Ask yourself this: If the government or FED was mandated to rebate every cent of a 50% retail discount on virtually every consumer product…how could you possibly have inflation? Retail sale is the terminal ending point of the economic process where production exits the economy and becomes consumption and is hence the terminal expression point of inflation. The above policy mathematically means you can buy $100 worth of groceries for $50, a $60k EV for $30k and a $500k house for $250k…so how can that be inflationary??? Do the simple math and the equally simple accounting (-50% of retail price + 50% of retail price rebated back to the merchant granting it to the consumer = the merchant getting their full price but the consumer benefits from the BENEFICIAL price DEFLATION.
This is a paradigm change in economics and the money system clear and simple. Oh sure, you’ll need additional regulations with real teeth like a 100% tax on any revenue garnered from greedflation because humans and systems are complex, but what else is new? Tack on the 50% Gift of Interest/Debt jubilee policy at point of loan signing and the big ticket items above are reduced in price to $15k and $125k.
My question to Stephanie and guys like Steve Keen and Warren Mosler is: You’re into accounting. WHY DIDN’T YOU GUYS SEE THE EFFICACY OF EQUAL DEBITS AND CREDITS THAT SUM TO ZERO AT RETAIL SALE AND POINT OF LOAN SIGNING???
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David
If Trump does those things inflation WILL go up obviously. The way you stop inflation is to tax any increase in price that does not come from a legitimate increase in costs at a rate of 100%. With the two policies I advocate the macro-economic effect will be beneficial price and asset DEFLATION, i.e. $100 worth of groceries only costs the consumer $50, a $60k EV only costs them $15k and a $500k house only costs them $125k. There are more carrot and stick type policies in my book that regulate and stabilize the new monetary paradigm.
We need a central bank, but the FED needs amending because its monetary/interest rate policies are rendered unnecessary by the new paradigm’s policies and because its current ones are designed for it too be the handmaiden of the banks during “good” economic times and their bail bondsman when they fuck things up. Mandating them to Gift the individual at retail sale and point of loan signing will make them the best friend of both the individual and enterprise…that play by the gracious rules of the new paradigm.
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MMT is how the current system works, its just that the remnants of the Tea party and libertarian monetary theory keep it from being fully expressed. The problem however, is that MMT is just a monetary reform when an actual paradigm/concept change is what is required in order to terminatedly address and resolve the anomalies of the current paradigm for the creation and distribution of all new money AKA Debt ONLY.
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Besides the two 50% policies at retail sale and point of loan signing you need a 100% tax on greedflation and other illigitamate ways that commercial agents committ the misdemeaner of inflation. Create a true publicly administered national bank as a fall back/competition securing way from private banks simply raising their interest rates. So anyone who is credit worthy never has to pay more than 3% and if very credit worthy less than 3%. A universal dividend at age 18 for life of $1000/mo. that with the 50% Discount/Rebate at retail sale gives every adult $2000/mo. of purchasing power for life. To mitigate consumption implement a required sliding scale percentage of gifted income into 6% eco-energy treasury bonds. A gift of investment is still a monetary gift. Of course with the universal dividend and 50% retail discount the payroll taxes for welfare and unemployment will no longer be needed. Social Security payroll taxes will be continued as per usual. Find non-sectarian ways to consciously acculturate gratitude for the new monetary gifting paradigm and new ethic of grace as in loving action. Numerous other policies in my book.
Campaign promises: “Make yours and everyone else’s purchasing power great again with two policies.” Demagoguery and Divisivness No! Graciousness Toward All Yes!
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Besides the confusion over “the deficit” and the national “debt”, inflation is the key problem that needs to be resolved. Why? Because it effects EVERYONE especially those of us that aren’t billionaires, and MMTers don’t have an effective means of dealing with it because it will occur whether you tax the hell out of the rich or not. Why? Because inflating prices is ultimately an action every commercial agent’s management can make. And thats why my 50% Discount/Rebate policy is the answer to inflation because it goes directly to the source of the problem and by it doubling the demand for every consumer good and service it wildly benefits every productive commercial agent. Then with the 100% tax rate for inflating policy you create the known and enforceable barriers of desired benefit and terminally inhibitive punishment for stepping outside of those barriers. Freedom amongst known and enforceable barriers is the only freedom the human universe ethically allows. This exposes the fact that the “edifice” of “free” market theoretics that libertarians and conservatives delusionally believe in and which delusion most liberals aren’t much more aware of as well…is actually a state of dominating chaos created and enforced by the monopoly monetary paradigm for the creation and distribution of all new money which private Finance wields…and the policies I’ve posted here many times at retail sale and point of loan signing directly and mathematically deal with by transforming chronic erosive inflation into beneficial price and asset deflation.
Social Credit/Wisdomics/Gracenomics/ Gracientialism 