…with one little measly policy. That’s how absolutely transformational this policy is.

And you’re going to hear it right now.

For instance these two fallacies, one liberal, one conservative:

“Increasing the money supply will cause inflation.”

“Increasing the money supply won’t cause inflation.”

How can these statements both be false? Because increasing the money supply….isn’t the deepest reason why inflation occurs or doesn’t. Rather, the deepest and actual reason that inflation occurs is the human freedom to act in commercial firms. 

The only way to prevent inflation is to guarantee that deflation is of more benefit to both commercial and individual agents…than inflation. And as the only way to guarantee that…is to significantly reduce prices at the point of retail sale so that the consumer benefits from the additional purchasing power…and commercial agents benefit by the vastly increased volume of sales that the increased purchasing power will inevitably engender….that is why a rebated discount of significant percentage at retail sale is the keystone policy that breaks the spell of the current monopolistic financial paradigm of Debt Only…and is the very expression of the new monetary and economic paradigm, namely Direct and Reciprocal Monetary Gifting.

LA:  Exactly!  Changing the incentive to spend rather than hoard is very compelling.  The only reason to save is perception of eventual shortage.  Hence the need for the dividend.  When the ROI to buy that stereo I always wanted is better (e.g. 25% rebate right now) versus putting it in my BofA savings account (i.e. less than 1% a year) then gee wiz!  What do I do?  WHAT DO I DO?  I think I’ll buy the stereo!  Hence the need for the rebate.

Me:  Yes, they’re complementary policies and in sufficient amounts and percentages enable the best aspects of the left/right agendas to be realized which is a tremendous political selling point….at least in the minds of people who are truly mentally open to it as opposed to those who are so arrogantly partisan or working their own agenda that they refuse to look at it…so as to actually perceive it.

JR:  Very easily, Steve.   If the “gap” is fairly high, say 10%, that will leave  40% of GDP worth of loose money without corresponding value of goods to be purchased by it.  You are also leaving out the far more important aspect of a national dividend, which would be paid equally to all, not primarily to the rich.

More importantly, my aim always when corresponding here is to show that Social Credit is logical, that Douglas’ analysis is sound, and that some of the extravagant claims made in its name are not necessarily part of it.

We speak somewhat different languages and sometimes I approve of your flowery philosophy indicating the need for a complete change of underlying emphasis.  However, as a scientist I believe economics must develop a rational approach based on the same disciplined reasoning,  I believe it can gain this from basic S C principles.

Me:  John,

You’re not looking at the fact that monetary policy is directly tied to retail sale….where the normal price for a $100 item or items…is now and would always be under such a policy….only $50!!!!!!!!!!!!!!!!!!!!!! Look at the immediate and ongoing effect of the policy…..and forget about the quantity theory of money and its alleged cause of inflation. Forget about the need to “balance the budget” and the impossibility of General Equilibrium theory. The new monetary and economic paradigm of Direct and Reciprocal Gifting enables what I refer to as “the higher disequilibrium” and freedom from the monopolistic paradigm of DEBT ONLY.

I learned a tremendous amount from you and the other guys over on the Social Credit group. I also learned a lot from Steve Keen, Michael Hudson and also some from MMTers,….but none of them have apparently studied and understood the history and signatures of paradigm changes like I have and so, even though they may offer up policies that perfectly reflect the new paradigm, (Keen “a modern debt jubilee”, Keen “QE for the people” MMT a sovereign country’s money system can be directly distributive…..which MMTers haven’t actually recognized yet, that’s what I’ve recognized from what they say)…and even though they may look straight at it they are still largely unconscious of how powerful and transformational all new paradigms are in the body of knowledge/area of human endeavor they occur in.

Habit and orthodoxy are the killers of innovative thought and paradigm perception. Look. Look until you see, until you come fully into present time. There you will find millions of new experiences, how antiquated and unnecessarily complex and fallacious old paradigms have become and how elegant, simple and resolving new paradigms are.

JR:  Steve, I don’t get your allusion to Left and Right, which are united in opposition to monetary reform.  In fact, presently the socialists appear to be our strongest opponents because they see  reform as a method competing with their high taxation and centrally controlled policies. This goes right back to the Fabian socialists in the UK early last century.  (“Nothing wrong with Social Credit, but it’s NOT Socialism.”)

I presume you are aware of the very obvious corollary of Douglas’ analysis, that normally we suffer from cost push inflation as a result of costs in industry not associated with payout of wages etc.  From this,  two equally obvious conclusions:  1. That there is a “gap” to be surmounted before any infusion of new money can cause demand-pull inflation and  2. It explains why present economies can not thrive without growth; without  new money being regularly borrowed for new production.

Unless governments are borrowing and spending extra for non-consumables such as armaments, of course.

Either way, debt must grow, so probably the best way to guess the extent of the “gap” is to measure debt growth, less any inflation component, over time.

Me:  Wisdomics-Gracenomics being extensions of Social Credit policies accomplish the best aspects of the right/left agendas, i.e. more profitability for enterprise and much greater economic democracy. 

I want you to tell me how you’re going to have price inflation with a 50% reduction, whether as a rebated point of sale discount by the enterprise to the consumer or a rebate by the monetary authority back to the consumer????

Even if businesses before retail raise their prices 3-4% you’d still have 46-47% price deflation. They’d dare not raise them much more than that for fear their competition wouldn’t and they’d lose market share. You could also tax anyone who did raise their prices just to gain by 150% as I have suggested before (and encourage frugality on their part with a gift of 1% of their sales if they didn’t raise their prices or even lowered them more)

There are many other benefits for both business and individuals in abundant dividends and high percentage discounts I have enumerated here before like the end of payroll taxes for welfare, unemployment insurance and social security and the elimination of their respective bureaucracies…the end of poverty (a $1000/mo dividend and a 50% retail discount for a couple both working part time jobs that made them $20,000/yr equals $4000 x 12 = $48,000 plus $40,000 x 2 = another $80,000 = $128,000/yr ….the end of Finance’s domination with their paradigm of Debt ONLY and the end of the systemic necessity to continually borrow by the individual and by enterprise by Debt ONLY because they can have a guaranteed middle class lifestyle and also save without tanking the system with their savings (abundant dividend and retail discount policies resolve the macro-economic paradox of thrift) 

Just review my posts on the other threads….once you see through the paradigm of Debt ONLY and see the possibilities of the new monetary paradigm of Gifting it all falls in place and outside of the two basic policies all you have to do is strategically regulate/tax/encourage with Gifting.

Great set of theses. The Reformation is already under way thanks to your own and other’s work, complete recognition of the Copernican paradigm change requires an encompassing concept like Agriculture or helio-centrism that simplifies its vision and crystallizes aligned policies that clearly show how everyone would benefit from the change.

My new Wisdomics-Gracenomics policy innovation transforms the business model of Finance from a parasite into a retail business that takes its proper place alongside every other model, and changes the money system from endogenous and uncontrollable to benevolent and exogenous.

Washington Post story confirms President Toast is at best a useful idiot. So what are you going to do about that republicans? And what are we as both democrats and republicans going to do to throw off the dis-integrative direction the nation is going socially, politically and economically-monetarily…because utter contentiousness and division is the even larger strategy of Putin and the even deeper obstacle to re-integration and systemic rejuvenation…the paradigm of Debt Only.

We need to out produce and out reward both the orthodox capitalist and the socialist leaning economies in more ecologically sane ways, not so we can be better capitalists or socialists but to simply have a more abundant, more humane, more rational, more ethical, more whole and more ascendant third alternative.

Steve Hummel 12/13/2017

The person who contemplates grace/graciousness becomes a continuous life lesson for those around them.

Steve Hummel 12/13/2017

Beauty can be expressed in many ways, and in the arts even what appears to be its opposite, but being a harmonic of Love there’s always a positive lesson to be learned from it.

Steve Hummel 12/13/2017

If the rate of change in Debt must never decline because it means recession, that rate can never realistically be in equilibrium with its need or desire and continual Debt/Loans, even at 0% interest eventually overwhelms the system, then the system as it is….is unresolvably unstable….except a new monetary and economic paradigm be deciphered and integrated into the system….and any call for anything less means that at least a patina of General Equilibrium remains in the mind of such theorists and even more importantly those same theorists are on very shaky ground advocating continued palliation…when an actual solution of a paradigm change exists.

AT:  In a move that will spark fears across the EU of an “Italexit”, three of the country’s political parties are backing the introduction of “Fiscal Credit Certificates” as an alternative to the euro.

The complex plan has the approval of the European Central Bank.

Among the parties backing it is Silvio Berlosconi’s Forza Italia, which has enjoyed an astonishing comeback in the polls.

The revelation comes as Martin Schulz, the leader of Germany’s Social Democratic party who is tipped to become Chancellor Angela Merkel’s deputy, last week called for the creation of a United States of Europe by 2025.

The certificates, known as CCFs, give workers and businesses tax breaks to boost income and productivity.

Although not legal tender, everybody can use them to pay taxes, buy government services or exchange them for goods or euros.

Me:  Every little move toward monetary abundance instead of austerity is a step in the right direction, but why not implement a 50% discount to retail consumer products by having a monetary authority rebate half the money used to purchase whatever back to the individual? That way everyone gets an immediate 100% increase in purchasing power…and as consumer price inflation is expressed and measured at the point of retail sale if you implemented the policy at that exact point and time you’d not only not have any possibility of inflation you’d be integrating price deflation beneficially into profit making systems.

The ECB, FED, et al don’t mind palliatives and reforms that leave them firmly in control, but I doubt they’d look kindly toward a single policy that had the potential to reduce their market for Debt by half.

JR:  Three reasons Steve:
1. The discount scheme is the one of Douglas’ ideas that he never explained properly. Either of the two ways he stated it. I don’t believe it is workable.

Me:  Well discounts have been around for a long time and have worked just fine for merchants, just not ones that are monetarily fixed to the exact point of retail sale and benefit both merchants and consumers. Two of the signatures of paradigm change are inclusion/integration of opposites and extension/saturation of effect.

JR:  2. Anyone doing a simple calculation could work out that, under present circumstances, at least 80% of the value would go towards rich boys toys.

Me:  Well, the politics and economics of envy are not very effective or edifying. I suggest you delete them.

JR:  3. A 50% estimate for it is the sort of startling fairy story that suggests in serious peoples’ minds that we are simply a group of the lunatic fringe.

Me:  John, you’re a good ole guy that cares, but you need to get over the embarrassment and disappointment of Social Credit’s defeat at the hands of the deluded and merely self interested so that you stop projecting their invalidative tendencies on people with innovations that will “sell” and who you should thus be backing.

*********************************************

Me:  Yes, that confirms Douglas’s most basic insight. The problem though was Douglas, as much of a genius as he was, still had traces of orthodoxies like General Equilibrium inhibiting his economic vision, (although I understand there was occasional debate between Douglas and early Social Crediters about the size of the Gap and hence what might be the proper percentage rate of the discount policy and the size of the dividend). At any rate his followers fell back into the General Equilibrium theory mindset thus making an easily gamed palliative out of the paradigm change that Social Credit actually could be. That’s always been the problem with orthodoxies, they lose track of the process of Wisdom (integration of the truths in apparent opposites) and the pinnacle NATURAL concept and TEMPORAL application of Wisdom whether you call it satori, samadhi, atonement or grace…two of the aspects of which are process and flow as in conscious and continuous open mindedness, and thus they lose their original vision.

RB:  I’m not a big fan of “the gap” and Social Credit, which seems to base it’s theory on accounting analysis, which is the tail wagging the dog of economics. Accounting is a tool to track economic activity, and can be manipulated endlessly to prove anything. We’ve been through this discussion a thousand times. But as we see here, there is some common ground.

Me:  Double entry bookkeeping and its subset cost accounting are not just “bean counting”. They are the tools along with calculus…that help reveal the economy’s deepest problem….if one also brings actual economic looking/analysis to the day to day operations of commerce instead of either ONLY looking at the macro economy, or not looking at all and just repeating dogmas like the labor theory of value…which Marx by the way actually came around to acknowledging wasn’t really true.

Unfortunately the “discussions” here have been a combination of orthodox replies and refusals to engage while ignoring my acknowledgement of the truths in PB and the need for integrating the various monetary and economic reforms in a way that would resonate with the large constituencies that are needed for political implementation of the best parts of their separate agendas.

JR:  Robert,   Don’t be put off by some who make ridiculous claims about its extent.

Me:  “Don’t be put off by some who make ridiculous claims about its extent.”

 Correct John. Instead pay attention to the paradigmatic, philosophical and policy extension of Social Credit aka Wisdomics-Gracenomics.

MK:  Greece is next to leave the EU

Me:  Yes, the EU is disintegrating right before our eyes as is America and by contagion the rest of western civilization. And the remedy is a higher re-integration of its institutions, economies and values, a part of which is the thrust of Public Banking in its structural balancing of the power of private finance. All PB, MMT and the theorists of Steve Keen, Michael Hudson and others need is integration of their separate truths under a clear philosophical and paradigmatic vision.

…is continuous self presence and the secret to economic insight is monetary policy implemented directly to the individual and also at the present moment of sale.

Steve Hummel 12/11/2017

Foreign ownership of land is the minor vice to the major subterfuge of corporate and financial globalization which was and still is the triumphalist attempt by Finance to coalesce the power of its monopolistic, parasitical and hypnotizing paradigm of Debt Only.

The old catholic concept of subsidiarity would be a much better economic and humane path to follow, but when you’re the overweeningly wealthy and powerful force in all economies and your paradigm is the problem itself…it’s hard to muster the insight, the humility and the ethics required to step down and let a new pattern resolve the mess.

But then it’s always hard to see past an old pattern….unless you see the new one clearly and fully.