It appears there will be no response to my asking Dr. Keen to comment on the efficacy of my 50% discount/rebate policies at retail sale and at the point of note signing so I’m going to outline how they and other policies I advocate philosophically and temporally align with everything he, Michael Hudson and Warren Mosler say they advocate…and actually complete their reforms by accomplishing the paradigm change they also advocate.

Dr. Keen advocates for “a modern debt jubilee” and QE For the People both of which are forms of monetary gifting. I advocate these very same policies in my book.

Keen has recently re-discovered the importance of the tool and underlying economic infrastructure of accounting within which the entirety of the economy is embedded.

He has recognized that Banks utilize accounting to create money.

What he hasn’t fully comprehended is that they also use it to:

1) create the virtual monopoly monetary and financial paradigm of Debt Only,

2) that retail sale is a strategically powerful point in the economy for a price and direct monetary policy to be implemented because it is the cost summing, ending, terminal factor expression and exiting point from the economy of every consumer product and service

3) because at that point such policy utilizes the accounting convention (equal debits and credits must sum to zero) and so is the key policy for resolving systemic monetary austerity, individual income scarcity and inflation thus creating a completely new pattern change with Monetary Gifting in both the money system and the economy.

Michael Hudson is correct when he says that for-profit finance is a parasite on the productive economy. Warren Mosler and Steve Keen have also realized that fiscal deficits are a monetary virtue not an economic felony. What they nor any other economist apparently has comprehended is the idiocy of giving a single (illegitimate) economic business model monopoly power to create money in the equally monopoly paradigmatic form of Debt Only when a non-profit publicly administered banking and financial system could dispense money as both debt and as gifts with incredible cost savings for all economic agents, could be used to rapidly modernize infrastructure and along with the 50% discount/rebate policies free up and enable the funding of the mega fiscal projects that will be necessary to survive climate change.

Lastly, let me introduce the new concept of the mega paradigm change. A mega paradigm is one that immediately, directly, continuously and beneficially effects every individual and also has “knock on” beneficial effects in bodies of knowledge and areas of human existence other than the primary area of the new paradigm.

The Copernican Cosmological paradigm change was legitimate in that it forever changed cosmology and enabled the related field of astro-physics, but it didn’t immediately, directly or continuously effect every individual or change other bodies of knowledge other than tangentially and relatively ineffectively the pattern of religion.

The mega paradigm change of Direct and Reciprocal Monetary Gifting and the consequent creating of the profit making economic system of Direct Fiat Monetary Distributism immediately, directly and continuously beneficially effect every individual, every legitimate commercial economic agent and would also beneficially effect

1) individual and social psychology: by giving everyone the deep breath of relative monetary abundance after 5000 years of the smotheringly austere dominance of Finance’s monopoly paradigm of Debt Only,

2) politics: by integrating the self interests of traditionally opposed constituencies of labor and management against the real problem which is finance’s monopolistic paradigm of Debt Only and by defeating inflation, making the fiscal mega projects necessary to survive climate change imminently doable,

3) ecology: by immediately enabling a tremendous green consumer product bottom up thrust toward a sane ecological industrial policy via both the 50% retail discount/rebate policy and the 50% big ticket and green product discount/debt jubilee at the point of note signing

4) geo-politics: by enabling all nations of whatever political ideology to economically survive the ending of the limited resource of petroleum and its negative ecological effects.

WC: “When you mix politics with science, you get politics.”

Me: That is an important insight to keep in mind because it also means that de-bunking mathematical or theoretical insights like general equilibrium and the necessity of fiscal deficits can be easily set aside by the powers of economic and political vested interests as well.

And that is why the immediacy of beneficial and problem resolving effect and starkly empirical and temporal universe reality created by a 50% discount/rebate policy at retail sale is so necessary.

It’s the difference between a palliative non-effect and a complete pattern change.

The parable is actually most apt regarding the mindset and utilization of analysis itself. If one will only look with the reductionist mindset of science while neglecting or ignoring philosophy, which by the way also includes the set of science, they will be prone to at best palliatives and at worst missing the pattern solution altogether.

The word philosophy means the love of ideas/concepts, and paradigms are single and singularly defining pattern concepts like terra-centrism, nomadism and Debt Only.

New paradigms are the ultimate integrative mental and temporal phenomena that replace the old/present ones…. like for instance helio-centrism, agriculture/homesteading/urbanization and Monetary Gifting.

Let us be aware of and not be afraid to use all of the means and modes of analysis, lest we stumble around in the light in the corner of a room and never consider that solutions may exist in the unexplored darkness of its entirety.

The parable also applies to addiction to dualism and complexity instead of considering the wisdom tools of integrative thirdness greater oneness of truths, and the pungent effectiveness and enlightenment that often accompanies contemplation of elemental deep simplicities.

Correct Lars. The rejection of formalism as an answer in and of itself is one of the necessary pre-paradigm signatures listed in my book, but it is only the beginning of the real solution. Why? Because it leads to iconoclasm, but economic theory has been in iconoclasm for a very long time. What becomes ultimately necessary is the first signature of paradigm change and that is the willingness and ability to consider COMPLETE conceptual opposition to orthodoxy. That, and then with the new tool and/or insight that has always accompanied historical paradigm changes and enables theorists to see how applied policy causes temporal reality inversion….finally breaks the image and shows the way forward.

Like:

1) Conceptual Opposition: an austere statistical monetary and economic general equilibrium vs a dynamic, interactive, integrative and abundant monetary free flowing statistical disequilibrium created, enabled and controlled by:

2) Missed Insight: becoming aware of the fact that most basically money is accounting/double entry bookkeeping and thus must adhere to that discipline’s conventions so that

3) New tool/Insight: becoming aware of the tremendously powerful implementation point of retail sale for monetary and price policy because it is a true factor summing and ending point for the economic system and so potential temporal universe economic reality pivoting point and so

4) Temporal Reality Inversion: with equal direct and reciprocal monetary debits and credits at that point changes systemic austerity and individual purchasing power scarcity into abundance of both, that changes the economic vice of chronic inflation into beneficial deflation and last but not least will also enable the industrial policy rationality necessary to survive climate change.

Public debt is a side show. Private debt is the economy killing problem. Once you resolve individual monetary scarcity, systemic austerity and inflation with the dual 50% discount policies fiscal spending will become even less of a problem than it already is and the fiscal spending necessary to confront the very real ecological problems we face will also be enabled.

I have said before I suspect that after an uptick in consumption occurs with the above policies I look for people to begin saving and investing. Nevertheless, the new publicly administered non-profit national banking and financial system could create and fund ecology bonds for research into and/or creation of green technologies at interest of say 3-5% on a sliding scale if individuals put 25-50% of their savings into purchasing them thus funding and incentivizing innovative ecological sanity and curbing consumption as well.

The new monetary and financial paradigm opens up all kinds of sane and innovative possibilities.

Everything is natural. It’s just that certain experiences are so extraordinary and scarcely attained that they are misinterpreted as supernatural. The full blown experience of grace is one such.

Steve Hummel 10/15/2020

Yoshi,

“to whom is your question “What are your policies?” directed?”

Anyone and everyone here.

“If you are asking it to the people who read your “comments” (or expressions of your policy), please know that no responses are their replies.”

Yes, I’m aware of that. I’m also aware that new paradigms are never generally perceived let alone accepted by even the most intelligent and iconoclastic for many reasons the two most important probably being that 1) they are unconsciously inured to the present one and 2) paradigms being the penultimate integrative phenomenon where a SINGLE concept is so deep that applied it resolves the major problematic complexities of the current paradigm and so transforms the PLURALITY of an entire pattern….most are not willing to chance agreeing/affirming a new paradigm for a variety of reasons like ego, fear of loss of reputation and respect, scientism and not recognizing that science is a subset of Wisdom and on and on, and 3) a consequent atrophy of and unwillingness to practice the integrative process AKA Wisdom…which also describes the phenomenon of a paradigm change as in #2.

“Many readers do not believe that your simple solution does not solve everything at all. It is not a logical response but they know by experience that real-world are not as simple as that its problems can be solved by any simple “policies”.

1) I’ve never said the new monetary and financial paradigm will resolve every economic problem….only its deepest and most urgently important to resolve ones. That’s why I have recommended regulations to stabilize and protect it from the likely gamers of it

2) I HAVE cited the psychological fact that when a neurotic resolves their major conflict numerous seemingly irrelevant behaviors tend to dissipate and resolve as well, and economics being a humanly devised system this same phenomenon will likely manifest

3) Simple is not the same thing as simplistic. Simple can be deep…as in the phenomenon of genuine paradigm changes and

4) one of the signatures of new paradigms is the discovery of a new tool and/or insight like the telescope and discovery of the ellipse…and the integratively problem resolving power (for instance of the problems of individual monetary scarcity, systemic austerity and the inflationary tendencies of advanced economic systems) of a price and monetary policy specifically at the point of retail sale

5) As I have said many times here the leading reform movements all circle about money, debt and banks which is a giant hint that this is where the problem actually lies. All that is needed is an honest and courageous recognition of the insight in #4

So lets have some (other and equally resolving) policy recommendations from ….someone.

Money as Debt is most fundamentally accounting. A virtual monopoly on its creation is bad enough, but a monopoly on its paradigm (Debt Only) as the sole form and vehicle for its distribution is one that is I’m sure “making the Martians laugh”. Try exteriorizing yourselves from that (generally unperceived) fact. It’s enlightening.

Monetary and financial policies in the economy from any of you? Or are you all so stuck in your heads and afraid to step out of line and be critiqued that you simply won’t offer any up?

MT: “Because they simply realise that even in the pluralist economic scene no significant progress is being made. Sad but true.”

Me: True. And why might that be?

I would suggest that to a great degree it is the lack of any studies of the signatures of historical paradigm changes and hence virtually no analysis on that level at all. And such failure leaves them with only piecemeal, palliative reforms with only facile or no policy suggestions at all.

The leading economists and economic pundits know that the problem lies in money, banks and debt, but they apparently don’t know what the definition of a paradigm actually is (a singular concept that is such a deep simplicity that it describes a current pattern, and such new concept applied, transforms the entire current/old pattern).

Hence they can’t perceive that the current paradigm is the monopoly concept of Debt Only, and they don’t know that conceptual opposition and integration of the particles of truth in seeming opposites via a new insight and/or tool to the point of thirdness greater oneness are major signatures of historical paradigm changes….and so Direct and Reciprocal Monetary Gifting fits and fulfills as the new monetary and financial paradigm.

Virtually all of us here are heterodox and think the neo-classical synthesis and general equilibrium are bunk. Why continue to theoretically analyze macro 3000 ways from the middle???

We need policies that will effect the changes we all agree are needed, and we need a mass movement to get those policies politically implemented.

All the theory and palliative reforms in the cosmos can be flicked aside like one would flick away a fly with one’s finger by the power of vested wealth, present academic ideology and the unconscious inertia of the current paradigm. We all know this to be true because everyone bemoans it here continually.

But well communicated policies that resolve the long lingering problems of that current paradigm paired with a mass movement not unlike MLK’s Civil Rights movement can slay the dragons of money and finance and effect a mega-paradigm change that might literally save the species.

So again I ask: What are your policies? Are they mere reforms that can easily be turned on their head as Keynesianism was, or are they developed around the deep simplicities that have always characterized historical paradigm/pattern changes? And when are we going to unite in developing a mass movement to get them implemented?