Stuart,

Yes, I have pointed out to the gold bugs over on Mish Shedlock’s blog for years that gold is only good so long as you cash it in BEFORE the powers that be confiscate it or make it 1/10 what you bought it for by fiat. Money is basically accountancy and an idea, an agreement. We just need to cognite on the idea….that is a universal solvent…and then base policy on that.

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Me:  Yes they come up short, and the social credit macro-economic expression of that metric (a scarcity of total individual incomes in ratio to total costs and so prices) is the moment to moment reality of modern economies. And the only way to keep the economy’s nose above water is to continually extend more and more credit, (enter the Banker) except that this means debt builds up and up until it reaches “un-repayable” status.

DSGE (General Equilibrium Theorists) thought they had solved the economy for costs and time….except they hadn’t. But before Steve Keen de-bunked nearly everyone of their basic assumptions they went wild with derivatives etc. because “the economy always tends toward equilibrium anyway…so no problem, right?.” Keen thought discovering disequilibrium via Minsky was correct history except Douglas posited it and much more 35-40 years before Minsky. Actually right after I posted on Keen’s Debtwatch site that philosophy was a priori to understanding economic theory and hence the place to start Keen came out and announced that Austrians had a coherent philosophy (except it was wrong) and that New Keynesians needed a new philosophy/philosophical concept to describe the essence of a new economic theory. And by the way Keen’s call for “a modern debt jubilee” is just an expression of the basic concept of Social Credit which is Grace as in gifting. I suspect that Keen will soon cognite on the policy integration of disequilibrium theory and thermo-dynamics which is to reverse the individual monetary scarcity ratio and make it what I refer to as “the higher Disequilibrium” of an abundance of individual incomes in ratio to costs/prices which just coincidentally integrates the Austrian (inverted) obsession with price deflation into a wider, more comprehensive and unified theory. Integration/Wisdom and Grace/Consciousness are the process and basic concept that the monetary and economic systems need to evolve. Thus Wisdomics/Gracenomics.

Robert:  So, Liam, are you proposing that social credit be instituted in the present system, or within the context of a publicly owned banking network?

Me:  Liam can answer for himself, but I say both. That is the process of integration/Wisdom after all. And as for the .00001%…when it gets so bad that hunger drives everyone into present time enough that the answer in a high tech economy becomes obvious, namely Free Gifting of income….we billions will be a force the .00001%….will have to deal with. And hopefully we who recognize the inevitable trends before the economists do, will bring them to cognition before the SHTF.

What is the still largely unconscious and until now undiscovered underlying concept of every leading economic and monetary reform movement, all cutting edge economic theory, all calls for ways to deal with the debt overhang and is the integrative concept that can accomplish more of the positive and workable aspects of the agendas of both the left and right than they have been unable to do in fighting each other for generations?

The author has found it and built a comprehensive philosophical and policy program for modern, technologically advanced economies. Over the last 10 years he has also coached and converted some of the more open minded reformers to incorporate his ideas into their reforms, affirmed others who have unconsciously re-discovered much of the theory from which his extended conceptual analysis sprung and be-deviled and out debated those who would not look at his evidence.

Now you can read, learn about and benefit from his integrative mindset and his comprehensive and yet logically aligned and elegantly simple study of this most powerful concept and its economic and monetary significance. Wisdomics/Gracenomics is precisely what economic and monetary reform needs in order to be the force it must be before we stumble unconsciously and tragically into collapse and likely an historically rhyming war in an era of modern weaponry.  Buy it today, as well as his first book Money And Wisdom: The Way Out, The Way Home, and look for his forthcoming books  The Integrative Mindset and The Cosmic Code.

Graciousness defeats all ungraciousness, both personally and systemically.

The Gap consists of both diminutions to the circular flow like profit, savings and re-investment of these in new production AND ADDITIONAL costs like the costs of replacing depreciated capital assets. The cost of capital goods must be included in ultimate prices because the convention of cost account states that “ALL costs must go into price.” Most economists and pundits miss this latter fact and reality. Throw in the rapidly increasing effects of innovation and AI both as an increasing capital cost and the erosion of aggregate individual incomes…..and as flows….there you have A + B.

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JD:  that could well be it Steve

Me:  Yes its logical don’t you think? Which brings to mind Ellen’s other thread regarding suggested papers for ending TBTF. I note that on Steve Keen’s Debtwatch site there is a rhyming Bank of England call for papers on Central Banking, Climate Change and Environmental Sustainability.

Is it not logical, especially when the idea of a universal Dividend seems to rising and resonating with more and more people and a few economists, that calls for papers that would appear to affirm the need for scarcity in the minds of progressive thinking people be suggested by the central and national Banks? I find such calls, especially two such calls very curious. As for environmental sustainability, giving everyone a million dollars and advertising the hell out of them to the point of profligacy is being suggested by no one while a middle class lifestyle, promoting technological innovation that does more with less resources and enables everyone to take a deep breath from the forced to the point of preoccupation pursuit of eroding income security is a sustainable way to keep both the economy functional and the environment safe as well.

Agendas hide in both dark corners and in plain sight, and insufficiently examined orthodoxies and habituated false and contentious dualities are trump cards to be used against those who would otherwise be fighting against a dominating foe.

Grace solves, resolves and Transforms everything it touches or is applied to. Want to solve a personal problem, apply the integrative of opposites aspect of Grace to do that. Want an economy to be optimal, simply apply the aspects of continual Flow and abundance to it as policy. Want to re-make that economy with a minimum of structural  change without any additional costs, just apply Grace as transformation of the inner essence and Free Gifting.

Think the world and Life will be too boring without problems, just learn to live the top two aspects and mental actions of Grace/Consciousness which are Know…and Unknow, and Life is a continually new and unfolding experience in every moment of now and with a vibrancy known to the very young child, except now that you are an adult and more aware both intellectually and spiritually you also have a much broader capacity to understand so art, beauty, purpose and constructively purposeful activities of all kinds can be more deeply experienced and participated in by you.  Yes, contemplating Grace and its aspects is all upside.  So go for it!

The reason Grace and policies accurately reflective of it make states of beingness and systemic conditions better, more unified, more whole and complete and more ethically ascendant is that Grace is the pinnacle concept of Wisdom. Wisdom is the process of combining and Grace is the continuous combining of the highest, best, most integrated truth(s), intentions, workabilities and applicabilities of even supposed opposing  ideas, factors, theories and/or personal or systemic conditions. It is fundamentally corrective, improving, increasingly practical and conducive of honesty and ethical sensitivity. Grace is wholeness and completeness in every sense itself. In fact Grace is undoubtedly the most comprehensive and inclusive concept ….known to Man.

Now you’re really talking Ellen. Integrating Keynes and Douglas with infrastructure spending and a universal dividend is integrative par excel-lance. Now integrating a truly gracious tri-level Banking system will slay the problematic and Leviathonic nature of the Banking/Financial system, and a price deflationary discount to retail prices will integrate Austrian economics into the economy and reverse the entropic nature and trend of the entire economy!

Where there is no vision, the people perish…. Proverbs 29:1

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Just giving the private Banks the ability to create money to pay off bad debts would of course leave wide open the possibility that they would simply do this only for cronies and/or only on those loans that diminished their bottom line the least.

The entire ethical problem with private banking or even a public bank is resolved ONLY by mandating that policy and its administration be based on the concept of Grace. As one of the major aspects of Grace is Good Will, and three others are fairness, equanimity and justice policies accurately and firmly reflecting these is the solution. That and sovereignty as in a third party gracious governmental overseer to the individual and financial institution. That is why a trinitarian/Tri-level Banking system like I have posted here before is probably the best one.

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Precisely Stuart. Half @ssed palliative or counterfeit truth parades before us all the time. QE was Social Credit for the Banks. MMT is Social Credit for the government, infrastructure building/re-building is Social Credit for various enterprises, TPP is Social Credit for corporations with global reach, Obamacare was Social Credit for Pharma. Now MMT and infrastructure building/re-building can legitimately be integrated into a forward, upward looking AND GENUINELY PROGRESSIVE policy of ACTUAL Social Credit FOR THE INDIVIDUAL, but the others are basically a false, distorted counterfeit of it because their policies benefit only the already dominant and advantaged and do not address the actual problem (scarcity of individual incomes) or reach all the way to the individual. Counterfeits and palliatives are gamed so that no actual progress is made, primarily to the most damning aspect of the systemic problem…the utterly unethical reality that the individual must serve the dominating system instead of it serving us.

If you want to truly solve problems you have to change the ideas, nea change the widely held and agreed upon ideas, i.e. the paradigms that individuals are hypnotized by and systems operate under….or rather integrate a new one into an old one. Banks have a monopoly paradigm of debt and loan ONLY which must be balanced by integrating policies of Grace the free gift into them.

Grace is the postulate that both yourself and others are worthy of consideration and understanding. In fact Grace the experience is that Good Will and so is also its own best reward in a world and a Life unfortunately filled with non-integration and unconsciousness of the beauty, importance and goodness of Grace.

Contemplate the aspects of Grace, and you can’t go wrong.

It’s a complete confirmation of Social Credit’s thesis and Wisdom in a general sense actually…..and of Wisdomics/Gracenomics’ integration of Austrian and Social Credit economic policies with the deflationary retail discount. The deflationary discount policy is not standard Social Credit policy by the way, but rather my Wisdomics/Gracenomics philosophical expansion/extension of it based on the proactive (fore thinking) aspect of Grace.

A prudent man foreseeth the evil, and hideth/prepareth himself; but the simple pass on, and are punished. Proverbs 27:12

Combining, comparing, reviving past experiences while draining away negative thoughts, emotions and decisions about them, broadening new awarenesses regarding ideas and situations one has had, contemplating the present moment and its sense perceptions including self awareness…..these all bring two things closer together, reaching out to them and then cyclically withdrawing from the temporal or inner reality reached out to. Wisdom is duality/twoness integrated and the result of these actions if pursued correctly and long enough is cognition regarding both self and what was reached out to. Cognition/new thought is release from the efforts, emotions and decisions and self held ideas and so is a third more unified state of higher order flow. Wisdom is psycho-therapy and cognition/Consciousness/Flow is Grace.

The Integrative/Integrating Mindset leads to Grace which is a greater and higher knowledge and understanding no matter what the subject may be. Integrate Dualities long enough  with continuing refinement of truth(s), workabilities and applicabilities, and a better understanding and a higher ethical state will be the result for both the study and the person studying.