Daniel: That would not removed inflationary debt from circulation. It would simply recycle debt over and over while the total debt-to-GDP ratio keeps rising and rising.

What’s required is a displacement where debt-free medium allows debt based medium to be safely purged.

Me: Not correct. Your last statement is exactly what is required…and the policies of the new monetary paradigm do that in spades. How? Because instead of allowing private debt to keep building until it destabilizes the economy the 50% Discount/Rebate policy at retail sale doubles individual purchasing power and simultaneously reduces the rate of increase in debt by 75% by reducing the price/debt burden of a $500k house to $250k at retail sale and then when your $250k mortgage payment (the retail point of Finance) comes due every month the 50% Discount/Rebate pays for half of your payment so you get a $500k house for the equivalent payment of a $125k mortgage.

Daniel: You made no reference to debt-free money. Debt-free. Are you confusing interest-free for being debt-free ? Many people do.

All money created from pen & ink that is not redeemable for a debt-free asset is debt. Greenbacks were debt even at 0%. Social credit is debt.

—>>> Your last statement is exactly what is required..

You bet ! The reference was to real debt-free currency redeemable in gold, market created and market driven with MARKET PRICES. No policy changes required. The Fed can continue to do what it’s doing until the “Yin-Yang”of debt and debt-free mediums empower real economic growth where that growth can be made sustainable. It might then choose to leave the building….. maybe.

On its own and left to itself, this cannot be achieved by debt at any interest rate you choose. Creative distribution of debt won’t overcome a rising total debt-to-GDP ratio either. If you think velocity will do the trick, it won’t. Again, if debt is all we rely on, it will be inflationary.

Time is the enemy of debt. A Yin with no Yang is doomed. It cannot survive but it is required for the relationship to achieve balance and symbiosis once debt-free medium comes into circulation.

Render unto Caesar …. render unto God. The law of weights and measures cannot be ignored in this.

Me: No I’m not confusing debt with interest. The new monetary and economic paradigm concept IS MONETARY GIFTING after all. The 50% Discount/Rebate policy is the very expression of the new paradigm because it is a monetary gift of price at retail sale and a reciprocal monetary gift back to the merchant granting it to the consumer…and its points of implementation are the retail points of both the productive AND the Financial economies, the former of which is universally participated in and the latter of which is largely participated in and also the overwhelmingly debt incurring point. Do the simple math and equally simple accounting operations of the policy until you see the macro-economic and beneficial effects of the new monetary paradigm.

Social Credit’s Compensated Retail Discount (CRP) was a gift at retail sale, but the monies funding it would have been created as debt in the same way as government debt is funded by Treasuries. However the interest on treasuries is actually a monetary payment to the private sector…so its not the boogie man libertarians and also democrats try to make it. ITS THE BUILD UP OF PRIVATE DEBT THAT IS THE REAL PROBLEM. Amend The FED’s charter to create and distribute the GIFTED monies of the 50% Discount/Rebate and aligned policies and you’ll resolve the human civilization long problem in economics and the money system.

Daniel: Private debt is solved with private debt-free money owned, introduced and distributed by market participants within the real economy.

Both forms of currency must circulate and as more debt-free liquidity empowers the real economy, inflationary debt can be safely purged. It can leave circulation and be destroyed. It simply goes back to its “nothingness” because of the displacing influence.

The Yin needs the Yang. It’s doomed without it.

Me: Yes, and that is the cost reducing effect of the 50% Discount/Rebate at retail sale. In other words the consumer gets a 50% reduction, but with the reciprocally gifted monetary rebating of the entirety of that price discount back to the merchant that merchant gets their full price. Equal debits and credits that sum to zero and algebraically -50% + 50% = 0. Its not just Yin and Yang its their integration. Its not just satori its samadhi.

Daniel: Let the market apply the discount. The merchants should be pleased as punch to get gold (or silver) backed market currency as payment. They’ll compete. Believe it because monetization is gold’s greatest catalyst for real demand and a rising gold price (trade value). The merchants can pay for their own discount.

As real growth gains traction on the back of the ADDED debt-free MARKET controlled currency, fiat currency can be safely and responsibility drawn out of circulation on the basis of rising interest rates.

Government revenue (always debt based) will skyrocket too.

The liquidity comparison between debt and debt-free currencies then moves toward balance and symbiosis as the debt side deflates and the assets side gets larger.

Inflationary debt has to be purged to contribute to the balancing effect.

Render unto Caesar…. render unto God.

Me: They already use BS “discounts” based on MSFP (Manufacturer’s Suggested Fantasy Price), read wildly higher rates of return than the market is willing and able to pay so there’s no incentive or ability for them to lower their prices further…unless you implement the inflation killing, purchasing power doubling, additional demand creating policy of the 50% Discount/Rebate.

Sorry, gold is just another fantasy created by financial speculators to “deal” with the problem when there isn’t enough gold on the planet to serve as a currency. I’ve even seen gold bugs talk about virtual gold ignoring that this is just fiat currency in desguise without the solutions of paradigm change and is probably an issue created by Finance for people to wrangle over…instead of confronting and handling the real problem which is the monopoly paradigm of Debt ONLY that the banks wield. Bitcoin and its various derivations…same thing and wildly unsecure.

…the satirists and the iconoclasts. But even more so give me the applied philosophers, the synthesizers and the paradigm changing wisdom they discover and enable.

Steve Hummel 07/13/2025

Initially the Copernican cosmological paradigm concept when applied was not as accurate in predicting planetary movements as Ptolemaic geo-centrism. It was only after Kepler discovered that orbits were eliptical that it confirmed the truthfulness of helio-centrism.

Planetary orbits aren’t perfect circles and complete freedom isn’t possible or best in economics or any other human system. Why? Because there’s this little thing called ethics that mentally healthy humans cannot rationally deny…and that zealots and the powerful routinely delusionally disbelieve and so find reasons to ignore.

In the human universe there is only freedom WITHIN KNOWN AND ENFORCEABLE BARRIERS. In fact rational and ethical barriers (ethics are the rational consideration and contemplation of morals) ENABLE AND INCREASE freedom, and absence of barriers/ethics inevitably evokes chaos and the ability of the powerful to dominate.

Bring ethics, vastly broader abundance, problem resolution and paradigm change to economics, the money system and “free” market theoretics with the new monetary paradigm of GIFTING and its strategically applied and philosophically aligned policies…which is the thirdness greater oneness theoretical framework that integrates the seemingly unresolvable duality of capitalism versus socialism and is called Wisdomics-Gracenomics.

If the government is truly monetarily sovereign…why does it need to tax at all? The answer of course is inflation which The FED is (supposedly) mandated to control, but a closer look at The Fed (and the entire monetary system) is that The FED’s charter is actually designed to make the world safe for private banking…whose monopoly paradigm of DEBT ONLY is THE PROBLEM.

So how do you actually control, no END inflation? Two things:

1) You amend The FED’S charter to create monetary gifting in other words distribute MONEY NOT DEBT at retail sale with a policy of a 50% Discount/Rebate at that point thus implementing beneficial deflation.

2) You do an honest calculation of inflation and allow it be 2-3% per annum while indexing the retail discount to 52-53% and then tax enterprise at a rate of 100% on any revenue they may get over the 2-3% allowed increase. The FED can still create reserves and banks can still create debt of course, but its rate of increase is greatly reduced by the paradigm changing supplemental accounting operation of a monetary gifting policy at retail sale.

Another way of describing samadhi and/or living in a state of god’s grace.

Great topic and podcast. What if we could make participating in the economy the greatest opportunity to self actualize gratitude since meditation and prayer? How? Implement a policy of a 50% Discount/Gift of price at retail sale/Rebate of 100% of that discount back to the merchant granting it to the consumer by the central bank (equal debits and credits that sum to zero is how fiat money is created) so the merchant gets their full price and hence no moral hazard. This policy also happens to turn chronic erosive inflation into beneficial price and asset deflation, doubles the purchasing power of EVERY individual (because retail sale is universally participated in and hence enlightens the realization that it is the single aggregative as in macro-economic point in the entire economic process and hence you don’t even have to do all of the calculus that makes everyone’s eyes glaze over in order to understand it…thank you non-Nobel prize committee in economics). Again however its most positive effect is the first one which enables and integrates humanity’s highest spiritual concept and experience into economics and the money system, i.e. grace as in gratitude for a gift. The full and evolving policy program for this monetary and economic paradigm change can be found here: 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

Talk about heavily meditated. Who’da thunk that “bean counting”/accounting and economics might be the turned into the fasted route to that excellent goal?

Neo-classical economics is a current paradigm of economic theory. Its a problem, but not the key/core/central/operative problem of economics…which is the current MONOPOLISTIC MONETARY paradigm for the creation, distribution and use of all new money which is DEBT ONLY.

Address it or all of your wonderfully correct systemic analysis will amount to only palliative reforms. 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

Money/the monetary paradigm is the central tool, purpose, means of power and influence and barrier to change not only in economics but the world/the planet. Hence change it and economics, politics and the ecology can be rationally re-aligned. Thats because the beneficial effects of every historical paradigm change have always been an aspect or aspects of the natural philosophical concept of grace…like Gifting, Redeemed/Redemptive Power, Purpose and Influence and Wisdom as in Greater and Primary Awareness of and Focus On Solutions instead of on identifying problems. Momentarily drop cynicism and visualize it.

You can’t argue against Wisdom without falling on a scale of superlative analyses. Not even with Science because graciousness is the superlative wisdom concept IN ACTION IN THE TEMPORAL UNIVERSE, and science which is wonderful, necessary and delicious is a wholly contained set WITHIN Wisdom.

Again, your reform ideas as well as the reform theories of the likes of Steve Keen, Michael Hudson and Warren Mosler are valid…but they do not penetrate or elevate analysis to the conceptual/paradigmatic level. The effects of reforms are good, but shallow, temporary and via some systemic organization in other words NOT DIRECTLY BENEFICIAL TO THE INDIVIDUAL. ONLY NEW PARADIGMS are permanent, deep. directly beneficial to the individual and resolving of the key/core anomalous present paradigm’s problems. Thats because new paradigms are synonymous with Wisdom insights in that they are DEEP, RESOLVING SIMPLICITIES. The only difference between them is your normal wisdom insight is personal ONLY while a new paradigm is BOTH PERSONAL AND SYSTEMIC WISDOM.

In fact the short course in paradigmology is that new paradigms are always in complete conceptual opposition to the present anomalous paradigm, deep/resolving/wisdom insights and their beneficial effects are always an aspect or aspects of the natural philosophical concept of grace APPLIED.

Debt ONLY as opposed to Monetary Gifting…check!
Continuous monetary gifting directly to the individual at retail sale resolves inflation and ends the historical destabilization of domestic economies by the monopoly paradigm of Debt Only…check!
Gifting is an aspect of the concept of grace…check!

Daniel: That’s not a disciplined idea for a system. It’s beyond silly.

I can’t imagine who’s paying the discount.

Me: Preferably amend The FED’s charter enabling it to simply create the money and distribute it back to the merchants who gave the discount to the consumer. One of its mandates is to control inflation after all. Every retail merchant gets an account at The FED and the money is created the same way it is now with equal debits and credits that sum to zero and the digital technology already present. Same thing would apply in distributing a universal dividend…everyone gets an account at the central bank. Its too simple for the intellectual vanities of the erudite, to world changing not too be a mega-paradigm change to the economy and money system…and too edifiying to the cynical because it woud be the greatest opportunity to self actualize gratitude for a continuing gift of money since meditation and prayer.

If Donald Trump can irrelevently recommend we re-name The Gulf of Mexico to The Gulf of America, then I recommend we bring awareness to the solution to our economic and monetary problems by changing our name from The United States of America to The United Republic For Monetary Grace As In Gifting At Retail Sale. That way with a policy of a 50% Discount/Rebate at retail sale a $500k house is reduced to $250k when you agree to buy it from the house builder and when the retail point of Finance, that is your mortgage payment comes due every first day of the month, the central bank pays for 50% of its total so you’re getting a $500k house for the equivalent payment of a $125k mortgage.

Do you think that amount of individual benefit is sellable? Then just keep broadcasting it instead of worrying about what the pols, bankers and the unfortunately acculturatedly cynical but well meaning may mistake about its temporal universe effects or its lack of sellability.