The real problem in any “sticky” or seemingly unresolvable problem in economics, any science or for that matter anything in Life is premature decision making followed by failure to maintain an open minded and integrative mental stance toward new or previously missed data. In essence Wisdom is the maintenance of this agnostic willingness to look at and combine relevant data and relationships, and Grace is the continual application of that wise and open mindset to the point of an actual third alternative that is a unification of the correct factors from both/all sides…including and most importantly the ethical state of the subject at hand on the individual.

And orthodoxy is the blinkered, blind, closed minded and stubbornly irrational holding of an opinion.

This is why Social Credit’s policies and the philosophical study and exegesis of the concept of Grace in Wisdomics/Gracenomics is so essential.

Steve Keen correctly asserts that confusing money stocks with flows ….is mistaken.  What he misses however, is twofold:

1) the ADDITIONAL costs over and above total financial costs distributed that contribute to creeping cost inflation on the lower end of price, and

2) the utterly unethical domination of every other business model and of probably 97-98% of the general populace by the business model of finance who will not countenance any competition to their monopoly control of the monetary distribution paradigm, namely loan only and so the flow of such additional costs cannot be paid except via a loan which of course adds cost to the already inherently disequilibrated system.

3)  the fact that, even if it doesn’t collapse or appear to be doing so, as the economy trundles along fitfully for long periods of time, that entire time it is unethical in the deepest and most important way possible because it makes probably upward of 95% the individuals in it….serve that system instead of it serving them.

Austrians in their saying, “There ain’t no free lunch!” are correct in their assessment, but they also miss the destabilizing additional flow of costs as per above and so their “solution” of deflation ends up being an inverted  moralistic mistake and mereness of economic philosophy that compounds the pain and stress of an already onerous system whose only valid economic resolution is monetary Gifting to address All (not just the excess costs) elements of the real time gap between total costs/prices and total individual incomes moment to moment and actually available to liquidate such costs.

Greenspan’s “progression” has been Randrhoid, apostate Randrhoid, neo-classical Keynesian and now he’s just confused and can’t decide which failed economic theory to espouse. Keynes was a contemporary of Douglas and Keynesianism was basically watered down, half @ssed plagiarized abstract Douglas that remained unconscious of the on the ground realities of the costing/pricing system ruled by the enforced conventions of cost accounting. Hence it allowed the monopoly, money creating business model of Finance to rule every other business model and 99% of the general populace.

Every current economic theory is way more complex and abstract than it needs to be because they have missed the micro-economic cost accounting reality that rules every enterprise and is hence a macro-economic reality as well.

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;

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;

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:  An 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. 

Me:  There are other additional costs besides depreciation, but it is the best and most glaringly obvious example of why an increasingly capital intensive economy is inherently cost inflationary. If a business borrows $1 million to start up and build its plant and means of production and that plant and productive capability costs $600k, then as such concrete assets depreciate it is going to have to garner $1.6 million plus profit, plus interest, plus other miscellaneous additional costs…..and yet there has only been a total of $1 million dollars distributed….with which to liquidate all of those costs. Virtually every enterprise faces this same conundrum of a scarcity of total individual incomes in ratio to total costs/prices and so the flow of that ratio is a basic macro-economic instability. Of course we can keep things going for a season by borrowing more and more money which the Banker is happy to do, but that only enriches him and ends us up in the mess we’re currently in. And innovation and AI are extremely disruptive aggregate monetary deflationary forces that are really just getting started to boot.

Integrating monetary Gifting into the debt based money system with a universal dividend to everyone 18 and older is the only valid and effective way to equilibrate cost/prices and individual incomes, and a retail discount placed at the proper place in the productive process (retail sale) is the only means of eliminating both demand pull inflation and (if we’re smart and economic as in efficient) making actual price deflation the trending reality.

Crysangle:   I find your example confusing as you seem to count the cost of building the plant twice.

Me:   Crys,

There is no confusion. Productive means wear out, require maintenance and/or become obsolescent and all of these costs must be paid for by businesses or it will stop producing and go out of business. And of course every business must calculate and save for these realities by including them in their prices, or again…go out of business. Staying in Business is incredibly difficult especially for the small to medium sized variety. The inherent individual income scarcity makes the system unnecessarily unstable and austere to the point of onerousness for both business and the individual, and Austrianism, libertarianism and conservatism play into that condition instead of making the system humane and graciously flowing as any human system whose point must be that it serves the individual, ethically should be. This is why those who always grouch about entitlement, “free lunches” etc. etc. ad nauseum are actually unconsciously working  (no matter how much they might claim to the contrary) for further Bank dominance and an eventual socialism or fascism. They miss/refuse to look at the inherent scarcity of total individual incomes in ratio to total costs/prices and at the only valid economic way to resolve the situation.

Ron J:  A cycle has two phases. The system is inflationary and deflationary.

Me:  “A cycle has two phases. The system is inflationary and deflationary.”

Precisely. But understanding the ACTUAL reason for the inflationary cycle is key to resolving the instability of the system and avoidance of harmful deflation. As I have been pointing out my policies would enable beneficial and humane price deflation within increasingly profitable profit making systems.

Everything is “extend and pretend”, “blue smoke and mirrors” and “let’s boil the general populace in oil so slowly that they won’t notice it”. Modern high tech economies have been creating more costs and so more minimal prices than individual incomes for probably at least a century and that inherently cost inflationary scarcity ratio is only going to get worse with AI. And no matter how strongly you BELIEVE in General Equilibrium, Austrian Deflationary dogmas or the silly @$$ed puritanical righteousness of “the curse of Adam” such theories will never pan out without integrating costless monetary Gifting into the debt based money system. We can in fact have Austrian deflation with a price deflationary retail discount. I’ve shown you the way. You just have to open your mind to it is all.

What every warning about “helicopter money” and “handing out cash” completely ignores (and/or is unconscious of) is the second complimentary policy that must accompany such a policy and that is a “compensated retail discount” policy. The beauty and genius of such a policy is it comes at the terminal end of the entire productive/economic process where all costs for any item or service have already been decided upon by businesses. Thus, as every cent of the discount a merchant Gifts to the consumer, is in turn rebated back to that merchant so that they can be whole on their margins of profit and overhead payments. Thus it fits seamlessly within a profit making economic system and eliminates any possibility of inflation. And, if we’re really smart, as Wisdomics/Gracenomics suggests we do, we should make the discount percentage considerably higher than any (largely inaccurate) assessment of inflation, and in so doing create actual price deflation which integrates Austrian thinking into such policy. Such policy also breaks up the glaringly inconsistent monopoly powers of the Banks by balancing and integrating the debt based money system with free Gifting.

By the way Mish, since when did you start giving serious consideration to the opinions of a central banker?

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Helicopter money with no retail discount policy. That is the “Wisdom” of central bankers. Integration is the process of Wisdom, and the integration of a universal dividend and a price deflationary retail discount is the most ethically sound and ACTUAL MONETARY AND ECONOMICALLY VALID Wisdom and way out of this mess.

Crysangle:  May continuous change be described as stable?
Do you think retail discounts and individual bailouts solve those?

Me:  “May continuous change be described as stable?”

Yes. You just have to truly understand the meaning of process and flow.

“Do you think retail discounts and individual bailouts solve those?

THE SYSTEM ITSELF is cost inflationary. Thus giving people a COSTLESS supplementary GIFT of income in addition to what they make via employment is in actuality the ONLY valid economic solution to the system’s inherent problem. A discount to prices at retail sale AFTER businesses have discovered/decided on their most competitive price:

1) causes no agent any harm because it is the terminal end of the entire economic/productive process.
2) prevents price inflation
3) fits seamlessly within profit making systems because every cent of their discounts to consumers is rebated back to the participating merchants
4) is not wage or price controls in any way because it is AFTER the business has already determined what its price will be
5) Can be price deflationary without harm because of #3

quincywagstaff:  Does the CPS really think that property owners are going to suddenly receive a hugely increased tax bill and that’s that? As Mish and others have described before, the system in Chicago is one of intentionally exaggerated property tax assessments that can be relieved by going to one of the preferred legal firms to file for an abatement. If a sudden and significant increase in property tax bills was attempted then the number of abatements filed for would explode.

Mox Nix:  And that begs the question, ‘Who operates and benefits from running the organization that files the abatements?

Me:   It’s all just sh!t/systemic excess costs rolling downhill. Meanwhile the false orthodoxy fight of Austrians and Tea Party types against the Keynesians who want to palliate rather than solve….goes on and on and on. Neither side has the willingness nor the ability to see past their mutual economic dogmas to a third integrative actual solution to our problems.

But in case you hadn’t noticed ideas like basic income guarantees and sovereign control of the money system are beginning to pop up all over the place. Of course these reforms, unconsciously contain an aspect of the concept fully fleshed out in Wisdomics/Gracenomics, but they’re all still half baked because they do not contain the macro-economic tool of a retail discount which as explained in Wisdomics/Gracenomics would enable stable price deflation in a roaring profit making economic system.

All of the leading reforms are half baked. Only Wisdomics/Gracenomics has integrated all of these movements in its policies and gone beyond them in fact.

wisdomicsblog.com

Old Guy:  @ Quincy and chdwr

Quincy there is no need to disagree with chdwr. Just ignore him and he will go away as he always does and come back with another name spouting his so-called wisdom. We all know it will not work. social credit he spouts and wisdom is get your money for nothing and everything for free is never going to happen. I could go on and on about it but chdwr get miffed and spouts how stupid we are because we do not accept his paradigm.

Me:  Old Guy’s Old Guy, austere puritanistic, cynical, “realistic”, never had a new thought, terminally orthodox and irrelevant advice, non-solution and spewing of unconscious establishment intent.

And by the way, all of the leading reformers are unconsciously coming to the same Social Credit (extended) policy solutions as Wisdomics/Gracenomics. And they’re not quite as afflicted with the mentally and emotionally terminal characteristics you and nearly everyone else here UNCONSCIOUSLY express.

Old Guy:   chdwr many items over the years you and I have actually agreed on. Personally if the government wanted to actually help people they would do something like an income tax holiday on those that worked. That does not work for you though as you think we should get something for not even trying to work.

Therein lies our difference. Taxes in my mind do not matter to be honest as fiat currency is created from nothing and backed by force. We are required to pay taxes to keep the scam going on people. QE, lower interest rates enriches those with first access to money and nothing more. Lower home mortgages means nothing to me as you still become a debt slave for an over priced home. Prices are so distorted a 225 sq. ft. home recently sold in Portland for 300k. Quite honestly public officials, real estate, appraisers all should be brought up on charges for selling stuff like this to people. There is a sucker born every minute, but that property did not appraise for that amount. I did an estimate on the construction products and there was may at most 10k in products in the home and that was if I was asked to build it for you.

Theft of people hard earned savings is being stolen right in front of us and nothing happens. Instead people are more concerned with hired Trump protesters and his responses. How stupid can people be these days. I ride debt free and pay cash and do not have one credit card. Not because I am well off but because three decades ago I saw what credit scam was all about. Back when I was young, the interest charged to people today land the loan sharks in the slammer. Now it is legal.

I come from modest means but did without until I could afford it and paid cash. Vehicles today cost more then the home I live in. By the way never had a mortgage on it.

Me:   Old Guy,

Pardon my frustrations, your frugality and hard work are and always will be virtues, but if the system itself is cost inflationary by dint of the flawed cost accounting convention that all costs must go into price despite the fact that businesses MUST create a flow of costs that always exceeds the flow of individual incomes….then direct monetary Gifting to the individual is the only way to equilibrate the economy. Money is basically accountancy. Abstract theorists miss this basic fact.

If you recall I was talking about Trinity-Unity several years ago on your Debtwatch site. The Dialectic of course is a beautiful example of same. Nice of you to start incorporating it into your lectures.

Trinity-Unities are all over the place in nature to the conscious and discerning individual. Duality is the signature of orthodoxy, (generally) obsessive contention, intransigence to opposing ideas and opinions, refusal to integrate and bad science. Trinity-Unity is the signature of holism, process/continuous change and integration/integrating. Of course the most enlightening Trinity-Unity in economics to be examined is debit and credit on the surface level of double entry bookkeeping, and cost accounting which grounds the theorist in the deeper concrete, real time 3 and 4 dimensional part of the economy. My continuously integrative formula that I call The Cosmic Code which is described as An integrated Duality within an integrative Trinity-Unity….puts it like this:

Where X is the sign for integration, the parentheses are the integrated Duality and everything within the brackets is the integrative process of Trinity-Unity:

[ (Debit X Credit) X Cost Accounting ]

Oh, and by the way, depreciation allowances taken by businesses on their capital facilities and means of production are only stays of execution of costs….NOT forgiveness of those costs that must, right along, be factored into total costs and so prices. And there is the beginning of the Social Credit insight and the most basic, enlightening and disequilibrating metric in all of economics, namely that the rate of flow of total costs always tends to exceed the rate of flow of total individual incomes simultaneously produced. If you recall I preached looking at all of the cost datums including I believe depreciation by name on your Debtwatch site at least a couple years ago. So again, even though it would have been nice for you to acknowledge your sources, it’s good you’re beginning, even if unconsciously, to awaken to what C. H. Douglas discovered almost 90 years ago.

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Douglas and other Social Crediters did such a systems dynamics analysis involving costs and time/time lags way before Forrester did. Social Credit’s stock/flows analysis of money is so effectively and falsely invalidated that even you who is supposed to be the leading iconoclastic economist on the planet….was virtually unaware of it before I addressed them on your blog over two years ago.

We know from the Enron mess that control fraud is rampant…probably everywhere. The solution to the almost necessity to commit fraud that the Banking and financial monopoly enforces on us via their costly loan only paradigm is monetary Gifting via a universal dividend and a price deflationary retail discount.

Of course for those who are unconscious of the economic significance of cost accounting’s convention that “all costs must go into price” the ethically challenged theories of Rand, Von Mises, Marx etc. ….can probably continue to persist right up to the time modern weaponry destroys everyone’s productive capabilities and billions of lives…..and then the same people (if they survive) will be happy to work for those who borrow the money to re-build.

Or they could actually look at Wisdomics/Gracenomics….and begin standing on their own hind legs.

wisdomicsblog.com

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quincyjwagstaff:  Wouldn’t it be easier if you just tell us how you made so many hundreds of dollars in just a few hours working at home and then gave a link?

Me:  Over the last 8-9 years I’ll bet people like you have made a thousand smart @$$ed remarks like that to me without a single one of them even once actually looking in the area and at the data I refer to. That is a sad commentary on the self satisfied, orthodox closed mindedness of the conservative/libertarian membership on this blog. Why don’t you guys “break up your fallow intellectual ground” and at least entertain the possibility of a new thought?

Alice Rando:   In the businesses I have owned or worked for, pricing to customers was determined by what the market would bear. Current and projected cash flows determined if we stayed in that business. Cost accounting was never used to set the price to customers, it was irrelevant.

Me:   You’re missing the point. Of course businesses will try to price their products and services as high as they can….but if the underlying nature of the system itself is cost inflationary BECAUSE CAPITAL DEPRECIATION COSTS (AND OTHER COSTS AS WELL) MUST BE PRICED INTO THE MINIMUM TOTAL OF PRICES THEY MUST GET TO BREAK EVEN…AND THAT TOTAL IS MORE THAN THE ENTIRETY OF POSSIBLE (BUT NOT ACTUAL) INDIVIDUAL INCOMES AVAILABLE AND CREATED….TO LIQUIDATE TOTAL COSTS/PRICES.

Eric:   I found this phrase on wisdomics.com: “The elegance contained in simplicity…” Unfortunately, the lack of either simplicity or elegance in the blog posts (let alone grammar) is astounding. Keep trying though.

Me:   Everything there is off the top of my head and generally needs editing, but if you can’t hold two different concepts in your mind at the same time….you’re obviously going to be confused. I could be much simpler, but that would involve engaging other orthodoxies even more intransigent than those in economics. Economics is the “dismal science” for a good reason….its complex and subtle at the same time. Those who favor orthodoxy over truth prefer simplistic (not elegant) truths.

You could also engage what I put here instead of slyly trying to invalidate me with irrelevancies like grammar. That’s a sure sign you don’t have an actual answer to what I’m saying.