Me:  Yes, QE is a shell game and banks can only lend what we are willing to borrow. Unfortunately:

1) due to being normally aquisitive and naturally wanting all of the things modern living can bring us lots of people are willing to borrow more than they CAN repay

2) most businesses have only the choice to continually borrow or go out of business….because their flow of costs exceeds their flow of revenue….because modern economies now inherently create a greater flow of costs than they simultaneously create a flow of individual incomes with which to liquidate those costs (this is A + B in a nutshell)….setting up the compulsive imperative to borrow….or the economy promptly goes into recession or worse.

It’s a set up for the banks who rule with their paradigm of Debt Only at all times while being profitable during “good” times and getting bailed out so as to profit during “bad” times.

Heterodox economists are discovering this alternately raped and dominated financial chaos now, but even the good ones like Steve Keen do not fully grasp it. His de-bunking of Dynamic Stochastic General Equilibrium is correct, but because he was brought up within the paradigm of Debt Only he’s still believing that private banking/money creation is a legitimate business model even though it isn’t because its an additional flow of costs post retail sale. He hasn’t stepped through that mirror yet, and into the new paradigm of Direct and Reciprocal Monetary Gifting with a publicly administered national banking system based on and aligned with the policies of a universal dividend and high percentage discount/rebate policies throughout the entire length of the economic process.

Douglas was brilliantly right 90 years ago with his cost accounting perspective on the economy, but even Douglas did not fully see how to bring the new paradigm fully into being probably because he was Tory oriented and so did not realize that private finance was neither a legitimate business model nor able to be ethically controlled because its product was so utterly essential for the economy to function and hence was problematically felonious domination waiting to happen.

Douglas should have recognized the former having located the correct termination point of the economy (retail sale). Also (apparently) he did not do a thorough exegesis of the aspects of the concept behind Social Credit and the new paradigm, namely grace, and so did not fully recognize that one of its major aspects, abundance, was the key to raising Social Credit to the level of paradigm change. Hence his followers eventually fell under the austere spell of General Equilibrium analysis.

Public Banking and Wisdomics-Gracenomics need to integrate their messages and take the resulting structural and policy full solutions directly to the “people”. Heterodox academic economists are wasting their time trying to get ego involved orthodox academics to see and affirm their heterodox and yet still incomplete and non-paradigm changing critiques. Showing the extremely large constituencies of the small to medium sized business community, students and literally EVERY individual how such a system of banking and monetary policies are in their interests is the best and correct way to accomplish the political change necessary to get such a program implemented.

AT:  Here’s tea link to see a historical plot of the Fed’s assets. Over ten years, it has gone from $0.8 trillion in 2008 to $4.4 trillion in 2014-2018, which is a 5.5x factor, or 550%.

JD:  Thanks Ann. The next question is why so much after the crash?

Me:  More likely it was simply necessary for the survival of their paradigm and the system they dominate. Catastropes like the Great Depression are understandbly great opportunities for change due to the pain and suffering they cause. Letting that happen again would have been enough to make people see through all of the hypnotic and fallacious theoretical justifications of the system to consider even more than the pinnacle achivement of the last one, social security, and actually consider the policies of paradigm change.

The skill of paradigm perception is the integrative consciousness raising mental discipline of Wisdom. This follows from the fact that Wisdom is the means of self actualizing self awareness/consciousness via contemplation and the integration of apparently opposing truths in ways that enlighten thirdness greater oneness of same. It also follows from the fact that a component part of paradigms is consciousness itself, that paradigm perception is consciousness of present ruling ideas of and within any area of human life and finally new paradigms are always the conceptually oppositional expressiont of old paradigms while simultaneously being new conscious insights that actually effect the mental and temporal phenomenon known as paradigm change.

Therefore Wisdom is not only the route to more conscious living it is the oppositionally integrative skill necessary to perceive present paradigms and new ones as well.

Here’s an axiom for economists and economic pundits: The point of final retail sale is the terminal summing point for all costs and prices for any item or service and also the terminal ending point of the entire legitimate economic/productive process, that is, where production become consumption.

This means that the “business” model of private money creation/finance is NOT a legitimate economic/productive one because it is an additional cost POST RETAIL SALE. 300-400 years ago production was not nearly as complex, drawn out and costly so far as depreciation/obsolescence etc. was concerned as modern production is hencethe process has become fundamentally cost inflationary, and macro economists have lost sight of such cost accounting realities. Hence they have missed the fundamental illegitimacy of private financial costs.

Economists bandy the words “paradigm change” around without actually understanding what such an occurrence exactly is and what its signatures are.

It is not the shallowness of reform. It is ALWAYS BOTH an inversion of the PRIMACY and a FUNDAMENTAL TRANSFORMATION of a currently dominating, increasingly unworkable and problematic way of thinking-philosophy and acting-policy. It ALWAYS clarifies and increases human knowledge as well as human productivity, abundance and survivability. It is ALWAYS conceptually oppositional to the current/old paradigm. It is ALWAYS accompanied by a new tool or the general rediscovery of insights from an old tool (the insights, truths and conventions to be found in the nature of double entry bookkeeping and its subset of cost accounting above). It ALWAYS eliminates vias and increases directness of its policy effects in the body of knowledge/area of human endeavor the paradigm change applies to. It ALWAYS ends current monopolies/virtual monopolies and eliminates any need for prior palliative reforms. It’s ALWAYS absurdity for the vast majority….right up until it’s recognized as the new general truth.

The policies of Direct and Reciprocal Monetary Gifting to the individual, at the point of sale and at final retail sale fulfills every one of these requirements/signatures.

Old/Current Monetary and Economic Paradigm:  Debt/Burden/Additional Cost Post Retail Sale

New Monetary and Economic Paradigm:  Direct and Reciprocal Monetary Gifting

Current Paradigm of Science: Fragmentary Empirical Truth Only

New Paradigm of Science: Unitary Integration of All Existant Relevant Truths

Old/Current Paradigm of Inquiry:  Science Only

New Paradigm of Inquiry:  Wisdom-Integration

Current Paradigm of Politics: Power

New Paradigm of Politics:  Freedom

Old/Current Paradigm of Humanity:  Survive!

New Paradigm of Humanity:  Transcend!

Paradigm of Every and All Paradigm Changes:  Grace

I’m not generally a conspiracist thinking that instead most systems are initially set up to mistakenly justify being operated by elites and gradually devolve into domination that must then eventually be transformed by a paradigm change. However, knowing that Russia is an adversary and autocratic/kleptocratic society of long historic pedigree it is perfectly reasonable, giving the evidence, to assume that this is a conspiracy to destroy our democracy. Our democracy of course has its own problems, but the current much more scary and deadly potentialities merit a thorough moral and legal cleansing. And this is why I’m hoping and confident that Mueller is not playing “small ball”.

Finance is necessary. Both private and public finance are problematic in various ways. Money creation is not a legitimate private business model because it is an additional cost post retail sale, and because attempting to merely regulate it recognizes neither its current monopoly powers nor the inherent cost inflationary nature of technologically advanced profit making economic systems. Finally, the economic centrality of such private power and hence its inevitable ability to corrupt and warp the economic process makes it necessary to simplfy and effect an actual solution to these problems.

Hence the rational, most simplified and resolving course forward is a publicly administered banking/money creating structure that is based on and aligned with an unimpeachably wise and virtuous new paradigm-concept, namely grace as in Gifting which guarantees the individual a fair and satisfying share of the productive capacity of the economy they live within, reverses the inherent cost inflationary aspect of technologically advanced profit making systems and enables competitive businesses to better survive and thrive.

Neo-liberalism is an ideology looking for justification. Every human system should be the integration of the practical, the ideal and the ethical because that is what wisdom is. Macro-economics is a johnny come lately pseudo-science that only came into being as Finance and its monopolistic paradigm was beginning to coalesce into its current world dominating and hypnotizing form….and that is precisely why it is so confused, unstable and does not “work”. As Michael Hudson laments, financialization is the bane of economics. What we need is a new paradigm that enables the re-retailization of economics and that recognizes that humans are not just marks, but matter. Math and science are an un-integrated and incomplete trinity-unity that requires Wisdom which is the human mental tool for cultivating self awareness-consciousness and so is also the best vehicle for paradigm perception as a component part of paradigms is a new consciousness.

Me:  If you want to get rid of the idiocies of the FED, stabilize the economy with much greater individual aggregate demand while integrating price deflation into profit making systems….you have to come off the dime of falsely claiming that the new DIRECTLY distributive monetary paradigm implemented at the point of retail sale is some how RE-distributive and hence socialistic. If you can’t muster enough honesty and objectivity to do that then you’re part of the problem not the solution.

RJ:  The fact is that there is nothing that works. 100% of cycles have an up phase and a down phase. Every cycle fails, which is why every boom ends in a bust. Politics swing back and forth between liberal and conservative.

A gold standard has never worked, because of cycles. It might be some kind of ideal, but because of cycles, push comes to shove at some point in time. Even Glass Steagall, which was passed, to prevent IT from ever happening again, was dismantled when it got in the way. IT is happening again.

Me:  @RonJ Nothing seems to work right before a paradigm change which always resolves the primary problematic situations in the body of knowledge/area of human endeavor it applies to. That’s what the new monetary and economic paradigm of Direct and Reciprocal Monetary Gifting does. It ends the obsessive left-right struggle of trickle down capitalism and re-distributive socialism because it is a thirdness greater oneness integration the truths, workabilities and highst ethical considerations of seeming opposite perspectives. The real problem is Mankind loves its problems more than it desires solutions and egotistically clings to orthodoxies way past their historical and temporal usefulness.

Perceiving consciousness itself after all is the pinnacle of epistemological knowledge and paradigms are the highest and purest expressions of mind in whatever aspect of human endeavor they apply/relate to.

*****************************************

You can have both Cartesian coordinate and unitary experience within the cosmic code formulation of a thoroughly integrated duality within an integrative trinity-unity-oneness-consciousness-process.

The sages of history were the scientists of their time….and probably of all time. When the zen masters refer to getting past “the breath on the mirror” they’re talking about dropping any semblance of ego identity in pursuit of the experience of consciousness itself. Now that is a thorough integration of the scientific and wisdom modes of mind-experience.

The paradigm of inquiry, of Science Only, has become a subtle and resistant bias over the last 500 years or so and needs to relent and be integrated with the more inclusive paradigm of Wisdom…. in order to aid perception of the 5000 year old paradigm of Debt/Burden/Additional Cost Post Retail Sale and thereby enlighten and facilitate the new paradigm of grace as in Direct and Reciprocal Monetary Gifting.

Integrate the truths in opposites. Make that your ethic and you’ll be the wisest and best scientist around.

Of course the dems are out to get Trump that’s the idiot ethic and paradigm of Power Only that pervades our politics. But Trump is likely not only a serial launderer of Russian money but also a conspirator against the US during the election….and the rule of law by a real straight arrow by the name of Mueller is what’s important instead of more tribal hypnotism…from either party.

Guys like Bannon are erudite dunces who can’t see past party politics and can’t discern the difference between chaos and freedom as they believe in a scetchy intellectual “fourth turning” which is really nothing but the oft historic failure to acheive a thirdness greater oneness which is the true signature of a mental and systemic integration of the truths in opposites….and is what we actually need to extricate ourselves from all of the reactionary nonsense that we see taking place before our very eyes.