What I’m trying to do is make what every heterodox economist agrees upon…but don’t know how to attain. They are at best recognizing one or two aspects of the concept of the new paradigm, I’m thoroughgoingly implementing every relevant economic, monetary and financial aspect of that concept to the economy with aligned and logical policies. They can only conceive and perceive palliatives and fixes, I’m operating with full consciousness of the aspects of the philosophical concept of the new paradigm and consequently its broad, deep and transformative solutions.

As grace is the deeply observed description of the essentially stripped bare dynamic, interactive flowing process of the cosmos itself it is the independent variable in virtually every differential equation and in economics its numerous applicable aspects are the dependent variables.

Me:  Even though I’m in agreement with virtually all of the heterodox theoretics being presented on this blog I’m the only one here who is comfortably willing and able to talk about monetary and economic POLICY because no one else here is confident enough to do so, and the reason for that is they have not yet recognized the philosophical concept upon which the new economic philosophy and paradigm needs to be based.

When you do a thorough exegesis of that concept and see how it fits seamlessly within the legitimate operations of economics, resolves its deepest and most chronic problems, replaces the dominance and primacy of the current structurally dominant entity and its paradigm (private finance/Debt Only) and defines the new paradigm itself…you become the one eyed man in the country of the blind.

HS:  I know a little about the one eyed man in a village becoming the source of all wisdom, but I do truly admire the Ethiopian one-eyed, wounded, old but fierce female tigers who scare the hell out of their male counterparts to defend their loved ones working co-operatively and teaching their young ones to do the same in battle.
God knows when these Economists will be confident enough or wise enough to develop better philosophies to leave behind for anyone!

Me:  Helen,

Maybe they will become wise enough if they contemplate that debt jubilees are are monetary grace as in gifting, and that government deficits are grace as in monetary abundance instead of austerity. Also, if they contemplate that a universal dividend is monetary grace as in directness instead of via re-distributive taxation (directness versus via the church only was the major aspect of grace expressed in the Protestant Reformation).

Maybe they will become wise enough if they contemplate that the reciprocality of the discount/rebate policy is grace as in graciousness, benevolence, lack of bias and relationship as opposed to the dominance by uneconomic costs by finance that businesses must pass on in order to attempt to be profitable in a system of individual monetary scarcity and systemic austerity.

Maybe if they study the signatures of imminent and accomplished paradigm change it will help as well.

It’s not only important to take political control of the economic and financial systems, it’s  essential to awaken to their new paradigms. Why? Because political wins and reforms  fade or get reversed. However, a paradigm change will never go back to the old one….because it’s such a complete and obvious no brainer advance and historically .

The New Deal was a significant reform, but was not a paradigm change. Regressive forces have been trying to reverse them for over 80 years. Recognizing that a universal dividend of $1000/mo. directly distributed to everyone 18 and older and a 50% discount/rebate policy at retail sale will immediately end poverty and immediately double everyone’s purchasing power IS a paradigm change. Furthermore and along with these policies, the recognition that the primacy of direct distributive monetary policy enables us to do away with RE-distributive taxation and greatly reduce individual and business taxation.

If regressive forces have not been able to reverse social security and medicare, how are they ever going to be able to reverse these obvious, universal and bipartisan constituency paradigm changing policies???

LS: In the hands of Lucas, Prescott and Sargent, rational expectations have​ been transformed from an – in principle – testable hypothesis to an irrefutable proposition. Believing in a set of irrefutable propositions may be comfortable – like religious convictions or ideological dogmas – but it is not science​.

So where does this all lead us? What is the trouble ahead for economics? Putting a sticky-price DSGE lipstick on the RBC pig sure won’t do. Neither will just looking the other way and pretend it’s raining.​

P:  For guys who claim to be math honchos using non dimensionally homogeneous equations is seriously bush league. The experience of math physics teaches that, though highly complex, systems can often be successfully modeled by a small number of equations. It’s surprising how constraining each added governing equation can be. For example, in fluid mechanics, the continuity equation, which says voids cannot appear inside the fluid or at a wall, is highly constraining. Combined with momentum conservation, a few fluid constitutive equations, and initial data, and you have the basis for fluid dynamic modeling.
My point is, if you find the correct model equations, it doesn’t take much more than that to make real predictive progress. When you see a discipline wallowing around getting no where prediction wise, the problem isn’t insurmountable complexity. Often it’s failure to build the right simple model. Steve Keen’s approach comes to mind but there are certainly others.

Me:  What does this blog post tell us? It tells us that not integrating policy with philosophy is the road to hardening orthodoxy. It also tells us that economic theory has not consciously recognized the ultimate integrative concept that will bring the discipline into the modern age.

Quantum physics tells us that in reality “nothing ever touches”. This is anathema to our temporal universe habituated senses, but is paradoxically the actual truth. The cosmos is actually one seamless whole that simultaneously we experience as separateness…..and the only way to resolve this is to cognite on the one philosophical concept that being an expression of duality ultimately integrated to the point of thirdness greater oneness, that is grace as in a flowing wholeness/oneness/process…..is necessary to enlighten and make sense of that personal, economic and temporal universe paradox. And that aligning policy with that concept is simply the temporal universe expression of logic.

May we please not let orthodox non-integrated/non-integrative science be the stumbling block that keeps finance’s monopolisitc paradigm of Debt Only in effect for another 5000 years?

Even though I’m in agreement with virtually all of the heterodox theoretics being presented on this blog I’m the only one here who is comfortably willing and able to talk about monetary and economic POLICY because no one else here is confident enough to do so, and the reason for that is they have not yet recognized the philosophical concept upon which the new economic philosophy and paradigm needs to be based.

When you do a thorough exegesis of that concept and see how it fits seamlessly within the legitimate operations of economics, resolves its deepest and most chronic problems, replaces the dominance and primacy of the current structurally dominant entity and its paradigm (private finance/Debt Only) and defines the new paradigm itself…you become the one eyed man in the country of the blind.

Me:  John,

Rawls’ insight is precisely the correct one regarding economists and economic theory. It has fallen into almost entirely mere abstraction to the detriment of their/its ability to actually look at exchange/the economy and its most basic factors, namely cost and money. As I have said here numerous times economists can get their PhD in economics and never have to take so much as an elementary course in accounting. Accounting is the most basic record of every transaction in the economy. Hence it is also its most basic integrative infrastructure. Thirdly it is digital in nature (equal amounts of debits and credits sum to zero) as are the debt based money and pricing systems and so a digital policy at the summing and ending point of the economic process…..is tremendously powerful and effective.

Have you read anything by the cost accountant and early efficiency expert C. H. Douglas whose cost accounting analysis of the economic system and A + B Theorem was an international movement before WW II? I take his dual policies and innovate and extend them based on a study of the signatures of paradigm changes and the basic philosophical concept they express

Economists are like zen novitiates who must mentally break through and de-construct their entire mindset/economic discipline from abstract and alienated from their own consciousness to recognizing their own consciousness and being able to maintain that awareness and relate with it as they live their lives.

Direct looking has been dropped out of economics for the most part, and everything is filtered through the mistaken legitimacy of the business model of private finance to hold a virtual monopoly on the creation and form of money and its distribution via the paradigm of Debt Only…..when Monetary Gifting integrated into the digital debt based money and pricing systems will slay the two most chronic problems of modern economies in one fell swoop.

Paradoxically economists, when they mentally examine the economy, they are also stuck operating almost entirely on two mental integrations below the level of paradigm perception/paradigm change.

Ascending, these levels are:

Theory- mentally gathering and analyzing research and data

Philosophy- mentally organizing concepts

Paradigm Perception/Paradigm Change-mentally analyzing and integrating lower levels of analysis so as to isolate the essential concept/currently reigning paradigm and then using the signatures of imminent paradigm change/actual paradigm change to decipher the new paradigm

Me:  John and Ken,

This is a macro-economic blog. Why don’t we discuss the the macro-economic insights to be garnered from double entry bookkeeping regarding the scarcity ratio between total available to spend individual incomes and total systemic costs and hence prices? Also, the macro-economic and policy significances to be gathered from the fact that the money, pricing and accounting systems are all digital in nature, that is, equal amounts of debits and credits, prices and money and money and debt sum to zero?

John, you are apparently a cost accountant. Are you aware of the cost accounting convention that all costs must go into price?

KZ:  Craig, macroeconomics is something a group or groups of people invent. Follow the inventions. Craig, “all costs my go to price.” Is that average price, marginal price, or transitive price. Got to pick one. And then you’ll have to defend your choice.

Me:  Ken, The answer is final retail price because that is the terminal end of ALL costs, of the entire legitimate economic process and hence the terminal expression point for all forms of inflation. The ending point for any process is also an ultimately powerful point for policy expression and effect, and that is when and where the paradigm changing policy of the discount/rebate is implemented. Whatever occurs before it is largely irrelevant so far as policy effect is concerned.

It is of course also true that accounting is complex and can be gamed…..that’s why the new growth area in the new paradigm will be forensic accounting in order to ferret it out and hence increasingly stabilize the incredibly stabilized system wrought by the philosophy and policies of Wisdomics-Gracenomics.

Thank god, you’ll pardon the expression, for guys like you and Bill Black.

1)  It Resolves the two deepest and most chronic problems of modern economies in one fell swoop.

2)  It occurs at the exact time and place that the entire economic process ends, that all costs and prices for every consumer item are terminally summed and where all forms of inflation are terminally expressed.

3)  It doubles everyone’s purchasing power

4)  It doubles the potentially available business revenue for every enterprise.

5)  Together they make all transfer taxes completely redundant and able to be eliminated.

6)  As any possibility of inflation is eliminated and price deflation is painlessly and beneficially integrated into profit making systems the realities of systemic monetary austerity and individual monetary scarcity can immediately be changed to abundance.

7)  As there is no need to tax to attempt (and fail) to eliminate inflation, individual and business taxes can be largely eliminated except as they must establish the sovereign power of the state to do so.

Any enterprise that tries to game or de-stabilize the new paradigm will, after a rigorous examination of their accounting, be highly taxed and forthrightly kicked out of these tremendously and universally beneficial policies….so if you have any ideas of doing so….you’d better think again because if you interefere with everyone getting a nice monetary gift every month, having their income purchase twice as much as it did before and cut every businesse’s cost and doubled the possible income available for their goods and services….there’s going to be an awful lot of angry people who will be happy to buy from your competitor instead of you.

Looking directly at the actions/exchanges/tools/infrastructures of the economy and mathematically computing all of the factors observed is the integrative/wise way to do economics…..and reflects the internal and external integrative processes of Wisdom and the pinnacle integrative inductive and deductive natural philosophical concept of Wisdom, namely grace.