Another application of the Wisdom insight of Start, Change and Stop. The temporal universe is continually in process. In other words it continually changes. What that means is any static/momentary/statistical economic prescription for an equilibrium point is doomed to failure. The economy IS in a state of continual disequilibrium, that’s true, but advocating a mere equilibrium of statistics is errant. ?????

Why? Because to do so is to come to a complete STOP….when the economy and everything in the temporal universe is a continually changing process….and the statistical equilibrium momentarily obtained immediately and forthrightly changes….so that the flow of the economy is instead marked by continual friction and disequilibrium.

What is required is the reversal of the primary disequillibrating ratio of scarce individual incomes to costs/prices, that is, the ratio must become one of an abundance of individual income in ratio to costs/prices. This is the only way the economy can actually attain AND MAINTAIN flow, i.e. free flowingness and so be in accord with the temporal universe/the cosmos. The economy must have policies that guarantee this “higher disequilibrium”. It must attain individual monetary escape velocity and so be in the free fall of orbit. Fallaciously believing that the economy tends naturally toward equilibrium and/or advocating a mere statistical equilibrium both defy one of the temporal universe’s most basic realities. If graphed general equilibrium and mere statistical equilibrium policies will effect the trajectory of a failed orbital attempt, a sine curve…which looks a lot like the so called business cycle. Of course an orbit is still subject to perturbations from various exterior causes, but its path is so much more stable and free flowing it’s unwise to demand less stabilizing policies.

The velocity of money and its re circulation through the economy actually does occur of course, but what economists and pundits misunderstand about it is that it always and only re circulates back through as business revenue and NOT as individual income. Thus it is always expensed and reduced, and as an increase in business revenue does not immediately or in most cases at all translate into wage raises but almost entirely into overhead payments and the rest to business profits, it doesn’t increase individual incomes/purchasing power….which means it (the velocity of money) is irrelevant to modern economy’s actual and deepest problem which is that the rate of flow of total costs inherently exceeds the rate of flow of total individual incomes with which to liquidate those costs, and because the cost accounting convention that all costs must go into price is always and correctly enforced, the rate of flow of total prices exceeds total individual incomes as well. This means that modern technologically advanced economic systems even if operating without any outside intervention at all and total money was ideally distributed (which never happens) are still always cost inflationary and income deflationary.

In my experience this fact seems never to stick with economists probably mostly because they are unconscious of the costing/pricing system of commerce itself and also because almost no economists nowadays have any real knowledge of accounting let alone its exquisitely relevant subset cost accounting and its conventions. I still see Steve Keen, probably the brightest and most iconoclastic economist on the planet mentioning the velocity of money as if it was relevant to the economy’s problems. Heterodox economists, Keen included, are often heard to criticize neo-liberal economists for falsely claiming that their theories are based on good micro-foundations, and yet time after time they fail/refuse to look at the dynamically effecting micro-foundational factor of the costing/pricing system of commerce, of cost accounting’s empirical data and of its macro-economically relevant convention that all costs must go into price.

IMO Bitcoin and Blockchain in the last analysis is the Libertarian, market worshipping, General Equilibrium Theorist’s wet dream that arises out of their irrational fear and hatred of government. (It’s irrational to generally state that government is always tyrannical if its policies are ACTUALLY based on individual freedom and the ethical freeing of enterprise…and their effects are actually the same)

The idea is to destroy Finance’s dominance not destroy Finance itself. In an imperfect world and in spirituality (not religion) hierarchy has its place. Pursuing utter de-centralization in the temporal universe is “chasing after the wind”, confusing freedom with chaos, ignoring lack of security and an invitation for unethical entities to manipulate that lack.

One of the oldest and most basic insights of Wisdom is that everything, emphasis everything in the temporal universe follows a triune process of starting, changing and stopping/ending, and the economic and monetary systems, both being inextricably embedded in the temporal universe, follow this same process. Most economists and economic pundits are either intimidated by the complexity of the economy and/or are unaware of this insight and how policies aware of it can be utilized to resolve the deepest problems of modern economies.

For instance, a universal dividend paid monthly to everyone 18 and over of sufficient amount to guarantee what is currently considered a middle class lifestyle, or just short of it, would encompass the entire economic process for the individual thus guaranteeing a graceful flow of middle class prosperity….for everyone.  More on some of the additional and collateral benefits of having such an abundant universal dividend a little later.

Another instance of applying the above Wisdom insight to the economic and monetary systems would be to implement a price discount to both the retail business model in the economy and also to the retail product of every other business model. The discounts given to the customers of all business models would be rebated back to them by a monetary authority specifically mandated to do so, and this would also be the authority that distributed the universal dividend payment above.  These discounts occur only at the stopping/ending points of economy and thus are harmless to either the enterprise giving it or consumer receiving it, in fact they heartily benefit both because a universal price discount increases the consumer’s purchasing power and the rebate of the discount enables the enterprise to sell his/her goods at a substantial discount and yet get all of his normal price in remuneration. And of course the enterprise would also be more likely to benefit by the additional demand that the dividend would create so the two policies together are synergistic and completing as well.

These policies would work best if they were both abundant because an abundant middle class income would immediately make taxes for welfare, unemployment and social security redundant and completely unnecessary for both employees and employers thus accomplishing more of the agendas of both the left and right have been able to bring us in the last 80 plus years of their continual fighting, namely the creation of abundant economic democracy and the elimination of large governmental bureaucracies at the same time. Likewise a relatively large general retail product discount percentage would increase individual purchasing power, enable enterprise to sell more product, incredibly, implement price deflation harmlessly into profit making economic systems  and last but not least it would substantially downsize the market necessity for finance which is more and more being recognized by economists and monetary reformers as the problematic business model and  business product, namely Debt, by saturating the economy with monetary Gifting instead.

The combination of Public Banking as a cost saving breaking up of Finance’s overweening structural economic powers and integrating the new monetary paradigm of Gifting into the economy could be a dynamic duo that would benefit everyone, every traditionally productive enterprise, cut the Gordian knot that has afflicted our political system for so long and enable politicians of all stripes and/or a president who was bold enough to champion them, to take his place among the pantheon of Washington, Jefferson and Lincoln. Are you listening President Trump?

c copyright 04/18/2017

Steve Hummel

You may use this Ellen, but please cite me as, even though I stand on the shoulders of the giant C. H. Douglas, the philosophical exegesis of the concept of grace as in monetary Gifting, the extension of the concept of the retail discount to the retail product of every business model and the logical alignment of economics, money systems and Wisdom/Consciousness are my work and will be in my books Wisdomics/Gracenomics and The Cosmic Code whether self published or otherwise.

….you just have to train yourself to see and experience it.

Trinity-Unity-Oneness-Wholeness-Process is the abstract-philosophical, concrete, natural, temporal and spiritual reality.

thesis, antithesis and synthesis = logic and process

trunk, branches and roots = tree,

two symmetrical sides of a leaf and the stem from which they arose = leaf

+ charge, – charge and electric field = electricity

space, time and self awareness = the natural-psychological-spiritual state of grace

natural-psychological-spiritual = wholeness of reality

There are of course many other such realities in all spheres

Everything is what it is….and consciousness unifies it.

Steve Hummel 04/18/2017

[ ( 1 x 2 ) <–>  3/1 ],  [ ( 1 x 2 ) <–>  3/1 ],  [ ( 1 x 2 ) <–>  3/1 ],  [ ( 1 x 2 ) <–>  3/1 ], ….

As the thorough integration of apparently opposing temporal realities (1 x 2)  <–> integratively ( i.e. a continual process) becomes a third more unified and whole reality 3/1, in each moment, i.e. everything within the brackets [ ( 1 x 2 ) <–>  3/1 ] through time in the temporal universe.

Also, as the thorough integration of ( 1 x 2 )  <–>  3/1 can be conceived of as a Duality itself of ( 1 x 2 ) and 3/1,  it includes the thirdness and is hence “a higher and more inclusive Duality” and still remains a Trinity-Unity-Oneness-Wholeness-Process. This perspective is what an obsessively fragmented, reductionistic and merely Dualistic science requires….in order to avoid increasingly becoming a religious orthodoxy itself.

Economics needs a new philosophy much more than it needs “realism” or even science. Science in too many respects anymore has become a religion that too many scientists and scientific pundits are slavishly addicted to. Some would say that we just need to be better scientists, and I wouldn’t necessarily disagree with that….as science, again, has become top heavy with orthodoxy and hence religiosity. We do want to include science in our considerations of course, we just want to broaden it and deepen it by broadening and deepening the ideas we scientifically consider regarding economics. And that brings us back to philosophy. And, if we give ethics its proper and superior due, after all any conscious human activity is inextricably (but not obsessively) an ethical concern, then we require Wisdom to aid us in our journey. The major sages of yore were, for their era, probably the most scientific and personally honest individuals history has produced, and their thinking and nostrums-policies informed, enhanced and/or rejuvenated civilization. When we see the flames of obsessive contention, instability and chaos looming up around us perhaps if we considered a new idea in science and economics and some old ideas from Wisdom that are updated with the scientific knowledge gained over the last couple of centuries, we could turn disintegration into a deeper and broader re-integration.

wisdomicsblog.com

Precisely. What economic theory needs is Wisdom which by the way has always had the scientific method (comparison of data to a hypothesis for its truthfulness or lack thereof) as an aspect of its overall discipline. Wisdom is the resolution of opposites by the integration of their truths, workabilities and applicabilities and only their truths etc. What economic theory needs is Wisdomics. wisdomicsblog.com