A large part of the confusion in economics is accounting is not an integral part of an economics education, and accountants are as well not aware of/do think about the macro-economic significance of their own data and hence neither is aware of the significance of their respective disciplines.

Consequently macro-economists are off in some abstract fantasy land that omits/misses absolutely important accounting data and economic significance, and accountants daily manipulate the same data and significances unaware that the metric that dis-equilibrates the entire economy is right in front of them. Even businessmen, caught up in the activities and problems they face, are not aware of accounting and its macro-economic significance.

Making both general accounting and cost accounting an integral part of a business and macro-economic study  is essential if clarity is to ever come to economics.

Grace as an underlying and interpenetrating attitude/experience/character trait changes everything in an individual’s life. This is because it is in fact such a basic, elemental, underlying and interpenetrating reality which tapped into has exactly its described linguistic and psychological effects. That is simply it’s nature. It is Wisdom’s pinnacle experience and ability, the answer to the deepest personal questions and the most thorny systemic problems, and it exists! Seek it, contemplate its aspects and live it…and you will be free, powerful, ethical and satisfied.

Integrate monetary Grace as in Gifting into the economy with an ongoing universal Dividend distributed directly to the individual, and a discount to prices at the terminal end of the productive process, that is at retail sale, and you will equilibrate the economy’s most basic disequilibrium.

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Create a Tri-Level Banking and Financial system with:

A. a sovereign central bank whose primary and controlling concept again is Grace as in benevolent, gracious and yet undoubtedly in control of the original creation of money and the ethical distribution of it to individuals as per above, to state and local governments and to commercial entities and individuals via loans by a

B. Public Banking structure which is also guided by the concept of Grace as in prudent and virtuous purposes, has rigorous underwriting standards and whose profits after payment to employees is returned to the government general fund or distributed back to individuals

C.  Private Banking that can aggregate and intermediate only funds that have already been earned/saved and yet cannot leverage such funds up as this would be the sole responsibility of the sovereign central bank.

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Align any regulatory policies with Grace as in integrity and wholeness of the entire system as well as Grace as in consideration for both the individual and the ethical business entities who show their good will and gracious appreciation for a system that actually frees the individual and creates an economy that truly is able to flow freely.

Structurally there would need be little other change as Grace as in transformation…truly is a transformational concept.

Whoa freddy, we’re all narcissists to one degree or another unless or until we do the required inner work to resolve and unify it. Anyone seeking political power you can be assured has plenty of it. YOU are the one showing your conservative/libertarian trollishness.

I’m the only one here who has advocated integrating Wisdom into economic and monetary theory for the last 8-10 years which is the only way to resolve its problems and our personal problems as well.

IMO there is no way to effectively fix the system without a simultaneous implementation of both the dividend and discount. Without a costless gift of money going directlt to the individual the scarcity of such will not resolve, and without a retail price discount the naturally upward tendency in profit making systems will result in inflation. Guys like Steve Keen and movements like MMT come up with correct insights about the economy, but their abstractions lose track of concrete temporal possibilities/inevitabilities. Wisdom is the complete integration of thought and action, philosophy and policy and as Social Credit is based on the pinnacle concept of Wisdom, namely grace as in free gifting its policies look at and handle both the inner and outer truths, workabilities and ethical necessities to resolve the actual problem.

Stuart,

The political problems you refer to are completely real, and Bernie is correct that it will take a new coalition of constituencies and/or an integration of them in order to accomplish new policy. However, the even deeper problem we face is finding an economic and monetary solution that actually works….and no politician has a clue as to what such solution is….because they are all dualistically stuck fighting over whether it is capitalism or socialism when a third unified integration of them is what is required, namely a Social Credit/Wisdomics/Gracenomics whose new Distributive paradigm of individual and systemic monetary grace as in gifting….goes to the heart of the problem and resolves it.

I admire Bernie’s “fire in the belly” and would prefer him over Hilary, but socialism is not the economic or monetary solution any more than neo-classical socialism lite (Clintonism) or Finance Capitalism is. None of these current theories is up to a solution because they miss BOTH the underlying scarcity of individual incomes in ratio to costs/prices AND policies that DIRECTLY resolve them.

Let’s go for a solution, not just another “can kicking” palliative/half solution.

Reserves are simply the liquidity that backs loans made within the system. Hence they must be created and tightly regulated by a truly sovereign government and lent only by a Public Banking structure that is not allowed to be corrupted by the desire to be profitable. Private Banking must be even more tightly restricted and regulated by sanctioning it to only aggregate priorly accumulated profits and savings without the ability to leverage such funds. Thus Banks/brokerages would not be able to leverage individual or commercial accounts, merely create bonds from such funds. The public Banking system, using money created by the sovereign money creating agency, would be able to leverage funds to invest/speculate with, but only for reputable, productive and non-destabilizing purposes.

Without such a tri-level banking/financial system the system is destabilized by greed, wild speculation and lack of ethical and adult responsible control.

The danger of excess reserves is wealthy individual and corporate access to them for illicit or wildly speculative purposes because of their creditability. Another very dangerous possibility is their availability and use for war funding.  For instance, if the current monopoly on credit perceives their dominance being eroded or ended they may very likely have little compunction about starting a war that destroyed everyone’s productive capacity….and then of course they would be happy to lend us all the money to rebuild everything. This colossal waste and equally colossally unethical possibility must be avoided at all costs. 

Of course quite aside from this re-working of the system, monetary grace/monetary gifting must also be integrated into the system in order to correct the systemic imbalance between a simultaneous excess of total costs and hence prices in ratio to total individual incomes created and actually spent. In addition, this imbalance is increasingly being added to by innovation and artificial intelligence as they reduce aggregate individual incomes. 

This problem can only be resolved by an ongoing direct and supplementary gift of income granted by the sovereign monetary authority, a universal Dividend to the individual and by a gifting Discount by retail merchants to consumers which in turn is reciprocally gifted back to such merchants so that they can be whole on their overheads and margins.

Of course every lowered interest rate freed up more individual income….just not (and never) enough to actually effect an equilibrium of total costs/prices and total individual incomes actually available to spend and so liquidate those costs/prices. And there goes Austrian and Keynesian economics into the dust bin of history…and the rise of Wisdomics/Gracenomics.

wisdomicsblog.com

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Beer Drinker,

You are absolutely right. Artisan products will become the new “shadow economy”, but that will simply be enough to reproduce a feudal/barter/mostly austere economy for the overwhelming majority of the populace. We will still have to integrate monetary grace as in monetary Gifting into the regular economy in order to avoid the absurdity of feudal austerity amongst technologically abundant productive capacity to produce.

Every economist and pundit is a nascent advocate of Wisdomics/Gracenomics

wisdomicsblog.com