the power of accounting’s formula that equal debits and credits summing to zero

the macro-economic nature of the point of retail sale

forgeting/not being aware of the fact that, historically, the key to perceiving and understanding paradigm changes is simplicity not complexity

Being so sold out to science that they don’t realize that Wisdom/the integrative mental impulse, which includes scientific thinking and actually better enables scientific breakthroughs…is the superlative human mental discipline

That both being deep simplicities, wisdom insights and new paradigm concepts are synonymous phenomena.

Many of my new paradigm policies are innovations and extensions of a man named Clifford Hugh Douglas who started a world wide movement known as Social Credit back between the two world wars. John Maynard Keynes was a contemporary of Douglas and Keynesianism was actually the fall back position of Finance against Social Credit whose policies were nascently aligned with the new paradigm concept of Direct and Reciprocal Monetary Gifting. The point of this post is that:

1. Keynesianism, which was a significant reform, was undoubtedly helped by Social Credit because it forced Finance’s hand
2. This is politically instructive because if Social Credit had not been there to threaten nascent and eventual full consciousness of the new paradigm by Social Credit Keynesianism probably would not have become a reality
3. So reformists who fear radical change is not likely, need to at the very least see that a new paradigm is actually the major impetus for significant reform
4. And most importantly they need to recognize the overweening power of a new paradigm and never back off its advocacy…because we all know what happened to Keynesianism, it got morphed into neo-classical macro…because it was just a reform NOT A GENUINE PARADIGM CHANGE WHICH IS ALWAYS PERMANENT.

Another litany of horrors, all of which are accurate but cannot resolve the deepest problem, namely the current monopolistic monetary paradigm CONCEPT that applied creates, controls and compels all of that litany.

Change the current operant, defining APPLIED CONCEPT with a new APPLIED CONCEPT and you change the nature of the ENTIRE pattern of economics and historically the problems that have grown up around it.

Yes, paradigmatic analysis flies in the face of reductive scientific, empirical and mathematical analysis, even correct and insightful such analysis, because its the discovery of a deeply effecting simplicity…instead of a mass of correct but still largely uncorrelate-able reforms…because they are unconscious of the specific guiding new paradigm concept itself and also perhaps the best places to apply it.

How about a podcast examining the signatures of past historically verified paradigm changes and how we might learn from and even copy them?

Thank you for confirming the fact that inflation is the key and biggest ECONOMIC problem we face and that changing the MONETARY paradigm with a 50% Discount/Rebate policy at the point of retail sale (and the rest of the new paradigm program) is inflation’s empirical, mathematical, macro-economic and temporal universe solution. Thank you.

Doing the above will also enable the accomplishment of the goals of MMT, UBI, Public Banking, Steve Keen, Michael Hudson et al. while additionally resulting in spillover positive and beneficial effects in our social, political, psychological and ecological systems. That’s why I refer to it as probably only the third Mega-paradigm change in the history of the human species.

Money DOES make the world go ’round…and Direct and Reciprocal Monetary Grace As In Gifting will finally make it serve us by enabling it to accomplish the Common Good.

With a 50% Discount/Rebate policy at retail sale the purchasing power of your social security check is immediately doubled. Those that have paid into social security for many years should be able to entitled to continue to receive their checks so lets say you get $1000/mo. in SS check that gives you $2000/mo. of purchasing power. In the new monetary paradigm program you also receive a $1000/mo. universal dividend which is doubled giving every retired person at keast $4000/mo. in purchasing power. And remember, retail sale is the terminal ending point of the entire economic process and hence by definition the terminal expression point for all economic factors…like for instance inflation so a 50% discount to the price of everything forever ends inflation. We’ve never had 50% inflation y/o/y let alone moment to moment, and there are plenty of hard and fast tax incentives and disincentives to herd commercial agents into competing on price instead of just letting them willy nilly committ the economic vice of price inflation.

Time for a genuine paradigm change instead of 5 or 6 reforms that ryhme with the new paradigm but do not resolve its deepest economic problems.

The policies of the new monetary paradigm destroy orthodoxies on the left and the right, enable the integration of the particles of truths in our normally opposed economic and political agendas. We need integration not further disintegration.

C’mon, who here is willing and able to embrace the vision which a new paradigm is instead of only being a critic who is caught up in the problematic dualism that Finance would love to have us argue over forever???

DFWcom: Money = debt and as Mosler says (I think) the national debt is simply the national money supply. So why don’t we frame it this way? “Senior economists think there is too much money in the economy and the answer is to take some of yours”. I suspect it wouldn’t be a long debate.

Me: The Money=Debt ONLY calculation is at the heart of the real and deepest problem we have actually. The word ONLY designates the calculation/paradigm concept as a monopolistic one. All monopolies are problematic because they are expressions of Lord Acton’s dictum that “Power corrupts and absolute power corrupts absolutely.” And of course there is systemic power and then there is REAL power, namely the power of a paradigm concept which is harder to grasp and perceive than the obvious temporal universe power a monopoly demonstrates. In fact the Debt ceiling/National “Debt” controversy arises out of the difficulty in discerning paradigms, in this case the current/old paradigm of Debt ONLY as the sole form and vehicle for the creation and distribution of new money.

The quickest way to break the mental spell of an old/current paradigm is to look and keep on looking at the problem resolving applications of the new paradigm until the grip of all of the educational and cultural orthodoxies that have taken root in your mind around the old paradigm are answered by the obvious benefits of the new.

We live in an age of advanced financial dominance. It’s not that people in general don’t resent the banks, they do, but they just don’t know how to rectify the situation. And neither do the economists who are supposed to be able to identify the real problems we face.

This is because they’re so focused on the problems that they fail to recognize deep and lasting solutions, and because they are innured to the reductive mode of research and inquiry AKA science. Science is good and necessary of course, but scientific breakthroughs only occur when a new tool and/or insight is perceived and applied that becomes the new operant concept/paradigm that changes the nature of an entire pattern/system.

Why did I recognize the new paradigm before economists did? Partly luck, but just as much because I have always valued and tried to apply wisdom which is the superlative human mental discipline that 1) resolves opposites resulting in a thirdness greater oneness of truths, workabilities, applicabilities and highest ethical considerations of a problematic duality/problem and so is 2) a deep simplicity which is also the definition of a wisdom insight. And 3) paradigms are single concepts that resolve problems/dualities and hence are themselves wisdom insights.

MMT has the communication problems you mention all right. What it doesn’t have is a set of policies that immediately and directly impact the pocket books of the individual. Think about it. Why didn’t people bitch about the debt when they received their COVID stimulus checks? Because it was a direct gift of money and hence it benefited them. I’ll bet the bankers really quacked in their boots and wanted to put their fingers to their mouths and go SHHHH! when the decision was made to implement that once or twice-off policy. A 50% Discount/Rebate policy at retail sale is the perfect direct and immediate beneficial policy MMT and every other monetary reform movement needs to break the spell of Finance’s dominance. It simultaneously slays our three biggest economic problems:

1) continual erosive price and asset inflation

2) chronic scarcity of individual demand

3) the communication problem you mention, as an immediate and continuous doubling of everyone’s purchasing power with a 50% Discount/Rebate policy at retail sale is the best thing “since sliced bread”.

Messaging? How did Trump win in 2016 and get 40 million Twitter followers? He pressed the 50 year old ignored and oppressed button. Why not press the human civilization long dominated and enslaved button that Finance’s monopolistic paradigm of New Money Creation Must Only Be Debt as in Burden to Repay and integrate Monetary Gifting DIRECTLY AND CONTINUOUSLY into the Debt Only system?

Here’s a related post I just made on Steve Keen’s substack podcast:

All of what you say regarding neo-liberal macro is spot on of course, but why do you treat private banking as a legitimate business model? Think about it. Finance is a shit load of additional costs that is always either post-retail sale or pre-production consequently clearly marking it as an exterior parasite on the the rest of the actually legitimate economic/productive process. And it matters not that calculus can justify its costs mathematically, its non/anti-economic in nature. You toss in the fact of its increasingly unethical dominance of every other business model and 95-99% of every individual agent and what’s the argument FOR it???

A true publically administered banking system has so many advantages over the private system its a testament to acculturated unconsciousness that no one is advocating for it. For instance, a public banking system would not need to make a profit thus it could both change the terminal ending point of the entire economic process from retail sale to the point of loan signing and thus incorporate finance into the legitimate economy. It would also much more easily enable us to integrate debt jubilee continually into that process with a 0-50% Discount/Debt Jubilee policy at point of loan signing. (the more rational and ecologically sane the financing the higher the debt jubilee percentage). Let’s have some innovation for “the roving cavaliers of credit”. Better yet, let us apply an aspect of the natural philosophical concept behind every historical paradigm change namely grace, in this instance monetary grace as in gifting.

De-growth will always be a consideration until we become a multi-planetary species. Homes on the moon or mars are exempt. 🙂

Theorists and activists have forgotten the thirdness greater oneness of Hegel’s dialetic, namely synthesis which is just another word for a well fitting and thorough integration of a problematic duality in other words of the problematic thesis vs antithesis.

If we live in Finance capitalism and an accurate assessment of the problematic area has to do with “money, debt and banks” then I would suggest that its severely likely that the core of the core problem can be stated as: A monopolistic MONETARY paradigm of DEBT as in Burden to Repay Only (the word “only” designates the paradigm as monopolistic) wielded by the dominant current force not only in the economy, but the entire earthly temporal universe the private BANKS.

So what might be the economic system that is the synthesis/integration of capitalism vs socialism? How about the necessarily ethically sensitive profit making system of Direct Monetary Distributism?

As wisdom is the integrative human mental discipline, has always been associated with resolving thirdnesses greater onenesses exactly like Hegel’s full dialectic, and the pinnacle concept of wisdom and ethics is the natural philosophical concept of grace as in love in personal action and logically systemic policy (as policies are the actions of systems)… we could also call it Wisdomics-Gracenomics. Google it.

Sometimes insight comes from opening up to conflicts in ideas, or a perceived conflict in a relationship with another and so leads to a thirdness greater oneness integrative result. The important thing, I’m confident you’d agree, is the integrative result.

I’m not singling you out here, in fact I’m calling out all of the other cutting edge economists like Warren Mosler, Steve Keen, Michael Hudson, et al for not having daily news conferences shouting with their hair on fire that this is a titanic NON-ISSUE that the deluded and/or terminally demagogic are going to use to create chaos…when it doesn’t need to happen. That needs to happen regardless.

But I am puzzled that all of you and the others above are failing to recognize that you all are missing the way to put this nonsense away FOREVER by uping your analysis to the paradigmatic level which will change the current monopolistic paradigm for the creation and distribution of new money, namely Debt Only to Direct and Reciprocal Monetary Gifting via a program of strategically beneficial and efficacious policies.

All of your analyses are valid and potentially beneficial, that deserves praise…but they’re only reforms and so don’t COMPLETE the necessary action which is to implement a paradigm/ENTIRE pattern change…because historically everything adapts to a new paradigm…not the other way around. For example, Keynesianism was a very good reform, but what happened? Thats right it got morphed into the neo-classical synthesis…because it was only a good reform.

We don’t have the convenience of a lot of time to cogitate about whether or not we should analyze and swiftly form the mass movement necessary to implement the new paradigm. Look around and see the signs of social and political disintegration that are coalescing as well as the looming existential problem of climate change. I’m sure you’re concerned about these problems.

Paradigms/operant applied concepts and paradigm changes are not mysterious, mystical things. They are historical phenomena that can be analyzed so as to decipher the new concept that applied will result in all of the beneficial effects of same. In my book I have tried to cover the socio-economic, political, ecological and cultural policies needed in a new paradigm program, but I welcome any additional input.

I would be happy to send you a copy of the evolving book currently posted on Amazon for analysis and/or further elaboration. For god sake, something must happen to resolve the converging crises we are facing.

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Sajid,

The quantity theory of money is shaky even within the current monetary paradigm of Debt Only and Burden to repay Only. If we integrated the new paradigm of Direct and Reciprocal Monetary Gifting strategically into the Debt On/Burden to Repay Only system…we could tremendously increase fiscal deficits which is a primary objective of MMT in order to renew America’s infrastructure and fund the mega-projects necessary to confront climate change, not to mention with the primary new paradigm policy of a 50% Discount/Rebate at retail sale, double everyone’s purchasing power, greatly increase demand for every enterprise’s goods and services and forever macro-economically end inflation.

These are immediate, universal (everyone participates in retail sale), empirical/mathematical, temporal universe effects. No other reform movement even comes close to creating so many beneficial effects. Why? For no other reason than that they aren’t analyzing on the paradigmatic level. They, we ALL, URGENTLY need to start doing so.

We will never have a rational and effective debate about resources until we resolve the monetary paradigm. In fact resolving it will immediately free us to utilize the above mega-fiscal deficits to do what we haven’t done for 50 years…confront climate change.

The clock is ticking on the disintegrative trend of human civilization and on the existential potential of unconfronted climate change. Focus on the core of the core economic problem, namely the current monetary paradigm and change it with the policy applications of the new one.

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What MMT and other reform movements lack is an easily seen and directly experienced IMMEDIATE benefit to everyone. The old saw that people vote their pocket books is so true. So what if we implemented a $1000/mo. universal dividend for everyone 18 and older for life and paired that with a 50% Discount/Rebate policy at retail sale which would guarantee everyone $2000/mo. worth of purchasing power. That beats hell out of the one or two-off $1200 COVID Monetary Gifting checks. SHHHHH! Don’t even whisper those words…they might become an idea that not even Finance can resist.

Inflation? When you can buy $3.06/gal. gas at Sam’s club for $1.53 and buy a $60k Tesla for $30k…where’s the inflation there? And if any commercial agent tries to inflate just hit them with a 100% tax rate on any revenue they get from inflating their prices. When EVERYBODY just got a 100% increase in their purchasing power with the policies of the new paradigm they’re not going to look sanquinly on anti-social CEO’s that immediately try to erode it. Think about it.

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I see that “government money” as either coin, notes or bonds is permanent. However, its such a small percentage of the total new money created that its largely macro-economically insignificant. So the problem remains the same, the huge percentage of Debt ONLY money created by the Banks. And the problem within the problem is that the current monopolistic paradigm for the creation and distribution of new money, again Debt ONLY as in Burden to Repay, is the deepest power of the Banks.

New paradigm concepts are illusive for numerous reasons (long term (unconscious) acculturation to the present paradigm, new paradigms are always in complete conceptual opposition to the present one making it very logically problematic and hence very risky for “authorities” to advocate for it, especially when you have the modern paradigm for inquiry being almost entirely Science Only (I’m absolutely for science by the way, but for open minded not settled/orthodox science, the former being the only kind of science that leads to scientific breakthrough). The list goes on, but the point (illusiveness) is made. Yet one cannot deny the historical fact that genuine new paradigms are extremely powerful and beneficial phenomena.

What is good is that theorists have indeed isolated and surrounded the areas of the problem. That problem being as Steve Keen himself has said is: “money, debt and banks”. Now if we just concentrate on the kernel/operant problematic concept and apply the fact that the new paradigm is always in complete conceptual opposition to the current/old paradigm…then voila! The opposing concept to monopoly debt ONLY as in burden to repay is what? That’s right, Monetary Gifting! What was it about the two COVID checks that prevented us from going into a depression? They were monetary gifts. What are fiscal deficits? Monetary gifts to individuals and government contractors. What is a job guarantee? A FREE FOR THE TAKING job. UBI/Universal dividend? A monetary gift. A 50% Discount (free gift of price) at retail sale that is rebated back to the merchant so they are not harmed by their discount to the consumer utilizing the exact same method that the banks use to dominate us (equal accounting entries creating money ONLY AS DEBT), and instead reciprocally GIFTING the total of their discounts back to the merchant. And what does this perfect policy expression of the new paradigm at the most efficaciously beneficial point in the entire economic process do? It macro-economically ends inflation forever by doing what all new paradigms do creating and implementing a concept that is the complete opposite of the old/current paradigm, i.e. Debt Only as in Burden to Repay to Direct and Reciprocal Monetary Gifting…and which resolves the biggest problem of the old/current paradigm, EROSIVE inflation with temporal universe BENEFICIAL deflation. Mind blowing! But just the routine effect of a genuine paradigm change.

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SG: I wish you would reply to my comments. When people say that bonds are like money, they really mean that bonds are like money in some respects. I may be unusual, but that kind of thinking gets me wondering that if something is like money in some respects, but it is not money, then in what respects is it different from money. Surely you and Stephanie Kelton know the difference. Why pretend there is no answer to the question about what is the difference. The curious get suspicious when we detect a refusal to address all the aspects.. Some of us are able to think for ourselves and fill in the parts some MMT proponents refuse to admit.

This refusal on the part of some MMT proponents saddens me, because there are honest answers from MMT that could address these issues. Honest answers are more convincing to me than are evasions.

Me: Contemplate the word relevance, the intention to communicate the OPERANT/MOST IMPORTANT aspects of whatever is under discussion, and avoid committing what is meant in the following wisdom verse: “Ye blind guides, which strain at a gnat, and swallow a camel.”

SG:In other words you would rather ignore my remarks rather than address them. I don’t know why my remarks should be so scary that you are afraid to address them. My remarks were important enough that you had to disparage their relevance.

Me: Not correct. I answered your concern about the nitpick regarding the spelling out of the definitions of money which I believe has already been explained as: money is money readily free to be spent while bonds are investments of money and so they are at least once removed from money in hand.

Money IS the correct subject to analyze, the current operant concept/paradigm of new money is Debt as in Burden to Repay ONLY, and the new paradigm is Direct and Reciprocal Monetary Gifting.

Please analyze on that because the applications of the new paradigm, specifically the 50% Discount/Rebate policy at retail sale which is the very temporal universe expression of the new paradigm, destroy/make irrelevant virtually all of the orthodoxies, complexities and deepest problems of the old paradigm.

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Yes, Inflation is the biggest bugaboo of economic theory. Resolve (PERMANENTLY) that issue and all of the goals and intentions of reformers become possible. Thats what a high percentage Discount/Rebate policy at the macro-economically strategic point of retail sale does!!! EVERYONE PARTICIPATES IN RETAIL SALE! HENCE A 50% DISCOUNT TO EVERY CONSUMER PRODUCT OR SERVICE FOREVER ENDS INFLATION. JUST KEEP LOOKING AT THAT AND DOING THE MATH OF A 50% REDUCTION OF RETAIL PRICE UNTIL YOU REALIZE ITS LIKE THE COPERNICAN COSMOLOGICAL PARADIGM CHANGE WHERE NOTHING MORE AND CERTAINLY NOTHING LESS THAN THE REALIZATION AND FACT THAT THE INVERSION OF THE POSITIONS OF THE EARTH AND THE SUN…CHANGED EVERYTHING!!!!!

Everybody, ya got that?! Ok, Then all you have to do is regulate with tax incentives and disincentives to insure commercial agents don’t just begin to erode the stability of it by practicing their hogwash “free” market “rights”. But consider this first. What if some anti-social CEO says: “Oh boy, tons of demand out there I’m going raise my prices 25%.” But what if just 1 of his competitors says to himself: “Hmm, maybe I’ll only raise my prices 2%” Just how much market share is CEO #2 going to take from #1? So there won’t be any high percentage inflation. Then you say: “Okay if anyone inflates even a little when their costs have actually been reduced (by other afore mentioned benefits of the new paradigm like the elimination of the payroll taxes every worker and every enterprise pay for welfare, unemployment insurance and even social security for instance, not to mention a huge increase in demand for your goods and services, and personal and corporate income tax reductions as well) we are taxing you at a rate of 100% on any revenue you may have garnered from such destabilizing price rises. You RIGOROUSLY enforce any price raising colution, and other measures mentioned in my book. Then, even if after all of these measures are enforced we still have 2-3% inflation then the discount/rebate percentage is just indexed to that rate…and no harm, no fuss.

The sun comes up the next day like it always does, but the nature of the monetary and economic systems are forever changed because a long standing monopolistic paradigm in those areas has been made that wildly benefits EVERYONE, EVERY ECONOMIC AGENT INDIVIDUAL AND COMMERCIAL AND EVERYONE FEELS IT MULTIPLE TIMES PER DAY RIGHT IN THEIR POCKETBOOK SOEVEN MORE SO THAN SOCIAL SECURITY THE NEW PARADIGM AND ITS POLICIES BECOME THE NEW THIRD RAIL THAT YOU ONLY HAVE TO TOUCH AND YOU’RE DEAD IF YOU’RE A POL.

The only additional thing needed is a mass movement created by a platform that can be relatively easily created in our technologically advanced mass communications systems. If you are young or have kids and grandkids you care about, then aren’t you tired of the litany of horrors and focus only on problems instead of solutions you constantly get from the main stream media that is consciously or unconsciously complicit in the lack of movement to address these issues??? Create the movement, ignore any resistance and communicate the benefits…and you can’t go wrong.

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FF: With the implementation of a Job Gty, a tax regime should be implemented so that tax rates AUTOMATICALLY kick in if monthly inflation targets are reached. These should include:

a) Income Taxes,

b) Sales/VAT Taxes

c) Asset Value (or Wealth) Taxes

That’ll cool things off pronto.

Me: Paradigm changes are always accompanied by paradox. This is because they destroy orthodoxies. Once a 50% Discount/Rebate policy at retail sale and a universal dividend to every adult and are enacted almost all payroll taxes will be redundant and hence cancellable because inflation will have been ended permanently and no need for welfare or unemployment insurance with the dividend. A job guarantee aligns philosophically with the new paradigm of Monetary grace as in gifting and so could also be implemented. It’s just another one of the objectives of MMT that the new paradigm enables.