Relationship and result between cost inflationary nature of Economic system, taking the path of least resistance (borrowing to maintain and replace concrete capital) instead of the truly economic approach to paying for depreciation costs (paying for those costs out of retained earnings) and how this palliates the unethical domination of every other business model and every individual in the economy (instead of ethically dealing with it).

Also, whether or not a business is going to pay for depreciation via future borrowing or out of retained earnings….I guarantee that they are still passing the costs of depreciation along to consumers right along and hence the Social Credit insight that total costs exceed total individual incomes is the actual reality.  That, and if businesses, in order to survive even for a season will do the uneconomic and unethical thing (that is borrowing to pay for depreciation costs, which palliates and actually reinforces Finance’s dominance) ….then I guarantee you the overwhelming majority will also unethically charge the consumer for depreciation and find a way to disguise the distribution of any profits that could have been used to pay them out of savings/retained earnings.  An onerous and dominating system will inevitably have such unethical and uneconomic effects.

The above paragraphs describe the actual present system for a long time. The problem now is…..even the Banks are zombies as a result of their own profligate creation of Debt.

Grace Is Newness, Nowness….and Continual Conscious Awareness of Each Proceeding Newness and Nowness.

“What is needed is a change of policy rather than of structure, and ownership is not needed to enforce that.” John Rawson

That is correct, but what Douglas did not get completely right was that the system would not actually be free flowing with a mere momentary attainment of an equally momentary numerical/statistical equilibrium. And that is why Wisdomics/Gracenomics has the policies of an immanently individually freeing Dividend and a proactively price deflationary Discount, because nature/the laws of thermo-dynamics abhors a vacuum/stasis….and the state of Grace whether personally/psychologically or systemically has as one of its components… process and flow, in other words action and so persistence through Time. The Banks will still be able to control and manipulate the system….unless the individual is completely free and un-coercible and the vector of the entire economy is toward less and less need for their product.

Douglas was brilliant, much more observant and insightful than any economist in my opinion, but everyone lives within their own time frame and cultural and intellectual orientation. Quantum mechanics and the laws of thermo-dynamics were not well formulated or understood in the early 20th century, and neither was there much of an integration of Western and Eastern cultures the former of which emphasized science and action in the temporal universe and the latter which emphasized philosophy and actualizing consciousness.

Integration, actual integration, not a counterfeit of it or some other unworkable and/or inapplicable substitute,  is Wisdom, and policies that create continual integrating and hence the pinnacle concept of Wisdom known as Grace as in a graceful and continual free flowingness is what will finally dethrone and control Finance and chain it to the bottom of the pit.

Declare full time employment to be voluntarily 15-20 hours per week so that the unemployment rate will almost immediately disappear, and then directly supplement everyone’s income with a universal Dividend that tops everyone up to a satisfactory middle class level.

Also put in a retail discount that proactively creates price deflation and that is rebated back to the merchants who give it to consumers and you’ve got a roaringly profitable economy, full employment, the ability to eliminate all manner of individual and business taxation, a lot more leisure time, individual freedom and a rock solidly stable economic systemic free flowingness as well.

c copyright 05/28/2016

Steve Hummel

You’re right Scott that Abenomics is still stuck in the debt paradigm and afraid of the big bugaboo of inflation. Either that or they’re so intimidated by the financial powers that be that they don’t dare counter them.

Inflation does not have to be a problem at all. The concept of balance assumes there are at least two things/factors that cancel out or integrate with each other in some way so that 0 is the effect. That’s why adding income directly to the individual with a dividend and reducing prices at the end of the economic process will create an equilibrium….because they balance the economy’s two primary problems. Now equilibrium (DSGE/libertarian economic theory) or disequilibrium (Keynesianism etc. theories) can become orthodoxies or obsessions that theorists can fall into. A good example of the latter is Steve Keen who despite all of his great work debunking DSGE has allowed that focus to blind him to solutions present in his own graphs debunking general equilibrium theory. For instance, in one of his recent youtube videos he presented a graph that resembled a saddle and correctly stated that in order for DSGE to be the reality the point exactly in the middle of the saddle would have to be where the economy continually tended towards. What he apparently missed is that if policy/action created a balance of relevant and incisive factors….you could reach that “magical” point of equilibrium on the graph.

However, just reaching that point is itself an obsessive orthodoxy of static equilibrium. What Keen actually missed was the insight that an equilibrium could be attained at any point on his graph….by balancing the economy/two most relevant factors according to inputs and outputs. But even then, the obsession of merely attaining (but not maintaining through Time) an equilibrium becomes the orthodoxy/obsession.

Nature abhors and resists a vacuum/stasis. In order to have a dynamic free flowing economic system….you have to push the vector of the entire economy over into increasing freedom for the individual and increasing free flowingness of the system. And that is why crafting policy to maintain a dynamic equilibrium requires “a higher disequilibrium” where total individual incomes EXCEED total costs/prices and the retail discount creates proactive price deflation. Then you have a true integration of both equilibrium and disequilibrium theories where dynamism and mathematics becomes a third unified solution.

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Kevin:  Democratising Money.

This will give you a theme to tie everything together.

To democratise a technology is to give everyone equal access to money.

Money is a technology.

We do not have equal access to money while-ever we make money tokens a store of value.

This is a common thread of all the main monetary reform movements.  Positive Money, Zero cost Money, The AMI removing the ability of banks to create new money, the local money movement, forgiveness of debt, removing usury, and the peer to peer creation of credit, Soddy’s work on money and debt, Henry George and Minsky, Evonomics, Public Banking etc.

A good summary of Soddy’s work which points out the problem is

“The fundamental error of economics is the confusion of wealth, a magnitude with an irreducible physical dimension, with debt, a purely mathematical or imaginary quantity. The positive physical quantity, two pigs, represents wealth and can be seen and touched. But minus two pigs, debt, is an imaginary magnitude with no physical dimension:”

All the above are ways of achieving the same thing which is to stop someone owning another person’s credit through the use of money tokens with a value.  By making money tokens free or zero value we will create scalable cooperative economic systems.

This is the way all the great cooperative systems scale.  Think google search.  Google search is free. The value arises from the use of the free technology of search.  That is, we have democratised search.  Think FaceBook.  We have democratised social interaction. Think AirBNB we have democratised finding a place to stay.  Think Trip Advisor we have democratised finding interesting things. Think Wikipedia. etc.

Make money tokens free and we will get the same expansion of economic activity as we reduce the cost of the FIRE industries and use the resources they take to work for our common goals.  Because money tokens have no value we cannot have a market in money – only a market in credit.  A market in money means the system attempts to increase the number of money tokens in existence and the easiest way to do that is to create more – and that is what we continually fight against and it costs a lot to do it.

Getting rid of money markets means we also get rid of the Equilibrium Theory of Money Markets and all the misery it brings.

One way of making money tokens zero value is through peer to peer credit with adjustments for inflation and no compounding of rent on credit.  This allows for a market in credit where the market is related to real assets.

If Promise theory is a better theory for explaining the interaction of autonomous agents then our theories (models) built on these ideas are more likely to help us make the world of economics more predictable.  Not entirely but much better than we currently do.

Me:   Kevin,

Your post makes perfect sense actually, but what do you think the perfect example of democratizing money is? That’s right, a universal dividend.

And as for the democratization of technology Douglas suggested that over 90 years ago when he coined the phrase “our cultural (national) heritage of productive potential” as a correct and workable justification for the socialization of credit.

Technology has been attempting to lift the so called “curse of Adam” for centuries if not millenia. It’s just that the business model of Finance has been forcing us to re-invent the wheel continually via their monopolization and claim to ownership of credit. If we broke up their monopoly with an idea that counters debt, namely Monetary Grace/Gifting, that would transform the entire structure of the economy and so society.

Soddy was clear and correct in his observation about the difference between wealth and money. But if the definition of inflation is too much money chasing too little goods….how can a policy of retail price deflation possibly be inflationary? And how can there be too little goods in ratio to money….if a good or service has to actually be purchased for the retail price discount to take effect?

So democratization of money and technology are actually two more aspects of the concept of Grace….which is the real common thread that runs through all of the leading reforms and cutting edge economic theories.

Love is the inner reality, willingness and ability to share and care, and Grace is simply Love in action, that is Love applied as our personal actions and as the Love aligned policies, in the temporal universe, of our various human systems.

Me:  “Buy Human” is the reactionary, Luddite and unconsciously socialist sentiment.

You’re all nascent Social Crediters.

Crys:  And if robots were the luddites and we were… ‘outdated’?

Me:  That’s science fiction. And even if, emphasis if, machines can someday ACTUALLY become conscious we’ll just have to write “sunday school” ethical programs for them I guess.

Crys:   More subtle than that … meaning:

If robots (robotic production etc.) were established as the quo , but people wanted something new or different , the robots (their ‘masters’) , would not allow it to happen (luddites) , and people , now being completely expendable to their needs (of the ‘masters’)  as well as dependent on robotic production, would become … ‘outdated’ .

It is only extending the current economic, social and political model one notch higher … by the worst of its direction.

Me:  Monetary Grace as in Gifting of sufficiently freeing amount frees both the individual from coercion by the Banking or commercial powers, and businesses themselves from the domination of Finance. Freedom…once it becomes real/actualized by the individual…doesn’t tolerate domination and as per above is free from its coercion s. So how would a society with that mentality not allow new productions, even hand made productions, which would probably become a profitable niche market?

This is precisely the coalescing of financial-corporate agenda.

And the only way to beat it is to base a new system on the concept of Grace which is the intention to yield power so as to return it to the individual, and then align policies to that philosophy….that actually reflect and effect….that intention. That way deed will follow thought. There is nothing necessarily supernatural nor lacking in amazement about this. It is simply the way Life in the temporal universe is….when enough people become aware of its power, component parts…and don’t lose focus or settle for less.

JH:  Sans philosophy . . . mutual credit systems (according to Stacy Hebert) are the new paradigm, so whatever the banksters do, many huge businesses are functioning without them.  I did a program on Monday where we touched on monetary systems outside Wall Street, the ECB and the IMF.  It will be posted and I’ll link to it.  Ecuador is a case in point by the way.

The more they centralize, the more we need to decentralize.  And we-the-people seem to be going in that direction.

Me:  With all due respect to Stacy Herbert I think she’s going to have to re-think a bit about mutual credit systems being the next paradigm. Maybe after a few generations of Grace being the new paradigm they will become more obviously logical. Unfortunately power, force and apathy are still realities that will run rough shod over decentralized mutual credit systems and either rip them to shreds or defeat them with distraction or persistence because apathy is “low energy” and low structure and thus non-committal and relatively powerless.

Grace is the only force that can be trusted with power because it is the integration of both ethics and power. It is also hierarchical and so has structural and legal power. Grace is Love in action and so by definition is redeemed systemic policy…all you really have to do is see its necessity and make damned good and sure that policy ACTUALLY reflects and effects it….and only it, not some poison pill, guaranteed to elicit perpetual conflict and/or unworkable and unmarketable amalgam that misses the mark.

Raising consciousness about/self actualizing the aspects of the concept of Grace is 99% of the task really, because after one cognites on its pin point solutions to the the economy’s actual problems (scarcity of individual income and an inherently inflationary system) and the fact that the money system is digital so that incomes can be raised via a costless gift of money and and prices lowered via a retail discount in tandem, the necessity of implementing its policies becomes simply a logical, rational and straightforward  process. Raising consciousness and deftly avoiding and/or dealing with the inevitable resistance, confusion and counter intention is not deniable, but there is clarity and resolve….and what better task than immanent individual freedom and systemic free flowingness do we have?

And Ideas are what create and actually change society, not tweaking or palliating the status quo.

Wisdom is always a fully visualized and focused integration of only truths, workabilities and applicabilities, and an alliance of the business  community and the consumer for the transformational monetary changes necessary is the quickest political route forward for the implementation of those transformational changes. Finally, the pinnacle concept and experience of Wisdom is Grace which is Love in action. Love and understanding for self, for family and for all others in a society that truly reflects the best in us all and that undergirds and uplifts us all in its structures. Please join me and others in this project. God’s and Humanity’s work is surely our own.

There is an awakening occurring which we must not let pass. The article and the video below it of Varoufakis’ rebuttals is excellent. The only two things that current thinking about a BIG are omitting are 1) the necessity of an inflation stopper at retail sale. The money system and hence the costing/pricing system of commerce is digital. Therefore prices can be reduced to the consumer and then rebated back to the commercial enterprise by the same amount without increasing the money supply. We have to be honest and hard headed about the fact that the self interested financial powers WILL attempt to defeat the long term benefits of a BIG via encouraging inflation by businesses unless a discount policy is implemented along with a BIG/Dividend. 2) A BASIC income guarantee can be morphed into an austerity welfare like payment which doesn’t actually bring freedom, but rather just second class citizenship. The fear of monetary inflation and unconsciousness regarding the enlightened policy of a retail discount policy keeps economists pinned to the orthodoxy of equilibrium. In order to have the entire economy have a direction toward free flowingness, more individual wealth and freedom AND LESS need to finance we require what I refer to as “the higher disequilibrium” where the combination of a near middleclass dividend and a proactively deflationary discount to retail prices insures a satisfactorily abundant and hence uncoercible freedom “to say no” as Varoufakis says in the video at the end of the article.

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Yes Stuart. It is a multi pronged full spectrum attack, but it all can be defeated by making the individual uncoercible by destroying the threat of unemployment.

By the way Max Keiser episodes 913 and 914 have segments with Steve Keen that are interesting viz Donald Trump’s recent awakening to the fact that currency sovereignty is essential. No matter who is elected in Novenmber we are in for “interesting times”. If Hilary wins the godawful invective from talk radio will only get worse, and if Trump becomes a modern student of money systems and the economy the pressure on him to be impeached and/or otherwise destroyed will intensify. This is why IMO it is absolutely essential that Public Banking’s recent “What Wall Street Costs America” and a grass roots movement to ally the large constituency of the small to medium sized business community and the individual via my idea of Project Monetary Wisdom and Grace are a bulwark against a false flag populist revolt from the right if Hilary wins or a similar covert finance fomented attempt to take down of Trump if he awakens disguised as a liberal progressive attempt at impeachment. Finance can work either side of the political aisle as we well know.