Thread On RWER Blog Regarding The New Mega Paradigm Change

KZ:   In his book “The History of Money,” anthropologist Jack Weatherford points out this about money.

“Greece was the first civilization to be transformed by money, but in a relatively short time, all cultures followed the Greeks down the same road and underwent the same metamorphosis. Humans have found many ways to bring order to the phenomenological flow of existence, and money is one of the most important. Money is strictly a human invention in that it is itself a metaphor; it stands for something else. It allows humans to structure life in incredibly complex ways that were not available to them before the invention of money. This metaphorical quality gives it a focal role in the organization of meaning in life. Money represents an infinitely expandable way of structuring value and social relationships—personal, political, and religious as well as commercial and economic. Everywhere that money went it created marketplaces. Money created a new urban geography by giving rise to towns and cities centered on the market rather than the palace. The exchange of goods necessitated new commercial routes over land and sea from one urban nodule to the next, thereby linking Greece and neighboring lands in a new web of commerce. This new social network founded on commerce and money gave rise to a new political system.” Monarchies of great empires that spread money and commercial life around the world of the middle east, and even into Europe and China.

Weatherford also points out. “The great struggle of history has been for the control over money. It is almost tautological to affirm that to control the production and distribution of money is to control the wealth, resources, and people of the world. Over time, competitors have aligned themselves into various factions, institutions, governments, banks, guilds, corporations, religious orders, and great families; but from the minting of the first coin until today, the struggle has never abated for more than a brief respite of a century or two. The money wars have sometimes been literal ones fought on great battlefields with large armies, tanks, warships, bombers, and missiles. At other times they have been metaphorical—but no less serious—struggles conducted in private chambers, corporate boardrooms, courts of law, and legislative halls as well as on the floors of the great stock and mercantile exchanges of the world. As soon as a battle is settled in one arena, the actors and interests switch to another where they fight with new rules and new weapons. Throughout history, whenever one faction or institution seemed to have won control of money, an outside player invented another form based on a new technology, and another struggle erupted.” The term technology as used here by Weatherford includes not just what is most often considered technology – new materials like paper and metal and new devices to protect money, like magnetic strips, but also new ideas and concepts about money, such as banks, taxes, denominations, and new market designs such as the one proposed by neoliberalism.

Me:  Excellent and very accurate post. It enumerates the many ways that the present paradigm of Debt ONLY has almost completely woven its way into the woof and warp of EVERYONE’S daily life. As mentioned in my book this is why the new monetary paradigm will have such incredibly broad and deep beneficial consequences. It will be a greater step upward than the last mega paradigm change from Hunting and Gathering to Agriculture/Homesteading/Urban Civilization. In fact one of these changes will be the ability to de-centralize urban civilization.

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Thread on RWER Blog Regarding Paradigm Perception

Me: As wisdom is the integrative mental process itself including any additional study in an analysis is the correct vector, but this is done on a fairly routine basis in most scientific studies, probably less in economics and the money systems than most, that is true.

However, until science overcomes its more than 500 year old foolish and reactionary rejection of the fundamental fact of human self awareness/consciousness (whatever one attributes its reality to) it will hamstring its research methods and worse yet its level of knowledge/epistemology. Knowing every little dogmatic jot and tittle of the bible and insisting on strict empiricism, reductivism and mental dualism in science are simply two sides of the same coin.

Economics requires science to consult wisdom and its pinnacle concept of grace/graciousness/love in action as policy….implemented at the most reality changing point of the economic/productive process at retail sale. Don’t be a religiously erudite scientistic dunce, be wise and scientific. It’s both integrative and scientific in the highest sense.

KZ:  Craig, many comments on this blog ask about other options to organize economics, apart from the physics model built into the current discipline. A model that is completely ill suited for economics. I offer geology as one option. An option that, in my view fits the kind of science economists must do since their study subject is more uncertain, more fuzzy, more changeable than most. Biological science might work as well. Though I don’t believe it fits as well.

Me:  Why not integrate philosophy/a new philosophical concept into economics and strategically apply it to the monetary system which currently parasitically sits upon everyone and every legitimate business model with a policy that is the very expression of the new monetary paradigm of Direct and Reciprocal Monetary Gifting?

“A new economic philosophy” is what Steve Keen said was needed a couple years ago at a meeting in Europe that called for a new Reformation in economics. It’s just that he didn’t have paradigm perception. The Reformation was a paradigm shift itself which being the perception of conceptual essences is the same level of mental integration of the truths in opposites as wisdom, which is precisely what is needed.

As I said in my prior post science integrates other sciences already. Economists and economic pundits simply need to “up their game to it”.

KZ:  Craig, sounds nebulous to me. How about this. Drop the physics-imitation and all mathematics beyond descriptive statistics and see what develops. Comparing multiple possible answers as do biology, geology, and some others might be added later.

Me:  Surprised to see the classic empiricist, scientistic response from an anthropologist.

Economics’ problem is it apes the scientistic side of physics not its cutting edge quantum one which courageously dares to embrace a concept like grace as in the continual integrative, interactive particle flow of the cosmos which reflects and comes back to the Hindu concept of Shiva’s dance experienced over 6000 years ago.

KZ:  Craig, as I noted physics owes a lot to star gazing, religion, and the mysteries of mathematics for what it is. So, some philosophical form of integrated truth following in physics would not surprise me. I’d be happier if physics, and economics just turned into everyday workable and useful sciences. Right now both are scientific outliers that do no good for anyone. Not even their practitioners.

Me:  I’d go along with that, but what’s unworkable and non-utilitarian about an ending, pivoting and paradigm changing point in the economic process where a simple algebraic operation and monetary policy resolves the two biggest and most stubborn problems of modern economies? And I’m not talking changes it a little, but changes the entire pattern.

KZ:  Craig, no problem with it at all. If it works. One of the reasons planners use models rather than social experiments to test out their proposed policies is that it’s always better to explode a model than a city, state, or region. Or, perhaps a nation. So, model your proposal and let’s take a look at the results. They may surprise you. If the model results are good, then do some polling to figure out if those you hope to benefit from your proposal understand or want it. Those results may surprise you, as well.

On the working and useful part, for economics I’d consider some recommendations, with policy proposals for dealing with inequality, for dealing with climate change, for ending the consumer society, etc. as signs of working and useful. For physics, recommendations and policies for dealing with climate change, nuclear proliferation, new designs for renewable energy, etc.

Me:  Ok.  From my book:
A $1000/mo. universal dividend paired with the 50% Discount/Rebate policy immediately guarantees everyone 18 and older $24,000/yr. of potential purchasing power whether they are employed or not.

The dividend for married couples with at least one child is $1500/mo. each or $36,000/yr. apiece or $72,000/yr.

Of course if anyone gets a job their purchasing power from any employment is also doubled.

An 18 year old student with a $9/hr 16hr/wk Wal Mart job would then have monthly purchasing power of $3152/mo or $37,824/yr.

A couple with a child with 2 full time Wal Mart jobs would have purchasing power of $11760/mo or $141,120/yr.

A married couple with one child and one income of $40,000/yr would have potential purchasing power of $152,000/yr.

The wealthy’s income from both the dividend and the doubling of their earned income will increase their purchasing power as well so technically inequality isn’t addressed, but as everyone’s income will be abundant instead of scarce or non-existent….who cares. Envy is a personal vice, gratitude is a stellar virtue and such a graciously abundant system would help to support, habituate and self actualize the latter….and the system  would be free flowing as well.

Climate change:

Creating a publicly administered non-profit monetary and financial system would:

Forever end cost as a factor for slowing or denying necessary products, projects and new research that would deal with climate change

With the second 50% Discount/Rebate policy at the point of note signing a $30,000 solar panel purchase would cost only $7500 which with a 0% loan for 2 years would be $312.50/mo.
A $40,000 autonoumous battery powered car would be $10,000 with a 3 year 0% loan would be $277.78/mo.

With inflation forever ending from the dividend and Discount/Rebate policies and unemployment no longer a deleterious factor the government could allocate whatever funds it saw fit for any of the huge projects needed to reduce carbon foot print. Re-industrialization of the nation even in the most efficient and ecologically sane way possible would actually increase employment and keep the economy robust and stable and reverse the failed and destabilizing globally financialized economy.

Ending consumer economy

Creating an economy philosophically and policy-wise based on grace invites the many virtuous aspects of that concept.

I suggest a nationally coordinated cooperative effort between the clergy, helping/therapeutic professions and the government to acculturate such virtuous traits and helping people to expand their awareness and appreciation of the vast set of positive, constructive purposes available to them in addition to employment with the monetarily abundant economy.

There are numerous additional policy suggestions and capabilities in my book that the new monetary paradigm would enable.

KZ:  Craig,

“Morning always promises miracles.”
― Sinclair Lewis, Elmer Gantry

I wouldn’t want your clients to put you into the Elmer Gantry role.

Me:   Cynicism is irrelevant regarding survival, and an historically verifiable indication that one is on the wrong side of a paradigm change. Craig 08/08/2019

KZ:  Craig, the last thing my remarks are about is cynicism. I speak from experience. Just one instance. I negotiated a $55 million rate decrease for some Texas utility customers. On the witness stand I was pilloried by the AG and Citizens’ Counsel for giving too little of the money to low usage customers. Both disagreed with my whole strategy and made that clear by bashing me. Just saying, we don’t always get what we think we deserve.

Me:  Cynicism grows out of negative experience. I’m not saying it is pleasant or that it is anything but a mental challenge to overcome. Neither am I naive about the hold that ideologies have over people’s minds. There are probably nearly as many stupid (read extreme) liberals as there are stupid conservatives/libertarians. Did you get the decrease and did it benefit everyone? That is what is important. And paradighmatically, is it conscious of how the paradigm of monetary scarcity/austerity is overcome with abundantly direct and reciprocal monetary gifting? Recognizing the benefits and necessity of a new pattern is personally 90% of the battle won. Consciousness raising is difficult in humans because of the subtleties of consciousness itself, but the efficacy of a genuinely new pattern gets learned most rapidly by doing-living and in so doing the old way of thinking dies a rather rapid death. You know that. It’s the power and process of culture.

Posted To RWER Blog Regarding Wisdom

As wisdom is the integrative mental process itself including any additional study in an analysis is the correct vector, but this is done on a fairly routine basis in most scientific studies, probably less in economics and the money system than most, that is true.

However, until science overcomes its more than 500 year old foolish and reactionary rejection of the fundamental fact of human self awareness/consciousness (whatever one attributes its reality to) it will hamstring its research methods and worse yet its level of knowledge/epistemology. Knowing every little dogmatic jot and tittle of the bible and insisting on strict empiricism, reductivism and mental dualism in science are simply two sides of the same coin.

Economics requires science to consult wisdom and its pinnacle concept of grace/graciousness/love in action as policy….implemented at the most reality changing point of the economic/productive process at retail sale. Don’t be a religiously erudite scientistic dunce, be wise and scientific. It’s both integrative and scientific in the highest sense.

Post To RWER Blog

Almost no one here disagrees that neo-classical economic
theory is a fraud and a failure, and virtually everyone agrees that the heterodox critiques of Keen, Hudson, Lars, Asad etc. are more accurate and the right direction. Can’t we move on to suggesting policies and structural changes that align with the conclusions of our agreed upon conclusions like:

1) It’s a monetary economy, not “a veil over barter”
2) Money and credit are the most potent and significant factors in such an economy
3) Private for profit finance having a monopoly on credit creation is a massive contradiction in an allegedly free enterprise theory and system, and also requires that the sole form and vehicle for the distribution of credit-money be Debt ONLY
4) Hence private money creation must end, but because public money creation could also be just as problematic its money creating ability and monetary policies must be firmly and unmistakably aligned with an unimpeachable ethic like the natural philosophical concept of grace as in love in action, i.e. policy as in direct and reciprocal monetary gifting at a strategically rational, effective and definitive point in the economic process. That is at retail sale, which will invert the presently agreed upon reality of individual and systemic monetary austerity into monetary abundance, and will also change the chronic inflation of modern economies into beneficial price deflation.
5) Science as wonderful, necessary and interesting as it is, is immersed in complexity and rarely accomplishes solutions because its task is the reductive process of discerning factual truths. We should aim for discerning the elegant, deep, holistic and resolving simplicity (a single new concept) of a new paradigm, which concept applied intelligently changes the entire pattern of the area of human endeavor it applies to.

Isn’t this the truly serious course of thought and action? Or is this blog merely a debating society?

What to Do and How To Do It

We must make the money system serve us. Accomplishing that is the first step in making the economy flow gracefully and prosperously for all, and nothing of real or lasting positive effect will ocur until that does happen.

Implementing the new monetary paradigm of Gifting integratively into the economy by creating a non-profit publicly administered monetary and financial system based on and firmly guided by the natural philosophical concept of grace and its logically aligned policies is the essential first step in that process.

New and Important Policy To Control Inflation

If certain businesses raise their prices by high percentages in the run-up period to the new paradigm policies are enacted their competitors will be given an additional 10% Discount/Rebate percentage, and the inflationary offenders will have their discount percentage subtracted by the percent they inflated. This applies to after the new paradigm is implemented as well.

Thread On Public Banking Regarding Reform vs Paradigm Change

Me:  The anti-Fed crew on the republican side (and even democrats who don’t have a clue about money) will only result in more austerity as they believe the economy tends toward equilibrium and so does not need fiscal deficits. Of course there’s a lot better and more resolving monetary policy than fiscal deficits (Direct and Reciprocal Monetary Gifting at the point of retail sale), but that will never come about from the right which is terminally orthodox and dense on the macro-economic topic of money and the economy. What Trump fears is rate hikes slowing the economy in an election year, period. He’s too much of a tool to see any actual third alternative.

Bob is right, nothing significant and/or permanent will happen until the private Fed is replaced by a true publicly administered national monetary authority. You must know that Ellen. Even then who is going to trust ANY politician to craft policies that will free both the individual and the small to medium sized business community??? No, you have to craft a policy that changes the entire paradigm/pattern. Killing private for profit finance is necessary, but you have to kill its paradigm of Debt ONLY as well. The 50% Discount/Rebate policy at retail sale does that in spades as it completely inverts the present realities/seemingly unresolvable problems of individual monetary scarcity and chronic inflation….in one fell swoop. To paraphrase James Carville, It’s the paradigm, stupid.

As for Trump being a white hat, set aside all of his almost certain illegalities and moral and ethical shortcomings his biggest flaw is that he’s a disintegrative demagogue who, like Steve Bannon, thinks bashing ideas together to the point of systemic collapse….is virtuous, and that somehow a more enlightened elite will emerge from the chaos. Yeah, riiiiight.

Integrating the truths in opposing perspectives is required NOT disintegrative rhetoric and not the belief in disintegration itself. Trump should fall on his head and hope an actually new idea results. But I’m certainly not holding my breath.

EB:  Sure, I know the Fed has to be a public utility to make it work. But I also think Trump is pragmatic enough that if he “got it” that the Fed could create a trillion dollars to fund his trillion dollar infrastructure plan without triggering hyperinflation, he could go for it. That’s our job, to get the information out there. Old ideas die slowly. We just have to keep hammering away. It was a mass uprising against Wall Street in Occupy, then a mass divestment movement, then a divest-our-public monies movement triggered by the Standing Rock protests, that finally brought the millennials out to support a public banking movement. A mass protest among Trump’s base against the Fed would be a good start in reforming it. It is no longer the Temple; the people have seen that the emperor has no clothes. That’s the first step in change. You guys are way too negative. We need to spot our opportunities and fan the flames. AOC and the Justice Dems are also an opportunity. They just need to be coached a bit in their solutions. Again, that’s our job. We won’t get anywhere if we close the door to every opportunity that arises. Strength in unity, that’s the only way we’ll prevail.

Me:  “We won’t get anywhere if we close the door to every opportunity that arises. Strength in unity, that’s the only way we’ll prevail.”

Couldn’t agree more with this strategy, but then why not offer up a direct and reciprocal monetary policy at retail sale that reduces prices by 50% and therefore immediately doubles everyone’s purchasing power, more than doubes the actually available money for every enterprise’s goods and services, absolutely ends any possibility of inflation and in fact beneficially integrates price deflation into profit making economic systems which is the wet dream of every libertarian leaning economist and pundit, immediately accomplishes economic democracy which is the failed dream of every socialist….and is just the kind of hiding in plane sight enormous temporal universe policy breakthrough that a paradigm change is characterized by.

The true beauty of the 50% Discount/Rebate policy at retail sale is that it implements business prosperity and abundant monetary democracy directly into the very woof and warp of the economic process itself. It’s a pattern change, not a piecemeal reform. 

You want a soci-political movement, you want to integrate the self interests of traditionally opposed political constituencies as per above, you want revolution….this is evolution?

Take it DIRECTLY to students, millenials, the small to medium sized business person and every beleaguered wage earner….and herd the politicians toward paradigm change.

JR:   Just as long as crrespondents realise that anything as unworldly as this is NOT Social Credit policy.

The “gap” between incomes and prices is probably of the order of 4 to7%,   Were it 50% economies would collapse every second year or thereabouts.  Or debt would double in less than two years.

Me:  First of all the actual percentage of the Gap is completely irrelevant in the new paradigm that inverts the present reality of monetary scarcity and chronic inflation and so resolves the two deepest problems of modern economies. Secondly the idea that we must only strive for a static/statistical economic equilibrium is a hold over of that classical economic mistake, and it actually defies the dynamic nature of the temporal universe where a dynamic ongoing integrative process, i.e. what I refer to as the higher ethical and monetary disequilibrium of abundant individual incomes in ratio to costs/prices makes the economy trend toward not statistical balance, but free flowingness.

You ARE right that it’s not social credit. I have presented my book’s policies and the paradigm changing nature of them to the guys on the Social Credit list and they could not countenance it for the very reasons I post above. Social Credit was a superior THEORY. My taking its most basic philosophical insight and innovations of its policy make it the paradigm change it was meant to be.

As you got kicked off the Social Credit group for 1) (correctly) pointing out that it had gone no where in 50 years and its adherents needed to take a new look at its tenets, and for 2) (errant) critiques of the correct aspects of its orthodoxy you should be open new ideas.

JR:   Thanks Steve.  I accept that is your approach.

I just want to make sure people realise Social Credit is a responsible organisation that would be careful not to allow demand ihnflation to occur. Our independent Credit Authority would not allow governments to spend to extremes, i. e. it  would assess the “gap” and ensure that demand equalled production costs, thus stabilising the economy.  Unfortunately, the statistics presently relied on do not allow accurate assessment.  GDP is a measure of “what we spend”, not of production costs.
You have never demonjstrated any means of preventing prices being raised to, perhaps, three times actual cost levels before your discount is applied.

Me:   “You have never demonstrated any means of preventing prices being raised to, perhaps, three times actual cost levels before your discount is applied.”Yes I have. As a social crediter you must be aware of the costliness of technologically advanced capital intensive modern economies. That’s why an enterprise can make a 30% gross profit, but still have only a 1-3% net profit. Now suppose an idiot anti-social executive officer decides to inflate his prices by say 25% and even one of his competitors using his head by realizing that the 50% Discount/Rebate policy more than doubles the potential business revenue for his products/services decides to cut his prices another 10%. How long is it going to take the consumer to realize which one of these enterprises is cooperating with a system that doubles their purchasing power and which is greedily trying to game/destabilize it??? Keep in mind that the most prescious commodity a business can have is the belief in their potential consumer’s minds of the good will of their business toward them. In my book I also outline a set of regulations/tax incentives to encourage price stability and tax punishments for businesses that arbitrarily raise their prices including if an enterprise raises their prices without an actual increase in costs two times out of a three month period they lose their 50% Discount/Rebate privileges….and then it’s bye-bye business for them. I also recommend a new governmental department called the Dept. of Competition, Innovation, Ethical Enterprise and The Bully Pulpit (no kidding) whose job it is to promote the first three, oversee changes in monthly prices and when its director spots enterprises that are abusing the new system/paradigm he gets up behind a lectern and enumerates them while pointing a parentally scolding finger at the camera and finishes with a statement like: Mr. and Mrs. consumer these are the offenders who are greedily trying to reduce the doubled purchasing power we just gave you….what kind of economic message are you going to send them?

If every like similar business model colludes to raise their prices (very unlikely and easily spotted) then that is prima facie monopolistic ring fencing that is in restraint of trade and legally actionable….especially after people see how much better their lives are with doubled purchasing power.

JR:  That would certainly handle any unemployment problem, Steve.

An army of inspectors checking every item in every situation.
Me:  John,

You always come back with that tired old rebuttal that wasn’t even true before we had cybernation, software, the internet, algorithms etc. etc.

Again, in the first place businesses have very high costs which prevent them from risking high rates of inflation and hence loss of market share. Secondly the regulations and government departments I outlined in my last two posts along with the 50% Discount/Rebate policy and others will inhibit the vast majority of enterprises from arbitrarily inflating and in so doing risk loss of the 50% Discount/Rebate privilege, and will be “tickled” to have twice as much money actually available for their goods and services, the tremendous cost savings of transfer taxes lifted from their burden and the equally significant cost savings opportunity to borrow at 0% interest when we ditch the gigantic parasite of private for profit finance.

Paradigm changes are universally progressive and beneficiual events. Just go with the new thought and the totally obvious temporal universe effects. You’ll like it. It is after all what you’ve been wanting to happen all your adult life.