Post To RWER Blog…About The Real Problem

The real economic problem is much worse and much more insidious than simply DSGE and its rational expectations etc. etc. fallacious assumptions. It’s the long term 5000 year old assumption that private or publicly controlled finance and its equally long paradigm of Debt Only as the sole form and vehicle for the distribution of money. It is like breathing. We/re normally unconscious of it until like 2008 we can’t breathe/finance all of a sudden and it comes home to us in a panic how important breathing/a more than adequate amount of money is continuously available for exchange.

Keen nailed it with his de-bunking of DSGE and Hudson is spot on in his identifying finance as a huge parasite on the rest of the actually productive economy…IT’S JUST THAT THEY DIDN’T KNOW HOW TO PROCEED IN TRANSCENDING BOTH CAPITALISM AND SOCIALISM WITH ABUNDANTLY DIRECT AND RECIPROCAL MONETARY DISTRIBUTISM AT THE POINT OF RETAIL SALE….and of course a relative handful of further regulations and a structural change or two..

How many times do we have to beat the dead steed of DSGE etc. and keep droning on with our particular (correct) social science insights?

“It’s the monetary paradigm, stupid.”, the insight of the policy power point of retail sale with a 50% Discount/Rebate monetary policy there and the ultimate integrative philosophical concept of grace as in monetary gifting leading and guiding the consequently transformed economy.


Thou Shalt Not…

Thou shalt not ignore the obvious signatures of paradigm changes like:

1) conceptual opposition to the current paradigm,

2) complete inversion of individual and systemic realities,

3) a new insight and/or tool,

4) resolution of long term seemingly unsolvable problems,

5) non-comprehension,

6) occasional derision

7) caution regarding paradigm changes despite the presence of long term problems in the area of the paradigm change and even clear signs of political and economic disintegration therefrom

Important Thread on RWER Blog About Not Actually Looking and Caution When Action Is Required

Y:  John, perhaps you rely too much on wishful thinking. Paradigm shift does not occur spontaneously. It is not a natural phenomenon. Have you ever imagined why Ptolemaic system continued more than one thousand years and how it came to be overturned?

Me:  Yes that is what Kuhn observed. Yet when a paradigm shift does occur it is both personally spontaneous and (depending upon whether it directly effects virtually everyone in the present moment, i.e. a mega-paradigm shift) it is a rapid temporal universe change as well. The Copernican cosmological paradigm change was genuine, but the shift to agriculture, homesteading and urbanization from hunting and gathering was a mega-paradigm shift. Today a paradigm shift in economics, finance and money would fit this category and given the rapidity and ubiquitous nature of our technological advancement such a change would truly be earth shaking.

Mega-paradigm shifts invalidate long held orthodoxies held by nearly everyone like “You must move about to survive” or “Increase in the quantity of money is the operant factor in inflation” or “The more savings the less money in general circulation”.

Y: Craig

we must distinguish economy and economics, financial economy and economics of financial economy, and financialization or monetization of the economy and economics of those phenomena.

Paradigm shift in economy and finance may proceed “spontaneously” by the technological and institutional change, but paradigm shift of economics does not occur without a group of economists who try to create a new economics. Lars Syll is busy criticizing mainstream economics but forgetting the re-building economics task. Do you want to face paradigm change without change of economics?

Me:  Yoshinori,

Thanks for the reply

“we must distinguish economy and economics, financial economy and economics of financial economy, and financialization or monetization of the economy and economics of those phenomena.”

No, not in my opinion at all. That is an arbitrarily reductive attitude and leads no where but further theorizing about this or that datum. It IS a monetary economy Steve Keen has established that. All of the leading reform movements are about money, finance and its negative effects on the economy. Meanwhile the 5000 year old monetary paradigm of Debt Only goes on and on and on.

We need an integrative perspective on the monetary effects of the present paradigm on the economy….not just another data point discussed….for the umpteenth time.

All the leading reforms are doing their own thing. I’m in touch with several of the leaders of those reform movements and have communicated to them that they all align with the policies of the new paradigm. They’re just not seeing the new insight that a discount/rebate monetary policy at the point of retail sale resolves the two deepest problems of modern economics. I don’t know whether that is because their minds are blinded by orthodoxy, they’re just complacent or they’re just letting their self interests in their own movements prevent them from integrating with the larger paradigmatic movement. It’s probably all of those motives/afflictions/self interests.

If anyone here can say that their ideas, theories, policies or whatever if implemented can immediately do more than double everyone’s potential purchasing power, double the potential business revenue for every enterprise and beneficially integrate price deflation into profit making economic systems….WITH A SINGLE POLICY, and with a couple of additional ones make every mega project necessary for ecological sanity and survival affordable and imminently doable…then I’ll get on their bandwagon. If not….for chrissake get on mine. The friggin’ end is near guys, ya know what I mean? Like a lotta, lotta dead people like yourselves and your families from probable resource wars and/or ecological disaster.

Or we can regurgitate the things we’ve been regurgitating here for years. IT’S THE MONETARY PARADIGM GUYS. Prove me wrong with better and more beneficial policies. I’m ready to hear them.

Y:  Craig reminds me the necessity to re-read Stanilav Andreski’s Social Sciences as Sorcery (1972). According to the book, if I remind it correctly, social sciences develop by fierce fighting between revolutionary idealists and realistic conservatives who question the plausibility of idealists’ proposals. It is a shame that Andreski-type sense of balance has been lost for a long time.

Me:  Ah yes, what we actually need is more dualistic three ways from the middle mental erudition….that makes a fine data point….and leads absolutely no where. NOT! Meanwhile ignore the mathematical, empirical temporal and paradigm changing effects of just one policy insight/breakthrough.

The recognition of the policy power point of retail sale with a 50% discount/rebate monetary policy is the telescope and the discovery of agriculture of economics and finance. You just have to let it settle into your current paradigm conditioned mind long enough to compare the differences it will make to virtually everything in those bodies of knowledge.

And despite the fact that the geo-political flames are leaping higher and the populace is getting more and more angry and impatient with the stresses the current monetary paradigm enforce upon them…..lets discuss other data points another hundred times.

Focus on the pattern change and the pragmatic regulations and structural changes to keep it from being undone by the gamers…..and lets choose life, not death via a thousand excuses and distractions.

R:  Illiberal Reformers tells the story of the progressive scholars and activists who led the Progressive Era crusade to dismantle laissez-faire, remaking American economic life with a newly created instrument of reform, the administrative state. If many of their names are unfamiliar today, the progressives changed everything, permanently altering the course of America’s economy and its public life. (Leonard, Thomas C.. Illiberal Reformers: Race, Eugenics, and American Economics in the Progressive Era (p. ix). Princeton University Press. Kindle Edition.)

A bit closer to home and shows how idealism doesn’t always play out the way the idealists planned. Not that idealism is not needed, mind you, just that it must be wedded to pragmatism too if it seeks to have long lasting impacts in the world.

Me:  Rob, That’s precisely the point…REFORMS never last…but everything adapts to a genuinely new paradigm….not the other way around.


Visualizing The Mega-Paradigm Via An Illustration

JD:  Bill Mitchell said in a recent lecture the the paradigm shift is under way.

Me:  Bill Mitchell is using the word paradigm shift to attempt to bolster MMT’s claim that it is such a phenomenon. Unfortunately it is just one of several reforms that are aligned with the actual monetary, financial and economic mega-paradigm change whose simple yet transformative operation is entirely expressed in the 50% Discount/Rebate monetary policy at the point of retail sale.

Visualize a large circle with smaller circles within it entitled MMT, Public Banking, Keen’s Minsky financial instability hypothesis and disequilibrium theory and Michael Hudson’s financial parasitism. Then place blogs like this one in a circle outside of the large circle representing abstract thinking about those reform circles inside the big circle.  Draw several circles entitled Anthropology, History, Sociology, Psychology outside of the large circle. Then put the words Wisdom/Grace/Graciousness in parentheses precisely in the center of the large circle and draw arrows from all smaller circles pointing toward (Wisdom/Grace) which of course is the discipline and the concept behind the new mega-paradigm. Title the illustrationMonetary Gifting: The New Mega Paradigm in Economics, Finance and The Money System and draw an arrow down into the large circle toward the actual concept and expression of the new paradigm itself: Abundantly Direct and Reciprocal Monetary Gifting At Retail Sale. Finally, draw an arrow toward the words (Wisdom/Grace/Graciousness) in the very middle of the large circle to emphasize that all theories and data need to be integrated toward and with the discipline that is Wisdom and its highest concept and experience Grace/Graciousness.

Aligned reforms are good, but “It’s the monetary, financial and economic mega-paradigm, stupid.”

Directness: A Major Aspect of Grace

Monetary policy is impotent because it is not direct to the individual via a universal dividend and also is not direct to the individual with a 50% discount to price at the point of retail sale and then reciprocally and fully rebated back to the enterprise by the monetary authority.

Hunters and Gatherers went from being round and about the land to directly attached to it with agriculture, homesteading and urbanization.

The Reformation was almost entirely about being coerced into salvation via the sacraments and the powerful recognition that having a direct relationship with god was possible, more personal and more empowering.

Directness. One of the major aspects of the natural philosophical concept of grace, and the key to remedying the dis-empowering abstractionism of science and so to the acculturation of wisdom.

Pundits and economists: It’s the monetary, financial and economic paradigm, stupid.

Therefore Choose Life!

If we implemented the policy triad of a $1000/mo. universal dividend, a 50% Discount/Rebate monetary policy at the point of retail sale and replaced the private for profit banking, financial and monetary system with a non-profit publicly administered one you could enable a giant bottom up ability for individuals to purchase the best renewable energy consumer products and pull any stops on government/fiscal policies that would enable us to begin the mega projects necessary to save ourselves and most every other species on the planet….with post haste.

We face life or death. Therefore, choose life!

Thread on RWER Blog Regarding Old and New Models

Me:   Space-Time is the moment experienced directly/consciously.

The keys to discovering a new paradigm are:

1) recognizing that coming into a new unit of time, i.e. experiencing space-time as an actual new personal reality is at least half of the battle won so far as paradigm perception is concerned

2) conceptual opposition to current actual realities and/or to current orthodoxies

3) discovery of a new tool and/or insight

4) having the personal will and courage to express what #1 enables and #’s 2 and 3 reveal.

5) recognizing that #1 is a paradigm shift itself of inestimable power, to wit: the kingdom of heaven is within and “Verily I say unto you, Except ye be converted, and become as little children, ye shall not enter into the kingdom of heaven.”

And please, PLEASE don’t make the personal and scientifically arrogant assumption that #5 is a religious statement. Religion is grasping for stasis. Wisdom is process, dynamic, interactive and integrative mental free flow.

GC:  Now we are discussing reality. The next step after noticing high and low is description of a society that is healthy. more fun and leaves room for the rest of Nature.

Me:  “Now we are discussing reality. The next step after noticing high and low is description of a society that is healthy. more fun and leaves room for the rest of Nature.”

The philosophical concept of grace, which is the active/expressive form of love, is the pinnacle concept of wisdom. It is also the true nature of full human consciousness and the best (not yet fully recognized) expression of temporal universe reality.

As policy is the active/expressive form of systems such concept would seem to be a great one to base an economic system on, and any and all other systems as well no doubt.

The correct course would be to contemplate the various and utterly pregnant aspects of grace while comparing these with any and all scientific insights and finally, always keeping in mind that wisdom is depth and breadth of knowledge, the mentally integrative process itself and of truths, workabilities, applicabilities and highest ethical concepts of APPARENT opposites.