Banks are chartered to create our money supply by issuing loans both for production and consumption.  These are the original source of our money supply and all money issued is repayable and cancelled upon repayment.  Any money that is saved is not available for consumption.  Company reserves only become incomes when issued for new production which creates a whole new and additional set of costs and prices.  Meanwhile they have not cancelled previous costs.  That is why Douglas said that all new production must be financed by new credits. The so-called “velocity of circulation” does not create new or additional purchasing power as has been alleged and taught.  A dollar is only a dollar and cannot perform the function of, e.g., ten or twenty dollars.  Money can re-circulate but in doing so it does not create new purchasing-power but simply adds to costs with each new circulation for production purposes.

The real economic problem is the dominant and non-integrated position of the business model of Finance, and the solution is an integration of its product credit in the form of loans only with direct Gifting to the individual as well as rationally balanced regulation of its vice ridden urge speculation. Beyond this is Finance’s false claim to sole ownership of their product which is actually a communal resource.

I would mirror Scott’s concerns. Blockchain IMO is at best another palliative and at worst an even more subtly concealed monopoly no matter how enthusiastic the Austrian-Libertarian types proclaim its value. They have a rigid (and false) belief in general equilibrium and their answer, deflation, is one sided and fragmented. No one seems to understand that an integration of Austrian and Keynesian thinking that is more direct in dealing with the financial monopoly and its false claim of ownership of credit, concerned more with the freedom of the individual and the free flowingness of the system than power or control and a more workable and applicable whole is the answer. Thus we have the false choices of a worn out liberal orthodoxy and a xenophobic, fascistic conservative economics with a few populist issues tossed in to make it look like change. Meanwhile the underlying monetary problem is completely ignored. Dualistic contention is shallow analysis that generates lots of heat but no light. Integrate into policy all of the relevant factors including the insights of thermo-dynamics and Grace-Human Consciousness and the ethical sensitivity it natively contains and you’ll have a trinity-unity, a Wisdomics/Gracenomics/Social Credit that has enough mental room in it to also include the legitimate insights and concerns of Georgism, capitalism, socialism etc. etc. But alas, that would require us to actually consider and attempt to enjoy solutions more than palliatives or obsessive contention. And in a world more dead assedly distracted by World of Warcraft and Pokemon Go you can’t even get youth, the normal audience for change, motivated enough to get a mass movement going. Without a vision, the people perish.

On a lighter note…self actualizing faith, hope, love and grace can awaken, outrage and elicit focused action. That beats apathy, a trillion deaths from modern warfare and then exhaustion still without a solution….don’t you think?

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Me:  I’m warming to the idea of Blockchain simply because of the economicness, i.e. frugality of its possibilities. Integration and cultivation of virtues and practicality after all is my motto. Although there are still ethical and security issues. There should be back up and redundancy safe guards implemented along with it in the same way that there should be these with voting machines. The Mr. Robot problem of hacking is also still a concern.

Finally, no matter how much one saves in financial costs the flow of other ADDITIONAL costs, as well as the flows of the diminutions of money from one financial cycle into another, waste and the erosion of aggregate effective demand because of the disruptive force of AI still militate the need for a relatively abundant dividend and an equally abundant percentage discount to retail prices. Even if you have an account with the central bank….but there’s nothing in it,  you can starve while you’re looking for a non-existent/non-forthcoming job that may or may not make you creditable enough….to be given the non-choice of borrowing in order to survive.

The Cosmic Code:  [ ( A x B) –>  G/C ]  where A and B are factors, G/C is Grace-Consciousness and (A x B) is an actual integration and [ (A x B) –> G/C ] is the integrative process. The Cosmic Code also is best understood if placed within a circle with an arrow denoting continual Process and Flow within the temporal-physical universe.

The Rules, Reasons and Effects of The Cosmic Code:

Integrate and Be Integrative. Hence One’s mind will always be truly open, tend to not unnecessarily fall prey to Orthodoxy and so tend toward Wisdom.

[(An Integration of opposing and/or multiple factors)–> An Ethic of Integration/Wisdom ]

Integrate Only Truth(s), Only what Works and Only what is Relevant. Hence one will Integrate Ethics, Practicality and Honesty which are aspects of Wisdom.

[ (Integration of Truth, Workability and Relevancy)–> Ground Rules of Wisdom ]

Understand that no matter whether one believes Consciousness is Natural or Transcendental…It exists and matters. Hence one will be Inclusive, Unbiased and Holistic which are further aspects of Wisdom.

[ (Natural x Transcendental) –> Existential and Relevant Nature of Consciousness ]

Understand that there is no necessary conflict between good Science and Spirituality, and likewise no necessary conflict between good Spirituality and Science. Hence one will not only be aware of and be insistent upon both good Science and good Spirituality, but also be consciously above one’s cultural horizon.

[ (Good Science x Good Spirituality)–> Cultural/Mindset of Wisdom

Understand that Love is supreme and that Love in action, that is loving action in the Temporal Universe, is Grace-graciousness and the pinnacle expression of Love because it expands and extends the universe of Love. Hence one will understand that Grace is both an object and an inherent process.  [ (Love X Acting with Love) –> Grace ]

Understand that Seriousness can be a trap. Hence one will understand the importance of Humor which facilitates and expresses Flow which is an integral aspect of Grace.

[ (Seriousness x Humor)–> Mental and Emotional Flow-Grace ]

Understand that Time can be consciously experienced as both a moment and a flow of moments. Hence Time is the flow of conscious moments.

[(The moment x The Flow of moments)–> Time, a graceful flow of conscious moments

Understand that Consciousness is a priori to action. Hence The Cosmic Code’s expression can also be expressed as:

[ G/C–> (A x B) ]

Understand that the state of Grace is a Trinity-Unity, i.e. a third integrated and more unified state of Wholeness, that Consciousness itself is unitary and that the state of Grace and Consciousness are essentially synonymous.

[ C/G–> (A x B) ]

Understand that in the temporal universe thirdness-oneness is both a mental and physical reality that generally escapes perception because in the next moment it becomes….another thirdness-oneness. This is not to deny Duality, but merely to beseech the individual to integrate/be integrative at which time thirdness-oneness becomes a more actualized reality to one. The mental (or physical) state of Grace is always such a Trinity/Multiplicity/Unity. Examples:

[ (+ charge x – charge)–> Integrated manifestation of electricity/electro-magnetism ]

[ (Space x Time)–> Grace/Consciousness ]

[ (A x B) Integrated expression) –> Integrating/Integrative underlying nature of Grace-Trinity/Multiplicity/Unity of the Cosmos ]

Understand that Integrated-Integrative/Integrating is both the expressed and the essential/underlying state of the Cosmos, and that Grace/Consciousness is itself an integrated-Integrating/Integrative state. Hence The Cosmic Code describes both the final Integrative temporal universe expression of things and conscious human experience….both of which are real.

[ C/G–>(A x B) ] = The Cosmic Code

Understand that the objective of Life is to understand, acknowledge and experience Duality while not getting so caught up in it that one misses the deeper, more unified reality of trinity-unity that encompasses and contains Duality.

People who think that cynicism as a lifestyle is wisdom and that graciousness is folly are both pitiful and stupid. Grace is an amalgam of love, effectiveness and power while cynicism is an ineffective tick above self pity.      Steve Hummel 09/15/2016

The problem is purpose not just employment, especially as AI and innovation increase productivity and decrease the need for human input. A relatively abundant gift of money in addition to whatever employment is available in the private sector AND the option of a job guarantee is the answer to an inherently austere system. When you understand that you stop unconsciously helping man to be made for systems instead of making them FOR Man. The purpose (and trick) in Life is the cultivation of graciousness which is a two way gift, and whatever other constructive purposes one self determinedly desires to keep their attention focused on the present moment. Economic theories should mirror this philosophy with their policies.

BJ:  Basic Income is a consumption scheme originating in free market fundamentalism; the notion that freedom (the only freedom deserved by the poor, anyway) consists of choosing between Colgate and Crest. The scheme will primarily increase corporate profits, encourage additional environmental degradation, and further cement growing domestic income inequality while doing nothing to improve social well-being.

I’d suggest these failures are why BIG proponents like it but the hyper-individualist left is so incoherent in their thinking I doubt they could come up with such a plan.

Me:  @BJ

I’m sorry, but IMO that is a very biased point of view. The real problem is economists and intellectuals in general need to “wake up and die right” ….by living in present time where the transformative realities spoken and written about by history’s sages are real….and all of the fragmented, orthodoxy ridden idiocies of both religion and science are exposed as just that….idiocies.

Systems do not have a mind or consciousness. They require policies that reflect the deep and transformative aspects that mind/consciousness have, to guide them instead of being based on mere profit, power and control …or mere reactionary or unconscious acceptance of orthodoxy about them.

Let us bring consciousness to economics and all of our systems. So that we can come into a new unit of time and stop being reactionaries on the left and the right.

Neither party realizes that the monetary paradigm is the real issue and the only way our myriad cultural problems will ever get resolved. That’s why my Project Wisdom and Monetary Grace is so important for freedom and the survival of profit making systems.

Correct Analysis of Significance of Factors is Directly Related to Significance of Reform

Positive purposeful activity, whether as employment or other self determined means, must be the objective of any enlightened society, and all of the society’s institutions need to both diligently acculturate that in the minds of their citizens….and recognize that the set of purposeful activities is much larger than the set of employment possibilities. And the option of an employment guarantee as policy for those desiring or requiring it fits seamlessly within the latter set.

Integrate the above truths with the moment to moment modern macro-economic fact of an inherent scarcity of total individual incomes in ratio to total costs, the increasingly disruptive erosion of aggregate demand by artificial intelligence and the monopolistic control on credit creation as well as the restrictive vehicles for which distribution of credit is allowed (only as loans and only for production/employment) and the necessity of providing an abundant (not just basic) monetary gift of money and a means of reversing the cost inflationary nature of modern economies to a cost deflationary vector, becomes the more inclusive analysis, more resolving set of policies, and the deeper psychological examination of the individual’s needs.

Me:  @CharlesJ,

“I presume that when you say “individual incomes” you are talking about household incomes (because across the economy as a whole income must equal spending as a matter of accounting).”

They are equal as a matter of the surface level of accounting of total debits and credits, but not in “on the ground” reality as savings, investment, etc. disequilibrate them. Furthermore as modern economies become more and more capital intensive the costs of depreciation, obsolescence and waste, all of which must go into the flow of total costs and by cost accounting convention into the flow of prices, will increase this scarcity disequilibrium between total individual incomes and total prices. Also, according to reputable researchers AI is going to eliminate jobs at a rate at least 10 times faster than it has ever done so before. Finally, credit/money injected into the system via enterprises and so via employment cannot resolve the above inherently cost inflationary system as it will re-initiate that cost inflationary reality. The policies of a direct gift of money to the individual and a discount to prices at retail sale are the only policies that actually are able to resolve the inherent problematic ratio. Having said this a job guarantee as an option for those who for whatever reason would prefer employment over other self determined purposeful activities would be fine so far as I’m concerned.

“credit by definition can only be in the form of a loan as that is what “credit” means,…”

Just like austerity that is the idea that the private banking system prefers and habituates individuals to think. However, monetary grace as in gifting explodes that notion and is the new monetary paradigm and policy that integrated into the debt based system will prevent the historical oppressiveness associated with both private and public institutions.