…because it is a knowingness which is way above knowing data, perceiving a theory or even a philosophy, and knowing something in its highest and fullest sense is a part of omniscience which of course is attributed to God, or to a man or woman in a particular instance or area of human endeavor due to the discernment of Wisdom which is the perception and integration of the truths, workabilities and highest ethical considerations in what are considered opposing sides or perspectives. It is also discerning a singular concept that describes and effectively integrates into a pattern in such a way that it resolves long standing problems in that pattern to the point of creating a third and distinctly new pattern. In other words it is the integration of hierarchical and de-centralized mental perception…at the same time, i.e. atonement/oneness with God.

The new paradigm in economics and the money system is Direct and Reciprocal Monetary Gifting, and the new economic and monetary ethic-zeitgeist is grace.

…aren’t actually in business at all, but rather the “business” of going bankrupt over a 1-10 year period. . It’s a ruse, a ponzi scheme because systemically total costs and so prices (because the cost accounting convention that all costs must go into price is always and correctly in force)….always exceed total individual incomes simultaneously produced. And systemically that enforces continuous borrowing which incurs additional costs of course….and so does not resolve the problematic costs/prices to individual incomes ratio.

Macro-economists look only at the debt deflation aspect of the problem which is indeed correct enough, but they miss the micro-foundational cost accounting factors of ever increasing depreciation costs of fixed capital assets which keeps increasing the lower bound of costs for enterprise, and the fact that systemically individual incomes can never equal total costs and prices because time and the pooling and re-investment of money prevents total free to purchase individual incomes from ever equaling total costs and prices.

And all of the leading macro-economists agree that capitalism is demand constrained and in one way or another tend to advocate increasing individual incomes. But again, because they are not looking at the everyday operation of commerce and do not perceive the terminal summing and ending point of the economic process at retail sale and also do not conceive or perceive that both the pricing and money systems are digital in nature. Consequently, they do not see how a discount to prices at retail sale that is rebated back to the enterprise granting/gifting such to the consumer could be utilized to dramatically increase individual purchasing power and at the same time not only prevent any purchasing power corrosion, but to painlessly and beneficially integrate price deflation into profit making systems.

And this is why Wisdomics-Giftonomics and its policies is far superior and far more beneficial to the individual, to enterprise and to the entire system….than any other economic theorist or monetary reformer.

….between MMTers and  Wisdomics-Giftonomics is the former (apparently) want to remain dominated by the current financial paradigm and the latter doesn’t.  This is a failure/refusal to perceive at the paradigm level and hence becomes reform instead of transformation.

MMT is petite, Wisdomics is robust. MMT is thinking. Wisdomics-Giftonomics is Wisdom, i.e. knowing.

Science without Wisdom (self awareness and the ethical imperative it denotes) is the orthodoxy and stupidity known as scientism. The scientific study of economics requires Wisdom no less. In fact, as it is a monetary economy and money is the product that grants freedom or enforces enslavement if not loss of life without it….it requires it even more.

It is amazing to me how much ego, orthodoxy and as a result closed mindednesss still exists in even cutting edge economic and monetary thinking. Scientism and the mistaken belief in reform also play into the problem. Scientism is plodding and reform enables a thousand steps forward (or backward) between point one and point two when the dramatic nature of paradigm change is necessary.

Steve Hummel 03/09/2018

People of Earth Unite!

You have nothing to lose but the meaningful leisure and self development that technology has bequeathed you…and the monetary means to enjoy it!

In other words what is real in the present moment is what is true for both. If a person believes they are worthless their reality in every moment is that they are worthless and this belief will guide and enforce their activities, and if in every moment there is a scarcity of individual incomes in ratio to total costs and prices then there is a continual scarcity of individual incomes and all of the economic consequences thereof.

Furthermore, the purpose of human life and of economic activity at the point of retail sale are also analogous and reflective of each other  in that when one’s attention comes fully into  the moment they experience whatever is in present time as vibrantly real as opposed to at least once and abstractly removed, and retail sale is the purpose of the entire economic process, that is that production become consumption. In other words the most basic purpose of human life is to awaken to/become completely aware of one’s own beingness/self awareness and the most basic purpose of the economic process, i.e. production is consumption which occurs at the moment of retail sale.

Finally, full human consciousness is only present in the moment where no other consideration of other realities exists and can possibly distract or detract from it, and this realization is generally an incredible experience known as satori-kensho, samadhi, atonement or grace by the world’s major wisdom traditions, and retail sale/consumption is the satori-kensho etc. of economics.

Me:  Puzzling about reserves is just a side show. The entire problem can be understood by recognizing that the paradigm of Debt Only which Finance has a virtual enforcing monopoly on must be replaced by the primacy of Monetary Gifting.

I told Steve Keen over 5 years ago when he was de-bunking DSGE (Dynamic Stochastic General Equilibrium theory) that C. H. Douglas was the first disequilibrium economist. It was one of the few times he deigned to respond to me when he said he would have to investigate that. Shortly thereafter he came up with his current theory that when the rate of increase of debt dips the economy must go into recession. This is nothing more than a macro-economic restatement of Douglas’s A + B Theorem. When you put the fact that the only way currently allowed to increase incomes is to incur debt (Finance’s enforced monopoly product) with the fact that recession-depression occurs if you do not continually borrow you see how rigged the system is because you’re stuck between a rock (the necessity to continually borrow to avoid recession-depression) and a hard place (the continual build up of debt until it can no longer be serviced).

Keen doesn’t have the cost accounting insight that Douglas had that the way to resolve the problem is to implement monetary gifting policies at the terminal summing and ending point of the entire economic process known as retail sale because both the pricing and the money systems are digital and so a discount-rebate policy at that point can resolve and invert the problematic ratio that is the base of the problem. This blindness is mostly because he’s plagued by a reactionary orthodoxy of his own that came out of his de-bunking of DSGE and that is that macro-economics doesn’t need to be tied to micro-foundations. Hence he doesn’t look at the cost accounting convention that all costs must go into price and is unconscious of the significance of the point and time of retail sale. Social Crediters themselves did not fully comprehend the new paradigm they were advocating, and they also were hampered by the classical doctrine of equilibrium. They also apparently did not have a good understanding of the nature and signatures of paradigm changes which always are inversions and transformations of problematic ratios-dualities and changes in primacy between the old and new paradigms. Hence they only advocated “filling” the Gap instead of inverting and transforming it from a scarcity ratio into an abundance one, and as technological innovation and AI continue to reduce aggregate income the paradigm of Monetary Gifting replaces the primacy of Debt.

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EB:  Thanks, all good comments. I’m still a bit stumped on this issue though.

This of course sets up the necessity to continuously borrow which results in the business cycle and eventually debt deflation from the continuous build up of debt. And of course as its an INDIVIDUAL income problem NOT total money problem that is why the dividend and discount/rebate policies ACTUALLY RESOLVE THE PROBLEM, especially if you make the dividend sufficient and the discount percentage high enough…because it inverts the scarcity ratio so instead of the business cycle and eventual collapse you continuously have an abundance of individual incomes in ratio to costs/prices AND YET PRICE DEFLATION which translates into systemic free flowingness.

In other words the moment to moment continuing PRESENT TIME reality of the economy is a scarcity of total individual incomes in ratio to total costs/prices….and therefore “eventually” has no relevance or enforcing reality. “Eventually” is a delusional hypothetical that does not and by definition of the present moment CANNOT exist. Whether or not and to what degree we are aware of it, the present moment IS OUR REALITY, and the same is true of the present moment reality of the economy.

This is also the definition of economic inherentcy, and inherentcy can only be changed by a reality/policy that avoids, goes around or resolves the inherent reality/problem present in every moment within the economy.

The whole tariff thing is another side show. Yes, Gary Cohn formerly of Goldman Sachs resigned because globalization, i.e. the global coalescence of the integration of Finance’s paradigm of Debt Only is its goal, and nationalist policies momentarily slow that. However, tariffs are just more palliative policies and conservative/libertarian “change” which are just the flip side of Obama’s liberal neo-classical economic empty suit “change you can believe in”…so neither will resolve the actual problem.

For a real solution you have to recognize the real problem (the de-stabilizing unworkability of continuing the paradigm of Debt Only), recognize the significance of the digital (+, -) nature of both the money system and the pricing system, the significance of the fact that retail sale is the terminal summing and ending point of the entire legitimate economic process and that Monetary Gifting is the new paradigm that will integratively enable stable economic prosperity for both the individual and enterprise and true free flowingness as well.

Me:  As I said, all of this discussion is a bunch of hide bound neo-classical, equilibrium, figure-figure…or the slightest tweaking of same. It goes no where and resolves nothing. It’s a bunch of erudite non-confront, a perturbation, an epicycle “solution”.

Sorry.

And the same goes for every other reformer, “new” theorist or de-bunking economist.

Public Banking? Insightful of the incredible amount of money and profits that Finance skims off the top of the economy, but isn’t consciously aware of the present monetary paradigm of Debt Only that enforces systemic austerity. Looks at the keystone problematic business model, but It’s just another reform that splashes around on the surface of the real problem.

Michael Hudson? I love his fire in the belly attitude and his focus on Finance as the parasitical illegitimate and problematic part of the economy, but he lacks the knowledge of the fact that both the money system and the pricing system are digital and that retail sale is the terminal summing and ending point of the entire legitimate economic process and so is THE POINT AND TIME to implement monetary policies that will literally implement the new paradigm…immediately, and with a few new paradigm aligned regulations and policies do more for the individual, enterprise and the system than any other reformer and both political parties have done in a hundred years.

Steve Keen? His de-bunking of DSGE is worthy of a Nobel itself and he keeps saying we need a new economic philosophy, a Copernican paradigm change but he doesn’t recognize that he’s re-discovered C. H. Douglas’s A + B Theorem in saying that as soon as the rate of change of credit creation dips the economy must enter a recession…unless of course you INDIRECTLY and inefficiently run fiscal deficits. Problem is that’s just another palliation of the most basic systemic problem which is that the rate of total costs and so total prices exceeds the rate of total INDIVIDUAL incomes. To actually resolve that problem you have to break up the monopolistic financial paradigm of Debt Only with DIRECT monetary gifting means of increasing individual incomes in ways that simultaneously not only prevent inflation, but integrate price deflation painlessly and beneficially into profit making systems. Like for instance a universal dividend and a high percentage discount/rebate at the point of retail sale. This would affirm Keen’s debunking of equilibrium theory, create “a higher disequilibrium” and also align with the signatures of paradigm changes which is the transformation-inversion of a ratio and/or a problematic duality and/or a change in primacy of the old and new paradigm.

If you perceive the old paradigm and you also see the new discovery that always accompanies a new paradigm, like the telescope and the ellipse, and in this case is the economic and monetary significance of policy implemented at the point and time of retail sale….then recognizing the new paradigm, which is always in certain ways conceptually oppositional in nature to the old, becomes relatively easy….if you aren’t egocentrically involved with and/or blinded by fallacious orthodoxies and/or palliative reforms….and aligning policies and regulations with the new paradigm is a straightforward rational process.

The business model of Finance has become an incredibly problematic cost increasing post retail sale phenomenon and so integratively parasitical that most of us, including most economists, believe it to be legitimately economic. Instead it is a life dominating, stability destroying and ethics disintegrating force that must become a public utility guided by the natural concept of grace and its many multi-dimensional and ethical aspects if the economy and western civilization is to survive. Failure to see this by continuing to attempt to reform, palliate or promote private profit making finance may be erudite, but in the end will be seen as erudite non-confront.

Finance is at the base of most of the rest of the attending socio-economic and political problems we face. It is like a giant and complex neurosis that beleaguers and blinds us with chronic stress, and that when fully recognized results in a huge life changing cognition and an equally large increase in consciousness that boosts confidence, hope for the future, opens us up to our native ability to feel compassion  and a concomitant increase in our willingness and ability to actively express that compassion for others.

Making the economy retail again instead of dominated and manipulated by finance is the answer. This does not mean the end of finance of course, but it will become a publicly administered utility that no longer is infected by profit, power and dominance, but rather infused with the superlatively humane and benevolent ethic of grace that fits within and greatly frees the economy that ends at the point of retail sale with the new paradigm and policies of Monetary Gifting.