Me:  The answer of course is that we don’t need capitalism. However, if getting rid of it means eliminating the quite natural impulse to profit from one’s actions….we might wait a long time…like forever. That’s why we need the integrative thirdness greater oneness of direct and reciprocal monetary distributism.

KZ:  Craig, what’s makes you assume it’s a “quite natural impulse to profit from one’s actions?” This impulse is a cultural creation of recent origin. It did not exist prior to 3000 BCE. And has had a limited existence in the non-Western world.

Me:  I don’t buy that it (the natural impulse to profit/acquire/accumulate or even to want more) didn’t exist before 3000 BCE. Tribal leaders and even the rest of tribal members undoubtedly had these impulses and desires.

The question is how can we best integrate such into our technologically advanced culture so as to create the maximum freedom for the individual, the maximum social cohesion and the best environment for human self actualization.

KZ: Craig, there is no evidence the kind of individualism you’re describing was a part of human cultures prior to the Western Enlightenment. And it’s still a rare part of non-Western cultures even today. Although here it is becoming more common as Western cultures influence non-Western cultures. And, there’s no evidence tribal leaders or members had these “impulses” prior to the invention of agriculture by humans about 10,000 years ago and with it the invention of cities, economics, and eventually capitalism. Tribal leaders were concerned with preserving the tribe. Tribal members were involved in meeting the needs of the tribe. Humans who failed in this work were generally ostracized or even killed as defective. Monarchs and religious leaders acted the same. The cultural artifact of individualism is quite dangerous for humans since it threatens the cohesion and discipline that preserves and protects human cultures and societies. Witness the disorder that continues to plague the US from the assertion of absolute individualism during the Reagan revolution.

Me: Since we can’t jump into a time machine and observe them it’s not possible to know. I would say that human cultural evolution is the interaction between partially conscious individuals and their environment. As grace is the quintessential natural integrative and highest ethical human concept and experience it is the concept that will both resolve problems (a problem being defined as simply the conflict of postulate-counter postulate) and enable us to attain and maintain better social agreement as well.

KZ:  Craig, it’s a lot more complex. Culture is created in the interactions of humans with everything, including one another. But then the culture thus created is used to evaluate and direct other interactions. Which then does the same, over and over. Grace is an element of western cultures, but generally not others in the world. The same with the notion of ethics. Compare western ethics with Confucius. It’s revealing.

Me:  Grace as I define and understand it isn’t just western. It’s human in its most basic sense, that is to one degree or another conscious, self aware. Grace, the state of grace is flow, free flowingness. Why? Because it’s human consciousness aware of and focusedly at one with the temporal universe which being of time also flows freely. Here’s the formula for the experience of grace as I most basically define it:

[ (present space x present time) <–> self awareness-consciousness itself ]

It’s an integrated duality within an integrative trinity-unity-oneness.

It’s an utterly integral and natural experience and because of its basic-ness and naturalness the conceptual and experiential aspects of it are applicable to any problem personal or systemic. Grace is a gift of the cosmos, an abundant gift. Vis economics and money systems it is an abundant gift of money insightfully and intelligently implemented at strategic places and times that will result in individual monetary freedom, systemic free flowingness and as I have enumerated here many times resolves the two most chronic problems of modern economies monetary scarcity and inflation. And a lot more “knock on” problems as well. It’s that powerful and applicable a concept.

KZ:  Craig, interesting. But can you cite some examples of grace as part of Chinese or Russian culture?

Me:  Generally speaking China and India being influenced by Hindhuism, Buddhism and Taoism tend to stress the passive-internal-love-“standing in the light” aspect of human spirituality. Russia is similar in its serf soul kindness resignation concept. Their processes of consciousness unveiling/self actualization are similar in every culture but again they stress this passive aspect.

Western spirituality arose out of and mixed with this perspective, but with Judaism and then Christianity it tended to express the act/action aspect of love, namely grace. This present time-extroverted perspective is likely why the west picked up science and technology more actively and progressively than the east.

Regardless, human history at its most basic level is an increasing expression of its self awareness-consciousness itself….or in our current wonderfully productive scientific culture its re-discovery.

KZ:  Craig, I recognize that humans created all these spirituality notions. Including Christians. We’re on the same page there. What I’m having trouble with is the notion human history is “an increasing expression of its self awareness-consciousness itself.” Or, per your comment, “re-discovery.” I just don’t see any historical evidence that humankind is moving the direction you describe, except of course for a few unusual (perhaps even dysfunctional) humans.

Me:  “I just don’t see any historical evidence that humankind is moving the direction you describe, except of course for a few unusual (perhaps even dysfunctional) humans.”

Yes, that’s because even though wisdom has always been there for humanity to progress with….for the last 5000 years the paradigm of Debt Only as David Graeber has nascently discovered has never allowed civilizations to do so. And the only way for that to happen is to awaken to the new monetary and economic paradigm of Direct and Reciprocal Monetary Gifting. It’s THAT important that this awakening occurs. A new monetary and economic paradigm will be the biggest progressive event for the species since the change from Hunting and Gathering to Agriculture, and because the coalescence of Finance’s monopolistic paradigm has so stressfully integrated into human life and its systems the end of it with the new paradigm will have many “knock on” effects for humanity’s other systems and culture…exactly as occurred when agriculture changed everything.

Dysfunctional humans?

JB:  Craig, a nice summary. My question, however, is to WHOM these characteristics are projected. Notice the continual violence between Muslims & Hindus in India, or Muslims against one another most anyplace in the world. Throw in some racism & America’s Southern Baptists stand convicted of heinous crimes against their Jesus. Aren’t we a joke as a species, even if we are “nice” to those in our own particular group?

Me:  James,

This is a recent personal quote from my blog:

“Religion is the abstract formalization of spirituality and hence at least once removed from the direct experience of love and grace which are its deepest insights.”

All of these conflicts, violence and religious stupidities are a direct result from this fact combined with obsessively conflicted dualistic thinking and the failure to instead practice wisdom-spirituality whose thirdness greater oneness is the contemplation and self actualization of love in action also known as grace.

Just another reason to accomplish the new paradigm so that we can acculturate leisure which will make creating the first contemplative society much easier and much more likely.

KZ:  Craig, in other words, you can’t identify any historical evidence either. Dysfunctional human = human impaired by lack of clear awareness or delusions.

Me:  Ken,

“Craig, in other words, you can’t identify any historical evidence either.”

I go by the obviousness of a zen saying: “Wherever you go, there YOU ARE. In other words the omnipresence of self awareness-consciousness itself, even if missed, forgotten or invalidated is and always has been there.

The experience of self awareness-consciousness itself is not a delusion.

KZ:  Craig, still no evidence. And as a clinical therapist, I’ve witnessed self-awareness as delusion. It can and does happen.

JB:  Craig, I appreciate our discussion. My take on it in action is between the believers & others. Switzerland has refused citizenship to a Muslim couple who would not shake hands with well- wishers of other genders, nor allowed a Muslim child to continue in school untill he shook his female teacher’s hand. Where does grace enter when one relgion has practices prohibited to it, but demanded by another?

Me:  Ken, The experience of self awareness-consciousness ITSELF is not a delusion. Obsessive-compulsive dramatization of religious dogmatism or some other un-integrated, unhealthy problem is not self awareness-consciousness ITSELF.

James, the answer is grace as in understanding and tolerance….and if aggression or violence attends intolerance it is grace as in morality and the return to rational order. The concept of grace is not just airy-fairy niceness, it also includes the recognition of and optimal handling of outnesses. Being love in action It recognizes all realities accurately, effectively and ethically and deals with them in the same manner.

Cultivating grace/graciousness is not only not an impediment to clear thinking and observing….it’s the very best way to be able to see things honestly….without being negatively effected by them.

Lying is habitual and conscious with the current political crew and that’s why nothing will change economically except to get worse. Habituation is also generally true regarding current economic thinking, and awareness of the current monetary and economic paradigm of Debt Only is nearly entirely UNconscious. That’s why even the heterodox are unable to think truly oppositionally to it and realize the new paradigm.

All we need to enable humanity to better evolve from homo economicus to homo sapiens and self actualize a more balanced viewpoint on money is awaken to the new paradigm of direct and reciprocal monetary gifting. The pinnacle concept of wisdom is grace-graciousness which is the universal personal and temporal solvent, and grace as in gifting/the free gift is its relevant and reflective monetary and economic expression.

Will monetary gifting resolve your problems? In sufficient quantities it’ll certainly resolve your monetary problems and it will also enable everyone to emerge from the quantum foam of stress and distraction that monetary scarcity and economic austerity that the current paradigm and system enforces  on probably 95% of the populace.

Think about it.

Grace is love in action and so the universal solvent. Self actualize it!

Steve Hummel 08/13/2018

In order for a paradigm to be a paradigm its transformative and resolving effects must fit seamlessly within the body of knowledge/area of human knowledge the paradigm applies. This why double entry bookkeeping aka accounting is the perfect vehicle and tool for the new monetary and economic paradigm to express itself.

Accounting is both simultaneously a record of the minutiae of the micro-economy and the underlying infrastructure of the entire macro-economy. Further its debit-credit digital nature is the same as the pricing and money systems, and finally this digital nature is perfectly suited to immediately resolve excesses of debt and scarcities of individual incomes and business revenues with a digital point of retail sale discount/rebate policy.

Paradigms are characterized by their elegance, simplicity and yet broadness and depth of effect, and accounting and the above digital policy fit that definition and reality…to a Tee.

Political ideologies are thinking with the ethical content of wisdom largely distilled from them. Trumpism is the closest thing to a synonym.

Me:  “Earlier realizations of retail-level profits generate purchasing power to effect later ones, then being intermixed with earlier realizations of successive production (periods); while overall _never catching up_ to an expressable condition in a static way, being the crux of the matter.”

First you’re not considering the separate cost inflationary reality of modern economies. Secondly “later” never happens, and third you’re still confusing total money in the system with total ACTUALLY AVAILABLE INDIVIDUAL incomes. The latter being the salient point vis the free flowingness and workability of the system.

“In terms of sought economic reproduction potentials, this will happen at a price level determined by the setting and direct spending of later realized retail profits, either by its receivers or by subsequently hired new help instead.”

Again, “Later” never happens in the economy…whose realities are stuck in each successive present moment of time. Only economists and economic pundits, being (at least partially) conscious can conceive of the future…and erroneously believe that “later” matters and actually occurs in the economy.

“nor are there any “additional POST RETAIL SALE costs” to be bandied about that IN THE FINAL ANALYSIS wouldn’t be someone’s personal income and hence purchasing power.”

Same confusion of total money with total available individual income as above.

“The hard part is letting go of the myth that a dynamic purposeful economy can be made sense of in any way statically and that money is a tangible thing, existing as such in time.”

I’m not doing that. As I’ve explained before that Douglas’s followers mistakenly assumed a static/set amount for the “Gap”, I’ve innovated that by showing that what is required is a dynamically abundant flow of individual purchasing power TIED DIRECTLY TO THE TERMINAL EXPRESSION POINT OF ALL FORMS OF INFLATION, I.E. RETAIL SALE, which INVERTS the individual income scarcity FLOW ratio with total costs….and which then exposes the fallaciousness of additional money being the truly operant reason for “monetary” inflation when in fact the reason why any inflation other than cost-push inflation is caused by….the utter freedom to raise prices by commercial decision makers. Such utter freedom in human systems is chaos and not freedom as freedom in a human world can only be defined and experienced in terms of known rational and ethical barriers.

Too much acceptance of orthodoxies and not enough looking at the cost accounting datums and then doing the calculus on them which exposes the basic economic moment to moment problematic realities.

Also, why have so many reform movements and economists like Steve Keen come to embrace UBI? Because they are nascently recognizing that the cost inflationary nature of modern economies IS THE INHERENT REALITY. They just haven’t recognized how to make that reform a stable, painless and beneficial price deflationary paradigm change by pairing it with the discount/rebate policies at retail sale.

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DT: I see the alternative of free credit as needed, given at Craig’s point of retail sale and accounted for (non-profit because firms and bankers also have credit available as needed) using something like the existing credit card accounting system. In this, money withdrawn from an ATM is pre-accounted for without prior commitment as to what it is going to be spent on, i.e. mathematically it becomes a variable rather than a value.

Me:  Philosophy-theoretics is at least one epistemological integration below the meta level of paradigm perception because even thinking is still mental data while consciousness is knowing in the highest sense of the word, and a component part of paradigms is a new conscious realization. It’s why Aquinas said: “All that I have written appears to be as straw compared to what has now been revealed to me.”

Once you’ve cultivated self awareness-consciousness as an ethic, philosophical exegesis and its policy alignment is not mystification it’s logic informed by the confidence of knowing.

The reason why heterodox economists, even the best of them like Steve Keen and Michael Hudson, are stuck in the perfectly legitimate pursuit of theoretics but only the futile pursuit of converting academics espousing DSGE instead of creating the mass movement that will herd political elites toward paradigm change, is because they lack an incisive study of the signatures of paradigms and apparently also lack some of the skills (wisdom) involved in paradigm perception…..and so they do not have the insight to decipher and confidence to assert the logical policy progressions necessary to finish their theoretics.

And by the way Dave I completely agree that everyone and every enterprise should have a debit account with the central bank or other monetary authority mandated to distribute the dividend and rebate monies.

DT:  Craig, of course I agree that a consciousness is better than a reference to one; but to communicate it we have to refer to it: the reference in effect pointing to where it can be experienced.

Me:  Yes, the perpetual problem with a nothingness of ultimate and exquisite quality.

With a 50% rebate percentage and a $1000/mo. dividend that is $2000/mo. and more than the highest welfare payment and if issued upon one’s 18 birthday would also be higher than most people’s social security payment thus enabling us to eliminate the transfer taxes that both enterprise and individuals pay for such.

Grace is a universal personal and temporal universe solvent.

My stance on private finance is not only that it is illegitimate being additional costs post the actual end of the economic/productive process at retail sale, but as thrift/cost cutting is always an economic virtue and a public-governmental bank has no need for profit it could offer consumers and enterprise loans at 0% interest. In fact a public bank issuing 0% loans could actually participate in the 50% discount/rebate policy thereby even more dramatically reducing costs. (if an auto was purchased for $15,000, in other words 50% of $30,000 then the public bank could discount the $15,000 note to $7500.

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Anyone not recognizing that Finance is the 800 lb. gorilla of economic power….simply isn’t looking. And even though most would agree with this fact the real problem is they’re still working at the data, theory or philosophical level of analysis….when the paradigm level is where both the philosophical and policy insights are clarified.

That’s why a study of the signatures of historical paradigms and paradigm perception is such an important and essential skill….and wisdom/the process of discerning and integrating only the truths, workabilities, applicabilities and highest ethical considerations in apparent opposites is its tool.

JV:  As I repeatedly said before, the most difficult task involved in accepting this alternative paradigm is to let go of deeply ingrained but false “truths”. And for that we need to start from the clean slate that this paradigm provides, letting its truths solely roll out from a delineation of the chosen axioms.

Craig’s “paradigm” does no such thing. It’s a hodgepodge of myth and self-contradiction.

Me:  “deeply ingrained but false “truths”.

Yes, like the paradigm of science only.

Science is a dualistic discipline, Wisdom is an integrative one and its pinnacle natural philosophical concept of grace is a thirdness greater oneness of the two and hence includes science….and that concept. This is generally anathema to people who are stuck in either the paradigm of science only or religion only. The concept of grace is the integrative resolution of opposites. When in doubt integrate….and keep on integrating! This is not mysticism, and the concept and its aspects applied to the temporal universe invariably work…especially regarding monetary and economic policies insightfully and intelligently applied at the point of sale throughout the entire economic process and at final retail sale as well.

If you don’t believe it just play the policies out like in a clay
demo with the three elements involved: a monetary authority, a business model or a retailer and a consumer. It’s a good zen meditation on the temporal universe for economists and pundits that are a little too involved in abstraction.

DT:  Craig, it seems you are still clinging to double-entry book-keeping in its present form, where each loan of credit is matched by a credit to the bank’s account.

In my “credit card” system I ask the retailer for credit, and though I end up with debit in my account for the objects I bought, he ends up with a credit in his account for the same goods for having supplied them. Thus he has the wherewithal to restock and I have a reminder of my need to renew my own credit-worthiness by working. This is double-entry book keeping, but in the form of a relational database not dependent on “banks” and financiers supplying fictitious “capital.” What for traditional reasons we call “banks” (as in food-banks in a real economy and gold-banks in ancient trading finance) can in the digital age be reduced to management of automated local databases, linked by the internet, which account not just for prices but for who sold what to whom. Which they did do before commercial bank centralised management started closing them down.

Me:  Dave, Your credit card system is largely making a “distinction without a difference” in that you’re seeing the significance of the digital nature of double entry bookkeeping and a monetary policy crafted around that fact. As for banks/central banks I advocate a publicly administered national and central bank because:

1) I do not see or foresee an adequate way to secure cryptocurrencies/blockchain technologies against money laundering, fraud and theft.

2) You need a third governing/administering entity especially in regard to ultimate powers whether spiritual or economic and monetary. Trinity-Unity/thirdness greater oneness IS the valid concept here not the duality of science and rationality which degenerates into technocracy and amorality because the ethical content gets dropped out. Nor is it the dominating false oneness of monopoly like we have now with private finance’s paradigm of Debt Only as the sole form and vehicle for distribution of credit/money.

3) Private finance and public finance both have inevitable corruption problems unless firmly guided and aligned with the unimpeachable concept of grace as in benevolence and monetary gifting, and having a single entity to watch and regulate as opposed to 10-20 is Occam’s Razor applied.

In order for the wider monetary and economic effects of the new paradigm to occur the discount/rebate policy needs to be paired with a universal dividend:

1) enabling the re-industrialization of western economies and

2) eliminating unnecessary re-distributive taxation which is analogous to the dispensation system that corrupted the church and was a via system that obstructed a direct relationship with god/the monetary authority

especially as technological innovation and AI disruptively destroy aggregate demand and finally

3) the major advocates of cryptocurrencies/blockchain are libertarians whose irrational generalization that government is always tyrannical, and their terminal orthodoxy/inversion of the truth and necessity of monetary gifting is summed up in their slogan “there ain’t no free lunch” …..are almost as anathema to the new paradigm as are the private banks whose monopolistic paradigm currently rules and obstructs economic free flowingness….so It’s extremely unlikely that they are going to see the efficacy of monetary gifting.

DT:   ….a trinity of points/terms is necessary to describe a living God or a business cycle, but we create three new trinities/cycles when we form relationships to these. (Try drawing a triangle and connecting it to a point outside it).

Me:  “a trinity of points/terms is necessary to describe a living God or a business cycle, but we create three new trinities/cycles when we form relationships to these. (Try drawing a triangle and connecting it to a point outside it).”

Not if that additional trinity is an integral part of the original trinity. Consider the symbols of the cross as a duality of lines and the third point of their intersection, the Buddhist yin-yang symbol with of complementing commas with the third integrative dot in each and the dual integrated triangles of the star of David.

“Have you not realised industrialisation has wrecked our world to the point where in another fifty years it is likely to become uninhabitable if we don’t change our ways?”

Yes, if the re-industrialization is as wasteful and polluting as our current technologies, but if everything is financable as a result of the new paradigm of monetary gifting then the most productive and ecologically sensitive and sane technologies can be so financed. That and the fact that grace as in dynamic balance in every respect and grace as the ultimate wisdom concept and experience self actualized by many more than currently take the time to contemplate….would make it a whole lot more likely that people would have the rationality and inclination to consider their own and the planet’s survival….than when they are perpetually under stress to survive monetarily and economically….like now.

DT:  For me the cross was the upright on which Truth was hung, with untruths leaning either side: the one drawn to Truth, the other repelled by it. Both the Buddhist and Jewish symbols are fascinating, but for me are symbols of the complementarity of objects and contexts consisting of eveything else. Where is there room for change and evolution in an object and an undifferentiated context? I spoke of three new circuits [trinities, cycles], of which the third is in economic terms the development of new processes, interacting with human families who are not God but children of God: sharing his likeness and sustained by him, but as children do, having to learn from their own mistakes. If Big Bang creation is likened to blowing up a balloon, there is motion not only in the direction of the surface but two dimensional motion at right angles to this in its expansion. Tension in this motion controls the rate of expansion.

If everything were “financiable” as a result of sufficient credit-worthiness and surplus stocks, surely nature’s technology is more likely to resolve nature’s problems than our own? We need to support those employed in planting trees and irrigating those that need it. Nature irrigates its growth by feeding sap through pipes and in our case, blood through arterial circuits. The pipework gives us clues about functions; we have to look at what is going through it to see whether it is going well, or ill.

Me: The “mystery” of an integrated duality within an integrative trinity-unity is that every separate thing, it’s opposite and their oneness exist at the same time. As I’ve said here before ultimate reality is not a reality problem nearly so much as it is a perception problem.

“If everything were “financiable” as a result of sufficient credit-worthiness and surplus stocks, surely nature’s technology is more likely to resolve nature’s problems than our own?”

As grace is dynamic balance, the pinnacle concept of wisdom and also the natural underlying state of the cosmos, cogniting on those facts and aligning with them would mean both we and the rest of nature would together be better able to resolve our mutual problems….with the universal personal and temporal solvent of grace.

A beautiful song about an available and beautiful experience. Grace is the concept behind the new monetary and economic paradigm, the concept behind every historical paradigm change and, whether one perceives it or not, the most basic state of the cosmos.

YS:  We should explain why and how human economy could have developed from a primitive gathering and hunting economy to the present complex economy.

Me: I completely agree that we need a new theory….that is truly a RADICAL paradigm shift, and by that I mean bringing fundamental assumptions into question like:

General equilibrium from a cost accounting and calculus perspective that will show that modern technologically advanced economies are inherently cost inflationary and thus impel continuous borrowing as a means to avoid recession or worse, and yet, because the current enforced paradigm of Debt Only is a continuous flow of costs…is doomed to failure without a new monetary paradigm.

The economic/productive legitimacy of the private for profit business model of finance-money creation from the fact that so much of the benefits of our modern productive system is unavailable to us except as additional costs post retail sale which is where production becomes consumption and hence is the only actual and legitimate end of the entire economic/productive process. (Note: This is not the crank assumption that interest is the be all and end all of the problem of finance-money creation as additional costs can accrue within the paradigm of Debt Only even if all such indebtedness is at 0% interest.)

YS:  Craig, thank you for agreeing with the necessity of a completely new theory. Surely it requires a radical paradigm shift. But, I cannot understand what you have written at the second and third paragraphs. I understand that you have one or two problems that you want to approach but your descriptions are so abrupt and I can get no ideas on what you are thinking.

Me:  Yes, thank you as well for your reply. My new theory I would call Wisdomics-Gracenomics which denotes that what economics needs is an integration of the truths and only the truths in opposing perspectives (which is the very process of wisdom itself) and those truths and relevant economic policies need to be aligned with the equally economically relevant aspects of the highest concept of wisdom as expressed in the world’s major wisdom traditions, namely grace as in: (monetary) gifting, (monetary) abundance, (monetary) directness and immediacy/nowness of monetary policy effect, thirdness greater oneness/newness which is the result of thorough and continuing integration, inversion of problematic dualities/realities, i.e. from systemic economic scarcity to abundance and from balkiness or stopped to free flowingness and lastly dynamic interactive integrative disequilibrium as opposed to static general equilibrium.

Grace is a traditionally religious/spiritual concept but I am not in any way claiming any traditionally religious/spiritual significance for it in such theory. Rather I claim that grace and its various aspects are actually the generally unperceived NATURAL/PHYSICAL/TEMPORAL reality and hence are highly relevant to human life and systems which are thoroughly embedded in the universe we all inhabit.

I claim that macro-economics suffers from excessive abstraction and a failure to look at the the digital nature and relevant economic significances to be found in double entry bookkeeping and various datums to be found in its subset cost accounting. I also claim that when those cost accounting datums are gathered and calculus applied to them it will reveal that modern economies are inherently cost inflationary because they continually produce a ratio and flow of more costs and so prices than they simultaneously produce a flow of individual incomes with which to liquidate those costs/prices, and hence the only way to resolve this most basic economic instability is to implement policies that are costless to both enterprise and the individual. Hence a new paradigm of direct and reciprocal monetary gifting policies of such amount and magnitude that they will also accomplish the effects that result and reflect the aspects of grace known as abundance, inversion of problematic dualities, dynamic interactive integrative disequilibrium and free flowingness.

Steve Keen has essentially re-discovered this monetary reality in his recognition that the moment the rate of credit increase drops the economy will enter recession, but not having a thorough understanding of accounting (a critique he himself has leveled at economists) and its digital nature in combination with recognition of the significances and policy capabilities at the ending point of the entire economic/productive process (retail sale) has also failed to craft the policies (a universal dividend combined with a discount/rebate at the point of retail sale) that will accomplish all of the signatures of a paradigm change as I have enumerated them many times here.

Also, as double entry bookkeeping is the utterly basic, integrative infrastructure upon and within which the entirety of the micro-economy operates it is exactly the tool macro-economists must re-discover and mine significances from if there is ever to be an honest and thorough understanding of its micro-foundations which as I understand it is one area you are interested in and investigating.

I’ve come to believe that the private financial/banking power of money creation is not a legitimate business model because it imposes costs post retail sale which (retail sale) is the end of the economic/truly productive process. It is also ethically problematic being the very power of business and individual survival in a monetary economy which is the economy’s actual reality and not “a veil over barter” as neo-liberal macro currently espouses. Lastly it is simply Occam’s Razor that a publicly administered banking/money creating power is simpler and more functionally possible and workable than the many private money creating entities we currently have and finally, the probably inevitable corruptibility of even a publicly administered absolute economic power like money creation would be best insured against by a concept/paradigm of grace as in benevolence.

YS:  Thank you, Craig, for the explanation. It seems you are more interested in a normative reconstruction of economics. I am much more oriented toward positive theory, i.e. on how the actual economy is working.

At any rate, paradigm change requires various attempts. The later person can judge which was the good one and which was the bad one. For the moment, it is important that we all try to present what we think necessary.

Me:  Yes, I’m saying double entry bookkeeping/accounting IS, most essentially, how the economy works and that due to the increased time, complexity and additional costs of modern technologically advanced production wed to the (correct) cost accounting convention that all costs must go into price….a costless means/set of monetary policies is the only thorough way to remedy the problem.

Further, an ABUNDANTLY costless means that inverts and transforms the present macro-economic scarcity ratio of free and available total individual incomes to total costs/prices will elevate those policies to the level of paradigm change. This is based on a study of the signatures of all historical paradigm changes and reveals that the policies I’ve posted here many times in fact DO fulfill every one of the signatures of same.