Points all well taken, and Trump’s stupidity and fascist mentality makes me want to vomit every time he opens his mouth. The guy is either a conscious or unconscious purveyor of Russian propaganda that is designed to accellerate the decline of American empire.

China will continue to ascend because they have a much more pragmatic attitude toward debt than America because the latter is the capital of FINANCE capitalism. The deepest problem we face economically is the current monetary paradigm of Debt Only. The word Only designates it as a monopoly paradigm. There isn’t anything wrong with the concept of debt itself, only the onlyNESS as in its monopoly nature. And its the core neo-classical shortcoming as you pointed out 7-8 years ago when you said: “The reason neo-classicalism ignores money is if they confronted it they would have to admit that the money system (and its monopoly paradigm of Debt Only) destabilizes the economy.

Please, focus on helping to change the monetary paradigm. The clock is ticking very loudly.

Finance’s domination of every other business model because of their ability to control or deny the life’s blood of their economic survival, i.e. money ONLY AS DEBT, every individual with monetary austerity and inflation and preventing the economic, monetary and social-psychological benefits of the new paradigm of Gifting.

A complete ban both foreign and domestic on leveraging up currency speculators in order to short the currency. Such would be considered “null and void” and the bank and individual or commercial entity even attempting it would be charged with felonies carrying mandatory 20 year sentences without the possibility of parole.

While your critique of De Long in this case is accurate it still misses the mark regarding how we end DSGE/Neo-classical economics and replace it with something truly paradigm changing. That something is discovering and applying the new monetary paradigm because money is an integral and essential element throughout the entire economic process.

The subject of money is cluttered with crackpots, long term invalid orthodoxies and like every historical paradigm change runs up against the two biggest obstacles to change which are cynicism/mentally stopping change before it even can begin and the unwillngness/inability to embrace ambiguity due to the fact that all new paradigm concepts have always been in direct conceptual opposition to the current anomalous paradigm…and hence one has to make a leap of faith over the seeming illogicality of the new concept.

The present monetary paradigm for the creation and distribution of all new money is Debt ONLY as in the burden to repay, and so to follow the historical trend of complete conceptual opposition the new paradigm is Strategically Implemented Monetary Gifting. https://www.amazon.com/Wisdomics-Gracenomics-New-Monetary-Paradigm-Policies-ebook/dp/B0C49B9PX7/ref=tmm_kin_swatch_0?_encoding=UTF8&qid=1552358772&sr=1-1-catcorr

It dominates every other business model except Finance by forcing them to charge the full costs at retail sale and of the full costs of finance as well…when if Monetary Gifting was integrated into the Debt Only system the deepest problems of modern economics could be resolved (inflation, poverty, chronic lack of purchasing power and hence demand and historical economic destabilization of domestic economies via overwhelming debt build up) and general monetary and economic abundance could become the new reality.

This monopoly power inhibits greater profits and hence greater economic abundance. It also forces various taxation strategies on both individuals and enterprise that unsuccessfully control inflation which could be largely or entirely eliminated with the policies of Monetary Gifting.

It forces the individual to pay the same full costs at both retail sale and the retail point of Finance that is, one’s mortgage, insurance and every other high priced item payment like for automobiles.

This monopoly also forces governments to create debt in the form of treasury bonds instead of simply creating debt free money and strategically distributing it at retail sale with a 50% Discount/Rebate policy which guarantees the merchant gets their full price while doubling the purchasing power of everyone and consequently the demand for every one of themerchant’s goods and services.

Reminder: This is not the intention to eliminate the concept of debt itself, but to integrate the new monetary paradigm of Gifting into the Debt Only system.

Systemic economic monopolies enable problematic conditions on commercial economic agents, but money being the very universal tool of economic exchange, the present paradigmatic monopoly enables its wielder to dominate both commercial and individual economic agents, i.e EVERYONE.

Reverance, the non-sectarian response to everything.

Could not agree with your analysis of neo-classicalism more, and your identification of credit being the biggest source of inflation is equally spot on. The only thing I would point out is that the concept behind credit is DEBT as in burden to repay and because banks create the overwhelming amount of new money every year they wield the monopoly paradigm of DEBT ONLY…and that is the heart, the core problem to be resolved. Then, as new paradigms are always in complete conceptual opposition to the present paradigm, that makes the new monetary/financial paradigm concept MONETARY GIFTING. Strategically apply Monetary Gifting and you’ll find you can not only end inflation but implement beneficial deflation and also implement many other economic and even psychological benefits. Reforms are good. Paradigm changes are permanently progressive historical events.

…is the 50% Discount/Rebate Policy at Retail Sale, New Monetary Paradigm and Its Full Policy Program.

In other words bringing the experiences of Wisdom/Trinity/Paradigm Change (the various aspects of the natural philosophical concept of grace as in love in action, and as policies are the actions of systems…systemic policy), thirdness greater oneness, resolution, key applicable new realization, creative destruction of present orthodoxies, Nowness and Newness/Process/Time/Quadrinity…into the single universally experienced/participated in activity and point in the entire economic process AND in the temporal universe, that is retail sale.

And its accomplished with the largely unperceived trinity of accounting, i.e. equal 1) debits and 2) credits that sum to 3) zero…that private Finance utilizes to create upwards of 97% of all new money every year but MONOPOLISTICALLY ONLY AS DEBT…but in this case is its conceptual opposite, that is Monetary Gifting.

MMT is a great reform, but it misses the fact that “free” market theoretics is a fetishized misnomer for destabilizing domination by Finance and its monopoly paradigm for the creation and distribution of new money AKA Debt ONLY.

It also misses the temporal universe fact that retail sale is the single universally participated in/thus aggregative as in macro-economic point in the entire economic process and hence it is the perfect place to implement monetary policy with a 50% Discount/Rebate which simultaneously doubles everyone’s purchasing policy while transforming chronic erosive inflation into beneficial price and asset deflation. New conceptual realities, inversion of temporal universe realities and the destruction of long held orthodoxies are all primary signatures of historical paradigm changes. MMT: good palliative. Strategic Monetary Gifting: paradigm change.