Neither perspective has any actual understanding of inflation’s actual cause, and neither has a prescription for dealing with it. They DO have fallacious and incomplete beliefs regarding it as well.

Conservatives think Freidman’s dictum that “inflation is always and everywhere a monetary phenomenon” when monetary inflation is actually difficult to create except when both monetary looseness and other exogenous factors make it almost a fait accompli. Liberals on the other hand have now decided that if monetary looseness occurs there will still not be inflation. Of course we are in debt deflationary times so their claim that it will not occur is just disingenuous or stupid…or both.

The thing is one has to consider the economic circumstances (what the liberals do not do) and drop the terminal orthodoxy (what the conservatives do). In modern technologically advanced economies cost inflation is the real culprit due to the fact that the rate of flow of total costs and so prices always exceeds the rate of flow of total individual incomes (not total money)…and when monetary stimulus occurs eventually inflation will take place simply because businesses seeing  more money coming available….will of course raise their prices.

What needs to happen is an abundant, costless and continuing boost to individual income coupled with a policy that takes adult, responsible, ethical and yet gracious and beneficial control over the entire costing/pricing system so it benefits all rather than not doing so and treating the economy as if it was in equilibrium and stupidly worshiping it as if it were a god that must not be touched or  interfered with.

These policies would be imminently practical and pin point the two major problems of modern economies, namely a chronic lack of adequate effective demand and the erosion of same via chronic cost inflation.

…you pass from the integrating duality stage of development (Wisdom) to the aligning truly trinity-unity-oneness-wholeness-consciousness-process stage where you see Grace in everything.  Grace is the basic cosmic reality after all. One’s ability to distinguish realities is unimpeded of course, and in fact via the Wisdom stage that skill has become a well honed mental tool that discerns validity and bullshit much better than the normal not fully integrated mind.

Every creature inherits the earth and its bounty. It is their right as a living being in its quest to survive.  When animals come upon food or by its skills creates it do they stop and ask themselves whether they are worthy of it or worse do they deny themselves what enables them to survive and thrive? Of course not, they partake of what nature and their skills have made available to them. Likewise every human being is the inheritor of the cultural and economic wealth of work, skills, productivity and technical and mental capabilities of those who came before them, and should not in any way feel ashamed or be blamed for receiving such inheritance. The correct stance is benevolence toward the individual and their rights as inheritors, and genuine appreciation of that inheritance by the individual and a responsibility to uphold and/or increase that heritage.

And the new primary paradigm and policies of Direct (to the individual and enterprise) and Reciprocal (individual appreciation of and responsibility to contribute in any way constructively) Monetary Gifting is the concept and expression of this theory of value.

Direct and Reciprocal Monetary Gifting is the new monetary and economic paradigm and its policies are a high percentage (40% or higher) discount to the “retail price” of every business model and a relatively abundant universal dividend (say $1500 per month) to everyone 18 years of age and older.

And there is no coerciveness about it, which means you are free to refuse the dividend and pay full price for everything…until your wife hits you over the head with a rolling pin and tells you to grow a couple of new neurons and accept your freedom instead of habitually bitching about how bad everything is.

Yes, you will have to then wake up and stop trying to escape from freedom by beginning to create a life of positive, constructive and self chosen purposes to fill the additional leisure time you’ll have. There will be no more being “distracted from distraction by distraction”, habitually claiming to be the  victim of government or profit or going back to being the breeding stock of finance and their hypnotized and/or de-sensitized minions. It will be freedom. Scary at first, but joyous and rewarding freedom. Get over your own fears, anxieties and/or resistance regarding it and get used to its fulfilling and completing gifts.

Integrators of both ideas/theories and actions/policies are the ultimate integrators because their integrations integrate subject and object which is another definition of wisdom itself. And then, if they make their policies free flowing and continuous they attain the status of elegance and gracefulness.

Not only is all scientific research that doesn’t recognize a new paradigm merely like the true or false tweaking that failed to recognize the helio-centric reality and worked only within the Ptolemaic paradigm, but so also are all reforms. Palliatives are the signature of failure to perceive a new paradigm as a new paradigm is a deep cognitive and structural resolution of a basic problem/problems.

…however, none that would enable the aggregation of them to de-stabilize the new system, and even those which are legitimately speculative and so allowed would likely be taxed…especially if they were used to form purely financial “investments”…as opposed to traditionally productive ones and/or ones intended to create entrepreneurialism, innovation and ways to increase production while simultaneusly utilizing less resources.

Yes, and also so distract us from the actual as opposed to the virtual moment that we never really experience ourselves which is the vehicle through which we also experience God.

…is the complete and utter integration of production and consumption…at the same present moment. Hence it also becomes an entirely third and unified thing, namely the agreed upon satisfaction of the purposes of a duality. Thus it mirrors The Cosmic Code and also expresses the following aspects of Grace: bothness integrated, completeness, satisfaction, thirdness-unity-oneness, present moment consciousness and experience. Wisdom is the integration of opposites and Grace is trinity-unity-oneness.

Recently, economists have been slinging invective at each other from all sides it seems, and I can see why. Macro-economists have been operating on a load of false and/or impossibly unrealistic assumptions for the last 35 years. Even Steve Keen, probably the best and most iconoclastic economist on the planet and from whom I have learned a lot about theory over the last several years, still has a foggy and incomplete concept of the necessary new monetary and economic paradigm. He and virtually everyone else also have virtually no idea how to target ongoing policies that will enable the saturation of the economy with that new paradigm.  Well, it’s my turn, so here are the policies, the new paradigm, why they will work and what will be their beneficial effects for everyone and for the system as a whole.

Macro-economists are always so far off in some abstract theoretical or mathematical fugue that they fail to comprehend certain vital economic significance’s that take place continually in day to day commerce. The first of these is the fact that when a sale of anything takes place total costs for that item or service are terminally summed. The second fact is that both the pricing system and the money system are digital. In other words $10 of income will reduce $10 in prices for any product or service, and $10 in income will also eliminate $10 in debt.

The most basic purpose of production is consumption, the point of sale IS the point of consumption, and after a sale occurs…no agent can be economically harmed that cannot be readily repaired by standard business practices or legal precedents. Thus it is the perfect place to implement one of the two policies that will usher in the new economic paradigm of Direct and Reciprocal Monetary Gifting. That first policy is a relatively large percentage discount to price (say 40% or higher) by any enterprise to its consumer and that is then rebated back to the enterprise by a monetary authority specifically mandated to do so…so they (the enterprise) can be whole on their margins and overheads.

Up until this specific and generalized policy was conceived by me, price deflation could not be implemented into profit making systems without extreme pain and bankruptcy for both individuals and enterprise. With old paradigms “Weeping may endure for a night, (or for millennia) but joy cometh in the morning” with the new.

The other necessary policy is a relatively abundant universal dividend in the neighborhood of $1500 per month directly distributed to everyone 18 years of age and older in order to resolve modern technologically advancing economies’ chronic and increasing problem of lack of demand.

There are numerous economic, political and psychological benefits that “fall on” with this new paradigm and these policies being implemented that I cannot elaborate upon in this op-ed format. If The Arizona Republic would care to interview me I would be happy to present these additional things.

Steve Hummel