A great awakening must take place.  This awakening is the responsibility of all of us really, but most particularly for the leaders of our Monetary, Corporate/Commercial, Economic and Political systems.  The only force that effectively resolves the inevitable problems associated with power is the Good will of Grace.  And power must bow to Grace, especially in the areas of money, commerce, economic theory and politics both because they are so powerful in their effects on the individual, and because they are so intricately interlinked.

The concept of Grace as Good Will recognizes that conscious awareness itself and the fundamental ethical understanding that each and every individual is essentially and sensitively the same in this respect and so worthy and entitled to such Good Will, is no airy-fairy concept. It is a fundamental human fact, and that fact cannot be stressed enough let alone denied.

Wisdom is integration and Grace is abundance. Grace is also process as in continual change and the resulting temporal uncertainty, and yet inwardly Grace is self knowing certainty….at the same time. Well, Grace and Wisdom are integrated Bothness, i.e. duality and trinity-Unity as well.  So despite the fact that the economy being utterly embedded in the temporal universe and thus subject to the laws of thermo-dynamics and thus ever more cost inflationary as to energy and other costs….you can implement a universal Dividend that approximates a middle class lifestyle even if you don’t do a lick (and obviously more if you can find employment in a high tech/AI future) AND a price deflationary Discount to retail prices that is rebated back to participating merchants…and Voila! You’ve integrated the seeming polar opposites of Social Credit and Austrian economics and so wisely resolved the most basic problem of modern economies….its compelled cost inflationary attachment to thermo-dynamics and yet scarcity of individual incomes with which to liquidate those costs.. Thank you.

Of course consumer spending is inadequate…the rate of flow total individual incomes always tends to be less than the rate of flow of total costs/prices. That fact is the thing Keynes, von Mises, Keen, Mish and nearly every other economist and pundit missed, and as innovation and AI ADD more scarcity of individual incomes to that ratio there is no escaping the unstable consequences unless you combine Social Credit and Austrian economics as I have and implement a universal Dividend and A PRICE DEFLATIONARY DISCOUNT TO RETAIL PRICES. Wake up and die right before we stumble idiotically and unconsciously into catastrophe….and actually look at what I am saying.

Walter Mandel:  Can you prove that “the rate of flow total individual incomes always tends to be less than the rate of flow of total costs/prices”? What is your evidence for this claim? Is is based on an hypothesis, or on data?

Me:  There are many factors that make this the case, and if one goes and looks at and compiles the statistics of total individual incomes and total prices of the products produced found in the empirical data in the cost accounting statistics for a given period of time of any business that is not actively in bankruptcy it will be found that more prices must be liquidated than individual incomes produced for the same period. As this is the reality for virtually every business it is a dynamic factor that must be accounted for. If one stops and thinks about the fact that the costs of depreciation in today’s high tech economy must be factored INTO PRICES IN ADDITION to the costs of total finance then it becomes quite clear that capital equipment-facilities/means of production must be paid for twice, once as the cost of their purchase/construction and once again as these assets depreciate, obsolesce and/or break down. Throw in that savings, profits and re-investments all take money/incomes from one flow and transfer them over into another later flow diminishing individual incomes from the first. Then consider that innovation and AI are increasingly eroding total individual income/purchasing power….and as flows costs/prices will always tend to exceed individual incomes simultaneously distributed to liquidate them….which makes the system ITSELF, EVEN IF IT IS LEFT ENTIRELY TO ITSELF AND UNREGULATED BY THE GOVERNMENT, ….COST INFLATIONARY.

Dr Strangepork:  It is based on faith, mysticism, and snake oil.

Me:  Yeah, right Dr Strangepork. The above is all based on empirical data to be found in any going concern if one only looks at it. It is grounded in the 3 and 4 dimensional data and day to day realities of businesses and accountants…..not some abstract theoretical BS and/or orthodox scribbling s of some economist….who probably never ever ran a business or had any concept or knowledge of accounting data and its economic and monetary significance.

DARE TO LOOK AT THE “ON THE GROUND” DATA AND THE RELATIONSHIPS BETWEEN THEM….or shut up.

It will probably be the slowly boiled in oil/super slo-mo train wreck version, but there are many other pit falls and dangerous variables that could trip us into real disaster like political craziness by a major country and a resulting war, social unrest all over the place, …lots of stupid stuff.

And all we really need to do is integrate Austrian economics and Social Credit as I have done in Wisdomics/Gracenomics and it would be all gain, no pain, immediate turn around and unmatched stability and profit. Integration is the process of Wisdom and the integration of seeming opposites always results in renewal, rejuvenation, revelation and re-start. Look at paradigm changes throughout history.

Rick:  Is there a way that you see that we could move toward sound monetary policy without a crash or even a “soft landing”? Of course, we know we don’t ever move that way, but in theory is this possible?

Thanks,

Rick Sandberg Fresno

Me:  Of course there is, with the anatomy of economic freedom in a monetary economy….over and above what you can find for employment, a continuing universal dividend and a deflationary discount to retail prices. A modern, technologically advanced economy is increasingly capital intensive at its base. What? Is high tech cheap? Of course not. Does it and increasingly will it and artificial intelligence be throwing upwards of 40-50% of the current labor force out of work in the next 10-15 years? Yes. The only valid and realistic solution? The above. The above which integrates Austrian and Social Credit economics and enables us to escape both the otherwise inevitable disruption and probably war in an era of modern weaponry…and our orthodox tending selves. The world cries out for Wisdom. Wisdomics/Gracenomics provides the common sense and Wisdom that is required.

Grace is that flowing higher state of self awareness wherein you realize that you’ve been sleep walking by relating to the world via abstractions most of your life. It’s the native state of the child who hasn’t yet distinguished him/herself from the rest of the environment and just directly experiences it without in any way abstracting/categorizing/invalidating/judging/suppressing it. It’s why Christ said, Ye must be born again.” “Ye must become as a little child if you want to enter the kingdom of God.”

And of course it is why the economy needs policies aligned with Grace, and economists that will cognite on the fact that their abstractions are not direct looking at the 3 and 4 dimensional  empirical data and so they miss the enlightening economic and monetary realities/metrics that exist there for them to do the calculus on and realize that yes indeed policies of Grace as in monetary Gifting…..are the only truly valid and workable policies that can equate the economy without adding additional costs….when there is already an inherent and continual flow of more costs than individual incomes with which to liquidate those costs.

Economists, you must cognite on the direct, flowing and heightened awareness nature of Grace, you must understand where to look for the actual 3 and 4 dimensional facts to calculate upon, and that monetary policies must be direct to the individual because if you inject money into the economy first instead of it going directly to the individual it will merely re-initiate the inherent state of disequilibrium that is the continual reality of the system,

Economists,  Ye must look directly at the empirical facts, Ye must be born again, Ye must become as little children

JD:

potential fraud in that.

Me:  J D,

A mere numerically sufficient Dividend would simply “free” the vast majority of individuals soon to be thrown out of work by the just getting started disruptive economic forces of innovation and AI….into a second class economic status. That is why I keep suggesting that the Dividend and Discount together approximate a middle class level of income. A virtual equilibrium can be attained at virtually any reasonable level of income above the middle class level with the policies of Social Credit/Wisdomics/Gracenomics, but until the numerical amounts distributed can be reduced via rescinding of re-distributive taxation and other economic efficiencies…..they must equal purchasing power that is at a satisfactory level, otherwise you’re snatching discontent and defeat from the mouth of victory.

The Dividend and Discount mechanisms must go together or the inevitability of demand pull inflation by businesses seeing an increase in demand coming will still disequilibrate and de-stabilize the economy with such inflation. MMTers and other economic and monetary reformer’s beliefs that demand pull inflation will not occur are not looking at the situation as close or as realistically as they should. This is also part of the reason why I believe that the discount percentage needs to be large enough to produce significant price deflation. A dividend and price deflationary discount is a true integration and resolution of the polar opposites of Social Credit and Austrian economics and will hasten Douglas’s assertion that ultimately money will become a ticketing system for the distribution of production.

The Dividend and Discount mechanisms are the anatomy and component parts of a stable economic equilibrium, i.e. a + of income and a – to prices, and are also reflective not only the digital nature of debt itself, but also the debt based money system (and not coincidentally the digital nature of the top two states of consciousness that humans are capable of, namely, Knowing…and Unknowing or not Knowing) This latter is a discovery of Wisdomics/Gracenomics.

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Liam,

Yeah I liked that parasite analogy too. I have always liked Hudson because at least he has “fire in the belly”. You take guys like Steve Keen who has progressively re-discovered much of what Douglas said and yet still hasn’t cognited on the obvious policies to rectify the situation. In fact Keen has a video on his you tube channel where he carps at people because they carp about interest and correctly shows that because there is a difference between a stock of money and a flow of it…that interest can be paid and is not the problem. Of course social crediters recognize this too, but they also recognize that interest is only one of the several components of COST, EXTRA, ADDITIONAL AND DYNAMIC AS IN EVER PRESENT AND SYSTEMICALLY ROOTED COSTS, and that this is the true scope of the problem. But despite the fact that we can muddle through for long periods of time paying the additional cost of interest and also part of the “Gap” ….Keen apparently hasn’t recognized that throughout the entire period of time that we are onerously paying interest and continually failing to pay the entire Gap……the system is unethically ruling us, instead of serving us as it ethically should! It’s almost as if he’s saying that the data point that interest is mathematically payable….is more important than than the fact of enslavement of every other business model and the entirety of the population….and so is no big deal????????? At least Hudson is ethically “up in arms” about it. Part of Keen’s problem is he’s a pedant. He has to be objective. He has to be authoritative and reputable as an academic, and these are mental hurdles that must be overcome for him. And of course he also has to recognize that interest and the Gap, interest and TOTAL AND ADDITIONAL costs…are not the same thing.

Very intelligent people have these mental barriers to full and complete understanding and ethical outrage regarding the problem; other agendas, self interest, academic objectivity etc. etc. that keep them from seeing the whole truth and being appropriately outraged by it.

That’s why I like my Project Wisdom and Grace idea (maybe it should be Project Wisdom, Grace and Appropriate Outrage) that sells the idea of the Dividend (more actually and immediately available money in the consumer’s hands directly translates into more profit for them) to the small to medium sized business community. It’s a natural alliance. You have to meet people where they’re at. Where they may be open to receiving it.

Ultimately the problem is one of consciousness raising.

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The laws of thermo-dynamics actually affirm the Social Credit insight about systemic, dynamic additional costs. The economic system is utterly embedded in the temporal universe and hence is cost inflationary. The money system being basically an abstraction/and agreement is not subject to thermo-dynamics and can be utilized to equate incomes and total costs and to actually reverse the entropic trend of the economy with a price deflationary discount to retail prices.

Social Credit isn’t going to eliminate employment, simply enable us to embrace the inevitable trend of less and less employment while simultaneously creating economic stability and an actually ethical system.

More efficient Solar power and IMO discovering and tapping into the virtually unlimited potential for electrical power that surrounds the planet and that drives the entire cosmos is what is going to be the next evolution of energy. If one googles “The Electric Universe” and approaches their thesis with an open mind (because orthodoxy will close your mind so fast you won’t even notice it, and orthodoxy hides not just in economics, but perhaps even more so in the sciences of physics and cosmology)…you’ll see the potential there.

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What Keen needs to do with his Minsky software is not just run generic stocks and flows of total money, but rather the stocks and flows of total costs in ratio to individual incomes continuously and simultaneously produced. That is the truly significant metric, the actual MOMENT TO MOMENT AND CONTINUOUS monetary and economic scarcity reality and disequilibrating factor that makes continuous borrowing NECESSARY. I have implored him to look at the cost accounting datums and decipher their economic relevance, but he still just splashes around on the surface level of accounting trying to find significance in only debits and credits which actually tend to deceive one into thinking that the monetary statistics are balanced. As the largest part of his research has been to invalidate General Equilibrium Theory you would think he’d leap at my suggestion and awaken to the Social Credit insight, but so far to no avail.

This was also posted to Mish Shedlock’s Blog in response to a poster who correctly pointed at the seeming irreconcilable absurdity of eliminating wage labor for profit with innovation and AI:

J: The autonomous truck puts drivers out of work. Drivers have no money, so they don’t buy anything from the store The store goes out of business and stops buying inventory. As a result, there is nothing for the autonomous truck to deliver and the trucking company files for bankruptcy. The trucking company execs who thought they were so smart putting drivers out of work are now out of work as well

Me: Exactly…..and good!!! Implement a middle class universal Dividend and a price deflationary discount to retail prices thus integrating Austrian and Social Credit economics. Let the robots produce more for less and with less resources (and of course we’ll also have a lot more employment despite its diminishing trend above than if we do not implement such policies) and then we can come out of our homo economicus false and hypnotized state of mind, re-discover nature, our neighbors, positive and constructive self determined purposes galore and maybe even accomplish the REAL purpose of Life…cultivating graciousness toward each other and the planet.

The economy/economic system is utterly embedded in the temporal universe and thus is subject to the laws of thermo-dynamics. Thermo-dynamics tells us that the temporal universe is entropic, that is ever more random, and hence the costs of maintaining it is ever more costly from an energy standpoint.

Money, being most basically an agreement, an abstraction is not subject to the laws of thermo-dynamics, and if used intelligently and reflectively of the digital nature of debt, of the debt based money system and of the most basic and primary states of consciousness (that is the states of knowing and unknowing) ….can not only negate the entropic nature of the economy, but actually reverse it toward an eventual true equilibrium via the monetary and economic policies of a virtual middle class Gifted Dividend, and a price deflationary discount to retail prices and so, along with innovation and artificial intelligence,  proactively thrusts the economy toward one where the money system increasingly becomes a ticketing system for the distribution of production.

Defining words and concepts is the first and essential means of achieving and maintaining clarity in any study. Therefore this glossary of terms and concepts should be read and understood prior to reading the remainder of the text, and referred to as often as necessary as one proceeds in that text.

Integration:  the process of Wisdom itself;

the means of attaining Wisdom;

not a mere compromise and especially not a “poison pill” compromise which is simply a way of insuring continuous contention so as to inhibit or prohibit change, or an unworkability compromise which guarantees dysfunction;

a true integration is a combination of only truth(s), workabilities and applicabilities  accompanied by the highest ethical pursuit of The Good;

a continuing refinement process the result of which is a third more unified and ethically higher state of being, doing and/or temporal-systemic condition.

Wisdom:   Integration; the open minded integrative mental stance;

Orthodoxy:  the decision to believe in something as opposed to experiencing it;

habitual and actually non-looking/non-thinking;  mental blindness and/or laziness.

Grace:  in the end Grace is synonymous with self awareness-consciousness;

Love in action as in a verb, both inwardly and outwardly.

a continuing state of mental flow;

an integration above orthodoxy;

the complete integration of Space, Time and Self;

amongst many other things giving, forgiving, Gifting;

the deepest concept/experience in the cosmos;  an integrated state of being which can be deepened by its further integration with its many aspects;

a universal solvent;

Grace is the state of heightened awareness of the acceptance of the necessity of Ethics for human beings,

ethics is the Grace/Love in action sensitivity to, and the awareness that, every human being is essentially an aware being….just like yourself. And it is an increased awareness, consideration and ethical sensitivity for all living beings, the ecology, the planet and the whole of the cosmos as well.  

systemically, the intention to take power….in order to give it back to the individual.  

Grace is complete mindfulness of Self and the Other.

Wisdomics/Gracenomics:  the integration of spirituality/consciousness, not religion, into economic and money system theory

An integrated/integrative  Natural, Organic-Temporal Transcendentalism as it applies to economics and money systems;

a comprehensive and natural Wisdom, Love and Grace based metaphysics;

the integration of all reforms and theories whose basic policies, whether consciously or unconsciously conceived and asserted, are based on the concept of Grace

Ethics:   consciousness of, and a heightened sensitivity to, the reality of both Self and others;

the rational consideration of morals;

in human systems, primary consideration for the individual;

ethics is the Grace/Love in action based, sensitivity to, and the awareness that, every human being is essentially an aware being….just like yourself. And it is an increased awareness, consideration and ethical sensitivity for all living beings, the ecology, the planet and the whole of the cosmos as well.

Trinity-Unity:   a progressive set of three ideas/temporal conditions the last of which is a thorough combination-integration of the first two;

the holistic state of mind;

the signature of  completion, wholeness, Grace, self awareness, consciousness and of good science and scientific breakthrough.

Duality:   Thinking in terms of opposition, contention, separation, exclusion and discrimination. These are the objective, scientific ideal and are useful states of mind, but more often than not become habitual and so inhibit understanding and experience of Grace/Flow/Trinity-Unity.

Integrated, the first half of Trinity-Unity and The Cosmic Code

false Duality:  A monopoly in disguise;  two ideas, theories, reforms which purport to be opposites, but which are actually at best nuances of a single idea/ideology

paradigm:  Not just an idea, but a generally held and presently affirmed idea;  

Depreciation/Depreciation Allowances to Businesses:   A “stay of execution of costs”, NOT a forgiveness of same. 

I could not possibly agree more that there are corrupt actions and motives on the right in Brazil…and virtually everywhere, but socialism is still a palliative for the actual economic and monetary problems we face.

RE-distribution of an inherent macro-economic scarcity of individual incomes is NOT a solution to that scarcity. And it only replaces one elite group with another while leaving the real culprit to remain in power, namely Finance and its domineering monopolistic obstruction to and denial of, the integration of the paradigm of grace as in free monetary Gifting into the debt based money system.