Dalio’s description of the cycles is historically accurate. The only thing it lacks is a way to resolve the problems and chaos they evoke. As Michael Hudson has chronicled private debt has always destabilized economies, and as Dr. Keen has suggested we need “a modern debt jubilee”. Only problem is, neither has discovered exactly how to prevent destabilization by preventing the continual build up of private debt and the consequent loss of purchasing power.

The ancients recognized this problem and because they were smarter/not as long acculturated to the monetary paradigm for new money creation they had periodic debt jubilees/monetary gifting that greatly eliminated private debt. The problem with this was it was periodic which means it was a mere palliative that enabled Finance to re-dominate for another 70 years when a paradigm/permanent change was what was/is required.

The solution:
1) A 50% Discount/Rebate policy at retail sale so everyone gets $100 worth of groceries for $50, a $60k EV for $30k and a $500k house for $250k thus doubling everyone’s purchasing power yet every merchant gets their full price with the rebate and
2) the result is beneficial price and asset deflation accomplished by more money creation (the heads of the orthodox explode)
3) the effect is universal and continuous because its point of implementation is retail sale which is the single aggregative as in macro-economic/universally participated in and effected by point in the entire economic/productive process.

Thank you non-Nobel prize committee.

You definitely won because Moore is incapable of thinking a new thought on money and debt. However neither of you have crossed the Rubicon conceptually/paradigmatically or realized that a huge part of the problem is realizing that the bulk of free market theoretics is actutually a framework that enables Finance to dominate with its monopoly paradigm for the creation and distribution of new money AKA DEBT ONLY due to the fact that it (the theoretical framework) is a chaotic/non known and enforceable barriers one. Michael Hudson has shown that historically private debt de-stabilizes economies. We stop that by strategically integrating Monetary Gifting into the Debt ONLY system. Finance will rule us until we do exactly that.

Viewing this video, Moore is absolutely psychotic on the subject of money. Most libertarians are the same. MMT is absolutly correct on the mechanics of money creation, but they apparently will not analyze the economy and money on a conceptual level. If they did they would easily see that implementing a SUPPLEMENTAL accounting operation of equal debits and credits that summed to zero with a 50% gift of price to the consumer at retail sale and a reciprocal rebating of that same amount of price and monetary gift back to the merchant granting it to the consumer resolves inflation by doubling everyone’s purchasing power, integrates the normally opposed self interests of merchant and consumer, ends the private banking system’s monopoly paradigm that new money can only be created as debt and let the benefits of gratitude for a gift be CONSCIOUSLY self actualized because its Christmas every time you go to the store to buy something.

Don’t be an idiot psychotic about money by committing the faux pa of refusing a gift and we’ll all wake up to a more abundant and stable economy.

TB: Free market means people are free to do what they want. You want a Nazi socialist fascist kind of government to interfere with peoples freedom to do what they want economically?

Me: Ted: You’re just an old fogie and acculturated orthodoxy fool who isn’t looking at the temporal universe realities the policies I suggest here CREATE. Try looking at those realities will ya?

As I explained current free market theoretics isn’t free at all…because its a chaotic/fetishistic/no actually enforceable barriers framework, and actual human freedom can only exist within enforceable barriers. Hence the “free” in free market theoretics is both a misnomer and a delusion. I’m just providing the barriers and a means of resolving centuries long problems in the economy and money system.

The chaos of Trump is probably partly his spiteful idea of fun and partly the historical psychosis of thinking that doing the same thing that didn’t resolve over and over…is going to result in a resolution. It IS true that the chaos of identity crisis is a requisite for breaking out of the orthodox mindset and being willing to actually look at alternatives. Thats the mental phenomenon that always accompanies genuine change and is particularly difficult with new paradigms…because it requires embracing conceptual illogic which is an historical fact of accomplished paradigm changes but is rare in an era of scientific intellectual inquiry ONLY.

So it takes bravery, open mindedness, creativity and a higher toleration of ambiguity. However, the most important thing needed to break through to these desired traits is to have a program whose benefits are mentally demonstrable to the general populace. We also have digital technology and mass social media which can shorten the time it takes to get to the mind of the masses.

So let us take MMT’s insight that fiat monetary systems create new money with accounting entries and communicate how utilizing that same process at retail sale with a 50% Gift of Price to the individual and a rebate back to the merchant of same:

1) wildly benefits everyone,
2) resolves inflation and
3) serenditously enables the greatest opportunity to self actualize gratitude since meditation and prayer.

What you are missing is 1) Look at what the consumer pays ($40k for an $80k auto = temporal universe FACT of beneficial DEFLATION) 2) Commercial agent gets their entire price of $80k with the rebate aspect of the policy 3) and probably most importantly, you miss the fact that the current bulk of “free” market theoretics is a delusional misnomer for the actual reality which is a chaotic theoretics that does not enable ACTUAL control…because the current monetary paradigm for the creation and distribution of new money is DEBT ONLY (a dominating MONOPOLY paradigm concept exactly like Salvation Via Roman Catholic Sacraments ONLY was before The Reformation) when strategically integrating Monetary Gifting into the DEBT ONLY system with the 50% Discount/Rebate policy at retail sale creates the realities of 1 and 2 above which resolve inflation and brings a more prosperous and stable economic system.

The way to prevent inflation and double every individual’s purchasing power is to implement a 50% Discount at retail sale and then have the government or the FED rebate every cent of that discount back to the merchant so they are made whole on their entire price and all you have to do to accomplish that is to recognize that MMT correctly states that our new money is created by double entry bookkeeping. The policy is simply an application of MMT insight. Thats why I’m puzzled she doesn’t respond by saying: “Oh, yes! Lets communicate that to everyone on social media and win the day!

Yes let us have balanced trade and the Bancor for international trade…and a 50% Discount/Rebate policy at retail sale utilizing double entry bookkeeping and the domestic currency in order to immediately double the potential individual demand for every enterprise’s goods and services. International stability and a monetary paradigm change: a great progressive moment in human history.

The present and increasingly rigid intellectual paradigm is Science Only. Science is wonderful and necessary, but its reductionist methodology is in logical and conceptual opposition to the integrative, inclusive and resolving phenomenon of conceptual/paradigmatic analysis. Hence Science Only is actually the equivalent of Ptolemaic cosmology where you can fiddle around with epicycle type fixes and yet never get to the base of the key problem (the current monetary paradigm) and find the new concept’s optimal applications…that will change the character and realities of the entire system you’re analyzing.

WG: It seems to me that the problem MMT has to solve is how to substantially increase the buying power of low- and middle-income families without triggering inflation. We’ve seen that giving huge tax breaks to the wealthy doesn’t spur inflation because the rich have a high propensity to save. But if the bottom 80% of Americans receive a financial windfall, they are going to spend it. And thus we get inflation. One solution is to institute rigid price controls that will allow the 80% to spend freely and “catch up” on the goods and services they have been forced to do without. Price controls can be repealed once the economy has found a new supply/demand equilibrium.

I suppose another possibility is to simply allow inflation to run its course without any active measures taken by the Federal Reserve. So imagine the gov’t cuts a check for $100,000 to every household in America. Inflation will go wild–for the sake of argument let’s say 20% the first year. So the $100,000 is suddenly only worth $80,000. As supply begins to catch up with demand and buying power decreases, inflation for year 2 might be 15%. Now that $80,000 is only worth $68,000. With each passing year inflation ratchets downward along with the value of the initial gov’t payment of $100,000. And, of course, during this time a great deal of money gets spent and taxes get paid. Some households may be able to sock away a few bucks in a savings account. Others might burn through the whole $100,000 and have nothing to show for it at the end except for a higher standard of living.

Of course, the wealthy will howl. A guy with $100 million in the bank is not going to be happy if it’s suddenly worth only $80 million. Perhaps this guy can be mollified by the protection of inflation adjusted bonds. This would create the Mother of All Deficits, but who cares? It’s just money. Think of the enhanced living standards for 300 million Americans.

I’m just spit-balling here. If anyone else has any ideas, I’d love to hear them. But the policy of simply hoping the creation of more jobs will solve the problem seems to me to be the problem.

Me: You’re getting close to seeing the new paradigm, but you have to let go of the final conceptual vestiges of the present one and all of the theoretical falderal that accompanies it. For instance your first statement: “It seems to me that the problem MMT has to solve is how to substantially increase the buying power of low- and middle-income families without triggering inflation.” assumes there is no way to effectively do that. However, a 50% discount to the consumer at retail sale DOES do that because retail sale is the terminal ending point of the entire economic/productive process where production becomes consumption and exits the economy. So the individual gets $100 of groceries for $50, a $60k EV for $30k, a $500k house for $250k and the 50% discount reduces the payment on your $250k loan by half and the same for your insurance premiums etc. etc. etc. and every merchant gets their full price with the rebate aspect of the policy. Voila! You are the greatest American president or politician EVER in the eyes of the general populace. Sure, sure. sure you have to have some additional rules and regs o stabilize the system, but thats just human reality instead of slavishly believing in “free” market theoretics that turns economic theory into a fetish that is too holy to touch or amend in any way.

You could make the Discount 52% and allow enterprise to inflate their prices by 2% per anum before taxing them 100% on any illegitimate additional inflation costs. For any additional inflation that might be able to slip through the new system’s perousal you also index inflation to any same rise in inflation. Of course you’d want to make opting into the potential doubling of demand for all their goods and services with the discount/rebate policy (YIPPEE! for the merchant), conditional upon that enterprise agreeing to not unethically attempt to destabilize the system which the current fetishistic theoretics allows, by the 100% tax rule over 2% per annum. Wouldn’t it be nice if the economy and its rules was imbued with an ethic of gratitude for a gift instead of unregulated greed??? Finally, I suggest we create The Department of Innovation, Competition, Boycotting and The Individual’s Bully Pulpit which would do weekly press conferences that congratulated complying businesses and pointed a severe finger at non-complying ones and then asked the public: What are you going to do Mr. and Mrs. America, buy from this ungrateful enterprise…or the ones who actually have good will toward your long suffering and neglected self?

New paradigms are beneficial conceptual inversions of both temporal universe realities and mental inversions as well. That in fact is how you know its an actual paradigm change. So lets get to it!

RCS: What is also CRITICAL is the Education of our Masses of the BASICS of Modern Monetary Theory, which I honestly believe ,as a big assist and attention getter, due to our millions on the “day to day brink of disaster” ,that MMT’s NO#1 Policy- Government Guaranteed Job Program needs to be featured.

Me: Completely agree. A job guarantee is a direct gift of revenue to the individual. With the beneficial deflationary effects of my Discount/Rebate policy at retail sale both the job guarantee and a universal dividend of say $1000/mo. which with the discount/rebate would give every adult $2000/mo. worth of purchasing power for their entire adult lives could also be implemented.

Implementing the new key/core idea utilizing double entry bookkeeping resolves inflation and terminates the quantity theory of money. The world changes for the better for everyone.

Trump is an orthodox merchant of chaos there is no doubt of that. However, confusion and uncertainty is always the momentary reaction to significant change. The problem is we don’t recognize the change that needs to be accomplished. Instead of mistaken, wrong headed and ham handed messing with the anomalies of the current paradigm that needs to change you find the key/core applied concept that will resolve the current paradigm’s problems. That new paradigm is strategic Monetary Gifting that breaks up the monopoly monetary paradigm for the creation and distribution of new money AKA Debt Only that the private banking system has wielded since the first day of human civilization. Simply initiate a supplemental version of the same accounting process the banks utilize to create all new money (equal debits and credits that sum to zero) with a 50% Discount/Rebate policy at retail sale and everyone’s purchasing power is immediately and continuously doubled while chronic erosive inflation is transformed into beneficial price and asset deflation. Of course, even though the above single policy would reduce the rate of increase of private debt by 75%, because “free” market theoretics is a delusional framework for slow motion chaos and instability you’ll have to further regulate/bring order out of that lose end by ending the kind of “innovation”/idiocy that brought us 2008, but thats just the reognition that economics is a complex system and we learn by doing as Aristotle said…particularly by learning from mistakes.

HM: With a significant structural trade deficit – ironically thanks to a US-inspired neoliberal ideology – the only way to maintain a positive balance in the non govt sector, or at least minimise the size of the negative balance in the form of dissaving is to substantially increase the fiscal deficit. If we don’t learn the lesson from Godley’s sectoral balance analysis then our future will be one of a severe debt deflation.

Me: Correct because a deficit is actually what? Thats right a form of monetary gifting, except a government deficit is indirect and not as widely beneficial as a 50% Discount/Rebate at retail sale. Also, unlike a 50% Discount at retail sale a deficit also doesn’t terminatedly deal with the fact that due to the fetish of “free” market theoretics commercial agents are free to game and inflate away the purchasing power of that deficit.