The problem (not addressed here) is the monopolistic paradigm concept for the creation and distribution of all new money wielded by PRIVATE banking of Debt ONLY. There isn’t anything inherently wrong with the concept of debt, but its monopolization/ONLYNESS makes it dominating and economically destabilizing. The last monopoly paradigm we dealt with was Salvation Via Roman Catholic Sacraments ONLY, and the result was The Reformation. We require a monetary reformation. All of the problems of inflation, chronic individual austerity of demand, historical destabilization of domestic economies by accumulated PRIVATE debt and the misnomer of “free” market theoretics which is really just a framework that enables monetary and financial dominance are resolved by the new paradigm of Monetary Gifting with the single policy of a 50% Discount/Rebate at retail sale…and the rest of the new paradigm policy program which stabilizes it and prevents mal factors from gaming it 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

Even the energy and ecological problems we face can be much more rationally and potentially resolved by the policies of the new monetary paradigm. Money is the tool for DOING things in the temporal universe after all. Love to discuss this with you Nate.

​ @stella3265  Evolution AKA a paradigm change. Short course on paradigm changes 1) perceive the present paradigm concept, in this case the monetary paradigm for the creation and distribution of all new money which is Debt Only 2) Understand from history two things: a) new paradigm concepts are always in complete conceptual opposition to the present paradigm which makes Monetary Gifting the new concept and b) the beneficial effects of every new paradigm have always been an aspect or aspects of the natural philosophical concept of grace of which monetary gifts/gifting are an aspect. 3) Find the best application point/means of expression of the new cocnept which monetarily and economically is retail sale. Why? Because EVERYONE participates in retail sale so the beneficial effect of the application of the new paradigm at that point is universally experienced. So, a policy of a 50% Discount/Rebate at retail sale…is a paradigm change in a single policy because it doubles everyone’s purchasing power, transforms inflation into BENEFICIAL deflation and last but not least it creates the greatest opportunity to self actualize gratitude (an aspect of grace) since meditation and prayer. 4) Broadcast these incredible mathematical, universal benefits and ignore anyone who is a nay sayer until the new paradigm becomes a mass movement whose time has come.

Also, the beneficial effects of every historical paradigm change have always been an aspect or aspects of the natural philosophical concept of grace, most especially as an example, an increased, elevated and broader CONSCIOUS realization/understanding of both mental and temporal universe reality.

Because he and every economic theorist since never found a way to separate the self interests of the merchant class from that of Finance. And that is exactly what the 50% Discount/Rebate policy at retail sale accomplishes in spades.

Under its current tool kit it can only punish the individual and every other commercial agent except Finance with interest rate increases while benefiting Finance with same, and then when the shit has hit the fan because of the greed of the banks only the banks get bailed out and everyone else has to go scratch.

The answer? Have the central bank distribute the debt free/gifted rebate monies of the 50% Discount/Rebate policy at retail sale back to the merchants granting the discount to consumers. Voila! Paradigm change as in doubled purchasing power for everyone and simultaneously potential doubling of demand for every commercial agents’ goods and services…including Finance, beneficial price and asset deflation and just as a kicker the greatest opportunity to self actualize gratitude since mditation and prayer for a gift of 50% of the price of EVERYTHING.

Too simple for the intellectual vanities of the eruidite, too world changing not to be a mega-paradigm change.

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.