What if a third scale also placed in your exhibit shows a titanic imbalance between the assets of the wealthy and the general populace?

MMT, like every other economic and monetary theory, and amazingly, despite its wonderful insight about money being created with double entry bookkeeping, is generally unconscious of policy that directly benefits the individual and resolves the thorniest problems of modern economies.

That policy, a 50% Discount/Rebate (IOW equal debits and credits that sum to zero) at retail sale and the rest of the policy program of Wisdomics-Gracenomics, resolves those thorny problems, exposes Libertarian/Austrian economics as delusional and most of the framework of “free” market theoretics as a misnomer for unstable financially dominating chaos.

MMT is somewhat like the Copernican cosmological paradigm change in the following respect. At first helio-centrism was actually less accurate in predicting the motions of heavenly bodies. It took Kepler’s observation that orbits were not perfect circles but ellipses to make it more accurate than Ptolemaic cosmology. And actually this is being too kind to MMT because it merely enlightened the current method for money creation not the actual key concept that strategically applied creates a thirdness greater oneness of an unresolving duality AKA a paradigm change.

Its known as panentheism, or panenatheism if one prefers. Also, consciousness-space-time is another example of the trinitarian nature of reality. In other words everything from you to the cosmos great and small is in the deepest sense a thirdness greater oneness of an apparent duality.

The only thing worse than modern serfdom and the 5 day/work week distraction it demands is modern serfdom…and the lack of distraction it provides.

Hence, a policy of (self chosen) Positive Purpose Guarantee (PPG)…along with the 50% Discount/Rebate at retail sale, universal dividend and sliding scale required “tax”/investment of gifted income into eco-energy R & D and Infrastructure bonds…enables a Wisdomics-Gracenomics and a rational transition from the current monetary paradigm of Debt Only into Strategic Monetary Gifting.

This article promulgates the delusions surrounding the current monetary paradigm concept of Debt Only, and an ignorance of how the new paradigm of Grace as in Monetary Gifting could strategically resolve the deepest economic problems of the current paradigm. 

The bonds that (mostly the banks and wealthy investors) buy to fund our government spending are actually guaranteed payments to those banks and wealthy investers. Yes we pay the interest on them, but that problem could be resolved by simply having the Federal Reserve/central bank pay that interest instead of having to tax individuals and enterprise to do so. Then, instead of further enabling the dominance of private banking with the delusion of “free” market theoretics which is actually a chaotic  system WITHOUT any actual barriers to inflation you strategically implement the new monetary paradigm of Gifting at retail sale with a policy of a 50% discount on virtually all products and services all of which amounts is rebated back to the merchant granting it to the consumer. This ends inflation by implementing beneficial price and asset deflation because you could buy $100 worth of groceries…for $50, a $60k electric vehicle for $30k and a $500k house for $250k. Furthermore, because your mortgage, automobile and insurance payments are the retail point of those industries with the 50% discount/rebate policy at retail sale the central bank pays half of your payment…so you’re actually getting that $60k EV for a payment equivalent of only a $15k loan and that $500k house for the equivalent payment of only a $125k loan. 

And of course the economic benefits of the new monetary paradigm aren’t even the most important new reality it creates. Grace as in Gifting evokes what? Gratitude is the answer. And now you can self actualize that…simply by going to the store and buying something…which EVERYONE does. So its the greatest opportunity to self actualize grace as in gratitude since meditation and prayer which aligns it with Christianity’s insight graciousness is godliness. 

Stephanie, you are obviously an intelligent person, but why aren’t you advocating the same method for creating money THAT MMT HAS CORRECTLY IDENTIFIED and both the private banks and the government use, namely equal equal debits and credits that sum to zero, at retail sale with a 50% discount (credit) all of which is rebated (debited) back to the merchant?

That single policy doubles everyone’s purchasing power by implementing beneficial deflation, simultaneously doubles the potential demand for every enterprise’s goods and services which is the very definition of good economic times and with the rebate back to the merchant eliminates any moral dilemma because they get their full price?

Why? Look at the effects of that single policyStephanie, you are obviously an intelligent person, but why aren’t you advocating the same method for creating money THAT MMT HAS CORRECTLY IDENTIFIED and both the private banks and the government use, namely equal equal debits and credits that sum to zero, at retail sale with a 50% discount (credit) all of which is rebated (debited) back to the merchant?

That single policy doubles everyone’s purchasing power by implementing beneficial deflation, simultaneously doubles the potential demand for every enterprise’s goods and services which is the very definition of good economic times and with the rebate back to the merchant eliminates any moral dilemma because they get their full price?

Why? Look at the effects of that single policy (there are numerous additional policies possible to rebut every objection anyone who has questioned it) …will you PLEASE! It will fulfill everything MMT would like to see happen. (there are numerous additional policies possible to rebut every objection I have heard from anyone who has questioned it).

It will fulfill everything MMT would like to see happen.

Reply to Wally Gringo:

1) Most people won’t spend all of their saved money because like all people who make a lot of money they will invest with it. In my book in order to encourage and increase this I suggest a sliding scale required percentage of Gifted money be “taxed”/invested in eco-energy R & D and infrastructure bonds at 5-6% in order to further mitigate consumption.

2) Most productive facilities do not operate at 100% and with the doubling of demand only the stupidest CEO would not increase such seeing this happening.

3) Business owners should benefit nothing wrong with that…but with the new paradigm the EVERYONE FINALLY benefits. Thats part of what makes it a paradigm change.

4) As I have pointed out before here, your assumption that prices will rise is just your acculturation of “free” market theoretics which isn’t free at all, but rather a chaotic framework of domination created and enforced by Finance’s wielding of the monopoly monetary paradigm of Debt Only. Integrating the new paradigm of Gifting into the Debt Only system not only benefits all agents it will create known and enforceable barriers to inflation and other economic vices…creating ACTUAL freedom within barriers…which in the human world of ethics IS THE ONLY ACTUAL FREEDOM…NOT THE FETSHIZED DELUSION OF TOTAL FREEDOM THAT “FREE” MARKET THEORETICS ASSERTS.

5) Have we ever had 50% y/o/y inflation let along moment to moment inflation? No, because high inflation is generally caused by circumstances created by the current monetary paradigm and other externalities. If you allow the FED’s recommended 2% inflation, make the discount percentage 52% and tax any blatant greedflation revenue garnered from such at a rate of 100% that would discourage anti-social actions. Also, if a CEO raises their prices by say 20% and their competitor doesn’t raise their price just how much market share will he take away from the anti-social CEO?

…which among a list of other individual and commercial benefits also enables middle class Americans to purchase $100,000 worth of goods and services with their $50,000 per year income…is the unavoidable mathematical fact that the political party that first recognizes it will enable them to create a greater coalition than even The New Deal…because it is in fact the greatest new deal AKA a paradigm change.

Time is a unity, an integration to the point of a synthesis, a trinity, a thirdness greater oneness of apparent duality. Wisdom has always been associated with “the third way” that resolves apparently unresolvable opposites. All of the afore mentioned adjectives are also aspects of the natural philosophical concept of grace which can be described as love in action, in other words a unity, synthesis, thirdness greater oneness of the ultimate integration of inward experience and the temporal universe which is the apparent dual reality.

The universe taken as a whole and as we can experience it MOMENT TO MOMENT is in a state of grace and all we really need to do is stand in the light of that EVER FLOWING reality (another aspect of grace) in a more outwardly focused manner than our modern internally abstracted and generally habitual state of mind has become.

And remember, Gifting, specifically Monetary Gifting, is also an aspect of grace.

I didn’t say debt was bad per se. I said the concept of Debt ONLY was a monopoly concept for the creation and distribution of new money. All monopolies are dominating and hence unethical exactly like the Roman Catholic monopoly paradigm I referenced.

What we need is to strategically integrate the new paradigm of Gifting into the Debt Only system, and a 50% Discount/Rebate at retail sale is the first and best policy to accomplish this because:

1) Everyone participates in and/or is economically effected by the the price at retail sale which makes it by definition the single aggregative as in macro-economic point in the entire economic process (thank you non-Nobel prize committe in economics).

2) Hence it is the perfect place to implement monetary policy as per above because

a) its use of the accounting operations of equal debits and credits that sum to zero IOW a 50% credit of retail price to the individual and a reciprocal debiting of that discount back to the merchant granting it implements BENEFICIAL deflation for the individual by increasing the money supply (the heads of the orthodox explode) and b) there is no moral hazard because with the rebate the commercial agents receive their entire price and also receive the benefit of the demand for every one of their goods and services being potentially doubled (the heads of the orthodox explode again).

3) It amazes me that MMTers who correctly point at the fact that our money is created by accounting/equal debits and credits that sum to zero, don’t stand up and cheer when those same operations at retail sale resolve inflation, chronic individual monetary austerity and create a potential doubling of demand for commercial agents’ goods and services which is the very definition of good economic times.