The solution is recognizing that policies effecting individual and commercial monetary freedom and a free flowing general DISEQUILIBRIUM…are the only way out of all of the conundrums and paradoxes currently afflicting economic theory. wisdomicsblog.com

Scientists and even philosophers will puzzle over all of fragmentation and contradiction in economic theory until they discover the natural concept whose most basic aspect is a thorough integration of bothness/duality itself. Then, if they’re careful and they use the mental discipline of Wisdom even more than the beautiful, important and almost as complete disciplines mentioned above, they will be able to perceive the way out of the current morass, implement policies aligned with that natural concept and so bring us to a third, new and more unified understanding.

AZ:  What is amazing, mind-boggling, flabbergasting — and many other purple adjectives — WHY does this NEED to be said, 80 years after publication of Keynes General Theory? What are the reasons for this regress in knowledge in economics?

Me:  IMO it’s because Keynes only identified and prescribed policies for the structural economic problem when an entirely new philosophical concept and monetary paradigm was necessary for economists to perceive. In other words Keynes did not go deep enough. This was true when Keynes wrote the general theory and is even more pressing now not only because Keynesianism got morphed into neo-liberalism by the false ideology of general equilibrium looking to be justified, but also because the real underlying problem of an inherent, systemic scarcity of demand in ratio to costs/prices has inexorably trammeled on for almost 80 years while the monopolistic financial paradigms of Debt, Loan and For Production Only have also not been countered and broken up by the new and necessary paradigm of direct and reciprocal monetary Gifting.

Steve Hummel 04/09/2017

Some economists actually stand looking at the concept of grace as in monetary Gifting, even suggesting partial policies that perfectly reflect it and still fail to understand that it is the thing, the new paradigm required to resolve the problems of the economy and money system…simply because they are unconscious of that concept.

Steve Hummel 04/09/2017

You are quite right Dr. Keen the present overriding economic viewpoint does actually (and incorrectly) posit perfect control, equilibrium and an ethic of power. And that is why the economic and monetary systems require an ethic of Wisdom (not provincial religion) and reflectively its highest concept grace as in monetary Gifting to stabilize them, not to mention make them humane and ethical for all business models and the general population. wisdomicsblog.com

You’re right again Dr. Keen, in the temporal universe there is no general equilibrium except for a moment, and in the next moment it’s changed so it’s actually a general disequilibrium. Add to this insight the fact that in modern economies the rate of flow of total costs (and because all costs by cost accounting convention must go into prices the rate of flow of total prices) always exceeds the rate of flow of total individual incomes and you’ve discovered the most basic cause of the general disequilibrium. Now the answer is not to inject money into the system through enterprise as this just re-initiates the basic problem. Nor is the solution to inject a mere statistically equilibrating amount of income directly to the individual. That would be to commit the sin of equilibrium in the temporal universe that is in continual flux. No, the answer is invert the problematic ratio above and in so doing create a scientifically valid “higher disequilibrium” that sets the individual and every commercial enterprise free and enables a much more stable free flowingness to the entire system. And just as a “kicker” breaks up the dominance of everyone by Finance as their monopolistic paradigms of Debt, Loan and For Production only….are countered by a saturation of the economy with Gifting. wisdomicsblog.com

I have tremendous respect for the intellect of economists like Steve Keen and Michael Hudson. They utilize mathematics (Keen) and understandable outrage (Hudson) very well. I have in fact learned a great deal about economics from them. However, with all due respect, what I have and they don’t have as much of, are paradigm perception and other insights available with Wisdom. Wisdom is not religion it is a deepening and broadening mental discipline that has the scientific method as one of its tools and aspects. Wisdom transcends science while including it. Wisdom enables one to see things more clearly, more comprehensively and more dynamically, and hence enables one to more confidently proclaim, to act and to see policies that will have deeper and broader effects. Wisdom is the pinnacle mental discipline….not science. I’m more for science than 99% of scientists because I see from the perspective of Wisdom, and so I’m more aware of whether science is orthodox and so held back, open minded and so has the potential to consider Wisdom or is actually wise science because it has incorporated an aspect or aspects of consciousness itself into the scientific method and so is close to scientific and/or paradigmatic breakthrough.

Steve Hummel 04/08/2017

Why must every other market both human and economic suffer long term disruption ….except Finance.  Oh sure, Finance suffers a little momentarily, but never loses its control and dominance of the overall economy….so it never actually suffers. And when a panic occurs who gets the immediate help? That’s right, Finance. What if we gave permanent and system changing help to both the individual and every other business model except Finance, and did so in a way that also de-throned and de-toothed Finance’s obviously unethical dominance….of virtually everyone?

Hey economists! Hey politicians! Hey every other business community! Hey every individual!  Wake the fuck up and realize that Finance’s dominance of you,….that’s unfair, uncaring, and very unpleasant dominance of you….is the biggest problem you should be focused on, is the thing you should continuously be protesting and pressuring the entire political apparatus to fix and is the thing you must never give up on until it is completely remedied!!!

QE For The People has been around since C. H. Douglas and is enlightened. However, QEFTP needs to be abundant enough to guarantee a virtual middle class income to be truly effective in ending the curiously seldom understood fact that the business model of Finance dominates every other busness model and 95% of the general populace. It also requires a dual policy wisely and strategically implemented at the retail product of every business model including of course retail sale itself. This policy is a substancial discount to the retail product of every business model (say 25% and up) that is rebated back to the business model by a monetary authority specifically mandated to do so. In implementing these two policies the entire economy is interpenetrated by the new monetary paradigm of Gifting which is needed to undo the dominance of Finance, and price deflation is harmlessly integrated into profit making systems. There are at least a half dozen further benefits resulting from these two policies that integrate the best aspects of the liberal and conservative agendas which they have not been able to accomplish in 150 years of obsessive unconscious contention and invalidation. Man needs wisdom (not religion of the pre-scientific or the scientific kind) because wisdom resolves and ethically ascends. If you want to understand wisdom applied to both economics and to science check out some excerpts of my two soon to be published books Wisdomics/Gracenomics: The New Integrative Economic Theory and Monetary Paradigm and The Cosmic Code: An Integrated Duality Within an Integrative Trinity-Unity at wisdomicsblog.com

Essentially reforms are all still residing within the old monetary paradigm of scarcity and Debt, and hence are shallow analysis of the problem and equally shallow  changes, while policies that effect deep, genuine and transfomational change are reflective of the new monetary paradigm of grace as in abundance and gifting.

The healthy and generally correct personal answer to complexity, ambiguity and doubt has always been an abundance of faith as in confidence, hope and love.  Likewise, our economy and monetary systems being human systems and reflectivity being an aspect of human consciousness and of the cosmos itself….systemic economic and monetary policies effecting abundance and the same emotional states would logically be called for. This is Wisdom and its application.

…that strategically and effectively encompass the economy and that also transform the monetary paradigm of scarcity into abundance,….all other markets and moving parts of the economy can and will tend to fall back into their proper place. And relatively light but definite regulation and taxation of what are obvious monetary and economic vices will become more clear, be easier to implement due to the obviousness of the transformation that such macro-policies have effected and so we’ll have much more stability, consensus/unity and profitability as well. You just have to visualize it completely and honestly. Unfortunately 99.9% of economists aren’t up to doing that.

Steve Hummel 04/06/2017

SB:  “How can you own what was there for your ancestors before you and will be there for your children after you?” was the common belief.”

Me:  Yes. And actually, in a monetary economy, everyone CAN own an abundant share of the commons and for that matter of the entire productive heritage of mankind as well which has an almost inestimable value. As I have said many times here Georgism was an insightful theory. With a directly distributive monetary paradigm this could be accomplished, and a land tax could be used for one of the proper justifications for taxation, discouragement of economic and financial vices like pooling of money and rent seeking with the proceeds going to needed infrastructure. When in doubt about policy….integrate seeming opposites.

As for the undiscovered economic (and natural) law is concerned the one that fits the bill is:

The organism/individual has the natural right to partake of the abundance of the environment and its technological derivative productiveness.

None of this is NECESSARILY in contradiction with private property or profit, and problems arising out of such are remediable by an integration of employment, direct, additional and abundant monetary distribution and enlightened taxation.

Again, when in doubt integrate!

JR:  I agree with your view on the slump-time payments for non-production, which money would better have been paid to people to get the food. However, that’s just another aspect that shows Douglas’ analysis was right, but not pertinent to this aspect.

A financial transactions tax which would catch speculation as well as production would help the last aspect, and that is part of our policy here.  It would have to be at a very low rate, 1% or lower to prevent serious cost inflation, and it would have to catch ALL speculation, including bank transfers of reserves etc.  It was first suggested by Tobin as a tax on international transactions, with the money being used to help poor nations.  Good idea too, but it should also work internally because the speculation economy is so big.

Me:  Yes, I was aware of the Tobin tax and think it would be a legitimate means and target for taxation of speculation.

Just to mention, my philosophical and policy extension of Social Credit’s dual policies (an abundant dividend creating a virtual middle class income guarantee, a high percentage [25% and up] retail discount that is also extended to the retail product of each business model) would saturate the economy with monetary Gifting proactively pushing the vector of the entire economy toward debt reduction as well as reduction of the necessity for new debt, effectively integrate price deflation harmlessly and productively into profit making systems and make all transfer taxes for both the individual and businesses (welfare, unemployment and even social security) utterly redundant thus improving both individual purchasing power for employed individuals and business profitability seeings how they now bear those burdens.

No sense at all anymore of being hypnotized and dominated by Debt when monetary Gifting is the new primary paradigm and a better solution all the way around.