You make my point at the end of the podcast. Fiat needs to be distributed/GIFTED directly to the individual as a UBI, and back to the retail merchant who has granted the consumer a 50% discount on virtually every product and service so they are made whole on their entire price.

Tax any greedflationary attempts by business CEOS at a rate of 100% thus bringing known and enforceable ethical barriers to “free”market theoretics which is really just a misnomer for the actual reality which is an absence of barriers AKA financially dominating chaos via the monoply monetary paradigm of Debt Only. Increased money/purchasing power goes to the long ignored individual and directly to commerce instead of to speculative entities that routinely find “innovative” ways of de-stabilizing the economy.

Or at least 90% of their total. In other words a prior 30% discount must be computed in price, but at 27%…and then the 50% final retail price plus taxes is applied.

New paradigms are single applied concepts that change the realities of entire systems, bodies of knowledge and areas of human endeavor. They are Helio-centrism instead of Geo-centrism and homesteading, urbanization and agriculture instead of nomadic hunting and gathering.

Current paradigms are usually unconscious due to their being long acculturated in general, and because new paradigms are always in complete conceptual opposition to the present paradigm, there is resistance to them both because of the over acculturation of logic in the modern intellectual discipline of science and because of entrenched interests empowered by the old/present paradigm.

Scientific enquiry itself is NOT the problem, its the lack of willingness to embrace the integrative thirdness greater oneness mental discipline of Wisdom.

New paradigms are classical key integrations of opposites/thirdnesses that historically bring the most problem resolution, increases in consciousness and greater survival, and hence are synonymous with Wisdom Insights.

Good exegesis of private banking’s accounting process. However, monetary gifts by the central bank or the government to retail merchants to rebate/replace a 50% discount to the individual at the point of retail sale are their own reserves as a gift does not require pay back.

What a nice way to end inflation and austerity, integrate the self interests of the traditionally opposed constituencies of merchant and consumer and a key policy in a powerful socio-economic and political mass movement to change finance forever. No?

Yes the need and the solution IS about accounting, a supplemental monetary accounting that strategically implemented at the single macro-economic/aggregative as in universally participated in point in the entire economic process (retail sale) single handedly resolves several of the deepest problems of modern economies.

That accounting/policy is a 50% Discount (credit)/Rebate (debit), again at retail sale. And even the beginning algebra student can understand it because its -5 + 5 = 0. In other words the merchant grants the consumer a 50% discount on virtually every product or service and the monetary authority rebates every cent of that/those purchases back to the merchant. The effect is a 100% increase in the individual’s purchasing power/potential demand for every enterpise’s goods and services while simultaneously implementing BENEFICIAL price and asset DEFLATION ($100 of potatos for $50, and a $500k house for $250k. Repeat the operation at point of loan signing where the bank is gifted 50% of the total interest on a loan in return for a 50% reduction in the principle and the consumer gets a $500k house for only $125k. So by your own analysis the rate of increase of the biggest underlying historical problem of the continual increase in private debt is reduced by 75%. Other policies that prevent the worst cheating/gaming of the new paradigm stabilize it.

New paradigms are deep resolving single applied concepts that are always in complete conceptual opposition to the current anomalous paradigm in this case Debt Only to Direct and Reciprocal Monetary Gifting.

Thank you non-Nobel Prize committe in economics.

Intellect is smartness. Wisdom is both smartness and insightfulness.

Why would anyone think that giving a single business model (Finance) a virtual monopoly to create the life’s blood of every individual and commercial agent’s existence (they create upwards of 97% of new money every year) was wise, let alone enable them create it with a monopoly paradigm of Debt Only?

All monopolies are problematic and a monetary monopoly paradigm is even more problematic because it is suavely justified by mistaken morality and, as all long acculturated paradigms are protected by general unconsciousness, its subtlety is insured.

The tool of Money DOES make the world go ’round. Now, let us make it accomplish the general good as well.

The whole “free money” issue is 99% old fogeyism and 1% inadequate/failure to better acculturate positive and constructive purpose in addition to employment. If having a lot of money was such a hard and fast road to ruin the wealthy would have killed themselves off ages ago. Life itself is set up to be a problem by its apparent reality of Dualism Only of which Trinity/Unity/Oneness/Process AKA the integrative mental discipline of Wisdom is the answer.

Right off hand I can’t think of a better incentive to become gainfully employed than your first day on the job you get a 100% increase in your purchasing power with a 50% Discount/Rebate policy at retail sale. Then just craft additional policy that mitigates overconsumption like a sliding scale percentage of required “tax”/Gift of Gifted money into eco/energy and infrastructure bonds at a 5-6% rate. You could also require that one average at least part time employment for the first 5 years of receiving a $1000/mo. universal dividend or have it reduced by half, and then have it made whole by 2 years of part time employment.

Things like that. Monetary Gifting strategically implemented with 50% Discount/Rebate at retail sale and a universal dividend immediately resolves the deepest problems of modern economies and opens up additional benefits like being able to eliminate payroll taxes for welfare and unemployment insurance and lowering income taxes across the board because having resolved inflation at retail sale we could cognite on the fact that a monetarily sovereign nation doesn’t really have to tax at all except to enforce compliance by economic agents and prevent/effectively blunt the power of oligarchy from dominating the society.

Visualize it.

coberly: Steve

in the first place the payroll tax is not “welfare” it is you saving your own money for your needs after you can no longer work. it has to be a “tax” because too many people think they are too smart to need it… like they are too good drivers to need speed limits and stop signs. in return they get the best insurance for their savings that anyone can get in a capitalist society.

other than that your essay is so sky-high abstract it is meaningless…no insult intended, just an observation about “abstraction.”

and, finally, “you could also require…” should ring alarm bells.

the “free money” issue has nothing to do with “having too much money.” it is a real phenomenon visible in the rhetoric of people who think modern monetary theory will enable them to get whatever they want at no cost to themselves. you can see it in public spaces, no need to “visualize it.”

Me: You can call it whatever you want the fact remains that the 50% Discount/Rebate at retail sale and universal dividend policies accomplish what payroll taxes do without diminishing an economic agent’s purchasing power or revenue, and they also have the advantage of resolving at least three of the economy’s supposedly most thorny problems.

There’s nothing abstract about a monetary gift.

In order to fully understand life you DO have to think in terms of ideas like duality and trinity, unless you want to simply react to life instead of trying to more deeply/wisely understand it.

Finally, I’ve said many times here that MMT has the mechanics of money creation correct. That doesn’t mean I think it will resolve the money “problem” all by itself. Its an insightful palliative of the problematic monetary paradigm. What we need however is to actually change the monetary paradigm.

coberly: i knew someone years ago who had a book about the “gift” nature of employee-employer relations. i never read it, but at the time it struck me as a valid point, if it is strictly an adversarial transaction it becomes inefficient and ugly. more better is the situation where I might cut my old neighbors grass for free… that is a gift. and if my old nature thinks, “why, I should make a pie for that nice boy” that is a gift. but if i go to my neighbor and say “i will cut your grass if you bake me a pie” that may be barter but it is not a gift. for normal economic transaction the adversarial nature probably works best, but for an ongoing relationship like worker-employer if there is no gift quality to it, it becomes toxic.

as for “i’ve said many times here…” that is not an argument but it does suggest elements of the grand “i am more important than you think” delusions of paranoia.

heaven forbid i should ever become as deeply and wisely as you are.

Me: You call it what it is…within your/the current paradigm defines it as.

Duality Only vs Trinity/Unity/Oneness/Process is abstract, but not schizophrenically. Lets try defining it thusly:

Duality is the definition of a problem i.e. idea/counter idea, emotion/counter emotion, effort/counter effort that does not resolve, and thus can lead to a paradigm of Duality Only which traps one in analysis of problems ONLY or at the expense of or neglect of the search for solutions, or worse yet into obsessive incomplete/fallacious orthodoxy vs counter incomplete/fallacious orthodoxy.

Trinity is simply the integrative intellectual process of finding a key applied concept AKA Wisdom…that resolves the above problems of Duality Only. Its Hegel’s Thesis Antithesis and Synthesis or chemical synthesis. Or, using the tool of accounting that both the banks and government use to create new money only in the form of debt (equal debits and credits, i.e. duality) that with monetary gifting trinitarily sum to zero to increase purchasing power at retail sale and reduce the rate of flow of iincreasing debt at point of loan signing, for instance.

coberly: i should have said i try to call it what it does: thus “Social Security is not a “tax” but a mandatory savings and insurance contribution

…so the rest of us don’t have to support you when your best laid plans go awry.

obviously “mandatory” gives it elements of a tax..but don’t lose sight of what it does. with a tax you don’t get your money back or even control what it is spent on. what makes this all fun is to read thousands of people’s ideas about Social Security…as I have done… see than none of them know anything whatsoever about how it works.

other than that i can make no sense of what you are saying whatsoever.

Me: What if there was no such thing as a chemical synthesis, or the actual solving of problems? What a static, immutable and cumbersome universe/mindset that would be.