First off what I’m suggesting is not MMT yet would hasten the goals and genuine benefits that the MMT perspective on our money system would enable.

MMT is not utopian. It is a very good reform movement that does important things, namely clarifies the process of money creation in our fiat system and shows that we are monetarily sovereign.

My new monetary paradigm goes way beyond that because it breaks up the monopolistic monetary paradigm that forces new money to be created only with the burden to repay it. This is done strategically by gifting 50% of the price to the individual at retail sale and reciprocally gifting every cent of that discount back to the merchant so they are made whole on their overheads and profit margins. That single policy is a conceptual and temporal universe change in the character of both the economy and the money system, and there are further policies in the new paradigm that stabilize and bring many more benefits to virtually every agent.

The 50% Discount/Rebate at retail sale mimicks the exact accounting process that the private banks utilize to create upwards of 97% of our money AND YET with the equal debits and credits formula of accounting summing to zero and the character of the new paradigm (Gifting) ….changes the entire pattern while resolving its deepest problems.

You understand accounting. DO YOU SEE THIS STEPHANIE?!

As a 50% Discount/Rebate policy will forever resign inflation to the dust bin of history it will mean that fiscal deficits of whatever size can be run with impunity. Therefore, I suggest every state passes a law that asks the federal government to fund the universal dividend, the 50% Discount/Rebate policy at retail sale and any of the other specific monetary policies of Wisdomics-Gracenomics in transactions that take place in their states. If any of the states do not pass such legislation then the citizens of that state may travel to any state that has passed it and purchase whatever they so choose there…instead of in their state of residence. Lets see how long it takes the pols in any such non-passing state either have a come to Jesus moment regarding the new law, or are forced to hire private body guards 24/7/365. And the same goes for any federal representatives or senators who vote against complying with the states’ request.

And as to whether such a law of federal compliance with the states’ requests is constitutional or not, the basic question before the Supreme Court will be whether they back a monopoly paradigm by the Banks to create all new money as Debt ONLY, or do they back a paradigm that competitively still allows for debt, but the Banks’ paradigmatic monopoly is broken by the new paradigm of Gifting.

Pardon me, but a graciously uttered Fuck you! to any politician or supreme court justice who is so penny wise and pound foolish that they would even think of impeding a mega-paradigm change in economics and the money system.

What if I were to show you how a single policy implemented at a strategic point in the economic process not only ended any possibility of inflation, but resulted in what is considered impossible in every economic orthodoxy, that is, BENEFICIAL price and asset DEFLATION.

First a little ground work. All monopolies are problematic. Why, because they fly in the face of Lord Acton’s dictum that power corrupts and absolute power corrupts absolutely. So any time you break up a monopoly on whatever level you’re solving a major problem. Secondly, we know from Steve Keen that the basic problem with the current macro-economic orthodoxy is they ignore “money, debt and banks”. I would take that analysis a little higher by saying what is the current paradigm of new money and debt that is created only by banks/the banking system?

Think about it for a second, according to Keen’s excellent calculus and research private debt will inevitably build up and destabilize an economy unless we run fiscal deficits. This is an historically verifiable systemic truth, but it doesn’t recognize the core of that core economic problem, namely the
current (human civilization long) MONOPOLISTIC paradigm for the creation and distribution of new money. And that paradigm concept is…Debt as in burden to re-pay ONLY. The word ONLY marks it as a monopoly paradigm. In other words whether new money/credit was created by the Palace or by private banks it has ALWAYS been created ONLY as a debt that (allegedly) MUST be re-paid. That is the paradigm, the operant factor for the ENTIRE PATTERN of new money.

Historically, how do paradigm changes occur. 1) anomalies/problems build up around the current paradigm and we are deep into this process, 2) a new paradigm concept is floated and historically laughed at for longish periods of time, 3) a new tool and/or insight is discovered that enables the new paradigm concept (which concept by the way is always in complete opposition to the old/current paradigm making it apparently illogical and hence difficult for the scientific community to embrace it) 4) regardless, the application of the new concept resolves the old concepts major problems and in doing so brings virtually universal benefits while overturning orthodoxies that have grown up around it.

So what is the new monetary and financial paradigm and what benefits does its most strategically efficacious application bestow upon us? What is the opposite of burden to ALWAYS repay? Why Monetary Gifting of course, and specifically new paradigm concept is: Abundantly Direct and Reciprocal Monetary Gifting. And where and when is it implemented? At the universally participated in point in the entire economic process, namely retail sale. And what is the single policy that is the very expression of the new paradigm itself? A 50% Discount/Rebate policy at the point of retail sale.

What does this policy immediately, continuously, mathematically and temporally do? 1) it immediately doubles everyone’s purchasing power so if you make $30k/yr. you can now potentially purchase $60k worth of goods and services with that $30k, 2) with the rebating back of the discount the merchant gives to the consumer it therefore potentially doubles the demand for every enterprise’s goods and services and the “kicker” is 3) because a) every individual agent participates in retail sale and b) retail sale is the terminal summing point of all costs including profit for every item or service and c) also the terminal ending/exiting point of the entire economic process and d) hence by definition the terminal expression point for any and all significant economic factors, like for instance inflation…it not only ends any possibility of inflation it implements BENEFICIAL price and asset DEFLATION into profit-making economic systems. Holy orthodoxy and mind blowing inversion of reality is that!? But then that is what every paradigm change applied does to one degree or another.

There are a lot more enabled benefits than this in the entire policy program of the new monetary paradigm in my book, on my substack and Patreon websites.

Me: How do you create all of a roaring economy, accomplish the goals of Andrew Yang/UBI, Stephanie Kelton and every other MMTer, Steve Keen, Michael Hudson, Ellen Brown, enable us to effectively confront climate change, integrate the best aspects of the economic and political agendas of the right (tax cuts) and the left (economic democracy) and completely slay inflation…all in one fell swoop?Answer: Become a system’s philosopher and change the current monetary and financial paradigm which has been in effect for the entire course of human civilization, and has be-deviled humanity on many levels as a result.Every one of the above movements and areas of activism are reforms, EXCELLENT reforms, reforms that in fact point at and conceptually align with the new paradigm concept…but they haven’t recognized the specific new paradigm concept or the most efficacious points in the economic process to apply the new concept and hence temporally implement and change the ENTIRE PATTERNS of economics and the money system.Reforms are good…and always incomplete and temporary. Only genuine paradigm changes are permanently progressive. Let us begin to analyze on the operant concept/paradigmatic level and integratively solve the key problem, namely the current pattern, not just (ineffectively) hit at it with various reforms. Please.

DC: This is crazy insane.

Me: Yes, that is the way all new paradigm concepts are initially perceived because they are always in complete conceptual opposition to the present paradigm and its problematic set of orthodoxies. Nomadic Hunting and Gathering was in complete conceptual and temporal opposition to Agriculture, Homesteading and Urbanization. Likewise, helio-centrism required us to conceptually and temporally think in terms of complete inversion of the positions of the earth and the sun. It’s not easy to buck orthodoxies especially when they are coming from both sides of a duality, but when the new concept works to resolve the major problems
of the current paradigm and makes everything in the pattern under analysis function better all you have to do is keep looking at its actual effects…until it blows your mind.

The 50% Discount/Rebate policy at retail sale is such because it is the very expression of the new paradigm concept, Abundantly Direct and Reciprocal Monetary Gifting and its executed at the single point in the entire economic process (retail sale) that is universally participated in. Hence its mathematical effects are macro-economic. Those effects are an immediate doubling of everyone’s purchasing power, the potential doubling of available demand for every enterprise’s goods and services and not only the end of inflation, but the implementation of BENEFICIAL price and asset DEFLATION. Now that is an orthodoxy busting set of effects if I ever saw them.

SG: You should read Michael Hudson on the financial paradigm which has been in effect for the entire course of human history. I’ll bet that you will find that history is not what you assume. Why assume what that history has been when there are people who have actually studied that history and have written about what they have found? Did I mention Michael Hudson?

Me: I included Michael Hudson in my original post. I don’t know if Michael has actually expressed a specific new paradigm concept. I do know that he considers private finance to be a parasite which I totally agree with, and his research regarding the ancients doing periodic debt jubilees (which is what? Oh yes, a form of monetary gifting) is accurate and aligned with what I’m saying.

The only problem with debt jubilees was they were basically one-offs and hence palliatives, because ever rising private debt just went right back to being inevitable. We need to be smarter than the ancients, not stupider like now…and integrate debt jubilee directly and continuously into the economic process with my second most primary policy which is a 25-50% Discount/Debt Jubilee policy at the point of loan signing.

Put the retail sale and loan signing policies together and a $60k Tesla becomes $30k at retail and when you go to sign the note its reduced to $15k. If you buy a $40k internal combustion auto its $20k at retail and $15k at note signing (only a 25% debt jubilee). Likewise a $400k home is $200k at retail and $100k at note signing. As I said, the new paradigm and its policies resign inflation to the dust bin of history.

SG: The debt jubilee written into the Hebrew bible was periodic. Did you miss this part of Michael Hudson’s writings? Your ideas for writing in a jubilee into a loan may be novel. Let’s see some experts opine on how likely your ideas will work in the real world. I see problems with them myself, but I am not going to argue with you here.

Me: It WAS periodic. That was its problem. We need to integrate it continuously into the economic process. And that is what the 25-50% Discount/Debt Jubilee policy at the point of note signing does. Just do the simple yet macro-economically effecting math.

I’d welcome the opportunity to discuss and defend what I’ve posted here, particularly from Stephanie and from anyone else. Just remember two very important truths, new paradigms always explode orthodoxies and cynicism never solved a problem because it is about 5 microns above apathy and it’s exactly what the ruling elites with their paradighmatic control are hoping is everyone’s reaction to something actually new.

SG: New paradigms tend to explode orthodoxies. However, every idea that explodes orthodoxies is not necessarily a good idea. Let me explode another old saw. If I don’t have a better idea, that does not promote your idea to be a good idea.

Me: I wouldn’t dispute that last statement. However, if you or anyone else can find an applied concept that temporally and mathematically accomplishes more than everything I listed in my original post here and with only four basic policies (there is much more to the entire policy program in my book) …then I’m all ears.

Particularly a monopolistic paradighmatic power like private finance currently has been able to wield…for the entire history of human civilization with their paradigm of Debt ONLY as the sole form and vehicle for the creation and distribution of money.

It is bad enough that private finance has been granted the right to extend (or not extend) the life’s blood of every other economic business model and probably 95-99% of individuals, but to create and distribute it ONLY in the form of Debt makes it an operant pattern concept/paradighmatic power. Such a power utterly violates the idea of competition and is a complete failure to recognize the truthfulness and dangerous harmfulness in Lord Acton’s dictum that: Power corrupts and absolute power corrupts absolutely.

The job of supreme court justices is not just constitutionality. It is also the discernment of wisdom. Wisdom as in the exact key issue before them, and its ability to enable or prevent the greater Good. The current monopolistic monetary paradigm for the creation and distribution of new money has been unconsciously and detrimentally enforced upon us all for the entire course of human civilization. It is time to break up that monopoly paradighmatic power in order to resolve the deepest economic problems it continually keeps in suspension, and in so doing will usher in the kind of mental and temporal progress humanity has not seen since its self awareness enabled it to emerge from being merely part of the animal kingdom.

Paradigm concepts are deep simplicities which is another way of saying that they are wisdom insights which are the ability to pin point the operant outness in any given problem. This often makes them difficult to perceive unless one studies them with the intention of integrating the opposites that define and characterize any problem.

However, probably the biggest block to perceiving and accepting a new paradigm is the fact that they long acculturated phenomena because acculturation is largely a normalcy habituating and unconsciously accepting process when a paradigm change is a newness of what is required.

This fact also creates blind spots. For instance, private finance’s paradigm of Debt Only as the sole form and vehicle for the creation and distribution of new money is always administered either pre-production or post retail sale. This identifies it as being always and entirely an additional costing factor outside of the actually productive/economic process which is defined end to end as production, everything in between and production exiting the economy and becoming consumption at the terminal ending point of retail sale. This also identifies private finance and its monopolistic paradigm of Debt Only as entirely a cost adding parasite and hence an illegitimate economic business model.

Images are a gift of consciousness, mental and otherwise. They are more direct than abstractions and hence have been utilized by humans to more deeply experience. The only deeper and more direct experience than images is consciousness itself. Artists, particularly visual artists are valuable beyond all other avocations or occupations.

Me: An excellent article on the FED, the current problems (inflation and malinvestment) and a good policy in an infrastructure bank. However, it still doesn’t go to the true core of our economic and monetary problems. Even good reforms like what is suggested will eventually be gamed and morphed into entities that benefit the banks and big investors…the same way Keynesianism got morphed into the neo-classical “synthesis”. To have permanent change you have to awaken to and effectively change the operant concept of the entire pattern, that is the paradigm of money and hence the economy.

All of yourself, Steve Keen, Michael Hudson, MMTers and David Graeber have been pointing at the core problematic area since 2008, namely “money-finance, debt and banks”. Now all you need to do is up your game to the actual paradigmatic/operant concept/pattern level of analysis, and decypher the most efficacious policy ways to implement the new operant concept. I’ve done this in my book.

R: Everyone has at least a little fear of a ‘trillion dollar’ coin, seemingly conjured from the Nothingness, but who is afraid of a $1000 Pacman coin, appearing and disappearing, at high speed?

Unless, of course, you are the debt bankers, who will soon realise, they are losing their profits, from the interest streams.

Me: Or, why not utilize the same method that the banks do to create our money, namely via reciprocal accounting entries and then unlike the prestidigitation they also use to immediately create it ONLY AS DEBT, you instead create it as a gift of 50% of the price of everything at retail sale and then reciprocally the monetary authority rebates every cent of the discount they granted to the consumer back to the merchant? The equation formula of equal debits and credits summing to zero is so powerful.

That way every economic agent individual and commercial benefits, you macro-economically implement BENEFICIAL price and asset DEFLATION into profit making economic systems, (holy mind and orthodoxy blowing that is!) and the unconscious paradigmatic power of the banks to create our money ONLY as debt is inverted into a new paradigm of Gifting that frees everyone and the system as well.

R: Sounds complicated, Steve.

Banks loan bank credit, created by the value of their customers’ collateral.

Why not have nationally-owned asset banks, holding the collateral Titles, in Trust, during the loan periods, with the loan funds, created as bank credits, and as interest-free customer assets.

Our nation’s monetary supply then arises in the form of asset lakes, and the people are their own central banks.

Too simple?

Me: It’s the essence of simplicity actually. Its simplicity is wed to power as in the operant/most significant problem solving concept applied at the single most universally participated in point in the entire economic process (retail sale) via the tool that the banks currently use (equal accounting entries) to create upwards of 97% of our money (but ONLY AS DEBT while in the case of a 50% discount of the price of virtually everything is a GIFT) and finally double entry bookkeeping is the infrastructure within which the entire economy is embedded, thus giving the new paradigm concept hard, mathematical temporal universe reality.

Monetary Gifting doesn’t negatively effect collateral because every commercial agent gets their full price. Again, the power of accounting.

Everyone and every commercial enterprise gets an account at the central bank…not just the banks. The recent gifted checks given during COVID took very little time to distribute and the 50% Discount/Rebate policy would be even easier to set up. The commercial entity simply opens a new T account labeled Sales Discounts and the monetary authority credits it with the total of their discounts to consumers. Simplicity and powerful PARADIGMATIC effect on the money system and the economy…for both the individual and commercial agents.

A: I appreciate the writing on this subject. While not an expert myself, it does seem as though these rate increases by the Fed are being called “aggressive” but relative to what Paul Volcker did in the early 90’s to curb inflation, they’re actually quite tepid…. so tepid, in fact, that the endgame may be more about producing hyper inflation in defense of legacy finance and government solvency than it is saving Main Street. The Fed is governed by elites who spent their lives attending prep schools and ivy leagues, and Wall Street investment banking so there’s really no basis to think they are acting in anyone’s self interest but their own. Hyper inflation will hurt everyone except those at the top.

Me: There is virtually no chance that we will have a hyper inflation. As the late Stephen Zarlenga accurately documented in his book The Lost Science of Money hyper inflations never occur without at least several disastrous decisions are made first like 1) going to war, 2) losing the war and in the process losing most of one’s productive capabilities, 3) having the winning side impose onerous reparations and debts on you and which makes it politically viable for the economic and political elites in your country to okay the most disastrous occurance and which transforms bad 8-12% inflation into a hyper inflation and that is 4) the private banking system leverages up speculators who short the currency thus ushering in a true hyperinflation.

Having said this, inflation like we’ve seen recently is still painfully erosive of the purchasing power of 95% of the general populace and needs to be stopped and forever prevented again. To wit, the 50% Discount/Rebate policy at retail sale which is actually a paradigm change in a single policy because it is the very temporal universe expression of the new monetary and financial paradigm concept implemented at the most potent and workable point in the entire economic process (retail sale).

I’m all for research and reforms, and every one of the leading reforms conceptually align with the new paradigm concept and have been dancing around the problematic area that needs to be addressed (money, debt and banks) since before the shite hit the fan in 2008, they just haven’t recognized the specific new paradigm concept (Abundantly Direct and Reciprocal Monetary Gifting) or the best places to implement the new concept so as to have most positive and problem solving effect (retail sale and the point of loan signing) and finally making that policy mathematically powerful enough (with a high percentage of discount at retail sale) that it is irresistibly beneficial to all economic agents as well as “an offer they cannot refuse” to participate in, and immediately solves 3 of the deepest problems of our current system (1 chronic individual and systemic purchasing power and thus 2) demand scarcity and 3) inflation).

If anyone here can show me better results for everyone and more problems solved with only a handful of policies I’ll be happy to jump on their bandwagon. Otherwise, get on the bandwagon of the new monetary paradigm. All it needs is a platform to communicate its benefits and “its time will have come”.

TV: Steve Hummel: Maybe hyperinflation has not occurred without the extraordinary situations you list, but not only is the USA in jeopardy of losing both hegemony and overseas wars (hot and proxy), but also owes 30+ trillion dollars. It remains to be seen what multipolarization will impose. You’ve got the Exceptionalism thing going on bigtime.

Me: The national “debt” is a complete side show and non-issue which is used to keep the political and economic debate in perpetual suspension. Steve Keen has mathematically proven that if we don’t have deficits the economy will inevitably fall into recession. Of course there are plenty of other reasons why we have recessions like what Ellen refers to in this thread, but fiscal austerity is the problem NOT the solution.

I’m not only not advocating for American exceptionalism, I’m trying to get the current refrom movements to analyze on the operant concept/paradigmatic level so that we can solve the deepest reason empires have invaded their neighbors, namely because with the present 6000 year old monopolistic paradigm of Debt Only the inevitable build up of PRIVATE debts destabilizes their domestic economies so elites think that invading and stealing their neighbors assets will fix it.

So what I’m actually advocating is the end of that 6000 year old geo-strategy…and implementing the new paradigm so that no matter whether its a hegemonic or multi-polar world the deepest cause of aggression is eliminated.

Why do I claim this? Because I was the person who first identified the exact new paradigm concept of Abundantly Direct and Reciprocal Monetary Gifting. (Copernicus’ initial concept discovery and recognition)

I was the person who observed that taking C. H. Douglas’ compensated retail discount policy and making it a high percentage rate discount would temporally prove the validity and workability of the new paradigm concept. (Galileo’s observation of the moon’s of Jupiter)

I was the person who recognized that the high percentage discount/rebate policy and the rest of the new paradigm policy program made the monetary system work better than it ever has before, resolved all of the economy’s deepest problems and finally made both systems serve Man, instead of Man having to slavishly serve the system. (Kepler’s discovery of elliptical orbits which finally made the Copernican paradigm concept more accurate than the Ptolemaic one)