Suggest we legislate a 50% Discount for virtually every retail product which means we are implementing beneficial price and asset deflation because everyone pays only $50 for $100 worth of groceries, $30k for a $60k EV, $250k for a $500k house and only pay 50% of their insurance premiums and mortgage payments, but because the FED or the government rebates every cent of the discount back to the merchant they get their full price…if they compete and innovate instead of inflating. And, if they do inflate, any revenue they may get is taxed at a rate of 100%. I mean if their response to a single policy doubling the potential demand for everyone of their goods and services is to attempt to destabilize that benefit to the consumer…is that showing good will toward their customers???

This policy simply applies MTT’s correct observation that equal debits and credits/double entry bookeeping/accounting is how new money is actually created…it simply creates it as a gift…that resolves inflation instead of causing it, benefits both consumer and merchant and breaks up the monopolistic monetary paradigm that new money must ONLY be created as debt that has always backfired on both businesses and the individual whether the money creating power is in the hands of The Pallace or the Banks.

Stephanie you must suggest this policy. You can do the simple algebra (-50% of price discounted to the consumer + 50% of price rebated back to the merchant = them getting their full price, a doubling of demand for the merchant but no additional cost to them) and the simple accounting (equal debits and credits that sum to zero). Have Moore be the consumer and you be the merchant and just dramatize the policy. Then ask him if he as the consumer experienced inflation or deflation and declare that you as the merchant are ecstatic because there is now potentially double the amount of demand for your goods and services than there was before the new monetary paradigm was implemented by this single policy. I can give you many other policies and regulations that answer all of the replies you’ll still get from the terminally orthodox like Moore as well as honest insights into the nature and effects of historical paradigm changes. C’mon, lets finally blow away the delusional current economic and monetary paradigms by making it Christmas every time we go to the store.

Stephanie,

If Copernicus, Gallileo and Kepler would not have said that the earth revolved around the sun instead of the sun revolving around earth (the inversion of both mental and temporal universe reality signature of every historical paradigm change) nothing would have changed in astro-physics for god knows how long.

And nothing will change the fact that money flows uphill in an oligarchy, new money creation is only allowed to be in the form of debt and private debt has always destabilized economies…until you or someone else has the guts to illogically but correctly declare that Strategic Monetary Gifting will not cause erosive inflation, but rather beneficial price and asset deflation, and among other benefits will reduce the rate of increase in private debt sufficiently that its human civilization-long destabilizing curse will be resigned to the dust bin of history the same as Ptolemaic cosmology has been.

Take the chance. Do the simple algebra and simple accounting operations of the policies I suggest and become the first authority to acknowledge the new monetary paradigm.

DJM: I’m sure you can explain how the national risk-free debt ain’t no prob

Me: 1) the national “debt” indeed ain’t no problem. 2) the monies created to rebate merchants’ discounts AIN’T DEBT JUST MONEY, and 3) because its distributed at the terminal ending point of the entire economic process where production exits the economy and becomes consumption, i.e. retail sale and 4) hence it is also at the terminal expression point for inflation 5) we’ve never had y/o/y inflation of 50% let alone moment to moment and so 6) the 50% Discount implements beneficial price and asset deflation and 7) along with the other carrot and stick tax and regulatory regime I’ve suggested before that stop various forms of greedflation and speculative financial “innovation” and align the economy with more rational goals and so 8) we end the fetish of “free” market theoretics and instead have a system that is designed to graciously create abundant free flowingness.

Its just my way of “offing the terminally orthodox conservatives, libertarians and sociopathic narcissists” whose delusional beliefs unconsciously enforce Finance’s current monopolistic monetary paradigm. So sad about the identity crisis, but it won’t kill them.

The right has bamboozled themselves and all of MAGA all of who are not economically astute, and of course libertarians are famous for being terminally orthodox despite neo-classical macro being unstable and utterly unfair. The policies I’ve posted here will create wildly beneficial economic effects for the individual, all commercial agents and will even enable bigger tax cuts than Trump wants to see. And it will all be accomplished by doing what libertarians want to see, that is beneficial price and asset deflation.

I’m all for efficient government, but he real deep state is the suave oligarchy we’ve had for most of the nation’s history. Trump (probably unwittingly because he’s not an astute person in any sense except perhaps political demagoguery) is, again unwittingly enabling the formation here of the kind of overt kleptocratic oligarchy extant in Russia and other barely civilized states in the world.

Why not apply to economics and the money system the same illogic that Gallileo (and every other person who originally suggested a new paradigm concept) did. Historically its worked everytime: unconscious survival at all costs to self awareness and reality of ethics…nomadic tribal hunting and gathering to homesteading, urbanization and agriculture…salvation via Roman Catholic sacraments Only to the Protestant Reformation.

Here, I’ll help you a little: New money can only be created as Debt to strategically integrating Monetary Gifting into the economic process at points where everyone (macro-economically) participates…and how about the new economic moral paradigm from…the individual must personally pay full retail price and must personally fully repay indebtedness Only to strategic Monetary Gifting.

New paradigms: always logically and conceptually absurd…until they’re THE answer.

The problem with MMT and “a new economics” is they are preaching to a very small choir. That plus they do not analyze on the conceptual level only the systemic factor/problem level. As I have said many times here systemic analysis is all well and good, but it is no where as deep and effecting as conceptual/paradigmatic analysis. Dr. Keen occasionally throws the word paradigm around, but thats as far as it goes. Finally, if money is the core economic problem then recognizing that “free” market theoretics is a complete misnomer, that is it is actually merely a framework for unstable financial chaos to dominate and be the only agent to emerge unscathed from periodic crises. For humans and human systems there is only freedom amongst know and enforceable barriers. You don’t want total freedom which again is actually chaos you want universal relative abundance and free flowingness and the new monetary paradigm of Gifting strategically applied and regulated is the vehicle MMTers and Dr. Keen seek.

If C. H. Douglas could create the world wide movement of Social Credit with a palliative policy of a low percentage compensated retail price then a 50% Discount/Rebate policy at retail sale and a reflective 50% Gift/Debt jubilee at point of loan signing could be the paradigm changing duo the mass of humanity needs.

Ask yourself this: What is a job guarantee? Its a GIFT of purchasing power to the individual. A very good application of monetary policy. But its not a macro-economic as in universally experienced/aggregative application, and it doesn’t arithmetically, mathematically and macro-economically address inflation…like a 50% Discount/Rebate policy at retail sale which coincidently is also a GIFT, is the ultimate direct monetary application of double-entry bookkeeping which:

1) MMT says is the way new money is created and

2) if repeated at point of loan signing or at the retail point of indebtedness i.e. your monthly loan payment

3) these two policies would A) turn chronic erosive inflation into beneficial price and asset deflation, B) double everyone’s purchasing power without incurring any additional cost, C) enable everyone to purchase $100 worth of groceries for $50, buy a $60k EV for $30k while also cutting your car payment in half and a $500k house for $250k and cut your loan payment in half.

So these policies are the ultimate application of MMT. Stephanie, Bernie Sanders and AOC need to be made aware of these policies for these reasons and because they are the ultimate satisfaction and application of the political insight that “People vote their pocketbooks”.

MMT aligns with the new monetary paradigm of GIFTING. SO ALIGN IT!!!

…look for the ideas behind the systems and institutions that enforce their realities, that keep the anomalies that grow up within them in continual stimulation, and find the new idea and its applications that resolve those anomalies.

Steve Hummel 03/23/2025

The map is the orthodoxies of the Christian or any other of the world’s religions; the topography is the self actualization and expression of graciousness. Please do not confuse the two.

Steve Hummel 03/23/2025

In other words the extra 2% is the allowable freedom to inflation which actually makes free market theory work instead of not work because there is currently no actual barrier to freedom in an economy dominated by the monopolistic monetary paradigm of Debt Only and Full Payment By the Individual Only which is a description of chaos. Thats because in the human universe there is only freedom amongst known and enforceable barriers, and so the 2% allowed inflation rate actually creates free market theory. Libertarians and conservatives hold onto your heads or they may explode.

A sliding scale “tax” of gifted individual income will be required to be invested in 5-6% eco-energy Projects and R & D Treasury bonds.

Any revenue garnered from inflation over 2% is taxed at a rate of 100%

The Discount/Rebate policy also is indexed to any additional rate of calculated inflation/greedflation that somehow is not discovered in the monthly analysis of inflation.

Approved innovations will enable a 5% per annum rate of inflation for 2 years and then will revert to the 2% rate.

Businesses not raising prices for a year will receive a 1% net profit gift.

All present discounts and reductions to retail price/MSRP will continue or the discount rate to enterprise utilizing such discounts will be reduced by whatever equivalent percentage of total price those discounts amount to.

The discount percentage will be calculated after the adding of sales taxes. That means the monetary authority will pay 52%+ of state, county and local sales taxes boosting their non-sovereign budgets.

I too love your comparisons of the two choices…and implementing the various policies of the new monetary paradigm of Gifting is the key to begin the process of turning toward the humane one. And, also re-inventing our social/cultural institutions so that they align with and help us self actualize the many, many integrative, unitary and yes even ecstatic aspects of the natural philosophical concept of grace as in love in action, i.e. graciousness. Consider: the beneficial effects of every historical paradigm change have always been an aspect or aspects of grace…the concept…like grace as in a GIFT. Or grace as in increased self awareness of and sensitivity to the other and hence of the reality of ethics, as occurred when we separated from the animalist virtual monopoly paradigm of survival. Or grace as in abundance in the paradigm change from nomadic hunting and gathering to homesteading, urbanization and agriculture.

These last two are what I call mega-paradigm changes which are those whose beneficial effects are universally and continually experienced because they are a part of our everyday life routine and their effects spill over into systems, bodies of knowledge and areas of human endeavor other than the specific one under analysis. This is the serendipitous aspect of the mega-paradigm change. And Monetary Grace as in Gifting at strategic points in the economic process that we all paraticipate in and are affected by…could be the impetess for the greatest increase in the self actualization of grace as in Gratitude and Thankfulness for a Gift.

The next time you host Steve Keen and Friends I hope you ask him why he doesn’t do conceptual analysis. Don’t get me wrong the systemic analysis of Keen, Michael Hudson, Warren Mosler, Stephanie Kelton, Ann Pettifor and Ellen Brown are all spot on about money and macro-economics and I have never said otherwise, but they ignore conceptual analysis.

Why is conceptual analysis so important? Because new paradigms are nothing more and certainly nothing less than key applied concepts that enlighten and resolve the anomalies of a current paradigm, and historically paradigm changes are the most potent and progressive phenomena humanity has ever experienced…especially if they are a mega-paradigm change as described in my prior post.

A Tarrif Rebate/Cost Reduction policy at point of onshoring would fix things, but tarrifs are just an unnecessary stupidity. Double the potential purchasing power with a 50% Discount/Rebate at retail sale and you’d see much more production returning to the USA and a dispelling of the depressing effects of long term loss of individual purchasing power. Neither Trump nor the dems are smart enough to do that, and the smart fool libertarians cannot grok it either. Meanwhile we slouch toward Bethlehem when a solution to our decline is simply strategically applying double entry bookkeeping.