Science like food is a wonderful, enjoyable and necessary mental tool….that exists entirely within the digestive tract of its superior mental mode, Wisdom.

In other words to put it in mathematical terms:

The set of Wisdom is larger, greater and more whole than the set of science only.

My impression of MMT is mixed. I think they have the mechanics of money and its fiscal creation and destruction correct, but the stench of liberal orthodoxy still hangs around it IMO, and I am largely of liberal pedigree. What liberal and conservative orthodoxies need to cognite on is that wisdom in any area of life is the process of the thorough integration of the truths and only the truths of apparently opposing perspectives.

I think the major conclusion to be drawn from MMT is that a directly distributive money system is possible….you just have to look closer at the workings of commerce and how they reflect the Start, Change and Stop process nature of the temporal universe itself. Finding the stopping/ending/summing points of costs and prices throughout the entire economic process and implementing monetary policy specifically at those times and places cuts through all of the complexity and myriad activities of modern economies.

I am an innovator and extender of C. H. Douglas’s monetarily distributive theory Social Credit that I refer to as Wisdomics-Gracenomics and am compiling two books explaining those policy extensions and philosophical exegesis of its basic concept.

…is that it is a deeper and more inwardly changing reality. As the ecological crisis is extremely important and one of the major aspects of the philosophical concept behind the new monetary and economic paradigm is ongoing dynamic balance driving that inward reality home to the individual is the way to get better ethical thinking and cooperation from the him/her. Ethics being the rational and integrative contemplation of morals, and ethical sensitivity an inherent aspect of graciousness which is also the highest experience of Wisdom…all of the reflectivities, alignments and relevant  deepening of experiences connect with each other.  And of course another of the major aspects of the concept and experience of grace is heightened connectedness.

Steve Keen    Modern economies are in an unstable state of disequilibrium due to debt deflation….which by the way is just another way of describing cost inflation. The question Keen needs to ask himself is are technologically advanced capital intensive economies inherently cost inflationary.  Examining the various datums of cost accounting and using calculus on their relationships to each other will answer that question, and then Keen can then become a conscious Social Crediter/advocate of Wisdomics-Gracenomics instead of holding onto Minsky whose insights are genuine but incomplete.

MMT   Money systems can be directly distributive and can and should reject austerity and embrace fiscal deficits.

Public Banking   Finance is unnecessarily costly and dominating and needs cost reduction and structural balancing

Michael Hudson   Finance and rentiering are the keystone problems of the economy

David Graeber   Debt has been the problematic business model for at least the last 5000 years

All of these movements are unconsciously moving toward the insight of Douglas’s Social Credit that in modern technologically advanced capital intensive economies the rate of flow of total costs and so total prices always tends to exceed the rate of flow of total individual incomes simultaneously produced, and hence a scarcity ratio of incomes to prices which results in inherent cost inflation as their most basic problematic reality.

Wisdomics-Gracenomics integrates all of these insights and extends the policies of Social Credit to better align them with temporal universe realities and much more thoroughly saturate modern economies with the new paradigm of Direct and Reciprocal Monetary Gifting. It also fully fleshes out the philosophical concept behind the new paradigm so as to bring increased consciousness and ethical regulation to its applicability to economics and to money/payment systems, and finally to its general human mental empowerment. 

Keen is right of course, but what is the more underlying insight we can discern from that fact so that we can intelligently craft policy to resolve it? If you notice the GENERAL trend of the above graph is continuously upward, that is from peak to peak the trend line is up through time. As continuously rising private debt is an ever increasing cost even at 0% interest that means that an economy forced to obey the paradigms of debt, loan and for production only….is inherently cost inflationary. This is why the 5 cent Milky Way candy bar of my youth is now $1.34 at Walmart despite a tremendous increase in technical innovation in its production.

I have told Dr. Keen numerous times over the last 3-4 years that I thought his de-bunking of DSGE neo-liberal economic theory was deserving of a Nobel Prize and I stand by that. However, the originator of Social Credit C. H. Douglas came to the above underlying conclusion almost 100 years ago and crafted policies that deal with it. My further policy extensions and philosophical exegesis of the concept underlying Social Credit that I call Wisdomics-Gracenomics enables an even better understanding of the concept behind the new paradigm required to resolve modern economies’ deepest problem and policies that more thoroughly saturate them with that new paradigm which is Direct and Reciprocal Monetary Gifting.

Perhaps Dr. Keen could acknowledge Douglas and myself if the Nobel committee is wise enough to award it to him at some future date.