I’m here to show you a single policy that will resolve the three most chronic and sticky problems with modern economies, whose benefits are so great and universal and hence such a political winner that, if effectively communicated, won’t even need the stupendous funding political campaigns now require because its So incredibly beneficial for EVERYONE, and last but not least it could enable a sorely needed psychological evolution of the general social mood and even reverse the decline of the republic. I know these are grandiose claims, but I stand by them.

I hasten to say that there is an entire stabilizing policy program that attends this single policy, but the one I’m focusing on today is the very expression of the new key monetary and economic paradigm concept and, as I will also demonstrate, is the same concept whose beneficial effects have always been the aspect or aspects of every historical paradigm change.

Ok. So what are the stickiest problems I referred to? #1 chronic erosive inflation which #2 diminishes everyone’s purchasing power and #3 big ticket/asset prices that require private financing also go up which eventually de-stabilizes the economy…which enlightens the fact that PRIVATE individual and corporate debt is the problem NOT government debt which the treasuries that fund it we know is actually an investment that is a payment to the private sector.

Now how do the banks and the government create new money? By no other means than using the accounting operations of equal debits and credits that sum to zero. In other wprds they open a new T account and say: “Okay here is your $1 million dollars, oh, and by the way you OWE us a debt of $1 million dollars plus the interest on the loan” The government as I’m sure you know funds any “deficit” between taxes paid and spending legislated via the same accounting operations with the creation of US Treasury bonds.

Ok, what is the single policy that resolves these problems? I call it the 50% Discount/Rebate at retail sale. And the best way for one to see its real world benefits is to simply act out the policy so one sees the realities for both the customer and the merchant.

So you go to Wal Mart and buy $100 dollars worth of groceries and state, county and city sales taxes make the total of the bill $109.90. (This is another benefit for the Discount/Rebate policy which is that the monetary authority not only pays 50% of the price of the groceries it pays for 50% of the sales taxes as well. Wal Mart says okay we’re reducing your bill to $54.95. Wal Mart then books the $54.95 into the T-Accounts titled Total Sales Discounts and Sales taxes and the monetary authority rebates them the daily total of both accounts so they are made whole on their entire price plus half of the sales taxes Wal Mart collects for the state and local governments.

With the $60 EV the price and taxes are reduced by half and the rebate is again the other half. The $66k-$33k = $33k total…but the retail point of your loan is your car payment and the monetary authority pays for half of that total which means the consumer will actually pay only $15k plus half of the total sales taxes for the $60k EV. In the case of a $500k house the consumer ends up only paying $125k plus half of any applicable taxes.

This policy creates BENEFICIAL price and asset deflation, doubles everyone’s purchasing power and consequently the potential demand for every enterprise’s goods and services so it integrates the self interests of both merchant and consumer and makes it Christmas every day and even multiple times per day with a gift of price which in the healthy and smart person should evoke gratitude. Serendipidously, the greatest benefit of this policy is that its the greatest opportunity to self actualize gratitude since meditation and prayer. Visualize the potential social and psychological benefits of that.

Rebuttals and other policies and regulations: 1) Permanent 2% per annum inflation rate allowed after which all inflations are taxed at a rate of 100% and also Discount is indexed to computed comprehensive honest rate of inflation. 2) New Deptartment of Innovation, Competition, Boycotting and The Public’s Bully Pulpit 3) $1000/mo. universal dividend at age of 18 for entire adult life, 4) Job Guarantee and new acculturations of positive purposes including employment 5) After first two years of post secondary schooling grace period universal dividend is reduced by half ($500/mo. if individual does not average 20 hrs./wk of employment for 5 years and when 5 years of part time employment is accomplished full $1000/mo. dividend is re-established 6) Sliding scale of gifted money taxed and placed in 6% eco-energy R & D Treasuries and for new and updated Infrastructure. (mitigates excess consumption and is still a gift, just a gift of investment) 7) Dividend enables us to eliminate payroll taxes for welfare and unemployment insurance 8) income taxes are able to be reduced as inflation is terminally resolved 9) sliding scale based on annual income of reduced retail discount with earners over $1 million receiving only a 10% discount.

New monetary paradigm fulfills every signature of accomplished paradigm change

Natural philosophical concept of grace is the concept behind every historical paradigm change

Concept of the mega-paradigm change

Fallacy and fetishism of “free” market theoretics and how the monetary paradigm transforms the chaotic unworkability of that framework into a more stable, abundant and free flowing economic system with known and enforceable barriers.

It actually greatly expands and stabilizes the market for finance because how many more people will now be creditable and with the increase in purchasing power even want to own multiple homes for which the banks will receive the full interest on their loan of $250k? (Mention current monopoly paradigm wielded by the banks is parasitical as it is always either post retail sale or pre-production.)

Ray, I don’t disagree with your analysis per se at all, its historically accurate except for one thing, that is it describes everything that happens in the cycles you describe…but not of an actual and genuine paradigm change which is the most rare but the most inclusively progressive phenomenon in human history. Beyond “garden variety” paradigm changes there are what I refer to as mega-paradigm changes of which there has probably only been three in human history

1) the emergence of self awareness from the paradigm of self survival ONLY and so the reality of ethics,

2) the initial and ongoing invention of tools and

3) the change from tribal nomadic hunting and gathering to homesteading, urbanization and agriculture.

I assert that the fourth mega-paradigm change will be from the current monetary paradigm for the creation and distribution of all new money (which hasn’t changed since the first day of the third mega-paradigm change above) of Debt ONLY via the strategic integration of Monetary Gifting into the Debt Only system utilizing the same method the banks and the government use today to create new money, namely equal debits and credits that sum to zero, with a 50% Discount/Rebate policy at retail sale. Love to discuss this and the rest of its policy framework with you.

Dalio’s description of the cycles is historically accurate. The only thing it lacks is a way to resolve the problems and chaos they evoke. As Michael Hudson has chronicled private debt has always destabilized economies, and as Dr. Keen has suggested we need “a modern debt jubilee”. Only problem is, neither has discovered exactly how to prevent destabilization by preventing the continual build up of private debt and the consequent loss of purchasing power.

The ancients recognized this problem and because they were smarter/not as long acculturated to the monetary paradigm for new money creation they had periodic debt jubilees/monetary gifting that greatly eliminated private debt. The problem with this was it was periodic which means it was a mere palliative that enabled Finance to re-dominate for another 70 years when a paradigm/permanent change was what was/is required.

The solution:
1) A 50% Discount/Rebate policy at retail sale so everyone gets $100 worth of groceries for $50, a $60k EV for $30k and a $500k house for $250k thus doubling everyone’s purchasing power yet every merchant gets their full price with the rebate and
2) the result is beneficial price and asset deflation accomplished by more money creation (the heads of the orthodox explode)
3) the effect is universal and continuous because its point of implementation is retail sale which is the single aggregative as in macro-economic/universally participated in and effected by point in the entire economic/productive process.

Thank you non-Nobel prize committee.

You definitely won because Moore is incapable of thinking a new thought on money and debt. However neither of you have crossed the Rubicon conceptually/paradigmatically or realized that a huge part of the problem is realizing that the bulk of free market theoretics is actutually a framework that enables Finance to dominate with its monopoly paradigm for the creation and distribution of new money AKA DEBT ONLY due to the fact that it (the theoretical framework) is a chaotic/non known and enforceable barriers one. Michael Hudson has shown that historically private debt de-stabilizes economies. We stop that by strategically integrating Monetary Gifting into the Debt ONLY system. Finance will rule us until we do exactly that.

Viewing this video, Moore is absolutely psychotic on the subject of money. Most libertarians are the same. MMT is absolutly correct on the mechanics of money creation, but they apparently will not analyze the economy and money on a conceptual level. If they did they would easily see that implementing a SUPPLEMENTAL accounting operation of equal debits and credits that summed to zero with a 50% gift of price to the consumer at retail sale and a reciprocal rebating of that same amount of price and monetary gift back to the merchant granting it to the consumer resolves inflation by doubling everyone’s purchasing power, integrates the normally opposed self interests of merchant and consumer, ends the private banking system’s monopoly paradigm that new money can only be created as debt and let the benefits of gratitude for a gift be CONSCIOUSLY self actualized because its Christmas every time you go to the store to buy something.

Don’t be an idiot psychotic about money by committing the faux pa of refusing a gift and we’ll all wake up to a more abundant and stable economy.

TB: Free market means people are free to do what they want. You want a Nazi socialist fascist kind of government to interfere with peoples freedom to do what they want economically?

Me: Ted: You’re just an old fogie and acculturated orthodoxy fool who isn’t looking at the temporal universe realities the policies I suggest here CREATE. Try looking at those realities will ya?

As I explained current free market theoretics isn’t free at all…because its a chaotic/fetishistic/no actually enforceable barriers framework, and actual human freedom can only exist within enforceable barriers. Hence the “free” in free market theoretics is both a misnomer and a delusion. I’m just providing the barriers and a means of resolving centuries long problems in the economy and money system.

The chaos of Trump is probably partly his spiteful idea of fun and partly the historical psychosis of thinking that doing the same thing that didn’t resolve over and over…is going to result in a resolution. It IS true that the chaos of identity crisis is a requisite for breaking out of the orthodox mindset and being willing to actually look at alternatives. Thats the mental phenomenon that always accompanies genuine change and is particularly difficult with new paradigms…because it requires embracing conceptual illogic which is an historical fact of accomplished paradigm changes but is rare in an era of scientific intellectual inquiry ONLY.

So it takes bravery, open mindedness, creativity and a higher toleration of ambiguity. However, the most important thing needed to break through to these desired traits is to have a program whose benefits are mentally demonstrable to the general populace. We also have digital technology and mass social media which can shorten the time it takes to get to the mind of the masses.

So let us take MMT’s insight that fiat monetary systems create new money with accounting entries and communicate how utilizing that same process at retail sale with a 50% Gift of Price to the individual and a rebate back to the merchant of same:

1) wildly benefits everyone,
2) resolves inflation and
3) serenditously enables the greatest opportunity to self actualize gratitude since meditation and prayer.

What you are missing is 1) Look at what the consumer pays ($40k for an $80k auto = temporal universe FACT of beneficial DEFLATION) 2) Commercial agent gets their entire price of $80k with the rebate aspect of the policy 3) and probably most importantly, you miss the fact that the current bulk of “free” market theoretics is a delusional misnomer for the actual reality which is a chaotic theoretics that does not enable ACTUAL control…because the current monetary paradigm for the creation and distribution of new money is DEBT ONLY (a dominating MONOPOLY paradigm concept exactly like Salvation Via Roman Catholic Sacraments ONLY was before The Reformation) when strategically integrating Monetary Gifting into the DEBT ONLY system with the 50% Discount/Rebate policy at retail sale creates the realities of 1 and 2 above which resolve inflation and brings a more prosperous and stable economic system.

The way to prevent inflation and double every individual’s purchasing power is to implement a 50% Discount at retail sale and then have the government or the FED rebate every cent of that discount back to the merchant so they are made whole on their entire price and all you have to do to accomplish that is to recognize that MMT correctly states that our new money is created by double entry bookkeeping. The policy is simply an application of MMT insight. Thats why I’m puzzled she doesn’t respond by saying: “Oh, yes! Lets communicate that to everyone on social media and win the day!

Yes let us have balanced trade and the Bancor for international trade…and a 50% Discount/Rebate policy at retail sale utilizing double entry bookkeeping and the domestic currency in order to immediately double the potential individual demand for every enterprise’s goods and services. International stability and a monetary paradigm change: a great progressive moment in human history.

The present and increasingly rigid intellectual paradigm is Science Only. Science is wonderful and necessary, but its reductionist methodology is in logical and conceptual opposition to the integrative, inclusive and resolving phenomenon of conceptual/paradigmatic analysis. Hence Science Only is actually the equivalent of Ptolemaic cosmology where you can fiddle around with epicycle type fixes and yet never get to the base of the key problem (the current monetary paradigm) and find the new concept’s optimal applications…that will change the character and realities of the entire system you’re analyzing.

WG: It seems to me that the problem MMT has to solve is how to substantially increase the buying power of low- and middle-income families without triggering inflation. We’ve seen that giving huge tax breaks to the wealthy doesn’t spur inflation because the rich have a high propensity to save. But if the bottom 80% of Americans receive a financial windfall, they are going to spend it. And thus we get inflation. One solution is to institute rigid price controls that will allow the 80% to spend freely and “catch up” on the goods and services they have been forced to do without. Price controls can be repealed once the economy has found a new supply/demand equilibrium.

I suppose another possibility is to simply allow inflation to run its course without any active measures taken by the Federal Reserve. So imagine the gov’t cuts a check for $100,000 to every household in America. Inflation will go wild–for the sake of argument let’s say 20% the first year. So the $100,000 is suddenly only worth $80,000. As supply begins to catch up with demand and buying power decreases, inflation for year 2 might be 15%. Now that $80,000 is only worth $68,000. With each passing year inflation ratchets downward along with the value of the initial gov’t payment of $100,000. And, of course, during this time a great deal of money gets spent and taxes get paid. Some households may be able to sock away a few bucks in a savings account. Others might burn through the whole $100,000 and have nothing to show for it at the end except for a higher standard of living.

Of course, the wealthy will howl. A guy with $100 million in the bank is not going to be happy if it’s suddenly worth only $80 million. Perhaps this guy can be mollified by the protection of inflation adjusted bonds. This would create the Mother of All Deficits, but who cares? It’s just money. Think of the enhanced living standards for 300 million Americans.

I’m just spit-balling here. If anyone else has any ideas, I’d love to hear them. But the policy of simply hoping the creation of more jobs will solve the problem seems to me to be the problem.

Me: You’re getting close to seeing the new paradigm, but you have to let go of the final conceptual vestiges of the present one and all of the theoretical falderal that accompanies it. For instance your first statement: “It seems to me that the problem MMT has to solve is how to substantially increase the buying power of low- and middle-income families without triggering inflation.” assumes there is no way to effectively do that. However, a 50% discount to the consumer at retail sale DOES do that because retail sale is the terminal ending point of the entire economic/productive process where production becomes consumption and exits the economy. So the individual gets $100 of groceries for $50, a $60k EV for $30k, a $500k house for $250k and the 50% discount reduces the payment on your $250k loan by half and the same for your insurance premiums etc. etc. etc. and every merchant gets their full price with the rebate aspect of the policy. Voila! You are the greatest American president or politician EVER in the eyes of the general populace. Sure, sure. sure you have to have some additional rules and regs o stabilize the system, but thats just human reality instead of slavishly believing in “free” market theoretics that turns economic theory into a fetish that is too holy to touch or amend in any way.

You could make the Discount 52% and allow enterprise to inflate their prices by 2% per anum before taxing them 100% on any illegitimate additional inflation costs. For any additional inflation that might be able to slip through the new system’s perousal you also index inflation to any same rise in inflation. Of course you’d want to make opting into the potential doubling of demand for all their goods and services with the discount/rebate policy (YIPPEE! for the merchant), conditional upon that enterprise agreeing to not unethically attempt to destabilize the system which the current fetishistic theoretics allows, by the 100% tax rule over 2% per annum. Wouldn’t it be nice if the economy and its rules was imbued with an ethic of gratitude for a gift instead of unregulated greed??? Finally, I suggest we create The Department of Innovation, Competition, Boycotting and The Individual’s Bully Pulpit which would do weekly press conferences that congratulated complying businesses and pointed a severe finger at non-complying ones and then asked the public: What are you going to do Mr. and Mrs. America, buy from this ungrateful enterprise…or the ones who actually have good will toward your long suffering and neglected self?

New paradigms are beneficial conceptual inversions of both temporal universe realities and mental inversions as well. That in fact is how you know its an actual paradigm change. So lets get to it!

RCS: What is also CRITICAL is the Education of our Masses of the BASICS of Modern Monetary Theory, which I honestly believe ,as a big assist and attention getter, due to our millions on the “day to day brink of disaster” ,that MMT’s NO#1 Policy- Government Guaranteed Job Program needs to be featured.

Me: Completely agree. A job guarantee is a direct gift of revenue to the individual. With the beneficial deflationary effects of my Discount/Rebate policy at retail sale both the job guarantee and a universal dividend of say $1000/mo. which with the discount/rebate would give every adult $2000/mo. worth of purchasing power for their entire adult lives could also be implemented.

Implementing the new key/core idea utilizing double entry bookkeeping resolves inflation and terminates the quantity theory of money. The world changes for the better for everyone.