the ultimate expression point of inflation the 50% Discount/Rebate at retail sale resolves chronically punishing inflation by inverting that temporal universe reality into beneficial price and asset deflation. Hint: inversion of temporal universe reality is a primary signature of historical paradigm change.

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