Steve Keen has macro-economically discovered what C. H. Douglas discovered micro-economically almost 100 years ago, that is, that the system is financially rigged to enforce the continual build up of debt. Social Crediters thought that equating total costs/prices and total individual incomes actually available to liquidate total costs/prices would enable flow, but that would just enable a static/statistical/momentary flow with a complete stop….and the temporal universe is free flowing, that is it continually Starts, Changes and Stops….that is it starts, changes, stops ….and RE-starts continually.  

And the extension of Social Credit policies in Wisdomics-Gracenomics enable  this latter free flowingness….and simultaneously end the necessary build up of debt in the process.

Finally, it also ends the tyranny of accounting identities in analyzing and trying to deal with the problem as well.

is not just the virtual monopoly on credit creation that the private banking system enjoys.  That’s bad enough and a structural balancing of the creation of money with a Public Banking system would be an excellent way to cut the costs of finance for everyone.

However, the deepest problem is the monopolistic enforcement of the ideas for the distribution of money, namely Debt and Loan Only as well as for Production Only. And because in modern technologically advanced economies the rate of flow of total costs/prices always exceeds the rate of flow of total individual incomes available to liquidate those costs/prices…continuous borrowing is enforced with the result that the economy will inevitably collapse from excessive debt….even if  the debt/loans are at 0% interest.

The way to break up this monopoly paradigmatic power is to introduce a new primary monetary and economic paradigm of Direct and Reciprocal Monetary Gifting in a way that benefits both the individual and enterprise, and the way to do that is to implement the dual policies of a relatively abundant universal Dividend to everyone 18 years of age and older and an equally abundantly high percentage discount to the “retail product of every business model” that at the point of sale is then rebated back to the enterprise.

….will immediately make it and numerous other problems also disappear and/or dissipate. It is a well observed fact that when a neurotic resolves their deepest conflict many other attending mental and behavioral irrationalities immediately disappear and/or dissipate and they become more rationally integrated. Economics being a human system will reflect these realities and tendencies.

We need an economic philosophy that clearly benefits both the individual and enterprise and whose policies enable a saturation of the economy with a paradigm other than solely debt in the form of loans. The paradigms of Debt and Loan themselves are not the problem, but rather Debt and Loan ONLY.

Provide a guaranteed middle class level of income and macro stability with universal dividend and retail product discount policies…and most of the zenophobia or multicultural complaint will crawl back under its rock or otherwise disperse.

…that for all practical purposes it enables us to transcend the obsessive preoccupation with monetary accounting. In other words we can place as much money into the hands of the consumer with the universal dividend and additional purchasing power with the discount as we desire and/or is ecologically sensitive and never have to worry about erosive inflation….because the seeming impossible, price deflation, has been intelligently and beneficially integrated into profit making systems for both the consumer and enterprise throughout the entire economic/productive process.

That’s why everyone can ask whether economics can be a science when the scientific discovery economists need to awaken to is that economics needs a new philosophy that aligns with a new paradigm….in order for it to become more scientific. And we could struggle with that realization for a hundred years because there are sciences, like physics for instance, which for over a century has stubbornly defended and utilized only the tools of science when in fact they are actually in the business of describing the much bigger and more enlightening thing, namely….a philosophy.

Beyond even philosophy, what economics and every other human system and body of knowledge needs is to realize that Wisdom (not religion) is the superior human mental discipline…..not science. Science, like food, is wonderful and absolutely necessary…and it resides entirely within the digestive tract of Wisdom.

Science is, or for the most part has become, a reductionistic process of the discovery of temporal truths and falseness only. Wisdom is the unifying and wholistic process of integrating only truths toward a greater mental thirdness-oneness which always lights a way toward better application of that thirdness-oneness in the temporal universe….which is the very thing economists/scientists are seeking. Puzzling then, that they rarely get around to utilizing it.  But then, science has unfortunately become the modern religion, and scientists and economists are generally cowed by that fact.

The signature of scientific breakthrough has always been the integration of the scientific method with an aspect or aspects of consciousness itself.  Disciplined consciousness/self awareness being the  tool of Wisdom.

Economics cries out for the perception needed for a new philosophy and a new paradigm. Integrating the scientific method with the mental discipline of Wisdom is the way home to such perception.

He that troubleth his own house shall inherit the wind: and the fool shall be servant to the wise of heart.

You’re right we need an entire new theory and understanding of how to address pricing.

The economy being utterly embedded in the temporal universe must reflect its process of starting, changing and stopping if it is to attain and maintain a continuous flow.

DSGE is flawed in that it assumes general equilibrium when the reality of modern economies’ most basic problem is a scarcity ratio of total individual incomes to total costs/prices. Merely equating that ratio does not resolve the problem because it only statistically/momentarily creates an equilibrium and so violates the process/free flowingness nature of the temporal universe.

What is required is to take adult, responsible and ethical control of the pricing system so that the scarcity ratio above….is inverted….so that the continuous reality is what I call “the higher disequilibrium” of total individual incomes exceeding total costs/prices. This will enable the economy to attain and maintain free flowingness and hence align with the nature of the temporal universe.

For the most part we have forgotten Wisdom and its mental process, the integration of the truths, workabilities, applicabilities and the highest ethical considerations in what appear to be opposing perspectives/policies, and the political, psychological and cultural fragmentation we see looming up around us is evidence of this. The false and obsessive dualities of capitalism and socialism must be integrated to the point of thirdness-greater wholeness….or we’re going to have real trouble eventually.