Total numerical money in ratio to total retail costs/prices is a misleading and irrelevant statistic.
Total Individual income actually available to spend in ratio to total retail costs/prices is an actual equilibrium.
And total individual income excess in ratio to total retail costs/prices, so long as you have a retail Discount mechanism, is the higher and freeing Disequilibrium.
The Discount mechanism increases the purchasing power of the individual, reduces the rate of cancellation of their incomes and provides the liquidity that indicates a healthy economy, namely the rate of the velocity of money. The rate of the velocity of money is in no way indicative of individual income, but rather the amount of overall money turn over in the economy. However, there is undoubtedly a relationship between the fall in the velocity of money and the trend toward less and less aggregate individual income.
The economic system is utterly embedded in the temporal universe which is entropic. Thus how can the economic system itself…have a vector toward and be anything but entropic as well?
The money system, being most basically an agreement/abstraction, does not have to necessarily abide by the supposed temporal laws of thermo-dynamics. That is it can be used to create both entropic (unbalanced) and non-entropic (equilibrium) purposes.
For instance, if the rate of flow of total costs exceeds the rate of flow of individual incomes in the normal and completely unfettered process/condition of the system and is the reality (an entropically cost inflationary and individual income deflationary condition) then the money system being digital in nature and also not being subject to entropy can balance it by costlessly gifting the individual and the business community in economically equilibrating ways. It can also be used not only to equilibrate the system, but to reverse its entropic nature/flow in favor of more individually freeing and systemic free flowing ways while maintaining profit making systems…and actually having price deflation within a profit making system.
Now lending by the Banks or distributing money by the government can somewhat mitigate the entropic nature of the economy, but as such private or governmental distributions either incur an additional flow of costs (lending) or go into the economy proper before they reach the individual as wages (governmental programs for infrastructure etc.) they necessarily maintain and re-initiate its naturally entropic condition.
Only direct Gifting to the individual and reciprocal Gifting by businesses to the consumer which is in turn Gifted back to merchants can actually resolve the entropically cost inflationary and individual income deflationary reality/condition of the economic system.
The governmental and non-governmental allied organizations for Self Determined Positive and Constructive Purpose.
The cultural counterparts to the monetary and economic policies of a universal dividend and retail discount.
02/13/2016: So what are your policies to stabilize the system Dr. Keen?
No answer
02/14/2016: I understand you have advocated a modern debt jubilee which I completely agree with, but isn’t a one off type action like that kind of a static policy when the system is ongoing and dynamic?
The concepts and experiences of Wisdomics/Gracenomics can apply to anyone and everyone. After all, it is the integration of real or apparent opposites. Wisdom and Grace are concepts whose power is available to everyone. Actual openness to them is the only real boundary. No one need alter their secular or religious beliefs about where Wisdom and Grace originate. All they need do is be open to their actuality. Wisdom is openness and Grace is inclusiveness. Therefore let us be open and inclusive so that we may obtain Wisdom and Grace..
Wisdom is discernment and Grace its epitome is foresight. A Wisdomics/Gracenomics sees what will happen without Wisdom and Grace as policy and acts in order to avoid/correct it before hand. We can see that both private and public finance without the wisdom and ethical guidance of policies fully aligned with Grace has been the historical fact and problem. Hence policy fully aligned with Grace are its resolution.
Social Credit/Wisdomics/Gracenomics/ Gracientialism 