There would be no crowding out with a non-profit public banking and financial system….because everyone and every enterprise could borrow at 0%.
It is true that any unethical on its face predatory and/or destabilizing speculative purposes would not be funded by a system based on grace. Such speculative efforts on the system proper would be immediately declared “null and void”, and the compulsive gamblers and hard core pornographic enterprises would have to go to the remaining investment banks and pay interest on already saved money and profits in order to fund themselves. And of course any such investment enterprises will be closely scrutinized by the system as well.
The new paradigm policies of a universal dividend and 50% discount/rebate would be the best way to encourage individual national development and thus would be the best and fastest way toward balanced trade as opposed to the mercantilism of presently dominating export platform nations.
As economic sin taxation is a philosophically aligned aspect of Wisdomics-Gracenomics the idea of a time gap filling mechanism in the meantime, like Keynes’ bancor system for international exchange to encourage balanced trade, could be a temporary and/or intermitent one.
In other words the cosmos is not you and everything else in the cosmos separate in a duality. That is merely the apparency of normal walking around consciousness. However, the actual reality is that you and the cosmos contain and can be experienced via full consciousness as an essential oneness with and of each other including space and time, exactly as a hologram because the entirety of the image is contained in every part of the whole including space and time and so becomes apparently three demensional in its expression.
DT: Michael Hudson may be assuming things about the use of gold here, but on Venezuela
C: The solution is simple. Don’t fix rates, let them float. You may want to intervene a little now and then – but just don’t oppose massive, reality based movements. It’s like trying to send your army out in the field – against a hurricane. Mark Weisbrot and other sympathetic economists have been giving them good advice for decades – and it looked like they finally might listen – but they didn’t. Michael Hudson’s take is wrong. Tying it to gold – a barbarous relic – is folly. The only thing a currency should ever be tied to is what it is really always fundamentally tied to – the labor, the productivity of the nation’s people.
Democratic accountability is not sufficient. The Venezuelan left brainwashed itself into the reverse of the truth. They are fanatical – the word is not too strong – that fixed exchange rates is Marxist, leftist while floating is Milton Friedman capitalism. They needed logic and rational understanding. The Bolivarians have and had a lot of it, except in this one sphere of international trade, which wrecked their other good work.
Me: The ultimate solution isn’t gold of course, though it might be a tactic that Venezuela and other subservient economies with the encouragement of China, Iran and Russia might employ to outflank the US’s monopoly payment systems. But these are just palliative measures for what must eventually occur and that is a new paradigm in finance and economics that is obviously beneficial for all of the individual, commercial agents and the economic system as a whole, and which paradigm also ends private for profit banking in favor of a publicly administered national banking system guided by an unimpeachable ethic like the NATURAL PHILOSOPHICAL concept of grace as in benevolence. The current system with its obviously monopolistic powers over the most powerful factor in the entire economy, namely credit/money, flies in the face of the wisdom of the dictum that power corrupts and absolute power corrupts absolutely. We need to get real about this.
until now with my Wisdomics-Gracenomics.
It’s true that individuals and enterprise cannot borrow their way out of debt, and its also true that if you don’t have fiscal deficits that the economy will go into recession because people and enterprise save, re-invest savings, depreciation costs in technologically advanced fixed capital economies necessitate relatively large additions to prices and wealthy individuals and enterprises often move large amounts of their savings into off shore tax havens….and all of these reduce the flow of money circulating through the economy trying to liquidate prices in order to keep the economy in a flowing equilibrium.
So what is the solution? It’s tying a direct and reciprocal price and monetary policy in the form of a high percentage discount to the consumer that is fully rebated back to the enterprise giving the discount at the point of retail sale. This creates an abundant flow of individual income/potential business revenue to the terminal expression point for all forms of inflation and the terminal ending point of the entire economic process,which again, is the point of retail sale. That way you end individual income scarcity and systemic monetary austerity and slay the chronic problem of modern economies, inflation, at the same time.
Economists are extremely intelligent, but largely being off in abstract mathematical and theoretical focus they have missed the economic significances to be found at the aggregative point of the micro economy and the single integrative point between the otherwise separate disciplines of micro and macro-economics.
In other words the state of grace transforms and brings full consciousness to everything.
Do yourself a favor and contemplate grace in every moment and in everything you experience.