Yes, the problematic paradigm of the money system is the primary and deepest problem of economics, and its resolution would literally transform it, stabilize it, make a lot of other related problems dissipate or disappear and virtually all other aspects of the economy would fall back into their proper place where if necessary they could be regulated along the philosophical lines of the new paradigm. Historically, this is the nature and effect of a paradigm change, a maximum of transformation, a minimum of structural destruction and a refinement of purpose and ethics in the area in which the paradigm change occurs. Everything adapts to a paradigm change….not the other way around.

c copyright 06/24/2017

Steve Hummel

**********************************************

Me:  MK,

“…sure, but it can run out of Value that money could store or represent.”

What if you implemented a policy that integrated price deflation throughout the economy?

MK:  I am not clear what you mean Craig, too vague for me to answer.

Me:  The money and pricing systems are both digital. If you implemented a policy of discounting the retail product of each business model by 35-40% and created a separate monetary authority to rebate their discounts to consumers back to them you could integrate price deflation beneficially into profit making systems and help to break up the monopoly monetary and financial paradigm of Debt and Loan Only at the same time.

MK:  Do you mean that sellers would be free to set their own price but whatever the price paid the buyer would be entitled to a government rebate of X%, as a kind of reward for spending? I am assuming the money to pay for that rebate would be digitally ‘printed’ by the Government…

If my understanding above is correct this would not be deflationary but inflationary, as it would amount to subsidising consumption with newly created funds, thereby expending the money supply at the retail consumption end of the economy. The inflationary pressure on prices would of course be offset by indirectly also stimulating production, as well as possibly reducing the demand for bank credit, but it would also inevitably add to our foreign debt since the largest chunk of consumption is directed towards imports.

The main problem is not shortage of workable ideas for reform, but political willingness to even openly consider them, given the immense, lethal power of the global banking cartel. Very few politicians would be brave enough to challenge the credit monopoly of the banks on in a major way, especially knowing that the parliament is studded with backstabbing agents of the financial sector.

Me:  “If my understanding above is correct this would not be deflationary but inflationary, as it would amount to subsidizing consumption with newly created funds, thereby expending the money supply at the retail consumption end of the economy.”

The point of “retail product” sale is the point of summation of costs and prices for any product or service, so if the discount was applied exactly at that point and time, especially at each point of sale throughout the entirety of the economic/productive process….how could it possibly result in price inflation?

“but it would also inevitably add to our foreign debt since the largest chunk of consumption is directed towards imports.”

Not any more than it does already, and seeings how a sufficient universal dividend would make the “problem” of unemployment basically disappear domestic producers could harmlessly re-industrialize in the most efficient and productive way possible thus weaning ourselves off of Finance’s wet dream of globalization, and also get ahead of the curve of the just beginning disruptive force of AI which will be destroying aggregate demand at a far higher rate than it ever has before. Foreign trade will remain foreign trade.

“The main problem is not shortage of workable ideas for reform, but political willingness to even openly consider them, given the immense, lethal power of the global banking cartel. Very few politicians would be brave enough to challenge the credit monopoly of the banks on in a major way, especially knowing that the parliament is studded with backstabbing agents of the financial sector.”

Of course implementing every new idea is a political struggle. All the more reason to pitch it to self interested constituencies like the general populace, students in particular, and the small to medium sized business community all of whom stand to benefit from such policies.

Cynicism is irrelevant and defeatist. “Without a vision the people (and their civilization) perish.” Keep thinking about how the disintegration of our civilization (which we now see taking place continually right before our very eyes) would effect you personally. It keeps it more real to you, and ought to motivate you to actually do something positive about it….for your family and friends.

RA: After all this, it is still not clear what money is.

Me:  Money is most basically accounting, and most specifically its subset cost accounting. Take the data there and do the calculus on the rate of flow of total costs and so prices and the rate of flow of total individual incomes and that ratio exposes modern technologically advanced capital intensive economies’ most basic problem.

RA:  Yes, I think that topic is interesting but also how financialization seems to generate money or assets with moneyness. For example, if Miss Julia Investor moved $15,000 in 2013 from her checking account to a mutual fund with tech stock exposure and sold it now, she would have doubled that money and could buy a cute silver Audi sedan. So where did that “money” come from? No one was worse off and had to empty their checking account to pay her. The money just showed up because other investors thought tech companies went up in value. And Miss Julia does not know any macroeconomists and thought both that her checking account was money, but also thought of her investments as money. And in a way, her Audi is like money because she could sell it and buy a Caribbean Cruise. She does not know nor really is concerned that some macroeconomist is trying to figure out how and where to create and delete ledger entries to make his definition of money agree with her activities.

Me:  Yes asset inflation and demand push inflation are the fly in the ointment of many an economic theory. Liberal/Keynesian theorists tend to pretend it won’t happen in theirs, and Conservative/Libertarian/Austrian theorists are obsessed with stopping it or embrace deflation and the pain it causes.

What is necessary is to take adult responsible control of money and pricing….but with gracious and unobtrusive policies strategically timed and placed so as to benefit both the individual and enterprise. And even the correct and best policies cannot effectively control all human actions and counter intentions, so regulation will inevitably also be necessary even with a new paradigm.

Wisdom is the integration of the truths in opposing perspectives and the simultaneous deletion of the untruths they both also have.

The orthodox conservative and liberal political viewpoints are soooooo boring that it’s incredible. Both conservatives and liberals are so habituated to their orthodoxies that they are apparently unable to integrate and so think/see a new thought.

Integration is not “mealy mouthed”, “poison pill” or any other form of compromise which actually prevent integration. Integration is an honest and intellectually purifying process. It is in fact a scientific process in this sense and yet it is more than that because Wisdom integrates the willingness and ability to consider and factor in consciousness and its aspects into the integrative process as well. Wisdom is the process of undoing orthodoxy, and the end product of that process is the pinnacle concept of Wisdom pointed at by every one of the world’s major Wisdom traditions Grace. Not an orthodoxy or dogma regarding Grace….just Grace as both/either a human experience or a systemic condition of a human system.

But the truth is both scientists and religious folk, and both political perspectives talk about Wisdom all the time, in fact they even preach aspects of the pinnacle concept of Wisdom, but they don’t really have anything more than a foggy or fragmented idea of what they are actually talking about. And that’s why they don’t actually DO any integrating. It’s extremely sad and frustrating at the same time.

Contemplate the process of Wisdom and its pinnacle concept Grace. It will prevent you from forever being an erudite dunce, an anti-intellectual populist crank or godawful demagogue.

…and interest is the unifying, driving force that connects it all. In fact you could call it a trinity-unity-interest-consciousness-process.

[ (Meaning & Purpose x Interest)  <–>  Conscious Awareness of Purpose and Meaning ]

That’s what the experience of Grace actually is. Everything we see and sense is a wavelength manifestation emanating from the solidity around us. Exteriorization of one’s own attention/consciousness wavelength integratively into space and out toward solidity is the oft described experience all of the world’s Wisdom traditions speak of and point at.

[ (wavelength of your self x wavelength of everything else)  <–> Consciousness ]  =  Grace

[ (Inhaling x Exhaling)  <–> The Pause In Between Them ]

Everything is a trinity-unity-oneness-wholeness-process, and if you include self awareness/consciousness in that formula…you’ve discovered it.

Is it any wonder that breath/breathing has been a meditative self awareness process and a metaphor for Life, Spirit, flowingness and Grace?

…and made a dualistically contentious orthodoxy out of it instead of the flowing process that it actually is. They just dropped out the third and completing step and hence fell back into obsessive and egotistical contention instead attaining and maintaining the entire flow and process. Most scientists and orthodox religious advocates have basically committed the same crime.

Full consciousness of nature and its most basic reality of Trinity-Unity-Oneness-Process, I have called The Cosmic Code and formulated as:

[ (A x Z)  <–>  G/C ]

And stated as:

A fully integrated (not just contended or reductionistically fragmented) oppositional Duality within a dynamically integrative, interactive gracefully flowing Trinity-Unity-Oneness-Consciousness-Process.

Trump and Putin (and every other conservative and liberal economic “thinker”) want to make the neo-liberal propaganda…”run on time.” The problem is it’s stuck, and requires a new paradigm and aligned philosophy and policies that embodies dynamic, interactive process and flow itself to enable it to do so.

Here:  https://andrewlainton.wordpress.com/2017/06/23/the-perpetual-motion-assumption-in-new-keynesian-models/#comment-24039

The driver of perpetual motion is the cosmos itself which inexorably must follow the pattern of Start, Change and Stop….and re-start. The entire cosmos is IN PROCESS, CONTINUAL PROCESS. That’s cutting edge physics awakened to and applied. This of course is why not even Wisdomics-Gracenomics is an ultimate solution, but it is a paradigm change that will so stabilize economics and save profit making systems from themselves that the layman will say, “why didn’t we do this a long time ago” and of course the economically erudite will say, “I’ve been saying this all along”….except that they will have only been theoretically (and unconsciously) chipping away at the edges of the concept behind dynamic, natural and continual flow, i.e. the Wisdom concept of Grace….or any of the other terms like satori, etc. that it has been called down through the millennia.
Douglas was right all along, but he himself and his followers apparently were only partly consciously aware of the concept behind Social Credit itself, and my Wisdomics-Gracenomics is the cutting edge physics, full philosophical and policy integration/extension of that concept.
Your analysis is good, it just hasn’t fully/completely cognited on the concept behind the new paradigm.

And if you need a structural “necessitator” for perpetual motion it’s right there looking you in the face as continual borrowing is necessary to keep the economy from promptly falling into a recession-depression without it…and yet even borrowing at 0% still incurs a cost/cost build up and so it’s a deal with the devil, or rather a deal with the devil’s paradigm of Debt ONLY. Grace as in Monetary Gifting intelligently integrated into the debt based digital pricing and money systems. It’s the new paradigm that you and Keen and virtually everyone else but little ole me has but a faint actual concept of.

It isn’t a political or financial structural problem. It’s a monopolistic paradigmatic problem. Of course politicians and financial people like yourself still believe they’ve located the real problem and in fact have made a career out of criticizing these things so why would you want to admit that you haven’t looked closely enough at the real problem to see it.

The problem is a monopolistic IDEA/PATTERNS SURROUNDING AN IDEA. That’s what a paradigm is you know. It’s a generally held idea/pattern of an idea. The very fact that it is generally held/believed in, not only inhibits its critical examination it inhibits its very comprehension at all…just like the fact that you have not had the cognition that it is the real problem for instance.   You’ve got a lot of company though, like the best economist on the planet Steve Keen for instance. He has a slight idea of the problem, the banking and financial idea of Debt Only that is, because he has suggested “a modern debt jubilee” which of course is a “one off” non-dynamic approximation of a solution and only a partially conscious comprehension of the resolving new paradigm of Direct and Reciprocal Monetary Gifting.

Wisdomics-Gracenomics is the full philosophical and policy expression of the new monetary and economic paradigm of Direct and Reciprocal Deeply and Dynamically Integrated Monetary Gifting.

You heard it here first.

c copyright 06/23/2017

Steve Hummel

Support The abundant monthly universal dividend policy and the high percentage discount to the retail product of every business model policy.

They would then be able to make more profit, save more and rely on Finance less. The same of course would apply to the individual. Centuries if not millennia of dominance by the business model of finance will then be at an end.

A new paradigm changes everything in fundamental ways, and because the new paradigm is fundamental, transformative and generally help and applied….everything adapts to the new paradigm…not the other way around. And this is correct of course because a new paradigm is always a fundamental improvement and so a very large and genuine step of what is known as progress.

Get on the train of the new monetary and economic paradigm change of Direct and Reciprocal Gifting. It’s all upside.