You are quite right, currencies are what?, 98% digital already. The problem with virtually every economist and pundit is they are not only ignorant of the true problems and solutions for modern economics, they are just as ignorant of money systems. And to top it off they are actually hypnotized by the idea of debt so they follow the financiers and Bankers blindly into the financiers’ and bankers’ dominating profit, the economy’s instability, periodic “unrepayable” debt, unnecessary human suffering and historically rhyming war as the stressed out “solution”. If it wasn’t so pitifully stupid and tragic….it would be funny.

Of course if they would simply momentarily stop splashing around on the surface of accounting trying to make sense out of the abstractions of debits and credits and look at the 3 and 4 dimensional datums of cost accounting they’d actually see the empirical evidence (this is what scientists allegedly do to with the scientific method) . Then, seeings how those datums will reveal a trend in every ongoing enterprise, if they just did the calculus they’d be able to decipher the DYNAMIC realities of the economy and money system….and actually craft policies that actually addressed and solved the problems. But it takes an awakening from the spell of the idea of debt first.

As for the devaluation and instabilities of a new currency if you distributed actually sufficient (as in more than the Banker’s normally like so as to befuddle everyone with austerity) amounts of it and combine that with a policy of a retail discount that is totally rebated back to participating merchants and that is based on the formula of the total costs of what is consumed over the total costs of production (probably a 40-50% difference) …we could all happily advance toward the abundant, profit making and sane future that technology and AI is trying to enable us to do….if we would simply come into a new unit of time and out of the spell of the paradigm of Debt ONLY.

smackmacdougle:  As long as voters want welfare for themselves or because they believe it’s the right thing to do, law givers want legal tender bank credits rather than money enabling themselves magically to make that welfare appear without any visible pain and visible trade-offs.

To keep the welfare-driven system going, bankers must be bailed out when things go sour as bankers are the source of that legal tender bank credits.

If you don’t like this scheme, convince your do-gooding, meddling neighbors who scream at every claim of affront there ought to be a law to stop supporting welfare schemes. If you want to rid the orchard of rot, you must strike at the root.

Me:  Most ungracious and macro-economically faulty thinking and non-observing. By the way, have you bothered to look at the cost accounting statistics of even one business for total individual incomes and total costs/prices yet? Considered that this is the case with every enterprise still a going concern, and then do the calculus for their relationship? …..didn’t think so.

smackmacdougle:  Take your big-tent, mental illness roadshow elsewhere, seriously.

Go ask your mom, dad, or siblings, if you have any, if it is prudent to pester others by begging for their attention with freak show comments.

You should realize that you’re suffering from something with your incessant babbling over C.H. Douglas and cost accounting.

For months, I’ve been quite tolerant of you. Now, I am telling you to move along.

I will never have any interest in anything that you write. For you to press would reveal your craziness.

Me:  Ad hominem!!!! From your posts you are the one who has a self control problem, and not just with me …and that is very plain to see.

smackmacdougle:  It’s not ad hominem. It’s clear that you have something wrong, whether it is bipolar, schizophrenia or OCD.

I’ve asked you already awhile ago to refrain from directing comment toward me.

Please, stop. For yourself, stop. It’s in your better interest.

Me:  If there is one thing less accurate than current macro-economic theory…it is long distance internet psycho-analysis.

smackmacdougle:   Well, if I am wrong, man up and move along.

If you have control of your faculties you ought to have the strength to ignore me and whatever I write.

Either way, move along.

Me:  I like freedom…so I think I’ll be free to post to whomever I so choose. However, for now I think Ill give you an opportunity to relax.

crysangle responding to smackmacdougle:  Partly right. Money as legal tender was also abused widely by fixing inter metal exchange rates. That only ‘worked’ under the enforcing jurisdiction, internationally gold and silver content alone were traded. The ‘bank credits’ ( low base metal redenominated currency) in that case were created via the government legislative power, and they certainly did not have welfare as priority. Their purpose was to maintain empire and rulers first – theft by those that control the process, though surely the efforts would have been washed with some high ideals and concessions.

What I am telling you is that those who control the process hold responsibility. Today it is government and banking.

Do people go along with it? Sure, for welfare of all kinds ( corporate, social, military) , because they fear other, because it is all they have known.

To blame social welfare alone is incorrect. In the past the theft was much more open, all happened by force and legislature. The modern sleight of hand is enabled by banking in combination with legislature.

If you want to solve this a return to sound currency will show every bad decision as it happens, in real time. There is space for bankers and their credit, there always has been, it would be a sideline of activity that fails or succeeds as it does. When it fails people will have to watch the legislature doesn’t chase after their real money to support the pyramid they are tempted to rely on.

So it is up to people to educate themselves first, they may then decide what system they find true, they may invest in banking, be charitable in welfare, or simply stand their own ground. It is what they do in a costly roundabout and confused way nowadays, getting ripped off as they go.

Transparency, returning decision and responsibility to its source, is primordial. If we do not have that as a base, then we live an improvisation that is misguided, where generosity becomes no more than a profit token.

When current good morality has been bankrupted by its pseudo-owners, it will return to overthrow them, and those that backed them.

 Me:  

A much more nuanced and hence correct analysis. And it would be completely correct if it were not for the fact that the macro-economy tends toward disequilibrium not JUST because of government, but even more deeply and systemically because the rate of flow of total costs always tends to exceed the rate of flow of individual incomes simultaneously created and actually available to liquidate those costs/prices. This necessitates continuous borrowing in order to keep the system’s nose above water….until it collapses from the inability to service the debt. Keynesian stimulus actually has the effect of disguising this process via continuous “extending and pretending”. The crisis occurred in 2008 after greed and the ideology of equilibrium resulted in an unsustainable frequency uptick of disequilibrium via a paroxysm of speculation, derivative delirium and re-hypothecation in the repo markets that broke the spell of that ideology.

Theories fall on what they fail to see or ignore due to previous orthodoxy. In this case it was the Social Credit insight regarding the disequilibrium of total costs/prices and total individual income.

The troika and every nation’s Banking and financial elites are attempting a super slo-mo deflation that is making all of us boiled frogs, nea dominated, manipulated and enslaved boiled frogs. The sane reaction and policy to this super slo-mo strategy is a rapid and gracious modern debt jubilee and its echoing and reflective policies of a universal dividend and a retail discount to prices that is fully rebated back to participating retail merchants. That resets the system, graciously provides the individual with the income that cost accounting’s conventions, innovation and AI are increasingly denying…both them and the system….and macro-economically equates total costs of consumption and total costs of production…all within a downsized bureaucracy and non-invasive profit making system where increased productivity due to technology and AI will actually enable price deflation and individual economic freedom, or in other words the very things Austrian, min-archist, libertarian AND leftist economists dream of doing…but never will because they’ve never bothered to look at the cost accounting data, done the the calculus regarding it and understood the conventions of cost accounting that enforce disequilibrium on the macro-economy.

Capitalism and socialism are dead. Long live Distributism!

Implementing freedom with freedom creating policies is…..freedom. A = A.

The macro-economy is cost inflationary by virtue of the enforcement of the cost accounting convention that ALL costs MUST go into price..for ALL enterprises. Capital equipment and facilities replacement costs plus a host of other normal operations costs must be recouped in the lower bound of price…over and above the total of ALL financial costs….and yet no additional individual income is produced to liquidate these additional costs/prices…except by borrowing….which of course adds an additional cost…so it is not the solution to the above enforced convention of cost accounting.

A costless Gift as a supplement to individual incomes is thus required because it virtually equates individual incomes and consumer prices, and then a periodic discount to retail prices is required to maintain that equilibrium…because the system will still tend to disequilibrate in its normal operation and flow through Time.

Implementing freedom with freedom creating policies is…..freedom. A = A.

The macro-economy is cost inflationary by virtue of the enforcement of the cost accounting convention that ALL costs MUST go into price..for ALL enterprises. Capital equipment and facilities replacement costs plus a host of other normal operations costs must be recouped in the lower bound of price…over and above the total of ALL financial costs….and yet no additional individual income is produced to liquidate these additional costs/prices…except by borrowing….which of course adds an additional cost…so borrowing is not the solution to the above enforced convention of cost accounting.

A costless Gift as a supplement to individual incomes is thus required because it virtually equates individual incomes and consumer prices without incurring an additional cost that will be passed on to consumers…and thus disequilibrate the system again, and then a periodic discount to retail prices is required to maintain that equilibrium…because the system will still tend to disequilibrate in its normal operation and flow through Time.

If the most basic problem with the system (scarcity of individual incomes in ratio to prices simultaneously produced) is initiated and re-initiated by injecting money into the system, then injection of money must go outside of the system and directly to the individual first.

If price inflation is also an integral part of the system, then prices must be discounted/reduced at the point of retail sale where the costs for any and every product or service is terminally summed.

Money is an excellent tool and an integral part of the present system. Integrating more money into the system in the form of Gifts of individual income and discounts to retail prices is therefore imminently doable, and in the pursuit of individual economic freedom and systemic free flowingness,….an ethical necessity. That necessity is accomplished by both straightforward and gracious policies and also graciously constructive regulations that give options to agents to avoid unsatisfactory taxation, loss of participatory privilege  and/or consciousness by the consumer of an agent’s wish not to consider the individual and the system at least equally with its own pursuit of economic power, profit and control.

If the system is unstable and onerous and enslaving for nearly everyone, then action is required to make it serve the individual instead.

Choosing not to choose to fight slavery/enslavement is both choosing to empower slavery/enslavement and cowardice.

Equivocation with, or palliation of slavery is completely unethical.

Ideas and paradigms, i.e. generally held points of view are both ultimately powerful and potentially ultimately blinding.

Ideas/paradigms are a priori to structural power and forms, and the most powerful forces in the world.

Unconscious mental habit is the deadliest human sin.

The experience of Grace is present time conscious awareness of Space, Time and  Self, and anything else experienced in that flow of moments.

The experience of Grace is also the complete integration of Space, Time and Self Awareness.

Integration is the process of Wisdom, and as the experience of Grace is the complete integration Self Awareness with the physical universe of Space and Time it is both the unification of Spirituality and physicality and the pinnacle of Wisdom.

As the physical universe is process itself  (that is, Time in both its characteristics of the moment and the flow of moments) the experience of Grace is the conscious experience of Time in both of its characteristics and thus a flow of moments, and thus by definition an experience that  exists for a period of Time making it a process, a flow that includes Time.

Grace being a complete integration, that is an actual unification of inwardness and outwardness all of  its characteristics philosophically/conceptually align with and are equally applicable to the mental and physical/temporal universes. Grace by definition applies, and applies in every way and in both universes.

The primary aspects of Grace are balance, equilibrium and flow. The correct and primary goals of economic theory and policy are balance, equilibrium and flow. Thus by definition Grace is the answer to the goals of economic theory and policy. Thus policies that align with and actually reflect Grace will attain and maintain the balance, equilibrium and flow of Grace and so accomplish the correct and primary goals of economic theory and policy.

I would of course prefer simply floating a new currency and dividend and discount mechanisms, but the game still goes on. If Syriza is relatively rapidly unable to meet its obligations despite the reforms it is the final straw and definitive demonstration of the economic and monetary fallacies of austerity and then they can do the right thing like they should have done now and feel completely vindicated. I think Tsipras has quickly squandered a huge amount of political capital. Lets hope their politics don’t take a lurch back to the right.

We should see that Public Banking and the Gifting ideas and policies of Social Credit are presented to moderates on both the left and right as they address the real deficiencies of all economies and actually accomplish the more economically valid agendas of each. The Right gets the business and profit making advantages of adequate money in the hands of individuals, tax relief from the redundancy of such by the dividend and the elimination of inflation and in fact price deflation even within a profit making (but not capitalist) system. The Left gets the economic democracy created by the dividend that it has never actually been able to create because like the right it was unconscious of the cost accounting data and only the upper bound of the pricing system, and bragging rights that it was a true socialization (but not a flawed re-distributive socialism) of the Banking and Financial systems that finally enabled profit making systems to evolve and thrive as technology, AI, businesses and individuals advance toward the abundant and gracious society….together.

Your analysis as I have praised you before is excellent, no doubt about that, and you deserve every acclamation for the iconclastic de-construction of DSGE/neo-liberal economics despite the incredibly suave and deceptive mental overlay of orthodoxy. However, if the system is dynamically cost inflationary on the lower bound of price then that also needs to be factored in and modeled as well. Please consider the example I gave in your prior video. The costs of replacing capital equipment, facilities and also a host of other incidental costs over and above all financial costs MUST be ADDITIONALLY included in the prices businesses charge the consumer, and yet the consumer is not credited with any additional income with which to liquidate these ADDITIONAL COSTS/PRICES.  This is the case with every enterprise in the economy by enforcement of the cost accounting convention that ALL costs MUST go into price…and so it is not just a statistical happenstance, but a dynamic systemic factor being overlooked by virtually every economist. Consider also that Keynesian stimulus, while it may somewhat (and indirectly) deal with the diminutions of money/income from the circular flow of the economy, is thus actually an obscuration of the underlying cost inflationary nature of the normal and unfettered operations of the economy described above and again, enforced by cost accounting’s rule that all costs must go into price. Actually looking at data is the essence of the scientific method, and doing the calculus regarding the datums of individual incomes and costs simultaneously created will reveal the mathematical expression of Douglas’s A + B theorem.  Please consider it…..and also the accelerating disruptive and diminishing effects on aggregate individual income that innovation and AI are also having which militate direct and immediate individual income supplementation for the individual and price discounts to equilibrate the system.

Once you get past the absurd follies of economic “thinking” dominated by the unopposed idea of Debt ONLY…the world and Life take on a clarity and an abundant joy…reflecting Grace.

The older one gets the more one realizes the gaps in one’s knowledge as in data. And this is another reason to be careful to study Wisdom right along with one’s intellectual pursuits otherwise “one may become vain or bitter.”  Pursuit of Wisdom and its pinnacle concept and experience of Grace is essential in attaining balance both personally and economically.

Niceness counts in human behavior, in joking…..who gives a shit?

Grace is the integration of the truths of a legitimate Duality which is a thirdness, a third reality, a Trinity which is in fact also a unitary wholeness of the subject of the Duality, an expansion of both data and understanding of that subject and psychologically/spiritually the experience of Self Awareness and ultimately Consciousness.