The set and flow of total financial costs is only a subset of the flow of total costs.

Every present orthodox economist is a nascent social crediter, although unfortunately it may take the non-traditional aspect of the necessity of awakening to Grace, namely a kick in the ass by illogic and/or chaos, to get them to see it.                              Steve Hummel  04/06/2016

A fiat currency is not destined to fail as libertarian/conservative theorists like to opine about, that is, if macro-economic policies that reflect the very anatomy and component parts of equilibrium are utilized to stabilize (not necessarily only numerically equate) it….like for instance a + of individual incomes and a – to retail prices. Actually as ethics is a third and absolutely essential factor in any truly human endeavor and the system as it currently is IS essentially UNethical the actual solution is tri-partrite/trinitarian-unitarian-wholeness in nature. This is not religious in any way, simply naturally metaphysical/philosophical-psychological thinking. Actually as the traditionally religious experience of God is dualistic union with him/her/it and the completely natural psychological experience of Grace is the complete integration of self awareness, space and time….the concepts of integrated dualism and trinity-unity are philosophically and reflectively aligned so who cares which perspective or choice of origin of cause is used.

Economically the fact remains that an integration of a dualism
(a + of $ and a – to price) and a third unitary and necessary consideration, namely ethics is the full solution to its problem.

And that is what I refer to as the Cosmic Code of Resolving Natural Grace:

[ (an integrated duality) within a continuously integrative Trinity-Unity ]

You could also fit that into a central bank with policy mandates reflecting Grace as in Gifting via a Dividend and Discount, and also the entropic/thermo-dynamic embeddedness of economics and the non-entropic idea of money and the equally non-entropic concept of Grace as in Gifting integrating to create a third and unified flow to the economy like this:

[ (+Dividend/-Retail Discount) Economy in Stable Monetary Flow

[ (+ costs of thermo-dynamics/-costs of monetary grace/gifting) Reversing the Flow of entropy]

I know some would say these are airy concepts, but translated into their reflective and thoroughly concrete economic and monetary policies they are the essence and epitome of temporal and ethical power.

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The additional costs of commerce beginning actually with thermo-dynamic randomizing of energy and exacerbated in the actual process of production with the costs of depreciation for which there is no corresponding issue of individual income make A + B its most basic reality. And of course as Austrian economic theory states the potential of human action/decision in profit making economies like printing money and also like a business deciding to increase their prices simply because they can and usually get away with it…at least for a while, is also an endemic problem. The Austrians therefore rail against inflation and think the economy must become deflationary. But they forget/refuse to look at the social credit insight of inherent cost inflation. I remember Bill (I forget his last name) on the old social credit list describing Austrian economics as “that theory which unconsciously wants to make international banking’s triumph…a fait accompli.” By that of course he meant their resistance both to money creation and to regulation of the economy in any way.

However, integrating Social Credit and Austrian economics with a Dividend and a proactively large discount percentage that results in continual price deflation will slay both monetary scarcity and the 5000 year old problematic business model of Finance in one fell swoop.

And this latter integration is the fully aligned with Social Credit additional insight cognited on by a full exegesis and extension of its basic concept of Grace as in monetary Gifting known as Wisdomics/Gracenomics          c copyright 04/06/2016 Steve Hummel

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On Mish Shedlock’s blog, as everyone there resists the above integration due to their almost maniacal and absolutist allegiance to Austrian, Ayn Randian or some other libertarian economic theory, and almost as sport, I conclude my posts with the signature:

“You’re all nascent Social Crediters.”

I know that doesn’t make it any more likely that they will actually look at what I say, but after almost 10 years over there of posting and so far as I know not a single one who confronted or recognized the monetary and economic significance of the conventions and effects of cost accounting (which are fairly straightforwardly available and decipherable IF YOU ACTUALLY LOOK AT THEM AND UNDERSTAND THEM AS FLOWS OF COSTS AND MONEY)….I’m quite sure that you probably couldn’t change their minds with a “phaser” set at disintegrate to their temple let alone words….so any of my unethical attempts at irritation of them is virtually nil. 🙂

Anyway, I salute Liam for being open minded and smart enough to have actually changed his mind from a usury only advocate to a Social Crediter. That alone places him in an elite corps of humanity who has the guts to actually change their mind and then positively re-integrates their stable datums.

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Bob:   Yes, FRNs are the world reserve currency, but some countries are avoiding it in trades amongst themselves, e.g., Russia and China.

Me:  Yes, and if they can continue they will be better off and more efficient economically…..but they still won’t be solving their most basic monetary and economic problem.

Bob:  As I noted a few times, one could see this from another angle and make a different case.

Me:  Bob,

“Accounting is a means of keeping track of economic activity, not economics.”

Debits and credits are a tracking system, but COST accounting is the specific cost datums that when you examine their relationship to total incomes distributed….show the economic theorem of A + B is correct. THAT is an economic discovery and reality…par excellence. Cost accounting is the nitty gritty of commerce and the “on the ground” reality of same, not some abstraction real or imagined. To abstract is to speak of, to be once or many times removed from actuality. The facts of cost accounting and the fact that these costs are endemic to virtually EVERY enterprise at ALL times tells one that they are not only flows of costs and money, but dynamic, causative and operant ones as well.

“This is an economic issue, namely private control over money creation.”

I’m with you on that. I detest the TBTF Banks. Their dominance of every other business model and 99% of the individuals in the economy is supremely unethical. I’m for every efficiency possible for Finance AND most importantly their control of the creation of virtually 98% of our money. JFC that’s why I posted my tri-level Banking system here….so that private finance would no longer be able to willy nilly attempt to distribute debt to everyone and their dog’s uncle like they did before 2008….and then get bailed out despite their being the originators of that irresponsible profligacy. The sovereign national credit office, a public institution mandated to create all new credit and guided by the the gracious policies of a universal dividend and a deflationary retail discount upward of 40+% would then have that responsibility and would grant loans underwritten by the structural Public Banking system where all profit after payroll and additional costs was put into a general fund and/or distributed back to individuals. I’m with you and Ellen and everyone else here on that….but lets solve the entire problem….please.

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That was a great passage by Oliver. Yes, double entry book keeping is a wonderful tool, it’s just that it doesn’t account completely for excess costs in ratio to individual incomes. And there is the Social Credit insight and metric….the rate of flow of total costs always tends to exceed the rate of flow of total individual incomes simultaneously produced. INDIVIDUALLY a gap between your costs and your income can be caused by borrowing, BUT A MACROECONOMIC/SYSTEMIC Gap/shortage compels continuous borrowing which only leads to debt and cost piling up until…..2008. That’s also why the 5 cent snickers bar of my youth is now a dollar and three jobs doesn’t create the lifestyle that one created 70 years ago. Unaccounted for additional costs is the cause of our problems, the effect is the inevitably drowning-treading water economy that is palliated by borrowing and that results in the 800 trillion dollar behemoth of Finance that profits from it and unethically dominates every other business model and 99% of the individuals in the economy.

So we should all just shake hands, slap each other on the back and make damned good and sure that we keep that process firmly in mind as we insist on the BEST and only valid monetary policy SOLUTION to the problem, costless monetary gifting (not the piecemeal, palliative, ineffective or merely blaming ones) and then make sure those policies AND sovereign control of the money supply AND a national banking structure that operates truly in the public interest as Ellen and PBI envision…gets us to where we really want to go, namely freedom and prosperity.

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Adrian:  Liam,

Looks like your’re not a businessman or entrepreneur. Sure, people often borrow because they have to, but the more interesting thing is that people also borrow money to make money, that is, leaveraging. As you yourself say, you borrow because it gets you something you want. As long as you can invest it for a return in excess of the interest rate, you come out ahead, and that has been possible for shrewd people for a long time.  Access to credit is an opportunity as well as a burden. It’s really the former which took over once the financial revolution made credit widely available. Once a credit-based economy was established, then everybody’s more or less entrained in the process, whether they can leverage or not. You have to have access to credit before any of this comes into play. I think social credit has it backwards.

Me:  Adrian,

You’re only looking at it micro-economically. Macro-economically an inherent scarcity of individual income COMPELS continuous distribution of debt….or the system grinds to a halt.

Adrian:  I’m looking at the history of monetary systems and their economic function which is almost entirely macro-economic. Read my book.

Me:   If there is an inherent scarcity of individual incomes in ratio to consumer prices created by the system ITSELF…..then LOGICALLY the system is unbalanced/unstable and REQUIRES additional money/income to become balanced. The only way that happens now is debt/borrowing. Of course that entails a cost so it doesn’t stabilize the system. Gifting thus becomes necessary.

Adrian:  You’re begging the question why there is such a scarcity and why we have an unbalanced system, which I agree that we have. It’s inherent, I suggest, only because of modern system of finance, not because of some kind of hidden entropic system of imbalance (the gap) in exchange or commerce as such.

Me:  Adrian,

The system is inherently cost inflationary. The COSTS of borrowing ARE A PART NOT THE WHOLE of those costs…and thus NOT the BASIC cause of the problem.

A:  The costs of borrowing can occur only in an economic system in which large-scale credit is possible.

Me: Okay. So?

A: Depreciation is a fact of production, and of life. But it is compensated for by labor, which is anti-entropy.

Me:  How can labor compensate for depreciation when it is an ADDITIONAL cost over and above the total of financial costs, in other words of total money distributed by loans?

And labor is not non-entropic it is merely an aspect of the system as a whole which indeed IS entropic.

A:  We are not arguing about the gap between costs and prices, but about what causes it.

Me: Actually we are talking about both. The Gap is caused by both additional costs and diminutions to the circular flow of the economy, but it is caused PRIMARILY AND MOST IMPORTANTLY by additional costs over and above total money distributed which means that ONLY a DIRECT and costless means of equating individual incomes and consumer prices will actually solve that systemic problem. If it were only diminutions of money from the circular flow Keynesianism would have the potential to solve the problem, but it didn’t obviously and won’t because there actually ARE additional costs.

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Me:  John David,

Yes we have both kinds of inflation and that’s why a retail discount mechanism is absolutely essential.

By the way, I did answer your mentioning that there are other ways to fill the gap, but they are mostly piecemeal and inadequate, and so they do not adequately address the dominating paradigm of the Banks which is loan and debt ONLY. Money itself is not the problem as it is the most fungible and widely distributeable possible way to get money into the hands of individuals….and direct monetary gifting DIRECTLY counters and balances the Banks’ enforced paradigm.

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John R:  Governments do not have the funds for ecologically  positive efforts.  And now the TPPA is likely to countermand such if they impinge on any corporate’s profits.

Me:  I completely agree that more government money for research into ways of making more with less is essential, and that there being a scarcity of incomes and so a much greater likelihood that funding will not be there to do such things. And again, are people going to be more rational about the environment and ecology when they are continually stressed or when they have a virtual middle class lifestyle guaranteed? That plus I don’t see that such a middle class level of consumption is not environmentally sustainable anyway….especially if energy and resource conservation and reduction becomes even more possible.

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Adrian:  Sorry, but yet another restatement of the view that the “gap” preceeds and explains all doesn’t move the argument for me.

Me:  Adrian,

With all due respect what part of the laws of thermo-dynamics don’t you understand? The conservation of energy states that it cannot be created or destroyed. Leaving aside the possibility that spirit is simply some kind of energy we cannot currently measure that means that in the physical/temporal universe THE mechanical means of producing anything….is randomizing of energy and breakdown/destruction of physical form (like for instance in the form of the physical means of production). That means that the physical/productive aspect of the economy ITSELF, IS AND CANNOT AVOID DEPRECIATION. Depreciation and its economic effects in the economy (additional costs) is INHERENT…..and the only way to counter it is with AN IDEA within the idea that money actually is, namely AN ADDITIONAL and costless GIFT of money to the individual and to costs/prices to the individual at retail sale. In fact, because nature abhors a physical stasis/vacuum, a mere numerical equilibrium will only last…..for a moment. So in order to ACTUALLY have a free flowing, moment to moment and stable equilibrium….you need to REVERSE the entropy of the physical universe with a (sizable) deflationary GIFTING discount to retail prices.

Grace as in monetary Gifting is the new and necessary economic AND monetary/financial paradigm.

And the Gap does explain all….because it INCLUDES the subset of financial costs within the set of ALL costs.

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John David:  there is no depreciation on information which is a moneymaker in many industries.

Me:  John David,

These things are reducing costs, yes. But does digital equipment that creates digital music not cost money? And does it breakdown? In the end you cannot resist the effects of the physical/temporal universe which is depreciation ITSELF. Unless you use an idea….which apparently and for all practical purposes is NOT a part of the physical/temporal universe….to REVERSE entropy.

To paraphrase R. Buckminster Fuller: If you want to change the world don’t just fight it, create a new idea and replace/integrate it into the current system.

Thermo-dynamics declares that the temporal physical universe is randomizing of energy, and since energy is obviously and utterly necessary in mechanical-technical production, so the economic/productive system is inherently cost inflationary and the Social Credit/Wisdomics/Gracenomics premise is proved. Furthermore, the it also points at a concept which is the anti-thesis of the entropy of thermo-dynamics and which is also a valid economic concept that can equate and reverse cost inflation, namely the traditionally non-entropic concept of Grace and the reflective costless Gifting nature of same …..as the only truly  effective economic means of so reversing entropy and so resolving it.

Life is both an art and a science, and the beautiful thing about good science and scientific breakthrough is that its signature is the art of not becoming obsessively attached to its own dualistic deductive method and hence itself,  become a closed minded, intolerant and arrogantly orthodox religion instead of science.

What DSGE economists are unable/unwilling to account for is all costs and the role of human action, human will and ultimately human consciousness itself. They are also hung up on employment and thus human effort and human input as well. This because they refuse to look at and understand the natural metaphysical concept of Grace an aspect of which is free gifting and another concept of which is individual will/action. The fundamental vector of profit making economic systems is upward, and this is true for both cost and the randomizing effects of human action/will/intention.

They are unconscious of the concept that would resolve all of these which is the concept of Grace. The experience of Grace  IS the experience of one’s own consciousness….and it does not matter a whit whether or not one attributes the origin of consciousness to God, to nature….or both because human consciousness, human self awareness….is a reality that is causative and thus dynamic and real….in the temporal universe….and hopefully increasingly in many more if not most humans….because the world needs such a new, and integrative ethic that both religious and non-religious people can embrace in order to reverse the vector of human society from destruction to survival.

But even Consciousness without ethics is a Frankensteinian event waiting to happen. A new and modern ethic is essential, and the integrated duality within an integrative trinity-unity of consciousness and ethics which describes Grace IS that concept for money, banking, debt and hence economics.

There is no fallacy of composition with Consciousness/Grace/Ethics. It is interpenetratively universal, and if, that’s if, there is a tiny fraction of humans who are genetically predisposed to sociopathy….it still doesn’t matter. Ethically conscious being accurately describes man….and the necessity that his ethical sensitivity and awareness  rise on the inherent hierarchy of the concept of Grace, especially as it relates to our economic problems, is essential for their resolution….and probably our survival.

Grace is balance, and the anatomy of balance is controlling both sides of an up or down possibility. Actually it’s controlling the balance which is equilibrium as well, so that makes it a trinity-unity of an integrated duality. Trinity of course is the signature of Grace/Consciousness/Self Awareness. In economics the primary duality is cost/price and money/individual income with which to liquidate them.  So ethical and economic control of these two is essential, that is effective and yet freeing and free flowing control. And that describes the benevolent and yet intrinsically powerful concept of Grace/graciousness, sovereign grace. A gracious governmental sovereign  is both completely powerful, and ethical and benevolent (of good will) at the same time. And that is why Grace is the new necessary concept for economics and the macro-economic policies of a + to individual incomes and a – to prices is the anatomy of balance. But what about human will/action and thermo-dynamics/cost? These are the two factors that are wild cards and require integration/ascension/resolution….and Grace as in ethics and grace as in ultimate cosmic/natural flowing balance is their resolution.

Grace is continual integrating toward resolution/oneness, and this describes the flow of Time and of the healthy Life and process of Living as well. To integrate assumes at least two things and/or factors and their combination so as to improve/resolve/become a more unified whole.  Thus Grace is both a duality integrated and a/the  third and more unified thirdness that results/consciously enlightens from that continual integration. So if Wisdom is integration, Grace is its continual pinnacle concept and personal experience. 

!!!!!!!!Thermo-dynamics is the temporal universe concept of ultimate and excess/randomizing cost. This is why Grace as in a costless gift is the ultimate resolution of our economic and monetary problems, and why the macro-economic mechanisms of a cost deflationary retail price and a universal dividend are essential as policy. !!!!!!!

Austrian economics is the complete philosophical inverse of Wisdomics/Gracenomics. However, the result of integrating Austrian economics with Social Credit/Wisdomics/Gracenomics is proof that the concept of Grace is the answer to the deepest problems of modern economies.   

Price can go up or down due to both human action and cost, but will always tend to go up in profit making systems because the interest of economic agents in profit making systems is profit/increase of money-security, and because economics is utterly embedded in the temporal universe and thus subject to the randomizing and thus rising costs of thermo-dynamics.  Thus monetary Grace/Free and costless Gifting in the forms of a universal dividend and a price deflationary discount at the point of retail price/sale…..is the resolution of these most basic economic realities.

Speaking and theory license and course in Wisdomics/Gracenomics. Participation in non-profit Project Wisdom and Grace to businessmen and individuals with those built in constituencies. Every possible rebuttal to every possible objection. 10% commission on any of my books you sell.

The system ITSELF creates less individual incomes than it does prices so it will fail, and the only way to keep the system from failing in the long term instead of the short term is to compel borrowing. The government could order a policy of monetary gifting to everyone equally and a discount to prices, but the Banks don’t want this to happen because they would lose their monopoly control of money, not be able to dominate everyone and make profit off of that domination.

So what are you going to do about it?

Make a daily habit out of being heroic if even in little ways. You’ll end up being a saint or a Bodhisattva who are the real heroes of the world anyway.

Graciously grant beingness to everyone and everything unless they’re being harmfully stupid or enslaving.

Wake up and stop being a slave, stand up on your own hind legs and be a freedom fighter and an evolutionary soldier/artist for love, beauty, laughs and human betterment.

“Bless the beasts and the children” they love despite being chained to their appetites, and also show us the way toward Grace which is openness to the newness and nowness of the moment combined with an unflagging determination and duty to go, to grow, to flow…..and then to find the soft spot to nap.

Contemplate the revelation before and around you, it’s so much more beautiful and interestingly diverse than some internal or external distraction that only dissipates the greatest gift the cosmos has ever granted us, our own conscious awareness.

Life gets boring…unless you look at what’s in the moment.

Having a purpose makes you happy. Having an ethical purpose makes you really happy….and keeps you out of the slammer.

Banking is too important not to be guided by and integrated with, Grace as in Gifting.

Entrepreneurship and business is already woefully burdened with reversing thermo-dynamics, so give it as many breaks and gifts….as it gives to the consumer.

Monetary Grace as in gifting can literally transform business gravity into escape velocity, turn drudgery into duty and fun, and create a genuine partnership with the consumer instead of simply making him/her a mark.

Corporations are not, and will not be people….until they bow to Grace.

Politics is rank amateur theater. It must be replaced by the drama and comedy of Life and be guided by duty and the resolving power of Grace.

Where would we be without the arts?……in a perpetually rainy day.

Where would we be without Sport?…..at each other’s throats and plagued by obesity by the end of adolescence…..instead of by our twenties with Monsanto etc. making our food.

Everything is a gift. Wake up to it, accept it, and pass some of it around.  Everybody deserves a break, and grace as in gifting is so mentally and virally powerful it could kill off 95% of personal unhappiness and nearly all of our economic problems in about a month.

Faith, Hope and Love are wonderful experiences. Just add action and you’ve got Grace too.

Integration is two apparently opposing ideas, theories or systems combined and that  is Wisdom. Flow and process is that integration plus action which is a third and  unified state known as Grace.

Wisdomics/Gracenomics is fully and precisely aligned with Social Credit philosophy and policy. Its contributions, which are considerable, include the extended exegesis of the concept and experience of Grace as they apply to economics and money systems, the insights and discovery that all of the leading reform movements and cutting edge theorists have as their basic underlying concept  one or more of the aspects of Grace and finally the illustration of the incredible power of Grace applied both both personally and systemically.  I thank and stand on the lofty shoulders of Clifford Hugh Douglas and many who have kept Social Credit philosophy intact in books, in discussions and in mind for most of their lives. People like Wallace and Robert Klinck ,  Jim Schroeder,  Oliver Heydorn, Dean Malone and yes also John Rawson who made me re-look at things just to make sure. There are many others alive who I have learned from,   and also from authors of Social Credit who have passed on. I thank them one and all.

A Gift of money does not incur any cost to either the individual or the economic system….all it does is free the former and make the latter free flowing….and not coincidentally also makes the latter actually ethical.    Steve Hummel 04/04/2016