Posted To RWER Blog 05/20/2018

The three primary and chronic problems of modern economies are:

1) they inherently create a scarcity ratio of free and available total individual incomes in ratio to total costs and so by dint of the (correctly applied) cost accounting convention that all costs must go into price…total prices

2) the above continually occurring cost inflation accompanied by no rational, ethical or appropriate way to remedy the upper bound of price inflation and

3) the by definition totally insane (doing/allowing the same thing over and over and expecting a different result) continuance of private Finance’s paradigm for the form and instrument of monetary distribution, that is Debt Only

The policies and structural changes of the new paradigm of Direct and Reciprocal Monetary Gifting specifically address and resolve these problems.

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The Problem and the Solution

All theorizing and argumentation within the current paradigm amounts to nothing more than “epicycle” “tempests in a teapot”. The recent debate between Steve Keen and Warren Mosler about MMT, replies to it by Bill Mitchell and Keen’s counter reply are excellent examples of this.

The real insight of MMT which virtually all MMTers miss is simply that fiat money systems can be directly distributive. The problem is neither of them presently or in the future will be able to ethically or systemically control them…unless they recognize the digital nature of the costing/pricing, debt based money and accounting systems, and the significances of the point of sale/retail sale in the economic system…..and then craft policies to benefit all agents and completely align with the concept behind those policies, namely the natural philosophical concept of grace, and as it applies to economics and the money system, grace as in free gifting.

I’ve observed the excellent research and debate of heterodox economists like Keen, Hudson, Mitchell, Mosler et al for going on ten years now, and I’m in agreement with probably better than 99% of it, but their nit picking with each other and address primarily to opposing academics are sure signs of being stuck in an old paradigm and an ignorance of what really counts in all political movements and what happens with all new paradigms….and that is an awakening in the minds of the individual.

What these men together need to do is diligently search for and open their minds to the new paradigm and its policies and thus become a part of the solution instead of an erudite but niggling part of the problem.

 

There’s one little historical thing about paradigm changes that all of the analyses, theorizing and cautionary thinking will not change, and that is: everything adapts to the new paradigm…not the other way around. I know that is anathema to the researcher, theorist and conservatively minded, but that’s what happened when agriculture, helio-centrism, the printing press and the Reformation changed everything in those spheres of human endeavor, and with Direct and Reciprocal Monetary Gifting the obviously increased individual, commercial and systemic workability and general progression will be the same. There’s no end to history and theorizing will pick right back up shortly after the new paradigm becomes the new integrated reality, but there is never a return to an old paradigm.

Conspiracies and Unconsciousness of Paradigms

99.99% of “conspiracies” like the shadow government are actually simply how a system has evolved and/or been set up and people unconsciously affirm it as the norm, mostly by their inaction. They are merely old/current paradigms that have gone on too long and as a result their lingering and chronic problems oppress. There may be those who consciously realize these facts and don’t care or consider the situation tolerable or simply “our culture”. The current financial paradigm of Debt Only is effectively a shadow government because it dominates every other business model and probably 98% of the general populace.

Posted To RWER Blog 05/17/2018

The economy is very complex. As opposed to general equilibrium it is actually in a state of dominatingly smothered financial chaos “controlled” by finance’s virtual monopolistic paradigm of Debt as the only form in which money can be distributed. Even government spending is currently forced into this debt paradigm, and even if it weren’t the percentage of government money creation is a small one compared to private indebtedness.

Several years ago Steve Keen lamented the fact that economists could get their Phd’s in economics without taking so much as an elementary course in accounting. He was correct in that statement. Too bad he never used his economic knowledge to examine the digital nature of the costing, pricing, money and accounting systems and so discovered how policies could be crafted to resolve modern economies’ problems within the latter. The only effective way to end the dominance of the business model of finance and its current paradigm is to use the universal track and underlying infrastructure of double entry bookkeeping and its digital nature to implement the new paradigm of direct and reciprocal monetary gifting via the twin policies of a universal dividend and discount/rebate policies throughout the entirety of the economic process and at its terminal ending point of retail sale.

Again, using the underlying track of accounting cuts through all of the complexities of the economy, linearizes the effects of these two policies and so resolves the major chronic problems of technologically advanced capital intensive economies, namely a chronic scarcity of available individual income and the tendency toward inflation when there is no depression or deep recession like we experienced in 2008.

All one really has to do to see this is play out the effects of the discount/rebate policy with the three agents involved: the monetary authority mandated to create and distribute/rebate the monies of the policies, the enterprise giving the discount to the consumer and the consumer him/herself.

It readily becomes apparent that these simple (not simplistic) and yet elegant and effective policies actually accomplish what leading edge heterodox economists say they think is needed and yet do not know how to implement.

What is “a modern debt jubilee”? It’s monetary gifting. It’s just that instead of a one off event we would have ongoing, integrated/integrative policies that kept the economy continually prosperous and much more stable with the continual individual income.

What does creating a separate monetary gifting authority do? It pulls the monopolistic and parasitic proboscis of private finance’s paradigm of Debt Only out of the economy, ends the trend toward further and further financialization of the economy and when everyone awakens to the new generalized prosperity for both the individual and enterprise resigns that monopolistic paradigm to the dust bin of history.

What does integrating price deflation painlessly and beneficially into profit making systems herald? Why, the major signatures of a paradigm change, namely

1) the end of a long entrenched orthodoxy (we must not pump money into the economy lest it cause inflation),
2) the inversion/transformation of a problematic duality (from a scarcity of individual income in ratio to total costs/prices to an abundance in ratio to same,
3) generalized progress, increased knowledge, depth of insight and human survivability in the area of the paradigm change and, if that area is general enough and has related problems in other areas of human existence “knock on” effects in those areas as well.

Posted To RWER Blog 05/15/2018

Integrate the workabilities and applicabilities of capitalism and socialism and the concept of ethics of the new monetary and economic paradigm and you’d have the profit making system of Directly Distributive Monetary Gifting. Would that mean you’d not have lending? No. Does that mean you couldn’t have a job guarantee for anyone who was having trouble finding purpose without employment? No. Would there be more or less employment with the policies of a universal dividend and discounts/rebates throughout the entire economic/productive process? More, by far. Would people become lazy and entitled? Don’t be stupid, anecdotally of course, but generally of course not, especially if we’d have a cooperative effort by the clergy, helping professions and the government to help acculturate people to leisure which is self determined focused effort, NOT idleness. The vast majority of us find purpose in life other than employment with the present onerous and enslaving system. That percentage would undoubtedly go up when the stress, anxiety and the ancient un-examined dictum of “only by the sweat of thy brow shalt ye earn your bread” is analyzed anew within modern technologically advanced productive capabilities.

Integrate truths, keep on integrating them, integrate them until they result in a thirdness greater oneness. Make the concept behind that thirdness greater oneness the new ethic/zeitgeist that further frees everyone into its beatific chains….until further integrations… enlighten further.

Obsession with employment and balanced budgets only, as economic “solutions” is so old paradigm. When one realizes that:
1) the point of sale is a summing and ending point for costs and prices throughout the entirety of the economic/productive process
2) the point of retail sale is the terminal ending and summing point for all costs and prices for every item or service and also the terminal expression point for any and all price inflation and
3) double entry bookkeeping which is digital in nature, that is, debits and credits of equal amounts sum to zero, and is also the underlying infrastructure, guiding force and as it turns out the perfect and appropriate means of integrating monetary policies into the economy

then paradigm changing economic insight occurs.

And I readily admit that theoretically I stand on the shoulders of several heterodox theorists now like Steve Keen, Michael Hudson, Asad Zaman, David Ruccio and Lars Syll as well as some from the past. All I’m trying to do is bring them, even if kicking and screaming, away from their iconoclastic abstract theoretical musings and into looking at the above present time commercial significances long enough for them to see how the very problems they all identify with current theory….can be resolved by the policies I’m advocating and consequently create a new paradigm. Or we could go on for another futile 5000 years of tweaking, reforming and endlessly discussing the problematic current one.

The Difference Between…

…the quantum universe and the temporal/physical one is the quantum universe is exquisitely integrated and the temporal one has a lot more space and time, and objects therefore beguilingly have much greater apparent reality.