MMT has money creation right. Full stop. They just don’t follow through with their own insight that accounting is the tool to create money…and then apply that with a 50% Discount/Rebate policy at retail sale which would transform chronic erosive inflation into beneficial deflation and double the purchasing powr of EVERYONE.

As for worrying about having the resources thats just caving to the “everything is unresolvably complex and worrisome” delusion of “free” market theoretics. You want change that benefits everyone? Double everyone’s purchasing power and see if the market, restrained by a few ethical regulations that stabily secure the huge benefits of that single policy, will provide the resources. And you could also implement a policy of a sliding scale percentage of gifted money required to be invested into eco-energy and infrastructure bonds…just to help that process along.

Or we can wring our hands and do nothing for a few more decades until there’s billions on the left and billions on the right dying from converging crises…that could be resolved by integrating Monetary Gifting into the Debt ONLY system. The Martians must be laughing their asses off.

A: The national government subsidising half the purchase price of all goods and services sold in the economy is similar in operation to a UBI and would be equally pointless. Both a goods and services subsidy and a UBI would increase consumption, employment would fall to zero (so far so good) but after that wage inflation would occur. Ever higher goods and services subsidies or UBI payments will further drive up inflation without much increase in productive capacity. The MMT economists instead recommend that the national government spend more than it taxes until the full employment condition is reached and this is optimally accomplished through a nationally funded and locally administered Job Guarantee program. Through well targeted government spending and regulations that prioritised human wellbeing such as healthcare, education and infrastructure, and beneficial market forces the productive capacity, productivity, competitiveness and societal relevance of the national economy can improve over time.

Me: You’re not looking at the deflationary effect of a 50% discount at retail sale. We’ve never had a 50% rate of inflation y/o/y let alone a moment to moment one which is the effect of the 50% discount/rebate policy. Actually I advocate for a 52% discount/rebate which would allow a 2% per annum increase in profit margin before any revenue an enterprise garners from an additional rise in prices would be taxed at a rate of 100%. The discount would also be indexed to any further computed inflation. If you can’t appreciate a single policy that doubles the potential demand for every one of your goods and services YOU are the problem NOT the new monetary paradigm’s incredible benefits. Free market theoretics are a fetish and a misnomer for what they actually are which is chaos created by the present paradigm that allows Finance to dominate every other legitimate enterprise and create serial crises from which only Finance emerges basically unscathed and still wielding their monopoly monetary paradigm.

Me: Chaos is the lack of known and enforceable barriers…within which human freedom can exist. Can you walk into a theater and yell FIRE! No. Human freedom exists only within known and enforeable barriers…because there’s this little thing called ethics and the other little thing about human systems which is: is it true and does it work.

The PRIVATE banks create upwards of 97% of all new money TO INDIVIDUAL AND CORPORATE AGENTS every year ONLY AS DEBT and as we’ve seen recently and throughout human history they:

1) keep on creating it often in “innovative” ways until

2) agents can’t pay it back which initiates a crisis

3) THIS MAKES PRIVATE DEBT THE PROBLEM NOT GOVERNMENT “DEBT” WHICH IS ACTUALLY A PAYMENT TO THE PRIVATE SECTOR, and the Banks would love for everyone to argue over forever while they dominate everyone with their monopoly paradigm of DEBT ONLY

4) The banks are the ones creating the instability and yet they are the only ones who emerge unscathed from THEIR chaos causing paradigm

5) The solution to the current Debt Only monetary paradigm is strategic integration of MONETARY GIFTING into the Debt ONLY system.

6) The 50% Discount/Rebate policy resolves inflation which is just another of the effects of current “free” market theoretics which must be seen through by MMTers…if they want to be effective and be a part of the new paradigm instead of just another good but palliative reform.

Because they were never offered a policy beneficial enough to separate their mutual self interests…until now with the 50% Discount/Rebate policy at retail sale and the rest of the policies in my book that align with and stabilize the application of the new monetary paradigm.

There’s nothing like a change in the monetary paradigm to dispel all of the failure to rationally act in the face of converging crises. Why? Because money is what enables actions in the temporal universe, and if you created a policy like the one in my book that would require a sliding scale percentage of GIFTED money to be invested in eco-energy R & D and infrastructure bonds at like 6-7%…just how much rational action toward resolving the climate crisis might that create???

PO: DOGE dividends would have to pass the House and Senate – and the Senate’s filibuster – before Trump can send out more checks with his name on them. The DOGE dividends would have to be shoved into the pending tax cut reconciliation bill and the tax cuts for the rich would have to be reduced to keep the bill “revenue neutral.” Ain’t no way rich folks’ tax cuts will be reduced to send checks to working people.

Me: Yes, monetary gifting is the answer to economic problems. Always has been. The trick we need to learn is how do we gift EVERYONE, especially in a way that ends the biggest bitch everyone is complaining about? Why retail sale of course because EVERYONE continually participates in/is effected by the price at retail sale…and using MMT’s correct claim that our money is created by equal debits and credits at that point, …would change that excellent insight into a mega-paradigm change. Whatta you think Stephanie? Do you want to be a part of a good insight or a mega-paradigm change?

There is nothing per se wrong with abstraction. Its only when you cannot perceive the blessedly new and vibrant experience of the topography of the present moment because your stuck in the map of the topography in your head.

Great discussion. If one consults the history of paradigm changes it can be perceived that every one of the benefits of those changes has always been an aspect or aspects of the natural philosophical concept and experience of grace. For instance: 1) humanity’s emergence from an animalistic and narcissistic paradigm of Self Survival Only to the awareness of others as same and hence the Reality of Ethics, IOW a new and increase in consciousness, oneness/sensitivity and potential for lovingness toward the other all of which are aspects of grace as in graciousness which is love in action. 2) the change from nomadic tribal hunting and gathering to homesteading, urbanization and agriculture and the consequent increase in ability to reap abundance and so better survive with abundance and greater survival as the aspects of grace and 3) IMO the change from the current monopolistic paradigm for the creation and distribution of all new money of Debt Only to a strategic integration of Monetary Grace as in Gifting into the Debt Only system.

The entire policy program for this change is in the kindle version of my book Wisdomics-Gracenomics: The Transformation of Economics and Creating An Everyday, Universally Participated In Infrastructure For The Self Actualization Of Gratitude here: https://www.amazon.com/Wisdomics-Gracenomics-New-Monetary-Paradigm-Policies-ebook/dp/B0C49B9PX7/ref=tmm_kin_swatch_0?_encoding=UTF8&qid=1552358772&sr=1-1-catcorr

What your discussion was most basically about was how do we make the change from a zeitgeist/ethic of the age of Power to one of Grace. How serendipitous would it be if the power of money was transformed into the greatest opportunity to self actualize grace as in gratitude since meditation and prayer?

The new monetary and economic paradigm of Gifting is way too simple for the intellectual vanities of the erudite, way too illogical for the terminally orthodox and way too world changing, problem resolving and fulfilling of the historical signatures of the phenomenon, including serendipity, not to be a genuine paradigm change.

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.