Excellent Ellen, and with a discount mechanism to constructively and humanely integrate the otherwise austere Austrian deflationary perspective into the system,  and a truly sovereign central bank that has the final call on approving or denying any loan or bond issuance by the private banks….we could have a monetary system based on Grace an aspect of which is being adult, responsible, prudent…..and actually being in control with those motives/policy mandates. And of course a banking system with the economic efficiencies like those of North Dakota would also be an integral part of that system. Why we might eventually be able to get back to the 5 cent candy bar of my youth. Glorious!

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It is time for us to recognize that finance with its godlike powers of creation and destruction cannot be guided by anything but the highest concept of relevance and pragmatism, namely Wisdom, and by Wisdom’s highest ethical concept Grace…so that the intentions of Grace which are freedom for the individual and prosperous free flowingness for the system are manifested and maintained.

wisdomicsblog.com

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I see Trump and (somewhat mellowed Randrhoid and Tea Partier) Speaker Ryan  had a “positive” talk.  Most of republicanism is made up of moral judgments about things…that the individual should be free to make up their own mind about. The only issue that is a temporal systemic reality AND conclusively a moral  issue is the monetary system. That’s why either a democrat or republican can cognite on it and make the right (gracious) decision regarding it. If Trump caves on the monetary system he’s a paper tiger when it comes to being a reformer. We can try to awaken both he and Hilary and see whose “fire in the belly” seems more genuine. And then after the election if either does not follow through, then foment an uprising by taking Public Banking and Project Wisdom and Grace to the largest constituencies in the nation the small to medium business community and the populace at large.

Chris:   I suggest in a second article that you point out the recent piece (which I read this weekend on this list) exhorting us to nationalize the 12 Fed regional banks (and we need the Fed itself nationalized of course).  They also make the point that we are the only major nation without a fully public central bank (is this true?).

It is time for us to recognize that finance with its godlike powers of creation and destruction cannot be guided by anything but the highest concept of relevance and pragmatism, namely Wisdom, and by Wisdom’s highest ethical concept Grace…so that the intentions of Grace which are freedom for the individual  and prosperous free flowingness for the system are manifested and maintained.

Steve Hummel   05/12/2016

Upon hearing a cover of the song “Sound of Silence”

Beautiful. The experience of Grace is the silencing of the minds chatter and the focused and direct experience of the present moment both/either inwardly or outwardly.

Steve Hummel 05/12/2016

It isn’t that economists don’t know anything, it’s that they still see everything through the twisted and inverted paradigm that says Finance should be able to dominate every other business model and hence everyone in the national economy. We must go from a Finance-centric universe of domination to a Wisdom-centric one where Grace as in the cultivation of Love in action is understood as the best guide for both individual self development and Grace as in monetary Gifting is equally understood as the only valid policy answer to a system which inherently and continuously creates more costs than it creates in individual incomes.

Steve Hummel 05/11/2016

The greatest anti-globalist, nationalist issue is the monetary system. If the US would become monetarily self sustaining and not have to worry about unemployment being an issue because of a middle class income guaranteed via dividend and retail discount policies we could re-industrialize in the most environmentally sound fashion possible. This would force China etc. to find other markets and/or seeing how workable and humane it was and so become Distributive themselves thus eliminating the necessity of wild exporting to survive economically or becoming a militaristic empire in order to do the same.

Distributism of the Social Credit kind is the peaceful and prosperous path to the future.

Part of the truth is never as powerful as the whole truth, and policy aligned with the whole truth is its organic and inexorable application. Hence, let us have policy reflective of Wisdom and the ultimate power of its pinnacle concept Grace-graciousness.

Steve Hummel 05/10/2016

More than mathematics economics needs insightful mathematics, that is NEW insightful mathematics. And of course much more importantly than mathematics it needs a new philosophy.

Steve Hummel 05/10/2016

This shows that Trump is at least aware of MMT which is more than any other politician is aware of or willing to risk speaking about. MMT recognizes an aspect of the concept of Grace, namely sovereignty/sovereign control, and is Social Credit for the government, actually once removed and half @ssed Social Credit because its money creation doesn’t extend all the way to the individual and hence does not have the positive effect of freeing the individual (and the system) by resolving the inherent scarcity of individual income that exists due to charges for replacement of capital in consumer prices. It also does not recommend a discount policy along with money printing which is not taking full responsibility for adult and actual control of the system. As Steve Keen quoting Minsky, correctly (and semi-consciously aware of the concept and workability of monetary grace) says:
“The fundamental direction of capitalism is up.” So if you implemented a dividend without a discount quite quickly you’d have destructive inflation. With both the dividend and the discount, which is reciprocal monetary grace (and which is actually an integration of exchange and grace as in gifting) you would have the best of both worlds: individual immanent economic freedom and beneficial price deflationary systemic free flowingness as well.

And of course governmental spending for infrastructure etc. is only good economic sense and part of being a caring sovereign. But lets not settle for mere reform….when you can have transformation AND reform.

Grace is the concept behind the policies of every leading edge theory and/or reform. It’s time we awakened to the concept. Does the sun say: “Pay me 50 trillion shekels or I won’t shine on you today?” No, it gifts us freely. Gifting and inherent abundance underlie mere exchange, and if intelligently applied are regenerative of depreciation/temporal costs.

Trump (and Hilary) needs to be sent Public Banking and Social Credit material. Either one, despite their flaws, could become the greatest president we ever had if they implemented such policies. Better beef up security in the process though.

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Ed:  My take on this event is that this is yet another incident where Trump says something outrageous, some aspect of the administrative state loses it’s collective mind, then he walks things back. Whether he threatens to force the Germans to pay for their own defense, or hints around at a partial default, I find it extremely hard to believe he has no idea what he is saying or doing, nor that he doesn’t understand that his words will have these effects. It happens to often for it not to be calculated. He seems to courting attention and imposing an air of predictability, and it seems to happen at the feet of powerful interests, such as the defense establishment and the finance industry. It really appears to me that he is probing to see where he has leverage. The people that run the show know that their lives and position in life depends upon the smooth functioning of the financial system, and hinting at some sort of default puts their vacation in the Hamptons at risk. I see this particular incident as a shot across their bow. He has their attention now. And they are probably already revealing weaknesses and their negotiating position. Let’s not forget, Goldman Sachs doesn’t have an army.

Me:  Yes that may be the case. Trump is a savvy negotiator and plays “the game” very well. But why not play the ultimate game? He needs to be made aware of how an integration of the intentions and structural reforms of Public Banking and the policies of Social Credit could forever change the system. Being tough minded is wisdom…and tough mindedness integrated with graciousness is ultimate wisdom and power.

“Let’s not forget, Goldman Sachs doesn’t have an army.”

A very salient point that people need to become more aware of….and that the various reform movements need to act upon by integrating the best and only the applicable and workable aspects of their agendas. When you’re down on the ground with a stake on the chest of Dracula do you stop and have sympathy for him….or do you drive the stake home…so that he indeed can also ascend and accept Grace?

Ed:  There’s an old saying that goes like this — when you owe someone $20 it is your problem. When you owe someone $1 million it is THEIR problem.

Me:  Yes. The only reason I’ve been less critical of Trump was that I perceived that he might be monetarily educable and in the correct time and place to make a difference.

And remember, without some drastic intervention a collapse actually IS inevitable. Better to integrate Grace/forgivieness of debt…by paying the onerous and odious aspects of it off….instead of defaulting on it. And then preventing such a situation from ever arising again with policies that quarantee individual freedom and systemic free flowingness.

Actually that goes the same for Hilary. You just have to have the willingness to look instead of relating via old/incorrect orthodoxy, the insight at the right time and then the guts to make the right decision. That unfortunately is a lot to ask, but even if you failed you’d someday (soon) be looked back upon as a visionary responsible for “sowing the seed” of a glorious and golden age. That’s how and what ambitious people like any candidate for president….might be willing to risk.

And if the Financial System only allows an additional cost in the form of a loan in order to liquidate those Costs THAT ARE ADDITIONAL, that is over and above the costs of the money distributed by those loans….then how in the hell is a macro-economic equilibrium supposed to be possible????????????????

Why with a universal Gift of income paid directly to the individual, and a reduction to retail prices to the consumer by businesses…who then are reciprocally rebated back those discounts so that they can be whole on their margins of profit and overhead payments.

You have to “wake up and die right” about debt eventually. Just like you have to wake up and die right about things like the economy not generally tending toward equilibrium and that in an economy faced with inevitably diminishing aggregate demand due to innovation and AI, and inherently increasing inflation due to depreciation costs….a universal supplemental gift of income and a rebated discount to consumers at retail sale….are the only valid solution and the route out of stagnation, frustration and an historically rhyming war in an age of modern weaponry.

Or you can be an orthodox idiot and deny such realities.

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It is idiotic to expect businesses to shoulder the costs of an already inherently cost inflationary economic system. That is the responsibility of the central bank/national credit authority which could costlessly increase everyone’s income with a direct dividend to the individual. Just more inflation you say? Nope, not with a macro-economic mechanism like a rebated discount to retail prices funded by the same institution. With those two policies that correct the flaw in the current system you’d have a roaring profit making economy, immanent individual economic freedom and the wet dream of Austrians, namely price deflation, to boot. A = A. Check your premises.

It’s because he’s still caught in the financial paradigm of debt only….when he should understand that an integration of debt and monetary Grace as in the free gift of money directly to the individual and reciprocally from the business to the consumer and then back to the business as in a compensated retail discount to prices. He also doesn’t realize that this is the anatomy of an economic equilibrium and creates such equilibrium…where it does not and cannot exist in a modern technologically advanced capital intensive economy  due to depreciation and other additional costs over and above the costs of finance….and so is too expensive to maintain….without such policies.

Yes, the economy is incredibly complex in the sense that it has many moving parts, but the definition and component parts of an equilibrium are basically simple and two fold as in a balance as in two factors in balance. Actually the best situation to have is the Trinity-Unity of balance, equilibrium….and flow as in action/free flowingness through Time as in a graceful and monetarily gracious free flowingness.

An interpenetrative/integrative and time enduring factor like a secure and adequate level of individual income and a deflationary discount to prices at the correct and terminal end to the economic process enables such policies to encompass…the entire economic process. The rest of economics, innovation, investment and even reasonable speculation is always a crap shoot and will remain the same….but the economy will finally be free flowing and even more importantly ethical and humane.

Interpenetrativeness, integrativeness and encompassment are all aspects of the concept and the natural and personal experience of Grace/Flow.

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Bob:  Steve,

Me:  Social Credit and Wisdomics/Gracenomics does not look at it from merely the capital point of view. They look at it from AN INTEGRATIVE point of view which is the point of view of Wisdom which is the integrative process itself, and also from the point of view of the pinnacle concept of everyone of the world’s major wisdom traditions, namely Oneness/Grace/Flow. This latter is actually necessary. Why? Not for some idiot dogmatism, but for completion, wholeness, oneness and an ACTUAL solution. That way focus is not lost, compromise is not settled for, ethics are not alloyed and equivocation with unethical agents/situations remains clear….until that solution actually occurs.

Would “humanity credits” be merely “easy to provide” or necessary from your perspective?

Bob:  Hi Steve,

Me:  Bob, Thanks for your reply.

The Gap is partly composed of the economic effects (depreciation) of automation, which costs have been going on for more than a century before Douglas recognized them as not being accounted for. So we’ve NOT been dealing with the economic effects of their lack of liquidation for over 200 years. And unfortunately a quadrillion dollars of 0% loans is never going to eliminate such extra financial costs…..unless a supplemental gift of income is democratically distributed and the inherently cost inflationary nature of a highly automated economy is eliminated with a retail discount.

No matter how one envisions the spiritual aspect of Life which is Love, the application of it into our organic affairs is ultimately what is most important.

Bob:  Steve,

Me:  Bob,

I’m not disputing the fact that the savings of having a Banking system that actually operated in the interests of the individual and commercial enterprise by minimalizing costs, but Profits and savings are aspects of the Gap. Hence any profit and savings adds to the Gap by extracting them for however long or short a time from the circular flow of the economy.

Depreciation is not a straw man argument. It is a fixed, continuous and hence dynamic flow of additional costs over and above financial costs, especially in an automated and high tech economy. Waste is also an aspect of the Gap and a huge one. Waste cannot be completely avoided. In fact the laws of thermo-dynamics correctly state that waste in the form of the randomization/non-usefulness of energy must and will take place. This is the deeper enforcing imperative of the Social Credit observation regarding the flaw in cost accounting conventions that correctly credits businesses with depreciation, but does not credit the individual with the capital appreciation that we see being built up all around us. And that is why in Wisdomics/Gracenomics I say that in order to have a dynamic balance through time and hence actual systemic free flowingness it is necessary to have a substantially deflationary discount mechanism…..because in the temporal universe you cannot win by creating a mere static numerical balance of costs-prices and individual incomes. Nature does not allow a vacuum or a true stasis. Instead we need what I refer to as “the higher disequilibrium metric” of a rate of flow of more individual incomes and less prices than actual costs.