Images are a gift of consciousness, mental and otherwise. They are more direct than abstractions and hence have been utilized by humans to more deeply experience. The only deeper and more direct experience than images is consciousness itself. Artists, particularly visual artists are valuable beyond all other avocations or occupations.

Me: An excellent article on the FED, the current problems (inflation and malinvestment) and a good policy in an infrastructure bank. However, it still doesn’t go to the true core of our economic and monetary problems. Even good reforms like what is suggested will eventually be gamed and morphed into entities that benefit the banks and big investors…the same way Keynesianism got morphed into the neo-classical “synthesis”. To have permanent change you have to awaken to and effectively change the operant concept of the entire pattern, that is the paradigm of money and hence the economy.

All of yourself, Steve Keen, Michael Hudson, MMTers and David Graeber have been pointing at the core problematic area since 2008, namely “money-finance, debt and banks”. Now all you need to do is up your game to the actual paradigmatic/operant concept/pattern level of analysis, and decypher the most efficacious policy ways to implement the new operant concept. I’ve done this in my book.

R: Everyone has at least a little fear of a ‘trillion dollar’ coin, seemingly conjured from the Nothingness, but who is afraid of a $1000 Pacman coin, appearing and disappearing, at high speed?

Unless, of course, you are the debt bankers, who will soon realise, they are losing their profits, from the interest streams.

Me: Or, why not utilize the same method that the banks do to create our money, namely via reciprocal accounting entries and then unlike the prestidigitation they also use to immediately create it ONLY AS DEBT, you instead create it as a gift of 50% of the price of everything at retail sale and then reciprocally the monetary authority rebates every cent of the discount they granted to the consumer back to the merchant? The equation formula of equal debits and credits summing to zero is so powerful.

That way every economic agent individual and commercial benefits, you macro-economically implement BENEFICIAL price and asset DEFLATION into profit making economic systems, (holy mind and orthodoxy blowing that is!) and the unconscious paradigmatic power of the banks to create our money ONLY as debt is inverted into a new paradigm of Gifting that frees everyone and the system as well.

R: Sounds complicated, Steve.

Banks loan bank credit, created by the value of their customers’ collateral.

Why not have nationally-owned asset banks, holding the collateral Titles, in Trust, during the loan periods, with the loan funds, created as bank credits, and as interest-free customer assets.

Our nation’s monetary supply then arises in the form of asset lakes, and the people are their own central banks.

Too simple?

Me: It’s the essence of simplicity actually. Its simplicity is wed to power as in the operant/most significant problem solving concept applied at the single most universally participated in point in the entire economic process (retail sale) via the tool that the banks currently use (equal accounting entries) to create upwards of 97% of our money (but ONLY AS DEBT while in the case of a 50% discount of the price of virtually everything is a GIFT) and finally double entry bookkeeping is the infrastructure within which the entire economy is embedded, thus giving the new paradigm concept hard, mathematical temporal universe reality.

Monetary Gifting doesn’t negatively effect collateral because every commercial agent gets their full price. Again, the power of accounting.

Everyone and every commercial enterprise gets an account at the central bank…not just the banks. The recent gifted checks given during COVID took very little time to distribute and the 50% Discount/Rebate policy would be even easier to set up. The commercial entity simply opens a new T account labeled Sales Discounts and the monetary authority credits it with the total of their discounts to consumers. Simplicity and powerful PARADIGMATIC effect on the money system and the economy…for both the individual and commercial agents.

A: I appreciate the writing on this subject. While not an expert myself, it does seem as though these rate increases by the Fed are being called “aggressive” but relative to what Paul Volcker did in the early 90’s to curb inflation, they’re actually quite tepid…. so tepid, in fact, that the endgame may be more about producing hyper inflation in defense of legacy finance and government solvency than it is saving Main Street. The Fed is governed by elites who spent their lives attending prep schools and ivy leagues, and Wall Street investment banking so there’s really no basis to think they are acting in anyone’s self interest but their own. Hyper inflation will hurt everyone except those at the top.

Me: There is virtually no chance that we will have a hyper inflation. As the late Stephen Zarlenga accurately documented in his book The Lost Science of Money hyper inflations never occur without at least several disastrous decisions are made first like 1) going to war, 2) losing the war and in the process losing most of one’s productive capabilities, 3) having the winning side impose onerous reparations and debts on you and which makes it politically viable for the economic and political elites in your country to okay the most disastrous occurance and which transforms bad 8-12% inflation into a hyper inflation and that is 4) the private banking system leverages up speculators who short the currency thus ushering in a true hyperinflation.

Having said this, inflation like we’ve seen recently is still painfully erosive of the purchasing power of 95% of the general populace and needs to be stopped and forever prevented again. To wit, the 50% Discount/Rebate policy at retail sale which is actually a paradigm change in a single policy because it is the very temporal universe expression of the new monetary and financial paradigm concept implemented at the most potent and workable point in the entire economic process (retail sale).

I’m all for research and reforms, and every one of the leading reforms conceptually align with the new paradigm concept and have been dancing around the problematic area that needs to be addressed (money, debt and banks) since before the shite hit the fan in 2008, they just haven’t recognized the specific new paradigm concept (Abundantly Direct and Reciprocal Monetary Gifting) or the best places to implement the new concept so as to have most positive and problem solving effect (retail sale and the point of loan signing) and finally making that policy mathematically powerful enough (with a high percentage of discount at retail sale) that it is irresistibly beneficial to all economic agents as well as “an offer they cannot refuse” to participate in, and immediately solves 3 of the deepest problems of our current system (1 chronic individual and systemic purchasing power and thus 2) demand scarcity and 3) inflation).

If anyone here can show me better results for everyone and more problems solved with only a handful of policies I’ll be happy to jump on their bandwagon. Otherwise, get on the bandwagon of the new monetary paradigm. All it needs is a platform to communicate its benefits and “its time will have come”.

TV: Steve Hummel: Maybe hyperinflation has not occurred without the extraordinary situations you list, but not only is the USA in jeopardy of losing both hegemony and overseas wars (hot and proxy), but also owes 30+ trillion dollars. It remains to be seen what multipolarization will impose. You’ve got the Exceptionalism thing going on bigtime.

Me: The national “debt” is a complete side show and non-issue which is used to keep the political and economic debate in perpetual suspension. Steve Keen has mathematically proven that if we don’t have deficits the economy will inevitably fall into recession. Of course there are plenty of other reasons why we have recessions like what Ellen refers to in this thread, but fiscal austerity is the problem NOT the solution.

I’m not only not advocating for American exceptionalism, I’m trying to get the current refrom movements to analyze on the operant concept/paradigmatic level so that we can solve the deepest reason empires have invaded their neighbors, namely because with the present 6000 year old monopolistic paradigm of Debt Only the inevitable build up of PRIVATE debts destabilizes their domestic economies so elites think that invading and stealing their neighbors assets will fix it.

So what I’m actually advocating is the end of that 6000 year old geo-strategy…and implementing the new paradigm so that no matter whether its a hegemonic or multi-polar world the deepest cause of aggression is eliminated.

Why do I claim this? Because I was the person who first identified the exact new paradigm concept of Abundantly Direct and Reciprocal Monetary Gifting. (Copernicus’ initial concept discovery and recognition)

I was the person who observed that taking C. H. Douglas’ compensated retail discount policy and making it a high percentage rate discount would temporally prove the validity and workability of the new paradigm concept. (Galileo’s observation of the moon’s of Jupiter)

I was the person who recognized that the high percentage discount/rebate policy and the rest of the new paradigm policy program made the monetary system work better than it ever has before, resolved all of the economy’s deepest problems and finally made both systems serve Man, instead of Man having to slavishly serve the system. (Kepler’s discovery of elliptical orbits which finally made the Copernican paradigm concept more accurate than the Ptolemaic one)

Fisher kept his mind open even after suffering from the negative effects of fallacious orthodoxy. That takes self reflective wisdom and a brave and insightful willingness to embrace complete conceptual opposition which is one of the signatures of imminent paradigm change.

Minsky is a very good macro-economic tool but the truth is a lot of calculus isn’t necessary when an operant concept is identified and the point of a policy expressing it has universal/macro-economic effects. Retail sale is such a point as it is universally participated in, and is the terminal ending point of the entire legitimate economic process where production exits the economy and becomes consumption so by definition it then is also the terminal expression point for virtually all significant economic factors…like for instance inflation. Just keep doing the simple math on the 50% Discount/Rebate policy at the point of retail sale until its macro-economic effects blow your economic mind.

We require a grand integration of the left and right political and economic perspectives and that is exactly what the new monetary and financial paradigm will accomplish. Changing the monopolistic monetary paradigm of Debt Only as the sole form and vehicle for the creation and distribution of new money with strategically implemented Monetary Gifting will integrate the self interests of both the consumer and enterprise. Unfortunately neither the left or right will presently embrace it because its too philosophically radical, requires that one drop their own orthodoxies and goes against the King, namely Finance. But if it ever gets a platform so everyone sees that a single one of its policies will immediately double their purchasing power, potentially doubles demand for every consumer product and service all while forever ending inflation…the first political party to embrace it will have an unbeatable coalition much greater than Roosevelt’s after the Great Depression.

“To see the world in a grain of sand,
And a heaven in a wild flower,
Hold infinity in the palm of your hand
And eternity in one hour.”

William Blake’s famous lines are not only beautiful poetry they were a mindset that is able to integrate cutting edge science and natural spirituality simply by focusing one’s attention on the incredible diversity in everyone’s immediate environment until you see it as a child does…new and vibrant in every moment.

Science has established that we actually live in a continuous milieu of electro-magnetic emanation. We can’t see that emanation because our eyes aren’t electron microscopes, but we can nascently perceive it by focusing our attention on perceiving any object in the present time environment. I do this routinely every time I take a walk anymore and it always evokes a joy and amazement at the diversity of my environment that I generally miss. It also gives me a heightened perception of each moment of time, an almost palpable sense of the space around me and an increased sense of the solidity of objects at a distance. This I believe is why zen buddhist monks gaze at walls and why Christ said: “If you want to enter the kingdom of heaven ye must become as little children.” The monks are simply trying to bring their full consciousness into present time and integrate it with the constant mileu mentioned above. Christ’s declaration was not meant for for us to ignore everything that isn’t perfect, but rather to see it directly instead of via our abstractions and biases precisely like a child does. The experience of god is in experiencing and wedding our consciousness with the graceful, dynamic emanation of whatever is in our present moment. This is a completely natural yet no less ecstatic spirituality.

GM: I agree that an increasing money supply is not a cause of inflation, or, as you at least admit, not the primary cause.

Thanks for the meandering trail into why some may have failed to grasp the cause, but one is no more enlightened on cause in reading your nonsense than one who didn’t.

So what is the cause of inflation, if its so simple, but yet invites derision?

And there is no Space-Time because there is no such thing as Time, or at least not what one knows as Time.

Me: The primary cause of inflation is economic theorists advocating the rigid orthodoxy of free marketism when free marketism actually leads them to advocate chaos, that is no or in the case of liberal theorists palliative regulation. The new applied paradigm concept implemented at retail sale with a 50% Discount/Rebate policy mathematically ends any possibility of inflation and ushers in so many immediate and “knock on” benefits for virtually all economic agents that it is a paradigm change in economics and the money system all by itself. There is an entire new paradigm policy program of course because in the temporal human universe even a legitimate paradigm change can be idiotically and/or ethically gamed.

If you don’t think the 50% discount/rebate policy at retail sale will end inflation just keep doing the simple math until it clicks into your mind. And no other economic agents before retail sale won’t just inflate prices 50% because 1) if they did and just one of their competitors didn’t also wildly inflate just how much market share would the unethical, anti-social CEO lose??? And 2) the incredible tax cuts all enterprises will receive as one of the “knock on” benefits of the new paradigm program will be forfeited, and any revenue garnered or not by inflating their prices will be taxed at a rate of 100%. Wonderful carrots and and awesome sticks that align with a new paradigm concept. Now that is the kind of regulation all but a terminally orthodox or nutso businessman can go for…big time.

By the way the second most conceptually aligned policy of the new paradigm program is a 25-50% Discount/Debt Jubilee policy at the point of loan signing. That means that a $400k home gets reduced to $200k at retail sale and at point of loan signing its price and final amount financed is $100k. A $60 k Tesla becomes $30k at retail and $15k at loan signing. A $40k internal combustion auto becomes $20k at retail and $15k at loan signing.

Just keep doing the simple math. Eventually it blows any lingering economic or financial orthodoxies away.

Retail sale is universally participated in. It is also the terminal ending point of the entire economic/productive process where production exits the economy and becomes consumption. Hence it is the terminal summing point of all costs, price, including profit for every item or service, and also the terminal expression point for any and all economic factors, like for instance inflation.

Put all of these facts together and the monetary policy of a 50% Discount to the consumer at retail sale all of which is Rebated back to the merchant granting it to the consumer by a monetary authority mandated to do so doesn’t even need all of the complex calculus that normally is necessary to define and discern such macro-economic effect. In other words the macro-economic effect is accomplished by the point in space and time of the policy itself.

Yep. Yep. Yep. Just another thing that monetary sovereignty can bestow.

One of the things this nation also needs is to go after Big AG and the criminal way they have depleted the soil of nutrients so that an apple (and every other fruit and vegetable) now only has 20% of the vitamin and mineral levels they had 40-50 years ago. Also, the pharmaceutical industry that took glyphosate which was originally an anto-biotic and sprayed it EVERYWHERE and its killing our microbiome and helping to create the epidemics of diabetes and auto-immune diseases we see afflicting a high percentage of the American population.

Big AG, the pharma corps and the sugar lobby REALLY need to be re-worked and punished severely if they don’t wake up and stop slowly poisoning us. I know. I used to be a believer in allopathic medicine, but the cutting edge of science is nutrion and the microbiome. I was a sugar addict all my life. Thats on me. However, when I gave up 99% of sugar and began to eat nothing but organic vegs and fruits I lost 45lbs., got off several of my meds after the doctor almost fainted when my A1C went from 8.7 to 4.2 and I’ve got a spring in my step I hadn’t had in 30 years.

One of the things we could do to both de-centralize our food system and save water is incentivise quasi-universal organic gardening and the process of turning grass yards into such food gardens. We need to do this like yesterday because when the soil is worthless…its a survival problem.

Oh yeah, and a 50% Discount/Rebate policy at retail sale is again the beginning of the end of the “inflation is always and everywhere a monetary phenomenon” fallacy touted by the conservative and libertarian right and the beginning of real teeth in a climate change agenda that is also needed yesterday. :))

Regardless of whether or not our tax dollars pay for government, the fact of the monetarily sovereign nature of our currency makes the paying reality moot. This is especially so when the 50% Discount/Rebate policy at retail sale is implemented because with simple and easily enforceable regulation that policy all by itself forever eliminates the harm caused by price and asset inflation which is the primary justification for fiscal austerity by conservative and libertarian economic pundits.