….the point of sale. So if you tie monetary policy to the point of sale you can fundamentally resolve not only the conundrum of austerity in order to try to prevent inflation, but transform painful austerity and erosive inflation into the fresh breath of abundance and beneficial deflation. Such a policy is that potent. You could free the system from the necessity to continually borrow in order to keep it from forthrightly going into a recession/depression. Why It’s even so powerful that if we extended the intention of its effects throughout policy….we could change the character of the economy from obsession with power and profit only to power, profit and the will to individual freedom.

….simply a largish but one-off reflection of the ongoing and utterly new paradigm saturating policy of the high percentage discount/rebate.

Those that have eyes…let them see.

…right up until it’s recognized as the new system changing truth. This new truth is realized when some essential element, factor or, in the case of the new economic and monetary paradigm, a specific new policy’s effects on the entire system enlightens and resolves a long standing problem.

The high percentage discount and reciprocal rebate at the point of sale policy…is that policy.

Examples:

Agriculture from Hunting-Gathering

Telescope  and discovery of ellipse from earth-centric to helio-centric astronomical paradigm

Saturating the entire economy at its most basic and purposeful point (a sale) with a new policy literally dramatizing  the character of the new paradigm—Direct and Reciprocal Monetary Gifting

Me: I’m not against a job guarantee. What I’m against is not integrating both a job guarantee and a universal dividend into economic policy so as to better and more completely end Finance’s monopolistic paradigm of Debt Only, and I’m surprised at your fighting against such integration.

JC:  Steven Hummel: I’m not sure how long you have been following Bill’s blog, but the JG he describes results in a universal social dividend (albeit non monetary) in the form of socially valuable work being performed by otherwise unemployed people. We all benefit from whatever the formerly unemployed are able to deliver.
In more progressive times there had also been a universal social dividend arising from public ownership of infrastructure, utilities etc..
In much of the western world we still have public health and education…

The financial sector itself benefits only in a monetary way from it’s activities. There is nothing delivered to society in terms of a real dividend.

Me:  Part of the neo-liberal fraud is that money is “a veil over barter”. We live in a fundamentally monetary economy and to insist upon a JG Only as the solution is to refuse to integrate truths and so not recognize the full pattern (paradigm) of both the problem and its solution. Advocating both a JG and a universal dividend accomplishes that integration and also opens up a better understanding and expression of the major insight of MMT itself which is that the money system is fundamentally distributive in nature, and with the proper directly distributive policies would be distributive in fact.

SG:  @Steven Hummel: the major insight of MMT itself which is that the money system is fundamentally distributive in nature, and with the proper directly distributive policies would be distributive in fact.

Although the meaning is not clear, this seems yet more contrary to the MMT view. MMT analyzes modern “monetary production economies”, where money and finance is involved in production and distribution, where full employment and fair distribution doesn’t happen by magic, as in alternative theories, whether they call themselves “left” or “right”.

The paramount insight of MMT is the JG. It involves both production (work) and distribution (money). Universal dividends, basic income etc are fatally flawed because of their focus on one – as if it could occur as a general principle, could mean anything, without the other.

Me:  From its title MMT is about money. What I meant by MMT’s major insight being that fiat money systems are distributive in nature derives from Mosler’s insight that taxes are rubbished. Hence money can be created and distributed for any purpose a sovereign nation wants to…..without re-distributive taxation at all. The trick of course is how to have much better monetary democracy (a universal dividend), prevent inflation and end private finance’s virtual monopoly on credit creation (my innovation of extending Social Credit’s mere retail discount policy to the point of sale within and throughout the entire process of the economy). Within those two policies one could easily fit a JG for anyone wanting/requiring a job because they couldn’t seem to find purpose without one. With a sufficient dividend and point of sale discount there would be enough demand continually available to insure a lot better investment climate and hence a lot more employment than we have with the idiocies of neo-liberal austerity. Furthermore, with a sufficiently high dividend and high enough point of sale discount percentage one could live a life of leisure (leisure is self chosen attentive activity not idleness) without working and hence capital would not have “the reserve army of the unemployed” to dominate and manipulate anymore.

SG:  Universal (monetary) dividends, basic income etc are worthless, stupid ideas that just make things (much) worse. The only thing worse than the repulsive fantasy of “a life of leisure … without working” supported by a “sufficiently high dividend” – in money used to purchase the labor of others – is the reality. There’s a name for that system: Slavery.

Me:  “MMT is for universal, social dividends – but not monetary ones, which cannot work, thankfully.”

Explain how they would not work please.

(and after no response from SG I posted:

Monetary policy will work if its directly to the individual and also if it is tied directly and reciprocally to the pricing system, that is to the point of sale within and throughout the entire economic process. If you step back and look at central bank operations that attempt to keep the money supply, inflation, interest rates, etc. etc. etc. in reasonable balance it becomes more clear to you how complex the system has become, and also how such operations perfectly reflect how the Ptolemaic astronomical paradigm introduced “epicycles” into their thinking in order to explain anomalies….and yet still failed to resolve them.

We are so overdue for a new monetary and economic paradigm instead of continually trying to tweak theory and pursue incremental reform. Consult Wisdom and History.

I fail to see how providing the means of economic freedom (a sufficiently high universal dividend) and the point of sale discount policy I related can be transformed into slavery. I also do not understand why integrating BOTH a dividend and discount policy AND a JG as well….is inferior to a JG only. I’m sorry, but exclusionary thinking smacks of orthodoxy which is something I thought we were trying to overcome.

SG:   Me:  I fail to see how providing the means of economic freedom (a sufficiently high universal dividend) and the point of sale discount policy I related can be transformed into slavery.

Thanks Neil & Jerry. The income guarantee part doesn’t really require transformation, it is basically slavery already. The people who do the work paid for by the SHUD are enslaved to the inept social engineers and the recipients of the dividend. That’s the way it has always worked out. Petrostates with tiers of citizenship are the prime real example of income guarantee proposals and most people don’t think they are very pretty overall. Income guarantees are either just another name for “welfare” in which case every MMTer I know of is for them, or a joke amount, or insanely inflationary and thus a joke.

Guaranteed income is like a proposal to abolish slavery – by making everyone a master. Most children can see through it. It takes major “education” in “economics” and massive confusion, false distinctions and dissociation of “technical” terms from their real world interpretation to convince oneself that income guarantees could ever work.

The JG is the grown up reality proposal. People will sometimes work for others, sometimes have others work for them. That’s called “one hand washes the other” or playing well with others. It is how the world has worked and progressed. A JG just means that nobody will be excluded from this, just so some saboteurs can become relatively richer and tyrannical.

Guaranteed income is also based on a very blinkered view and unstable conception of “economic freedom” – the freedom to do nothing, the freedom to order other people. What Bill calls being a “consumption unit”. But never the real freedom for everyone to actually do things theirselves. It is quite contrary to the mainstream of ethical thought East or West over the millennia, which considers exclusive obedience to ones desires of the sort a guaranteed income satisfies a form of slavery, and esteems the freedom to actually do stuff as a realer freedom.

Me:  Sorry, but that post was a lot of thinking inside the present paradigm and no actual looking at the policy I mentioned…..which is outside of it. New paradigms are always considered absurd by most….right until they become the new general truth. Consult history and Thomas Kuhn’s book on the subject. You guys can continue to be self righteously exclusionary by demanding that a JG ALONE is the answer, which is the signature of all rigid orthodoxies, I’ll continue to advocate an integration of both into the system which (integration) is the signature of wisdom, open mindedness and hence the antithesis of orthodoxy.

Thinking and expressing a thought makes it more real to one. As with old paradigms, so with new ones. Newness and completeness of a concept is generally not fully understood except with repeated reflection.  This is the nature of Mind. The nature of consciousness itself is completeness, nowness, newness, oneness, at oneness, that is atonement, and Grace is the full and continually new experience of the present at oneness of the mind and consciousness itself. Grace is the complete integration of mind and consciousness….and Gifting is the concept of Grace that applies to the economy and money system and is also the new paradigm of same.  Think on these things while contemplating economics and you’ll know the new paradigm in full. Think on these things and each of the aspects of Grace….and you’ll know yourself in full.

1.  Every enterprise passes on the 40+% discount percentage on each of their products/services to their retail customers.
2.  Every enterprise agrees to a rigorous examination of their accounting and if they are discovered arbitrarily and without due cause raising their prices there will be a process for taxing those price raises and if severe and serial ending their participation in the policy. Note: It should be extremely hard to justify price raises when all of the enterprise’s vendors are selling to them at a 40+% discount.
3.  If an enterprise does not pass on their discount they will be kicked out of the discount policy program and any discounts they receive from their vendors will be taxed at the rate of 100%.
4.  Business Benefits:  Being able to sell their products at 40+% less should make aan enterprise’s volume of sales and hence profits increasing a much greater possibility. Also, every enterprise participating will be able to eliminate their taxation costs for welfare, unemployment and quite quickly even social security as the relatively abundant universal dividend will make them redundant and unnecessary.   A list of other benefits: the ending of the dominating rule of Finance and its monopolistic paradigm of Debt Only and much greater economic stability as a result, the final end of  neo-liberal DSGE macro-economic theory, the end of “the tyranny of numbers and accounting” that has held economic theories captive to apparently opposing and unresolvable dualities like monetary austerity in order to prevent inflation, finally gives the business model of Finance the option to be ethical instead of an unethically dominating and manipulating one (Hence Finance probably receives the greatest gift of all that Wisdomics-Gracenomics bequeaths upon humanity. In other words, economically speaking, it’s the difference between being a sinner and finding absolution through Grace, and if one understands how essential and important having one’s ethics “in” actually is, the value of that is inestimably great.), frees governments to be able to be benevolently sovereign instead of the witting or unwitting partner of Finance’s dominance, frees enterprise and government to give free rein to technology and artificial intelligence to free us from the mental chains of homo economicus so that we can fulfill our true species designation, homo sapiens sapiens, i.e. wise and discerning man,
5.  Enterprises are enabled to further discount their prices at times or any times, but those discounts will not be rebated back.

…..the consciousness raising, paradigm changing policy.

Benevolent and constructive necessary change removes any fears regarding the radical because freedom is freedom and the Good is Good. This is the case with the precise policies of Wisdomics-Gracenomics.

And of course part of the definition of a paradigm change is a radical change of pattern so one should not and does not shrink from that.

Steve Hummel 11/14/2017

This is what the new monetary and economic paradigm of Direct and Reciprocal Gifting will do.  Both private banks and the central bank create only debt. Monetary Gifting balances that paradigm of Debt Only.

When the government injects money into the economy it does so only to enterprises first, and to individuals as welfare payments only if taxes from both individuals and enterprises have been extracted from their wages and business revenues priorly, or even if unnecessarily via rubbishing of those taxes and the issuing of bonds to replace them. Finally, a governmental deficit has never come remotely close to stabilizing the flowing moment to moment gap between available to spend money and total individual and commercial debt service.

Filling such a gap to the point of Equilibrium Only still does not accomplish economic free flowingness and the over throw the paradigm of Debt Only. Only an inversion of that systemic scarcity ratio, i.e. create a continuous and direct flow of income that is greater than the flow of debt service can attain true free flowingness, thus creating both a “higher disequilibrium” and a new primary paradigm of  Direct and Reciprocal Monetary Gifting. 

This new paradigm can only be implemented via an institution mandated to distribute the gifted monies of the dual policies of an abundant individual dividend and a high percentage discount at every point of sale within and throughout the entire economic process.

JM:  Thanks Diana.  Corbett is amazing.  He takes it all in, and he sees the possibilities.  He makes the talking heads look like children in the sandbox.
Jim

Folks: be sure to read Corbett’s 5 Things . . .  and see why this is so important.  Hint:  It’s the petrodollar and the possible end of dollar hegemony because the players are too powerful for the banksters to destroy this time.
Could it be the paradigm shift we’ve been hoping for?  Mutual Credit over dept money?  Sovereign money over the banksters?

OS:  Here’s more on that situation…this looks like the end of the petrodollar, which would almost certainly lead to the eventual withering away of the western banking cartel and their transnational corporate empire:  http://www.zerohedge.com/news/2017-11-11/if-saudi-arabia-situation-doesnt-worry-you-youre-not-paying-attention

RB:  I don’t buy it. This is how the cartel increases it’s portfolio in the petro-yuan. http://coloradopublicbanking.blogspot.com/2017/10/multiple-scenarios-for-petro-yuan.html

Me:  Correct. Nothing short of a thorough change, a thorough balancing of the current dominant monetary paradigm of Debt Only, that is Burden Only, will the power of the cartel be broken up. You have to be able to see past Debt Only, the patterns of Debt Only.