It is scarcity of individual incomes itself that creates inflation, not additional money, and only by creating a better more prosperous alternative to commercial decision makers existing within that scarcity reality and raising their prices as a means of trying to garner more business revenue….will ever resolve inflation. And of course that is what the Discount/Rebate policy at the point of retail sale specifically does.
Author: chdwr
The Depth of Wisdom and Grace and Paradigm Change
The problem with accounting is the same as with the point of retail sale. That is people are looking only at its surface realities instead of thinking economically and paradigmatically about them. In the case of accounting it misses the fact that when private banking creates a deposit…it is ONLY as a debt and because even at 0% interest if debt continues to pile up it becomes un-repayable. Combine that with the fact that technologically advanced fixed capital intensive economies are inherently cost inflationary in the first place…and you’ve got a financially unstable system at its base, i.e. the paradigm of Debt ONLY.
Now as to the point of retail sale, the surface reality is that it is where production becomes consumption. However, if one understands the deeper economic significances of this fact like that it is the terminal expression point for any and all forms of inflation (it must be because its a terminal ending point, right?) Thus a high percentage discount to the consumer at that point BOTH inverts the economy’s inherent cost inflationary nature into beneficial price deflationary AND creates and integrates a new paradigm of Monetary Gifting into the debt based system. Oh yes, as an aside it doubles everyone’s potential purchasing power and busnesses’ potential business revenue. Nice, huh?
Paradigms are about both essence and pattern. In this sense they are perfectly analogous to beingness which is so ever present and yet so subtle an essence that most people fail to perceive it itself….while they are looking at the pattern of whatever is in front of them in the temporal universe or what they are thinking about at any given moment in time. Not perceiving essence/paradigms also shows how easy it is to be extremely erudite about details and shallow about deeper meanings and their patterns…at the same time.
Wisdom is always the deeper look, the deeper understanding, and as grace is the pinnacle concept and understanding of wisdom grace applied as policy to the economic system via the money system resolves the thorniest problems of the economy….as every paradigm change has always historically done.
110% Vice Taxation of Businesses Who..
….despite the tax savings for welfare, unemployment insurance and social security plus the cost savings of being able to borrow at 0% interest and the lowered personal and corporate income taxes that Wisdomics-Gracenomics will enable, raise their prices anyway. The tax will be 110% of what they may have gained if they actually did raise more revenue by raising their prices, and 100% of the difference between whatever they actually made with the price rise as opposed to what they would have made without it…even if they lost revenue as a result of losing market share.
There will of course be a tax incentive for abiding by the new rules and for those businesses that either do not raise their prices or lower them slightly.
New Paradigms
New paradigms have the effect of better integrating the bodies of knowledge/area of human endeavor that they apply to, and hence they simplify, expand understanding and make more efficient those same systems. New, more beneficial options become valid and usable, and the old structures and orthodox ways of thinking that are diametrically opposed to the concept of the new paradigm are either eliminated or reduced in significance and power.
Social Credit/Paradigm Perception Thread Cont.
A private bank’s ability to create money for its own expenses illustrates precisely why private finance is not a legitimate economic/productive business model. No other business is able to do such a thing which is why they are legitimate economic business models and private banking a supra-powerful, dominating and parasitical entity. Secondly, it ignores the fact that sovereignty can only be a governing/governmental power guided only by the concept behind Social Credit, i.e. grace. and not profit. Power must be bound by the beatific chains of ethics. Grace is the highest ethic. Profit is far down the list from it, and power even further down. In an imperfect world only god in his benevolence can be sovereignly powerful and in control, and finance whose “product” is the most powerful factor in a monetary economy must align with that hierarchically necessary reality.
The inevitable result of not making finance a unitarily sovereign governmental power guided by grace is the situation we live in presently which is that the Federal Reserve is actually the hand maiden of the private banks, albeit with a wink. Foolishly, there are in fact no real reserve ratios which is how in the run up to the “Great Financial Crisis” the banks were delusionally able to loan everbody and their dog’s uncle money at “tickler” rates and create and re-hypothecate derivative debt products 20 or 30 times until title to the original collateral got lost in the delusion that “the economy always tends toward general equilibrium anyway”.
And that’s precisely why not only must finance become a public utility guided by the natural philosophical concept of grace, but we must also realize that the aspects of a paradigm of grace are abundance, free flowingness and an empowering “higher disequilibrium” of OVER flowingness, not merely statistically balanced, halting/non-proceeding/coming to a stop at a temporally delusional general equilibrium and disempowering MERE theory.
I don’t disagree with any of the accounting, banking activities or that interest itself is not the problem. I DO object to the near absolute power of private finance and the fact that it is treated as if it were a legitimate economic/actually productive business model…..which it isn’t. It must be a servant, not a master and certainly not a multi-headed master. Occam’s Razor DOES apply in this regard. I believe the latter day advocates of social credit have unconsciously fallen back into the classical idea of general equilibrium and hence taken what could be a paradigm change based on a full understanding of the aspects of grace and the temporal universe, and made it into a mere theory.
The one thing Social Crediters have overlooked is the incredibly integrative and resolving potential of the CRP/Discount/Rebate policy. The one bugaboo that all theories have never effectively come to grips with is inflation, and a high percentage discount/rebate policy at the point of retail sale resolves it in spades. In fact it does what every genuine paradigm change does, and that is invert current realities into their conceptual opposites. In this case erosive price/asset inflation is inverted into its opposite of painless and beneficial price deflation. Again, due to competition and the high costs of modern technologically advanced fixed capital intensive economies, garden variety inflation is a relatively small single digit number and hyper-inflations never occur except under very extreme conditions where the means of production have been destroyed, indebtedness is onerous and a compliant central bank is allowed to leverage up and short the currency which is what finally kicks off the hyper aspect of inflation.
The high percentage discount/rebate policy is the very expression of the new monetary, financial and economic paradigm of:
Abundantly Direct and Reciprocal Monetary Grace As In Gifting.
After 5000 years of the paradigm of Debt Only we require a paradigm change, NOT just another statistically tweaked theory that gets gamed and morphed back into the mess we currently face.
Me: “So where DO they put any money over and above what’s still needed to live?”
Investment banking would still be allowed to form bonds of already created and saved funds and invest such funds in the market, and they would have a much better business climate to do so in something that was actually productive/economic…instead of the economic vice of some mere financial product.
I wouldn’t anticipate any shortages as I’ve posted before. We’re capable of tremendous productivity plus as I’ve also said before a 100% increase in purchasing power doesn’t necessarily translate into a doubling of economic throughput. People will undoubtedly save more and/or invest more in actually productive/economic activities. The biggest reason there is anything more than garden variety inflation of stocks is because of speculative leveraging up….which the national public bank is not going to encourage or in any reckless way to allow to happen at all. Prudence after all is an aspect of grace, and that is the concept that the national public bank will be guided and regulated by.
Businesses by and large will undoubtedly be more profitable and their selling price would as a result undoubtedly be greater. A businesses selling price will be largely dictated by their market share and profitability. Any increase in selling price will more than be compensated by the reduction in costs that a 0% interest loan will save the purchaser.
Will there be more employment with the increased business revenue and far better investment climate made an immediate reality by the discount/rebate policy, or less? The obvious answer is that there will be more. Technological innovation and artificial intelligence will undoubtedly decrease over all employment over time, but better to provide a dignified lifestyle and start now acculturating people to leisure and other purposeful activities other than employment ONLY, than to wait and have to face another even greater train wreck of a “Great Financial Crisis” when AI, which will undoubtedly follow its legitimate micro-economic logic of cost cutting, and so will never be dispelled.
History tells us that everything adapts to a new paradigm….not the other way around, and for good reason, because it is always a more abundant and beneficial advancement in the body of knowledge/area of human endeavor to which the new paradigm applies. Did we ever go back to a nomadic existence of hunting and gathering after homesteading and agriculture made for greater and more securely abundant living? Of course not. Did we go back to hand writing bibles and other books after the Gutenberg Press? Did we ever go back to the monopoly on the sacraments after the reformation?
JT: Why not just get all the funds needed for investment directly from the Public Bank? At 0% interest? You’re not telling me that ‘some’ investments might be too risky for the Public Bank to fund, are you? That ‘interest’ still might be necessary to attract capital to those investments, even for relatively short term funding?
Sixty years ago we here in BC produced a far larger array of products of BOTH types that were primarily for consumption or use HERE. If we had surplus capacity, which was quite often the case, we exported the surplus. Today, this is no longer so. We make product primarily for EXPORT. And, as the saying goes, “We export the best, and sell the locals the rest.” Often a genuine sore spot amongst the ‘locals’, I can assure you. But that is what the industries that are here now, the large businesses, because they had to consolidate and rationalize what they do to survive, actually do. Statistically our productivity may be greatly expanded over what was the case overall sixty years ago. But of the plants themselves? They’re not geared to producing a wide variety of consumer items for local consumption any more. To get back to that takes TIME. It won’t just happen, just like that. So I think you should well anticipate there are going to indeed be initial shortages, and just the kind of activities I’ve previously described. And that’s only the half of it. The other unknown is how paying a large enough stipend that’s supposed to be a “living income” through a National Dividend will affect the organization of any kind of “program of production.”
Me: Joe,
The present globalized situation would continue…until nations either bonded together in more regional cooperative trade or better yet re-industrialized themselves in as efficient and ecologically sane means possible. With the abundant combination of dividend and discount/rebate policies there would be no need to worry about unemployment and as taxes for welfare, unemployment insurance and even social security would then be redundant they could be eliminated and the savings by employers be used for such rapid re-industrialization. And when we can competitively produce locally that would be an incentive for export platform nations to adapt by implementing such policies in their own nation.
As to 0% interest, there may well be a very small percentage of investments that the national public bank might consider “too risky” or more likely not aligned with the concept of grace as in ethically justifiable, but…so what? The idea is to be as micro-economically thrifty and macro-economically free flowing as possible not to be doctrinaire about policy.
Challenge
Critique and iconoclasm are all well and good, but it will only take you so far. Paradigms require philosophy and visualization. I challenge everyone here to declare their philosophy and visualization of the new paradigm.
What If?
What if there is a way to integrate the best aspects of the economic and political agendas of both parties? A way to eliminate re-distributive taxation and yet fully fund government to do the things it so badly needs to do like updating our infrastructure and providing a world class defense. A way to more than double everyone’s potential purchasing power which would also mean more than doubling the free and available business revenue for every enterprise’s products and services? And a way to not only prevent inflation, but that painlessly and beneficially integrated price deflation into profit making systems? And what if there was a way to change the truly insane idea that ecological research, innovation and its implementation was “too expensive” and instead enabled such massive projects to proceed with post haste?
The Long and Short of The Problem With Economics and Economists Is…
…it/they are not operating on the mental plain necessary to perceive paradigms. They gather data and try to fit observations (or non-observations and twice removed abstract observations) into theories when what they need to do is, right along with that, think about the the ideas/philosophy they are advocating and then think paradigmatically, i.e. with wisdom which is the process of integrating only the truths, workabilities, applicabilities and highest ethical considerations in opposing perspectives.
Wisdom and paradigmatic thinking are actually the same process because wisdom indeed is the process I just declared and paradigms are the integrative discernment (which is the very ability of wisdom) of a single new concept that fits seamlessly within and also creates an entirely new pattern. In other words paradigmatic thinking is the integration of the opposites of a single concept and the many ways in which it is applied that supplants the old paradigm and creates an entirely new pattern.
Finally, grace which is the pinnacle concept and experience of wisdom and paradigmatic thinking which is the pinnacle level of mental integration and temporal application are also perfectly reflective of each other.
New Paradigms Make What Are Considered Significant Realities Relatively Insignificant Or Irrelevant
That’s because a new insight which resulted in the awareness of the paradigm concept itself and its new resolving powers has rendered them so. A paradigm is a single concept that creates new realities within a new pattern. Thus old orthodoxies/”necessary truths” fall by the wayside with paradigm changes. This has been historically true with every paradigm change, or it wouldn’t be a paradigm change. It’s the nature of the beast and its mental and temporal effects.
Almost all critiques of a new paradigm have historically been mere insistence that we respect old paradigm realities when they have been superseded and replaced. There is no need nor any desire to suppress rational discourse, but the most important thing to consider is to assess whether or not the claims for the new paradigm fulfill most or all of the signatures of historical paradigm changes. That is its true test.
Regarding Exchange Rates on RWER Blog
The way to take the sting out of exchange rates and develop more robust economies is to guarantee a stable decent economic and monetary lifestyle with universal dividend and discount/rebate policies….which will enable the rapid industrialization/re-industrialization of their economies without having to worry about domestic inflation or the present need to import. Globalization is so titanically stupid and obviously financially tyrannical that its surprising there is any real discussion of change…before it is remedied.
Social Credit/Wisdomics/Gracenomics/ Gracientialism 