All of the supposed relevance of reserves/reserve ratios etc. etc. are rendered entirely irrelevant when you take good, rational and ethical control of the economy with the dual policies of a universal dividend, a point of final retail sale with a large percentage discount/rebate policy and also create a national bank/central bank that has sole control over money creation.Why?

Monetary gifts are their own reserves/would incredibly stabilize the system because the additional money would democratically lessen the possibility of default

A $1000/mo dividend coupled with a 50% discount/rebate doubles everyone’s purchasing power for non-borrowing everyday consumer products and ends poverty immediately

The 50% discount/rebate policy forever ends inflation as retail sale is the terminal expression point for all forms of inflation, garden variety inflation is restricted by competition and could be further controlled by sane regulation and taxation and being a smallish single digit percentage at most is still negated by the 50% discount

Hyperinflations do not occur without a compliant central bank that leverages up/funds speculators to short the currency and with a national bank and central bank disallowing such it is not a problem. Read the 21st chapter of Stephen Zarlenga’s book The Lost Science of Money for a good historical account of the Weimar Republic’s hyperinflation.

With the National Bank’s employees being directly funded by the government and it charging no interest, monthly repayment and amortized costs for financing would be tremendously reduced and in fact for big ticket items like autos and homes finance could serve as a new legitimate end of the economic/productive process with the 50% discount at that point. (there being no need to borrow for everyday consumer goods with employment, the dividend and discount incomes) Thus the discount applied at the point of creation of any note would tremendously reduce/reverse overall private debt build up which is the actual macro-economic problem correctly (re)-discovered by Steve Keen.

Debt at 0% is fine and still necessary for new enterprise funding etc. and will still be a part of the system. Its monopolistically enforced paradigm of Debt Only not so. Monetary Gifting will end its monopoly, replace its primacy, make a truly money consumer economy possible and enable financability for ecologically sane policies, research and innovation.

Economists, including such luminaries as Steve Keen, Michael Hudson and the various advocates of MMT, do not look at the mutually digital natures of double entry bookkeeping and the money and pricing systems and so do not comprehend the monetary and economic policy and timing significances to be derived from those utterly integrated commercial infrastructure and empirical tools. They also apparently do not have a good grasp of the signatures of paradigm changes all of which the policies to be derived from the above significances accomplish.

New paradigms integratively account for and resolve lingering problems in the old/current paradigm. They do this by cutting through all of the complexities with a single new concept that simultaneously fits within all of the legitimate structures present and yet transforms and creates an entirely new pattern.

While well considered research on lower levels than paradigm changes is well and good, committing at least equal consideration to exploring and comprehending new paradigms would seem to be more fruitful because of their integratively deductive and inductive nature and the sweepingly rapid and permanent changes they effect.

In essence paradigm perception/cognition makes the process of crafting policies a fast and straightforward rational and logical process, while the inductive process by itself can be laborious, fraught with doubt to the point of apathy or over reach and so can make effective change an unnecessarily long process.

Paradigm Perception is the supreme integrative art of understanding both essence and temporal complexity which is also a definition of what has traditionally been called wisdom. In this sense it is also the integration of the oppositional modes of deductive and inductive thought. In the peculiar and particular case of the new monetary and economic paradigm it (Gifting) is also an aspect of  the natural philosophical understanding of wisdom’s pinnacle concept, i.e. grace, which also happens to be the core concept behind every paradigm change as well as the basic state of the entire cosmos.

In other words the concept and experience of grace (or whatever other name it is given by the world’s major wisdom traditions) is not only the concept behind every permanently progressive change in human history (a paradigm change) it is also a TOE (theory of everything) both temporally-empirically and philosophically-metaphysically.

It fits the integrative requirements that define a genuine paradigm, that is, the concept behind it is a single concept that fits seamlessly within the body of knowledge/area of human endeavor it applies to, is conceptually oppositional to the present paradigm, its implementation is such a thorough integration of the truths, workabilities, applicabiliites and highest ethical considerations of the opposing concepts that it results in a thirdness greater oneness/transformation of the conceptual opposition.

In the case of the new monetary and economic paradigm the opposing concepts are Debt as in burden/enslavement and Monetary Gifting as in freeness/freedom, and the means of its thorough integration is the utterly integrated digital infrastructure of the entirety of commerce also known as double entry bookkeeping.

The problem lies with orthodox exclusionary science NOT natural philosophy/wisdom/spirituality….natural philosophy/wisdom/spirituality (NPWS) being the human experiences behind the signposts of religious beliefs.

Science is a trinity-fragmenting-exclusionary process of hypothesis and the dualistic determination of empirical truth or falsity only.

NPWS is a trinity-unity-oneness process including the thorough (and indeed scientific) integration of both empirical data and the existential reality of human consciousness which can result in the inclusive thirdness greater oneness of the pinnacle TEMPORALLY APPLICABLE concept and personal experience known as grace, satori-kensho, samadhi, etc.

First of all government debt is smallish in comparison to total private debt which is where the real problem lies because even though it has fallen from like 180% of GDP at the height of the crisis to somewhere north of I believe 130% now which means that as the rate of change of credit goes up (as it must or recession will occur) there is less and less “wiggle room” for debt to build back up to a crisis point. The system as it is IS financially unstable AND still sitting on mountains of debt. We must borrow continuously to avoid recession and yet continuous debt build up to the point of un-servicability will result in recession or worse….so we’re “stuck between a rock and a hard place” as the saying goes. Throw in no realistic or stabilizing financial regulations and the disruptive force of AI on aggregate demand/individual incomes….and it’s astonishing to me that we’re here parsing economic theories and obsessing over its minutiae instead of taking proactive, ney, paradigmatic actions.

Even Steve Keen whose unconscious re-discovery of the economy’s cost inflationary nature (the unstable state described above where financial costs continually build up) calls only for “a modern debt jubilee” which is a one-off static palliation of the problem and has been practiced by elites repeatedly over the 5000 year old course of the current paradigm of Debt Only for the form and vehicle for the creation and distribution of money. This palliative static policy stance is curious to me seeings how Keen is (correctly) adamant to de-bunk DSGE.

No, we require a dynamically ongoing, direct, integrated, effective and paradigm changing set of policies that inverts the problematic cost inflationary nature of modern economies and so effects an actual solution to its deepest problems.

That paradigm is Direct and Reciprocal Monetary Gifting.

Wisdom is the integrative process itself. Paradigms are integrative concepts. Integrative in that they fit seamlessly within a body of knowledge/area of human endeavor while simultaneously transforming it with the integration of both deductive and inductive thinking.  Paradighmatic/wisdom thinking is essence and temporal pattern recognition at the same time. It’s depth and width and particularity of knowledge, and the discernment that is derived from each.

Develope the art and science of wisdom/Paradigm Perception and you become the one eyed man in the land of the blind.

Steve Hummel 09/27/2018

Insights From a New Tool Discovery/Re-discovery of Insights Derived From an Old Tool and/or Combined Insights From Both

One of the signatures of a paradigm change is the discovery of a new tool or the re-discovery of insights from an old tool.

With the new monetary and economic paradigm it is both….and both combined. The insights to be found in double entry bookkeeping is the re-discovered tool and the dynamic, interactive, abundant and integrative flowing reality of the temporal universe described by both the world’s wisdom traditions and quantum physics is the combined old and new discovery.

Conceptual Opposition/Apparent Illogicality

Extreme Polarization of Opinion/Theoretical Perspective In Area of Paradigm Change, and If The Current Paradigm Has Lingered Very Long The Same In Related and Even Seemingly Unrelated Fields/Systems/Bodies of Knowledge

Inversion/Transformation of a Problematic Duality of the Old/Current P aradigm

Increase in Abundance/Knowledge and Improved Human Survivability

End of the Dominance of the Dominant Structural Entity Within The Old Paradigm

Establishment of the Primacy of the New Paradigm

Permanence of Change/Improvement

If The Old Paradigm Has Gone On For A Long Time and/or Become a Thoroughly Integrated Aspect of Life the New Paradigm Will Concommitantly Have Wide Systemic and Interdisciplinary Effects

Wisdom is integrating truths not denying, excluding or enforcing them….even if they are merely the particle of truth in orthodoxies, and its pinnacle natural philosophical concept is the graceful unitary mental flowing of same. Anthropology resides within the mindset of wisdom, not the other way around. Paradigm changes establish new models via both deductive and inductive thinking because the definition of a paradigm is both of a general and specific nature.

Steve Hummel 09/25/2018