Merry Christmas! And may the relevant monetary, financial and economic aspects of grace as in love in action/policy, that is Gifting, take root in the minds of economists and economic pundits.

Me:  Wisdom has always been associated with the third alternative. The Heglian dialectic of thesis, antithesis and synthesis is an example of such in the logical process. Data gathering, theoretics and philosophy are another. Looking/not knowing, combining/integrating and seeing/knowing is the analogous mental process as is science, philosophy and paradigm perception on an epistemological ascending scale. The third alternative to the elitist theories of finance capitalism and democratic socialism is the new monetary, financial and economic paradigm of Direct and Reciprocal Monetary Distributism.

KZ:  Craig, I strongly disagree with your characterization of democratic socialism. I can find no historical data to support it!

Me:  The problem is not the intentions of democratic socialism which are basically fine and good, and which I consequently do not have a problem with. It’s problem is its methods and, like capitalism, its resulting unworkability, incompleteness and non-resolution of the more relevant underlying problem that both ideologies miss, namely the current monetary, financial and economic paradigm of Debt/Burden/Additional Cost ONLY.

Both capitalism and socialism are like Ptolemaic cosmology before the invention of the telescope and the discovery of the ellipse. When economists recognize the telescope/triple power point of retail sale and the ellipse/monetary policies that define and effect the new paradigm, then Ptolemaic economics and the obsessive contention between capitalism and democratic socialism will be transformed into the thirdness greater oneness of Direct and Reciprocal Monetary Distributism.

KZ:  Craig, I suggest you read, “Viking Economics: How the Scandinavians Got It Right-and How We Can, Too.” “World Inequality Report 2018,” from the World Inequality Lab. The details in the book show that Scandinavian “democratic socialist” nations are economically the most productive and egalitarian, socially the most democratic, and spiritually the happiest in the world. This is tangible benefits from nations that have chosen democratic socialism. I don’t see any similar data on the results from the alternative you offer.

Me:  Ken, I have stated here before that I do not dispute the fact that democratic socialism is a more humane economics than finance capitalism. I’ve also stated that settling for palliative economic theorizing when a paradigm change is available…is actually an unethical act/sin of omission.

As for data regarding the policies of Wisdomics-Gracenomics here are some facts regarding them:

A 50% discount/rebate monetary policy implemented at the terminal ending point of the entire economic/legitimately productive process at retail sale BY DEFINITION OF THE FACT THAT IT IS SUCH AN ENDING POINT for every consumer item or service, immediately doubles every individual’s potential purchasing power. It will also by definition double potential business revenue for every enterprise. One of the signatures of paradigm change is universality of benefit in the body of knowledge/area of human endeavor in which the paradigm occurs.

Economists must do the math and consult the history of paradigm change.

As garden variety “monetary” inflation cannot and will not exceed a relatively low single digit percentage due to business model competition and other factors a high percentage discount/rebate monetary policy will “miraculously” integrate painless and beneficial price deflation into profit making systems. The two primary historical signatures of paradigm change are conceptual opposition and reality inversion/transformation.

Economists must look, and keep on looking until cognition occurs.

A publicly administered national banking system and central bank in a price deflationary economy does not need to make a profit and can be funded directly by the central bank. Thus it can without worry distribute all dividend and discount/rebate monies and loan at 0% interest. Thus note creation and signing can become the new and now legitimate end of the economic/productive process where an additional 50% discount will make a $200k house reduced 50% at retail sale and another 50% at note signing then cost $50k and with a 10 year note at 0% will be a monthly payment of $416.67. That will place home and other “big ticket” asset and financial inflation in the dust bin of history.

Economists must use their imaginations more, consider that ethics is an integral part of every human and systemic interaction and that systems were made for Man, not Man for systems.

There are many more benefits with the new paradigm of Direct and Reciprocal Monetary Gifting.

KZ:  Craig, I believe I understand your theories. What I need to see is the results of practical applications of those theories. Particularly specific results in specific situations. For example, this is from “Viking Economics” about how Sweden dealt with the financial crisis of 2007-2008. “From this experience, some Swedish economists conclude that a high level of ongoing, thoughtful governmental intervention in the economy works better than occasional large spurts of stimulus. The result: by 2011, The Washington Post was calling Sweden the ‘rock star of the recovery’ with a growth rate twice that of the United States, much less unemployment, and a strong currency.” The same conclusions apply to Norway, Denmark, the Netherlands, Iceland, and to a large extent Germany. I recognize that these nations are still to a large extent dependent on economic growth. But at the same time these nations have the best environmental record in Europe and are actively working to end the use of fossil fuels.

Me: Ken, As asset inflation and the cost of other “big ticket items” are one of the stickiest problems identified by Steve Keen that tend to destabilize modern economies you can observe the example of how that is resolved in my last post where the new terminal ending point of the legitimate economic/productive process becomes the point of note signing. You can also simply compute that the discount/rebate policy makes a $1000/mo. universal dividend able to purchase $2000/mo. of goods and services….for one’s entire adult life span, and not coincidentally and in addition will enable you to purchase $80,000 worth of goods and services with a job making $40,000/yr. and combined with the dividend that becomes $104,000/yr. The elimination of transfer taxation. The end of idiotic and insulting partisan debate about budgeting, money and economics. The current system is financially unstable, and the business cycle is basically an enforced downward sloping and deteriorating sine curve. The new paradigm’s curve is that of orbital insertion and free fall/free flowingness where economic cycles become so stabilized that they become like mere atmospheric perturbations of satellites whose orbits last for thousands of years.

Neither socialism nor capitalism deals effectively and terminatedly with the current financial paradigm. Wisdomics-Gracenomics does.

Paradigm changes permanently transform and progress realities. Reforms merely nudge them for a time and then are nudged or kicked back like Keynesianism became neo-liberalism.

KZ:  Craig. Same response. Need some practical historical examples.

Me:  Well, I was always told that temporal universe empirical policy effects WERE reality for most of us and so did not require further proof, at least those of us who valued science, and I’m sure that includes you. Also, and especially when we’re talking about a monetary and financial paradigm change in economics which HASN’T changed for the entire history of human civilization, it makes demands for historical examples at least somewhat of a straw man, but let’s try another tack.

What is the history of paradigm changes themselves? What are their signatures? What is the concept behind every paradigm change? And do the policies and regulations of Wisdomics-Gracenomics align with that history, their signatures, the philosophical concept behind all of them and finally, back in present time….also just so happens to align with, accomplish and complete the researches, theories and non-paradigm changing policies of the current leading heterodox economists?

Per Kuhn paradigm changes occur after a process of anomalies make present theories suspect and/or unworkable. That also very accurately describes the present situation in economics, and various heterodox economists talk paradigm change but they don’t seem to recognize and understand the description/definition of a paradigm change itself which is:

a single concept that workability-wise seamlessly fits within the vast majority of the current structures in the area of human endeavor that the paradigm change takes place in, and yet simultaneously transforms he character of and greatly improves the area as well.

Thus economists revert back to simply tweaking or reforming the systems instead.

The “trick” to paradigm perception is in deciphering that single validly working concept, and the almost entirely missed means of doing that is consciously/willfully training oneself to perceive and integrate the particles of truths in opposites. This integrative state of mind IS the very process of wisdom and the means of garnering it as well. It is also the very necessary mental stance of non-orthodoxy/non-mental grasping and holding onto known as gestalt/embrace of process/flow that becomes a bulwark against falling into orthodoxy which is the death knell of paradigm perception and the ability to experience actual knowingness as opposed to merely researching, computing data, abstraction/theorizing and even philosophy. Asking oneself what the pinnacle concept of wisdom is brings one to grace (or any of the other words the world’s major wisdom traditions hang on it). The natural philosophical concept and experience of grace is simultaneously and exquisitely an integrative perspective on cutting edge scientific research, especially in quantum theory and long existing spiritual/experiential traditions. It is the second highest mental integration one can have (the highest personal and temporal integration is zeitgeist and/or what I refer to as “embracing the beatific chains of ethics.” Of course this is also the reason I call my paradigm changing theory Wisdomics-Gracenomics.

A plain language study of the signatures (not just the general temporal/scientific process) of imminent and accomplished paradigm change is probably one of the most urgently needed scholarly works. It actually already exists in the world’s wisdom traditions, but it generally takes both an integrative and scientific mindset to successfully navigate. Here are some of the primary signatures of historical paradigm changes and the ways they were applied in them:

Paradigm Change: Hunting and Gathering to Agriculture with the signatures of a new insight/cognition or re-discovery of same within the body of knowledge/area of human endeavor in the area of the paradigm change and permanent progress and increased abundance via universality of benefit.

Also, Hunting and Gathering/Nomadism and Tribalism to Civilization/Homesteading and Cultural Integration via wisdom, the latter of which is still underway. And the signatures are conceptual opposition/integration of opposites, i.e. wisdom

Paradigm Change: Ptolemaic to Copernican Cosmological Paradigm Change. The signatures are inversion/transformation of old paradigm realities and orthodoxies, invention of the new tool of the telescope and the new discovery of the ellipse.

Paradigm Change: Protestant Reformation. The signatures are directness of knowledge-experience, relationship and policy effect and the end of an old paradigm major structural entity and its mental dominance and primacy.

Paradigm Change: Guttenberg Press. The signatures are new invention, technological innovation and progress, increased abundance and end of an old paradigm major structural entity and its mental dominance and primacy.

Paradigm Change: Direct and Reciprocal Monetary Gifting. The signatures are conceptual opposition (Debt/Cost/Burden Only versus Monetary Gifting), integration of opposites to the point of thirdness greater oneness, (capitalism and socialism to Monetary Distributism), inversion/transformation of old paradigm realities and orthodoxies, (scarcity and austerity to increased abundance) directness of knowledge-experience, relationship and policy effect (the discount/rebate policy), the end of an old paradigm major structural entity and its mental dominance and primacy, private banking and finance’s monopolistic paradigm of Debt/Cost/Burden Only) and re-discovery of old insight/cognition within the body of knowledge/area of human endeavor in the area of the paradigm change (re-discovery of relevance of accounting, its subset of cost accounting and of the triple economic, monetary and financial power point of retail sale)

And as I have pointed out here numerous times the need and desire for government deficits, UBI/universal dividend, QE for the people, modern debt jubilees and anti-austerity/monetary system disequilibrium theory ALL REFLECT AND ALIGN WITH Monetary Gifting.

The final insight is that each of the signatures is an expressed aspect of the natural philosophical concept of grace which again, aligns with grace as in Monetary Gifting, and also logically shows it to be the key concept behind EVERY historical paradigm change.

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KZ:  There’s never going to be a “fair” sharing of the money pie between elites and non-elites without specific changes in American culture. This sharing is based not on economic theories, of any sort but a rather simple factor – who controls the keys to the banks. That control rests with economic, political, and military elites. To maintain peace within these elite groups, money is distributed in ways that favor members of one or all these elites. The two main problems with these distributions is hiding what is happening and defending it, in the name of science if possible. The banks take care of the first, while economists take care of the second.

Me:  Excellent analysis. All it needs is a mass socio-economic and political movement created by taking REAL change DIRECTLY to the populace.

At least the last two elections have resulted in the non-financial and economic change it turns out you couldn’t believe in of Obama and the re-enforced neo-liberalism and negative change of chaos and disintegration of Trump.

The democratic party needs to play out to the long suffering masses the obvious benefits of more than doubling their present purchasing power with the dividend and discount policies and the equally obvious benefits of more than doubling the currently available individual income as potential business revenue to the small to medium sized business community. It’s elegantly economically simple and effective, and integrative of huge traditionally opposed political constituencies that could create a new social contract and make them the dominant party probably for decades if not longer. And if they’re too stupidly orthodox or timid to pick it up and score six touchdowns with it….I’m sure the republicans will recognize its power and give us some bastardized version that takes the stake out of the heart of the current monetary and financial paradigm and allows it to rise again. We definitely need to wake TFU.

Wisdomics-Gracenomics’ contains a new discovery, a new insight that effects an actual paradigm change.

The Copernican cosmological paradigm change altered our thinking about the universe simply by inverting the poditions of the earth and the sun. It changed the minds of virtually everyone. The new monetary, economic and financial paradigm of Direct and Reciprocal Monetary Gifting does exactly the same thing by inverting the systemic and individual realities of monetary scarcity into abundance of both, and also resolves the long standing problem of price and asset inflation in modern monetary economies by integrating painless and beneficial price deflation. As the invention of the telescope and the discovery of the elipse enabled the Copernican cosmological paradigm change, so the insight and discovery of the triple power point significance of the point of retail sale and a high percentage discount/rebate monetary policy implemented at that point accomplishes the new paradigm in economics, money systems and the financial system.

Wisdom has always been associated with the third alternative. The Heglian dialectic of thesis, antithesis and synthesis is an example of such in the logical process. Data gathering, theoretics and philosophy are another. Looking/not knowing, combining/integrating and seeing/knowing is the analogous mental process as is science, philosophy and paradigm perception on an epistemological ascending scale. The third alternative to the elitist theories of finance capitalism and democratic socialism is the new monetary, financial and economic paradigm of Direct and Reciprocal Monetary Distributism.

Wisdom is the integrative state of mind and ethic, and the pinnacle concept and experience of wisdom is grace as in the various aspects of love, in action, by the individual and in Man’s systems.

I basically agree with what you say, particularly that the purpose of production is consumption, it’s just that intelligently and insightfully changing the systemic realities of monetary austerity and individual income scarcity into abundance of both, and chronic and erosively cost inflationary into beneficially price deflationary with a new paradigm of Direct and Reciprocal Monetary Gifting….almost entirely moves us on from debate about it and also enables us to regulate economic vices and virtues via lower but more effective rates of taxation.

A $100,000 debt jubilee for all student and private individual debts.

$1500/mo. universal dividend at age 18 for life.

25% discount/rebate on all everyday consumer items and a 50% discount/rebate at both retail sale and at note signing for homes/mortgages,  furnishings, solar power systems and high MPG/electric autos.

Students would have $23,994/yr. of purchasing power ($1500/mo + 25% discount x 12) and so they could attend all but the most expensive colleges, be able to pay for tuition as they attended and not become saddled by huge debts upon graduation. With some slight employment while attending they could have a more than comfortable lifestyle while attending as well.

With the universal dividend starting at the age of 18 and a 25% discount/rebate policy for everyday consumer items and services every adult will be guaranteed $23,994/yr. and so $47,988/yr. ($23,994 x 2) for a two adult houshold. For 2 adults with 2-$25,000/yr jobs that is another $66,650/yr. ($50,000 +25% discount) or a total of $114,638/yr of potential purchasing power. Enterprise will benefit by individual demand more than doubling, hence potential business revenue rising by potentially the same. As the discount is at the terminal ending point of the entire economic/legitimate productive process no inflation can occur and price deflation is painlessly and beneficially integrated into profit making systems. That is most definitely a paradigm change.

Publicly administered Central and National Banking system that creates and distributes loans and all dividend and discount/rebate policy gifted monies at 0% interest.

Elimination of all transfer taxes by individuals and businesses for welfare, unemployment insurance and social security. Income tax rate reduction to 10% with little or no deductions for both individuals and businesses.

Direct funding of government at federal level by the central bank and eventually at state and local levels as well. Taxes will help fund research into technological innovations for more production with less resources, pollution and green house gas reduction, medical-pharmaceutical research.

Medical and other forms of insurance will fully participate in discount/rebate policy and adjust concommitant actuarial profit considerations and premiums. A medicare option will be available as well.

Tax incentives for not raising prices or reducing prices in only non-monopoly ways will be implemented, and severe tax punishments for accounting fraud or gaming of the new paradigm system in any way including, rapidly, to loss of discount/rebate participation privileges.

In return for the more than doubling of available individual income and hence business revenue with the dividend and discount policies all enterpises will submit to a rigorous monthly accounting analysis of their  books. Decreased costs can legitimately be made business savings, but arbitrary price increases without bona vide economic cost increases will not be tolerated.

The central bank will look ascance at any large leveraging up for any speculative purposes, and any attempts to short the currency from domestic or foreign sources will immediately be considered null and void.

Speculators in commodities markets will also not be allowed excessively large leveraging, and if they do not abide by all regulations new commodity markets will be created that will so abide.

This is the immediate end of poverty, individual income scarcity, systemic austerity and an increasingly halting economy as artificial intelligence continues to reduce work for pay. The dividend can eventually be raised even further as employment perhaps continues to erode.

A cooperative effort by the helping professions, the clergy and the government with public service announcements like the ones used to reduce smoking should be undertaken to help positively and constructively acculturate the general populace to leisure, to find other purposes in addition to employment and to build stronger communities throughout the land.

A program like the Civilian Conservation Corps but for programs for artistic and craft expression and also for study of the non-sectarian natural philosophical concept of grace and its aspects in all areas of life could help the populace fully understand the concept behind even the new monetary, economic and financial paradigm. It is time for humanity to leave its lingering adolescence and to mature into its true species designation of homo sapiens sapiens, i.e. wise and discerning man.

All research and programs for creating an ecologically sane economy will be completely and undeniably possible with the new banking and financial systems. Systems were made for man, not Man for systems and the planet was made for all to live, mature and thrive in.

Wisdomics-Gracenomics integrates and completes the reasearches and policy suggestions of Graeber, Keen, Hudson and policies and insights from MMT.

Jubilees are necessary at the terminal ending/collapsing point of macro-economic functioning and a relatively high percentage discount/rebate monetary policy at the terminal ending point of the legitimate economic/productive process at retail sale is the reflective and dynamically ongoing way to accomplish continual jubilee and paradigm change in the economic and monetary systems.

Theories, even if they are accurate and true, are flimsy things unless they have deep and transformative policies, at which time they may become new paradigms. Paradigms are THE truth, the OVER RIDING truth expressed by theory.

Steve Hummel 12/20/2018

P:  A simple multiple regression with total private debt, the first derivative of private debt(credit), and the second derivative of private debt(credit impulse), is well over R squared of 93% over at least the past three decades. This is large but not spurious. By far the largest contribution is that of credit.

NR: May I humbly suggest that you have just uttered a tautology. Hardly a rarity anywhere. But you have inadvertently chosen statistical “newspeak” as a mode of expression.Please consult George Orwell’s 1984. Try thinking about it a bit.

GOOGLE: {1}Norman L. Roth {2} Norman L. Roth, Technological Time {3} Norman L. Roth, Economics of Work. I also suggest you introduce yourself to a subject called ‘Epistemology’ .

It could prove very practical in your case .Also, Lars Syll is quite well versed in that subject as well as in the limits of Statistical methodology, and the temptations to fallacy contained therein. May I also suggest that you try John Maynard Keynes; A TREATISE on PROBABILITY,1921. Not to mention Frank Knight’s contribution written about the same time.

Me: Tautologies are a hint, as knowledge can only be perceived by a knower….no matter to whom or to what one attributes such.

Also, telos and technos being another duality to derive an aspect of the natural philosophical concept and/or experience of grace/consciousness, in this case process, you should be affirming what I post here.

“…..why do you kick against the goads?”

P:  My point was, Paul Krugman still teaches Loanable Funds, the predicate assumption of which is that private debt does not affect any important macroeconomic outputs. This despite the fact that total private debt and its derivatives account for something like 98% of the variance in unemployment plus simple trigger criteria based on total private debt predicts financial crisis reliably. The claim that no model reliably produces a high correlation that is not spurious is false. Macroeconomics simply made one wrong turn; ignoring private debt per loanable funds.
Steve Keen and Michael Hudson are leading the way on this too. I’m glad to learn someone is bothering to read my posts here. I was starting to wonder. Thank you.

Me: Yes, their insights (Keen’s and Hudson’s) are valid re-discoveries of the fact that modern technologically advanced economies are INHERENTLY cost inflationary primarily due to the ever increasing depreciation costs of its technology, its own fixed capital and the removal of money from one cycle of production to another via re-investment or retained earnings.

Douglas and his followers made the mistake of falling into the spell of DSGE by only trying to “fill the gap” instead of inverting individual monetary scarcity into abundance with the paradigm changing policies of Wisdomics-Gracenomics. Keen wants
a one-off “modern debt jubilee” which also still has the stench of DSGE hanging around it despite his vehement critique of it, and Hudson’s financial parasitism correctly identifies which paradigm must be changed but doesn’t have a comprehensive policy plan to accomplish it. Finally, they’re all so addicted to abstraction that they seemingly can’t come into present time to spot the triple power point for policy of retail sale.

DT:  Another Copernican revolution is needed to get the meaning right way up again.

Me:  Although they’ll fight it to the death also, (paradigms must not become conscious you know) the banks can countenance a citizen’s income so long as it doesn’t transform the scarcity ratio of total actually available individual incomes to total costs and so total prices. That’s one of the reasons a discount/rebate monetary policy at retail sale is so essential because it inverts the scarcity ratio reality via price.