KZ:  Economics as you describe it is just one of the “results” of a movement in
knowledge, political standardization, and social organization that began in the
18th century and expanded rapidly after WWII. Where science flourished the
appeal of numbers, which could be and were converted into objective facts
allowed the construction of civilizations where decisions could be made
scientifically and endorsed democratically. Such decisions appeared fair and
impersonal and thus impartial. So while democracy ensured all had a voice,
science in numbers ensured certainty about the actions needed to carry out
democratically made decisions. In the words of Theodore Porter, “Quantification
is a way of making decisions without seeming to decide. Objectivity lends
authority to officials who have very little of their own …. Knowledge, then does
not diffuse uniformly outward from the place of its discovery. It travels along
networks to new nodes, and what appears as universal validity is in practice a
triumph of social cloning.” After WWII science is the most powerful, admired,
and envied way of life on earth. So economists wanting to copy it is not
surprising. Historians, sociologists, psychologists, and even that staunch
member of the humanities, Anthropology took the leap as well. Now after 60
years History, sociology, and the others have reached a balance so that
numbers and “objective facts” are only parts of diverse fields of knowledge.
Economics did not reach such a balance. It is wholly and fully dominated by the
cult of numbers and objective facts. For those of us who study science, including
economics the research is focused on answering why economics remains
situated so. One explanation offered is the limited understanding of mathematics
by economists. Another is the desire of economists to distinguish themselves
from the other sciences which seemed to already cover everything proposed for
inclusion in economics. My own view is that the prime motivation was the same
as voiced by the 1960s founders of quantitative history (cliometrics), “…to establish history
as a social science dedicated to the rigorous, consistent, and precise application
of social theory and social scientific methods in the study of past human
behavior.”(Robert Fogel)

Me:  Science has been applied, albeit primarily to human consciousness, for over 7000 years. It and technology have arisen as the primary thrust over the last 300 years, that is true.

The most subtle and consequently unperceived problem of economics is its mistaken notion that either private or public finance can be harnessed and made to serve humanity….unless the domination of its paradigm of Debt Only is integrated into and primarily replaced by Monetary Gifting….which is an aspect of the natural philosophical concept of grace….which being nothing more dogmatically and certainly nothing less than love in action in the temporal universe where we all exist….is therefore the supreme expression of ethics, and so the only concept able to balance the supreme power of the economic factor of money.

Resolve this philosophical and ethical problem and utilize the well known simplifying concept of Occam’s Razor to create a publicly administered national banking system guided by the above concept of grace instead of the destabilizing coterie of dominating and ethically conflicted private banks….and the leading edge economic insights of Keen’s financial instability, Hudson’s financial parasitism and MMT’s money mechanics will fall back into and fit seamlessly within the new paradigm theory of Wisdomics-Gracenomics and the philosophical concept behind it.

C3000:  Banks must increase their loans exponentially in order to have sufficient money in the economy to pay interest on the loans. The only other sources of money to pay loan interest is senioriage spending by the government which has been systematically reduced over the past five decades and open market operations by the Fed…

Me:  “The only other sources of money to pay loan interest is senioriage spending by the government which has been systematically reduced over the past five decades and open market operations by the Fed…”

Presently, yes….and that’s the problem because deficit spending still won’t resolve the problem….only a new monetary and financial paradigm that intelligently, insightfully and specifically applied at the point of retail sale inverts the realities of chronic price inflation, systemic austerity and individual monetary scarcity into abundance and painless and beneficial price deflation.

P: Many a wag has noted grinning that correlation does not imply causality. Two points:
1. It is no accident that correlation is displacing multivariat analysi like ANOVA notwithstanding this.
2. Time has an arrow. Events in the future cannot affect (cause events) in the present.

Combing these, if there is a high cross correlation with time lag as a parameter, the leading factor pretty much has to be causing the lagging factor directly or indirectly.

Last I looked excel offers no cross correlation macro as a standard function. They should.

Me:  As the person you often refer to here, Steve Keen, has shown…it’s a monetary economy not “a veil over barter”, and the three things DSGE doesn’t get right/ignores are money, debt and banks. It’s apparent to anyone who looks that the current paradigm for the creation of money and sole form for its distribution of Debt Only controlled and enforce by the private banks IS THE PRIMARY CAUSATIVE ECONOMIC PROBLEM.

As I have posited here before the mental problem inhibiting the full realization of this fact is that macro-economics is a new body of knowledge which consequently has a very short cultural horizon combined with the fact that the paradigm of Debt Only has not changed….since the beginning of human civilization and hence has become ingrained in human culture and thinking.

De-constructing and changing the paradigm of Debt Only via an analysis of the signatures of imminent and actual paradigm change, AND AN EXEGESIS OF THE OPERANT CONCEPT BEHIND EVERY HUMAN PARADIGM CHANGE, namely the natural philosophical concept of grace….is precisely what is required….NOW.

DT: Craig summing up: “Abstraction reigns in economics and direct present time observation has atrophied in same”.

What I’ve contributed is an abstract version of Blaug’s map showing Ken’s network. Craig is rightly pursuing an integrative wisdom, but his Blaugian imagery and seeing it in accountancy and “morals also known as ethics” shows why he hasn’t found it. He doesn’t understand it lies in learning to read abstract maps (Graph Theory) and taking in the implications of the abstract Four Colour Theorem (that only four colours are needed in a map for all adjacent areas to be of different colour). He doesn’t understand the difference between ‘generalisation’ (leaving arbitrary characteristics out) and ‘abstraction’ (leaving everything out).

Me: Dave,

As the process of wisdom is the INTEGRATION of truths etc. how can I be anything but advocating the integration of the abstract and the temporal? And if the natural philosophical concept of grace is the pinnacle integrative truth/concept of wisdom how can its aspects expressed in policy not be the object and goal of economics and undoubtedly every other of humanity’s systems?

….Systemic Austerity and Individual Monetary Scarcity Inflation. Money is NOT the operant factor in inflation. It is the lack of a better, more rational and beneficial alternative to commercial agents raising their prices when they see more money coming into a system chronically scarce in individual income and hence business revenue. Remedy that situation with a universal dividend and a 50% discount/rebate policy at the point of retail sale….and you’ll be deserving of a Nobel Prize in economics.

End the money creating power of private finance with a publicly administrated non-profit national banking system that becomes the new ending point for the economic/productive process and that can thus extend the discount/rebate policy to the creation of a note. Therefore the $200k house becomes a $100k price at retail sale for the home building corporation and then the $100k note becomes $50k at 0% interest. Thus instead of a $200k 30 year note plus insurance and taxes at 5% and payment of $1300/mo you have a $50k note with half the taxes and insurance at 0% interest for only 10 years with a payment of around $525/mo.

It’s the difference between debt slavery and a true ownership economy.

Me:  Micro and macro-economics are like quantum and temporal reality…seemingly unresolvable…until one cognites on the single concept capable of uniting the two into a separate third reality of its own while simultaneously respecting the realities of each/all three. A concept of Twoness/Duality within THIRDNESS/Greater ONENESS. The scientistic will never countenance this even though its staring them in the face all over nature and the cosmos. It’s the problem of the experience of consciousness itself as opposed to mere computation, of mental figure-figure-figure versus beingness.

This is where economic theory is. It’s stuck in Duality.

JV: Seeking micro foundations for macro economics is insurmountable, or perhaps better said a dead end, because the economy is inherently an accounted-for social structure. Only when linear self-production is the norm, instead of the non-linear reciprocal process of providing hopefully-demanded output for others, would micro foundations be applicable. Hardly worthy of a pursuit by progressives isn’t it?

Furthermore, what are “normal” savings? What part of the expended income, i.e. disbursed costs by employers, can safely be “saved” so as not to cause a shortfall in aggregate demand? A badly needed theory of money is missing here. Is money an independently existing wealth or not?

Me:  Not a new theory of money…a new monetary paradigm that resolves the problems of systemic austerity and individual scarcity. Why do we allow the most important and potent factor in a monetary economy (money, and its creation and distribution) to be monopolized by a single self interested business model? JUST HOW GD STUPID IS THAT?????

Symmetries/Dualities are replete throughout nature and the cosmos, for instance the symmetrical sides of a leaf. The real “trick” as Noether and others knew is finding the thirdness greater oneness entity/concept that is there underlying, integrating and uniting the symmetry…like the stem from which both sides of the leaf emerged or applying the various aspects of the underlying natural philosophical concept of grace in economics that integrate and unite the oppositional duality of the monetary and financial paradigms of Debt/Burden and Monetary Gifting.

Noether’s equation has three aspects to it as does my formula of the Cosmic Code. Comprehending and applying the concept of A Thoroughly Integrated Duality Within an Integrative Trinity-Unity-Oneness-Process which is also a description of the concept of grace is an extremely important insight.

Trump’s demagoguery, corruption and hateful unintelligent disintegrative nonsense has finally come home to roost politically and I could not be happier about it. However, democrats will need to have a wise, integrative agenda that combines only the truths, highest workabilities and highest ethical considerations of opposing political and economic perspectives…if they want to win in 2020 and truly progress the country. The last several elections have all been about change. They need to become the party of true and effective change. Again we need an integration of ONLY truths etc. That’s not a meaningless palliative amalgam or “poison pill” compromise of conflicting ideas and policies, but rather more like a political and economic sanctification process that synthesizes and resolves our problems terminatedly.

If you got rid of the illegitimate private financial costs pre-production, its costs within production and its burgeoning costs post retail sale which presently is the only legitmate end of the entire productive process, and implemented the dual abundant policies of Wisdomics-Gracenomics, economics would become so much more simplified and elegantly transformed that it would be recognized as a genuine paradigm change because it would benefit all agents and make the system so free flowing that humanity would never look back.

Macro-economics being a relatively young body of knowledge and macro-economists unfortunately having such a short historical and cultural horizon, they have swallowed whole the legitimacy of private finance’s money creating power and its monopolistic paradigm of Debt/Burden Only. The temporal power of the business model of private finance undoubtedly also has something to do with this unfortunate blindness.

Economic theory is basically hypnotized by these facts and only a radical re-assessment of economics will enlighten the discipline, make it an actual science and enable the mass of humanity to awaken and demand that the economic and monetary systems serve them….rather than they having to slavishly serve the systems.

That Wisdomics-Gracenomics is communism. The truth is that it is the profit making monetary and economic system of Direct Distributism.

How can monetarily freeing every individual, every honest enterprise, enabling the free flowingness of the entire monetary and economic system and potentially doubling the profitability of any and every enterprise be construed as anything resembling tyranny???

It can’t, but some who are under the sway of orthodoxy or narrow self interest could claim so. The solution of course is to implement the policies of Wisdomics-Gracenomics and the temporal universe benefits to all will be so obvious that laggers and the bought will be laughed to shame.

Any financial and monetary measure of a currency’s stability within the old paradigm of Debt/Loan Only will be suspect and subject to an “on the ground” analysis of actual economic conditions not fallacious and/or biased measures that favor the further dominance and control by the business model of Private Finance.

The entire problem with economic theory and everything else is it is stuck in duality and lacks a concept and means of the resolution of duality. Duality as ultimate reality is delusion, and anything that enforces dualities enforces conflict and non-resolution of problems. A problem itself is a duality defined as emotion/counter emotion, idea/counter idea, force/counter force. As wisdom is the integrative process itself and grace its highest concept of duality integrated to the point of thirdness greater oneness, it is the required concept and formula for the resolution for any problem including the resolution of the currently reigning paradigm for inquiry, i.e. Science Only.  This resolving new paradigm and scientific breakthrough realization that the cosmos itself is one gracefully flowing dynamic, interactive, integrated/integrative whole….that is experienced by us with space and time tossed into it I dub as Gracience.

[ (Science x Wisdom)  —> Gracience ]

[ (Space x Time) —> Grace/Self Awareness/Consciousness Itself ]