There would be no crowding out with a non-profit public banking and financial system….because everyone and every enterprise could borrow at 0%.

It is true that any unethical on its face predatory and/or destabilizing speculative purposes would not be funded by a system based on grace. Such speculative efforts on the system proper would be immediately declared “null and void”, and the compulsive gamblers and hard core pornographic enterprises would have to go to the remaining investment banks and pay interest on already saved money and profits in order to fund themselves. And of course any such investment enterprises will be closely scrutinized by the system as well.

The new paradigm policies of a universal dividend and 50% discount/rebate would be the best way to encourage individual national development and thus would be the best and fastest way toward balanced trade as opposed to the mercantilism of presently dominating export platform nations.

As economic sin taxation is a philosophically aligned aspect of Wisdomics-Gracenomics the idea of a time gap filling mechanism in the meantime, like Keynes’ bancor system for international exchange to encourage balanced trade, could be a temporary and/or intermitent one.

1.  There will be a noticable and very beneficial uptick in consumption. It won’t be anywhere near a doubling of consumption/productive through put, because virtually no one will eat twice as much as they did before and not everyone will buy another house and a boat and two jet skies.
2.  People will save a lot more, and those that couldn’t save before will be able to do so easily now with the more than doubling of their potential purchasing power.
3. With the new paradigm policies saving will no longer be a macro-economic problem and conundrum.
4.  This will mean that many people will save for larger purchases they want that are not a part of the extended point of note signing 50% discount policy, and hence there will be less borrowing for such purchases.
5.  There will be a lot more actually productive investment/re-investment which will mean there is a lot more money in the actually productive part of the economy… instead of it going into mere pooling financial vehicles that largely take such money out of the flows of the economy.
6.   With the new publicly administered banking/central banking system there will be a lot less de-stabilizing speculative leveraging up on assets, absolutely no creation of idiotic derivative products (except perhaps by investment banks intermediating such bets by compulsive gamblers wanting to risk their own savings which being already saved money will no longer become potentially systemically risky debt obligations).

In other words the cosmos is not you and everything else in the cosmos separate in a duality. That is merely the apparency of normal walking around consciousness. However, the actual reality is that you and the cosmos contain and can be experienced via full consciousness as an essential oneness with and of each other including space and time, exactly as a hologram because the entirety of the image is contained in every part of the whole including space and time and so becomes apparently three demensional in its expression.

DT:  Michael Hudson may be assuming things about the use of gold here, but on Venezuela

C:  The solution is simple. Don’t fix rates, let them float. You may want to intervene a little now and then – but just don’t oppose massive, reality based movements. It’s like trying to send your army out in the field – against a hurricane. Mark Weisbrot and other sympathetic economists have been giving them good advice for decades – and it looked like they finally might listen – but they didn’t. Michael Hudson’s take is wrong. Tying it to gold – a barbarous relic – is folly. The only thing a currency should ever be tied to is what it is really always fundamentally tied to – the labor, the productivity of the nation’s people.

Democratic accountability is not sufficient. The Venezuelan left brainwashed itself into the reverse of the truth. They are fanatical – the word is not too strong – that fixed exchange rates is Marxist, leftist while floating is Milton Friedman capitalism. They needed logic and rational understanding. The Bolivarians have and had a lot of it, except in this one sphere of international trade, which wrecked their other good work.

Me:  The ultimate solution isn’t gold of course, though it might be a tactic that Venezuela and other subservient economies with the encouragement of China, Iran and Russia might employ to outflank the US’s monopoly payment systems. But these are just palliative measures for what must eventually occur and that is a new paradigm in finance and economics that is obviously beneficial for all of the individual, commercial agents and the economic system as a whole, and which paradigm also ends private for profit banking in favor of a publicly administered national banking system guided by an unimpeachable ethic like the NATURAL PHILOSOPHICAL concept of grace as in benevolence. The current system with its obviously monopolistic powers over the most powerful factor in the entire economy, namely credit/money, flies in the face of the wisdom of the dictum that power corrupts and absolute power corrupts absolutely. We need to get real about this.

until now with my Wisdomics-Gracenomics.

It’s true that individuals and enterprise cannot borrow their way out of debt, and its also true that if you don’t have fiscal deficits that the economy will go into recession because people and enterprise save, re-invest savings, depreciation costs in technologically advanced fixed capital economies necessitate relatively large additions to prices and wealthy individuals and enterprises often move large amounts of their savings into off shore tax havens….and all of these reduce the flow of money circulating through the economy trying to liquidate prices in order to keep the economy in a flowing equilibrium.

So what is the solution? It’s tying a direct and reciprocal price and monetary policy in the form of a high percentage discount to the consumer that is fully rebated back to the enterprise giving the discount at the point of retail sale. This creates an abundant flow of individual income/potential business revenue to the terminal expression point for all forms of inflation and the terminal ending point of the entire economic process,which again, is the point of retail sale. That way you end individual income scarcity and systemic monetary austerity and slay the chronic problem of modern economies, inflation, at the same time.

Economists are extremely intelligent, but largely being off in abstract mathematical and theoretical focus they have missed the economic significances to be found at the aggregative point of the micro economy and the single integrative point between the otherwise separate disciplines of micro and macro-economics.

In other words the state of grace transforms and brings full consciousness to everything.

Do yourself a favor and contemplate grace in every moment and in everything you experience.

Thou shalt contemplate, self actualize and logically align the truths and experiences behind religious and economic doctrines, not obsess over the abstractions of those doctrines themselves.

Me:  rddulin,

“Money creation and calibration has ancient roots of being controlled by people with the political power to do so. Old paradigm.”

“Dave has a great idea but follow it to it’s logical end and just give everyone of legal age free dollars to calibrate the money system.
New paradigm.”

Now you’re talkin’. And then just slide in the never recognized fact by anyone except myself that retail sale is the terminal end of the entire legitimate economic/productive process for every consumer item from bubble gum to a house, which by definition then makes it the terminal expression point for any and all forms of inflation….and then implement a direct monetary policy of a 50% discount to consumers at that point that is fully rebated back to the enterprise giving the discount….and voila! You’ve resolved the two biggest and most thorny problems of modern economies, namely scarcity of individual income/business revenue and chronic inflation….in one fell swoop.

Complete inversion/transformation of present realities. The classic signature of a paradigm change.

rddulin:  Craig, I think we are all closer than anyone thinks. I just don’t understand the necessity of the discount and rebate step. Just give the slaves their freedom in their own right and every person the money that is rightfully theirs. Restore the right to quantify and exchange things of value with their own working money. Just like they all measure with rulers
No reason to apologize to the lenders that have usurped the right to use money with their sneaky schemes or to the slave traders that capture people and declare they own them
It would definitely be a inversion/transformation of long standing realities. Douglas being an engineer would understand.

Me:   Yes, we’re close. However, consider this: the discount/rebate policy all by itself breaks up the monopolistic dominance of private finance’s paradigm of Debt ONLY as the sole form and vehicle for the distribution of credit/money. It’s a simple operation without being simplistic…like the operation of every historical paradigm change has been like INVERTING the position of the earth and the sun and in so doing TRANSFORMING our understanding of the universe, using a machine to ABUNDANTLY produce instead of one’s hands, demanding the FREEDOM to have a DIRECT AND RECIPROCAL relationship with god instead of having to slavishly do the sacraments through the monopoly state religion and IN CONCEPTUAL OPPOSITION staying in place and producing greater ABUNDANCE instead of wandering nomadically to find game and the low hanging fruit.

If you will notice, every one of the capitalized words above are both signatures of historical paradigm changes and also aspects of the natural philosophical concept of grace. Furthermore, they are all signatures and effects produced by the 50% discount/rebate policy at retail sale. And finally, it shows that the natural philosophical concept of grace is not only the singularly defining new paradigm concept behind the monetary, financial and economic systems….but THE concept behind EVERY historical paradigm change.

It’s about time we awakened to these “somewhat” significant facts.

rddulin:  Why not just send money equally to everyone when the economy needs it as it grows? What is simpler than that?

Me:  That’s simple alright, but it doesn’t deal effectively and terminatedly with the chronic problem of inflation like the discount/rebate at the point of retail sale does. And combined with the universal dividend policy it also doesn’t enable us to eliminate the transfer taxes for welfare, unemployment insurance and social security that every working individual and every enterprise pays now. You see, changing an old paradigm like the one I’m advocating often has “knock on” positive effects in other systems. In this instance it would integrate the normally opposed political constituencies of the individual and the business community because they’d both benefit greatly from such monetary policies.

Integration is the very process wisdom. Hence integrate, and keep on integrating. You literally can’t go wrong by doing so.

….could help to duplicate the thoroughly exteriorized experience of one’s self awareness/consciousness itself reaching and withdrawing from the environment and its perceptics.  How can technology encourage and even prompt consciousness itself, instead of being merely a distraction from same ?