Monetary, Economic Sapient Synthesis Theory (MESST) as expressed in my book, Money and Wisdom: The Way Out, The Way Home consists of at least the following:
1) There is an empirical flaw in the present accounting discipline which if fixed, completely transforms our economic, financial and monetary systems.
2) There is a canon, that is a wisdom, to human life, and this canon’s deepest, most powerful and most universal condensations are precisely reflective of the what the policies of the transformed character of the above systems could and would be, if that accounting flaw was corrected.
3) Homo sapiens, wise and discerning man, is correctly labeled, and to label man or inhibit him from being anything less than what his distinguishing species characteristic says he is, is mistaken and dangerous to him and to the rest of the planet.
4) Wisdom is the higher order level of thinking and acting that transforms every mind it touches and every human system it is applied to.
5) Wisdom is the appropriate and necessary basis for both self development and human systemic policy if Man is to reach his true potential.
6) The current financial system unfairly and incorrectly monopolizes and usurps the value of credit.
7) The monopoly on credit that Central Banks, Private Banks and their captured entities the various governments of the world must be broken up, and a new consumer financial paradigm be born from that break up.
8) The accumulated technological innovation and progress built up over time is the inheritance of every human being and is of almost inestimable economic and social value.
9) Technological innovation is an economic game changer which if not honestly and accurately considered will destroy profit making systems, unless its value is distributed to all.
10) Alignment is both a noun and a verb.
11) Alignment, the noun, is a naturally metaphysical human canon.
12) Alignment the verb is the accurate alignment of Aligned ideas with their temporal universe policy counterparts.
13) Binding these policies back to the Aligned ideas they are based on and reflective of is honesty and integrity itself.
Declaration of Monetary and Economic Evolution
Centralization of economic and financial power is attempting to coalesce in international agreements which would enforce the present unworkable, enslaving and hence unethical system on national populaces everywhere. Freedom is an essential human necessity. Therefore rebellion against that coalescence, and demand for an evolved alternative is the responsibility of every system.
The only thing capable of stopping this juggernaut is a mass movement for individual economic freedom integrating the philosophy and policies of Social Credit and the elevated concept of Public Banking recently posted here, and that focuses on raising individual awareness of the enslaving unworkable nature of the current system and targets natural allies like small to medium sized businesses whose interests coincide with the consumer’s need for additional income and the system’s necessity to be stable, workable and ethically serving the individuals and business entities within it.
Businesses and Individuals Unite for Project Public Banking and Monetary Gifting! You have nothing to lose but your chains!
Post to Ellen Brown on TISA, TPP and Integrated Duality Within Trinity Which Is Unity
Makes complete sense. The coalescing International corporate monopolization of services and trade is just another monopoly parading itself as unitary solution when it is actually the antithesis of an integration of national and international service and trade agreements. It’s a complete denial of the cardinal concept of subsidiarity/decentralization. And it fits right in with my Wisdom/Grace/Consciousness formula and theory of everything of Duality Within Trinity Which is Unity [(An actual Integrated Duality) = Trinity]
This is what Tisea and TPP are actually creating:
[(Transnational Corporate Monopoly power) = a false Unity]
This is the integrated reality that is needed:
[(National economy X World/International economy) = Stable, Unified non-dominating agreements]
Of course the rub is that national economies, especially technologically advanced ones, need to be monetarily stable and actually serve their respective populaces, and to do that they are going to have to make the consumer financial paradigm of Gifting a guaranteed aspect of their policies
[(Debt X Gifting) = a stable equilibrium that frees both the individual and the system] …and that also harmlessly enables a re-industrialization of hollowed out western economies which are afflicted by another monopoly falsely parading itself as a unity…globalization.
Integrated Duality Within Trinity Which Is Unity…the formula of Wisdom/Grace/Consciousness and both Social Credit and Public Banking in its truest and highest form.
Integrated Duality Within Trinity Which Is Unity: A Theory of Everything, and Its Economic and Monetary Application To Balance the Current Monopoly of Debt Falsely Parading Itself as a Unitary Economic and Monetary Paradigm
Formula For Theory of Everything: Integrated Duality Within Trinity Which is Unity [(Integrated Duality) Trinity = Unity]
Current “mindset” of the monetary system:
[(Monopoly Paradigm of Debt Enjoyed By Private Finance) = Domination and Manipulation by a False Unity]
This financial monopoly also violates the dualistic economic paradigm of competition.
The correct formula should be:
[(Private Banking X Public Banking) = Unity]
The Public Banking concept is thus elevated from merely a structurally competitive economic force to a central bank operating truly in the interests of the individual by compiling statistics to determine the correct amounts of money dispensed for a universal dividend and a retail discount and so being the agent for a balancing monetary paradigm and policy of Gifting
Finance has so obviously been the problematic business model since forever, and is so asymmetrically powerful today because of its unbalanced monopoly paradigm of Debt. You fight an idea, a paradigm effectively only with an idea/paradigm of equal (or greater) strength, and you balance a financial monopoly by implementing a structurally competitive agent in the economy like Public Banking and also as a central bank that operates in the actual interests of the individual and the other traditional business models by issuing a universal dividend and a retail discount to consumers. It’s time to “hit the streets” en masse and end the failed experiment with homo economicus enforced by the paradigm of Debt, and live up to our actual species designation, homo sapiens, wise and discerning man. Wisdom is the integrative process, Grace as in mental balance, equilibrium, flow and Gifting/forgiving is the pinnacle concept of Wisdom and synonymous with the goals of economic theory and policy . Integrating the above grace reflecting policies into modern technologically advanced economies aligns the economic and monetary systems with who and what we are and fits seamlessly within profit making systems. Paradigmatic and elite Power will bend to the right idea and policies…and the overwhelming numbers of an indignant and focused populace. Project Grace and Public Banking…and idea and movement whose time has come.
One of the great advantages and uses of the Duality Within Trinity Which is Unity formula is it reveals/exposes monopolistic thinking and the problem of intellectual mereness and fragmentation. Hence thinking along the lines of “Capitalism is the ONLY economic theory worth considering”, “Private finance is the ONLY way to create and disburse/distribute money” and “Government is ALWAYS tyrannical” are seen as the arrogant, exclusionary, fallacious and irrationally generalized statements…that they actually are.
The rules of the formula of the necessity of an integration of a genuine Duality, and the equal necessity that only the true aspects of the subject the formula is applied to and also the emphasis on the humanly sensitive/individual effects of the opposing/reflecting/balancing points of view of the Duality keeps the thinking intellectually open, honest, inclusionary, expansive, rational and most importantly ethical.
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The “Trinity which is Unity” aspect of the formula of course is the guarantor of both a holistic point of view and the validation that all legitimate realities be considered. The concept of Trinity is not only a valid philosophical consideration it can be an experiential reality as well.
More Posts to Mish Shedlock’s Blog
I don’t really have a problem with pension plan bankruptcy, but it seems to me that if you’d take the advice of your friend Steve Keen and advocate “a modern debt jubilee” the system could be reset, prices could fall and then to keep us all from stumbling back into the same debt problems ten years down the road (or more likely 5 as AI is going to continue to erode aggregate demand) implement a universal dividend and a retail discount that is rebated back to merchants and we’ll have a stable virtual equilibrium. I’m sorry Mish, even though your investment advice in view of the current system’s flaws is excellent you’d do well to accept Keen’s expose of general equilibrium theory and disequilibrium insight and move on. Then as AI continues toward an economic singularity a universal dividend of $900/mo. with a debt jubilee and the end of welfare, unemployment insurance and even social security taxes would be approximately the same purchasing power as $1500-2000/mo without such.
Reply to Billy Bonobo who correctly says were all pretending:
Precisely. Pretend that the economy would be in a state of general equilibrium if simply left to its normal operation, pretend that most value is created by humans instead of technology, pretend that any system dominated by a monopolistic idea like Debt will ever be anything but a top down domination and manipulation by a wealthy and powerful elite…and denial that the only way to truly change that situation is to empower and set the individual economically free by balancing the paradigm of Debt with the equally powerful idea of direct individual monetary Gifting to the extent that they have a satisfactorily middle class lifestyle whether they work or not and if they have a job they have an even more abundant lifestyle.
All of that fits seamlessly within profit making systems, frees up more purchasing power from the elimination of then redundant taxation and enables the elimination of more government bureaucracy than any conservative/libertarian pundit ever realistically dreamed of doing, produces more economic democracy than any socialist pundit ever dreamed of accomplishing, enables more decentralization of the economy and the entire society than any min-archist ever realistically dreamed of accomplishing. It’s so Galtish it would blow the mind of any Randroid/Objectivist….if they would only open their mind to its actually new idea/paradigm of Gifting.
You’re all nascent Social Crediters. 🙂
Posted in response to a blog post about Euro-sceptic political victory in Denmark:
The EU Financial monopoly is dead! Long live a Direct Distributist monetary integration and evolution of profit making systems!
Joe Allen: ?????????
Is that English as a 2nd language … ?
Me: Just re-read it a few times, maybe even contemplate it. It’s deadly to orthodox economic thinking, but enlightening to the mind of those afflicted with homo economicus.
Joe Allen: It’s NOT Keynesian and it’s NOT Austrian, but what is it … ???
Me: It’s the integration of a new monetary paradigm in consumer finance which enables the possibility of an economic equilibrium, balances the monopoly paradigm of Debt currently enjoyed by the business model of Finance and empowers and sets the individual economically free with a supplementary income for their entire adult life in addition to anything they may earn via work for pay. It’s a new evolutionary idea, monetary Gifting, integrated into profit making systems.
Poster: Me thinks your report that “The EU Financial monopoly is dead!” is greatly exaggerated.
Me: Oh it’s dead alright. Dead because the general equilibrium economic theory it’s based on is false, and dead because there is no way the world economic system is not going to collapse without “a modern debt jubilee”. And then it’s also dead because with AI advancing at the pace it is there is no way there’s ever going to a period of economic stability without a universal dividend and a retail discount.
In response to a post about the idiocy and enslavement of enforced conscription:
Me: I completely agree with your post and sentiments. But enslavement can be very subtle too. For instance, what if the the economy is unstable because a necessary aspect of how one keeps track of profitability or loss (cost accounting) has a flaw in its conventions (which is that all costs must go into price) which enforces that instability because in the normal flow of the unimpeded economic process every enterprise has and produces more total costs than labor costs/individual incomes…with which to liquidate total costs…and the only way that the system allows for more money to be created is the current endogenous process enjoyed by the business model of Finance known as Debt…which of course adds a cost to both the system and the individual? Would that system be enslaving to businesses other than Finance and to the individuals living in that system?
Posted in response to a blog entry mentioning the elimination of jobs by AI:
Yes, except we are also definitely going to need the second mechanism of Social Credit along with a BIG (basic income guarantee). That mechanism is the compensated retail discount and its purpose is the mathematically equate prices and actually available incomes to liquidate them. Why is this necessary? Because if you don’t have it many businesses will just raise their prices and inflation will continue. With the compensated retail discount participating merchants will decide their competitive price and then apply the discount which is based on the total cost of what was purchased for say the last two weeks and the total costs of producing what was actually produced for the same period of time. This eliminates the possibility of inflation and actually opens the door to faster and greater price reduction as innovation and AI continue their effects on productivity and aggregate demand. The entirety of the merchant’s discounts to consumers are rebated back to them which increases their profit margin without having to access nearly as much normal additional finance. As priorly stated it is applied only after the merchant has discovered their best price so it is not in any way manipulative or intrusive on that process. It’s a completely pro-active win-win policy for businesses and consumers….and equilibrates a system which inherently creates less individual incomes than total costs and prices and so accomplishes the “holy grail” of economic theory and policies….a stable equilibrium. As stated many times on here it also accomplishes more governmental and bureaucratic dismantlement, more economic democracy, more tax cuts and more individual economic freedom than any pundit or theorist on the left or right has ever imagined or dreamed of. Think a new thought. It’s way overdue on both the left and right.
Another post to Mish Shedlock’s blog regarding the economic effects of robotics and AI: The logics of both profit making systems and innovation, particularly AI, are efficiency. Robotics is going to happen and it will become more and more economically disruptive. Capitalism which is more about power and control than even profit will have to evolve and become Distributism which is a much more integrated, humane and workable profit making system. All of the theorists on both the left and right will just have learn to think a new thought and accept that. The future belongs to the open minded, more intellectually and philosophically nimble and more ethical. The orthodox, rigid and irrationally obstructive will just have to eat some humble pie when those changes become apparent to everyone including even themselves.
Posted in response to a poster saying “all costs are labor costs”:
berserkerscientist: All costs are labour costs. People aren’t burning money, so eventually, the cost of something goes into someone’s hands.
Me: You are obviously not a cost accountant who accounts for capital equipment and any of the other costs of a business including the replacement of said capital equipment. Moment to moment and hence dynamically the rate of flow of total costs exceeds the rate of flow of total individual incomes, i.e. labor costs. And “eventually” never actually occurs when each moment has this scarcity ratio between costs and individual incomes. What does occur, seeings how our money is endogenously created by the Banks, is continuous borrowing which gives the illusion that the system is stable and tends toward an equilibrium…when it is actually continuously in a state of cost and income disequilibrium and borrowing of course incurs an additional cost to either the business or the individual and hence the entire system that must be passed on to the consumer…who already has a scarcity of income with which to liquidate all costs/prices. So there you have it, the social credit insight that every general equilibrium theorist misses and even disequilibrium theorists like Steve Keen are groping for as the underlying cause of our economic instability.
berserkerscientist: berserkerscientist: Name one product or service that isn’t the result of labour. If the timing belt breaks on your car, you need to buy a belt and have someone install it. Someone made the belt. Someone made the plastic in the belt. Someone pumped and refined the oil in that made the plastic. And so on. Labour is the only cost there is.
Me: Orthodoxy, mistaken orthodoxy. Businesses must replace capital equipment…that has already been paid for in its initial financial outlay…and yet there is no additional income created with which to liquidate those replacement costs and all other costs that the business must recoup. Hence these additional costs pass over into future productive and financial cycles building up until they destabilize the system. Continuous borrowing and/or (inadequate) Keynesian stimulus, which is necessary to keep the system from rapidly falling into a deflationary spiral, merely obscures and palliates the problem. To actually solve it moment to moment a direct supplementary income and a discount to retail prices is necessary.
berserkerscientist: Actually, it is the total opposite of what you think. The B costs are actually paid before the A costs. Think about it. If you have a lawn mowing business, do you open and then buy the lawn mowers? Of course not. So the B costs are already in the system. In fact, your first customer might be the guy who sold you the lawn mower.
Me: When a cost is incurred does not matter in the circular flow of the economy….only that costs build up and become “unrepayable”….which as pointed out by me above….does occur.
Me: Excellent video. Every economic theorist and every economic pundit is a nascent social crediter. Oh, and by the way I think that understanding how technology is created and works is essential to the future because what if a disaster of some sort destroys technology or its energy source. Also, I believe that maintaining the culture of employment and even hand made manufacturing is important simply as a grounding mechanism for humanity….it’s just that its economic impact will be nil. Humanity has a bright future if it thinks through its current hypnotization by Finance and the ideology of homo economicus, after all:
“Systems were made for men, and not men for systems, and the interest of man which is self-development, is above all systems, whether theological, political or economic.” C. H. Douglas
An Enlightening Philosophical Thread on Mish Shedlock’s Forum
Post to a Steve Keen Youtube Video
Yes to your three axioms and to your statement that there may be other factors involved. For instance if individual incomes/labor costs are only a subset of all costs in virtually every enterprise and the cost accounting convention that ALL costs must go into price is at all times enforced as it presently is, then the rate of flow of total costs ON THE LOWER BOUND of price will always tend to exceed the rate of flow of total individual incomes simultaneously produced….and is hence a dynamic factor to model.
Posted for your consideration: The slopes of the two lines in this graph https://research.stlouisfed.org/fred2/graph/?g=1iGP
recently posted on your Debtwatch website by a poster there roughly reflect what would be the lines of the A + B theorem of Social Credit graphed. It illustrates the insight that the rate of flow of total costs always tends to exceed the rate of flow of individual incomes simultaneously produced, and also how, on the lower bound of price and in the case of virtually every enterprise, the dynamic cost/price inflationary nature of the economy is currently enforced with the cost accounting convention that all costs must go into price.
I like the three dimensional way you show the reality and relevance of the increase in debt and how Debt incurs an additional cost. (interest of course is but one way that the gap between total incomes and total prices becomes the moment to moment reality of our disequilibrated economy) If I may suggest, the policies of a direct universal dividend and a retail discount to consumers which is rebated back to participating merchants solves the gap problem for both the individual and the system in each moment of Space and Time by both its present time immediacy (dividend) and also through its dynamic flow through space-time (discount mechanism).
Finance has so obviously been the problematic business model since forever, and is so asymmetrically powerful today because of its unbalanced monopoly paradigm of Debt. You fight an idea, a paradigm effectively only with an idea/paradigm of equal (or greater) strength, and you balance a financial monopoly by implementing a structurally competitive agent in the economy like Public Banking and also as a central bank that operates in the actual interests of the individual and the other traditional business models by issuing a universal dividend and a retail discount to consumers. It’s time to “hit the streets” en masse and end the failed experiment with homo economicus enforced by the paradigm of Debt, and live up to our actual species designation, homo sapiens, wise and discerning man. Wisdom is the integrative process, Grace as in mental balance, equilibrium, flow and Gifting/forgiving is the pinnacle concept of Wisdom and synonymous with the goals of economic theory and policy . Integrating the above grace reflecting policies into modern technologically advanced economies aligns the economic and monetary systems with who and what we are and fits seamlessly within profit making systems. Paradigmatic and elite Power will bend to the right idea and policies…and the overwhelming numbers of an indignant and focused populace. Project Grace and Public Banking…an idea and movement whose time has come.
If I may point out, all of the recent posts on the Debtwatch thread How Rising Debt Causes Inequality and Crisis are looking at only the exogenous and upper bound monetary inflationary factors and missing/ignoring the ubiquitous, ever present in every enterprise and hence dynamic effects on the lower bound of of cost/price. Not modeling this inherently cost/price inflationary nature of the economy is what makes the FED’s “dog chasing its tail” inflation targeting policy apparently “necessary” even though the anatomy of equilibrium policies of a universal dividend and a compensated retail discount to prices would both solve the individual income scarcity and inflation problems…in one fell swoop.
By utilizing only the debit/credit two dimensional framework of accounting you are still “playing on the field” of DSGE theorists. In order to better establish disequilibrium and decipher the underlying three and four dimensional problem afflicting the economy and economic theory you need to look at the subset of double entry bookkeeping known as cost accounting whose conventions rule it, and how the Banking/Financial system utilizes/exploits their monopoly paradigm/product of Debt to dominate the economy and the individuals inhabiting it. Time is running out. With the recent fast tracking of the TPP trade agreement the corporate and financial powers that be are internationalizing the economy and weakening even further the national authority that could remedy the real problem…the disequilibrium caused by the scarcity of individual incomes in ratio to prices simultaneously produced….by the system in its normal unfettered operations. The concept of subsidiarity is enlightened, and centralization of power without it is not only mistaken it is in the american vernacular bass ackwards.
Posted to Mish Shedlock’s blog in response to a poster who wonders why Mish is “so jazzed up” about roboticism: Because it is economically relevant. The only thing holding him back from realizing the solution to the economy’s problems is his Austrian/libertarian belief in general equilibrium. When he finally concedes his buddy Steve Keen is correct that the economy tends toward disequilibrium…is when his Austrian/libertarian motto “there ain’t no free lunch” will also flip around from being a truth and a solution….to the recognition that it indeed describes the actual problem. And when you Dr. Keen realize that the above misperceived as a truth/solution Austrian/libertarian motto is indeed an accurate observation of Austrians looking at the cost accounting convention that all costs must go into price…is when you will realize that the Social Credit insight is what is missing in macro-economic theory. Why? Because it is the perfect and actual integration of both Keynesian and Austrian, left and right economic theory. Integration is always an expansion and elevation of truths.
Another post to Mish Shedlock’s blog regarding the economic effects of robotics and AI: The logics of both profit making systems and innovation, particularly AI, are efficiency. Robotics is going to happen and it will become more and more economically disruptive. Capitalism which is more about power and control than even profit will have to evolve and become Distributism which is a much more integrated, humane and workable profit making system. All of the theorists on both the left and right will just have learn to think a new thought and accept that. The future belongs to the open minded, more intellectually and philosophically nimble and more ethical. The orthodox, rigid and irrationally obstructive will just have to eat some humble pie when those changes become apparent to everyone including even themselves.
Wisdom, Grace and Economic Theory
Finance capitalism obviously doesn’t work. Socialism…same. Why not try an integration of the best aspects of both and none of the flaws of either…like the Distributive, non-re-distributive profit making system of Social Credit? Integration is the very process of Wisdom and its pinnacle concept is Grace, four aspects of which that apply to economics, namely Balance, Equilibrium, Flow and Free Gifting. It follows that integrating and applying Wisdom and its pinnacle concept to economic theory…might just be a good, completely relevant and incisively correct thing to do.
Post to RWER Blog
Precisely Rhonda. As if we needed more intellectual and social fragmentation and thus more opportunity for conflict. We need more integration, that is the process of Wisdom, more balance, equilibrium and flow. I wonder what word and concept summarizes balance, equilibrium and flow? “The dancer flowed gracefully across the floor in perfect balance and equilibrium.” Maybe if we contemplated the various aspects of the (secular) concept of Grace as economic and monetary policy…we’d have a lot more clarity on our economic and monetary problems.
Posts To Ellen Brown On Social Credit Forum
Ellen,
I agree with Dean that the dividend should guarantee a decent lifestyle. That way there is no “second class citizen” stigma attached to it. An economic equilibrium is relative and able to be balanced by the twin policies of Social Credit no matter what the amount as they are actually the anatomy of economic equilibrium themselves (a plus to individual incomes and a minus to retail prices) . To answer your question directly I estimated in my book for the dividend to be in $1500-2000 range because that way a household of two adults would be $36,000-48,000 per annum and a family of four could more than survive on that and they would of course also have the option of supplementing their supplement with employment …which with the dividend and discount would undoubtedly be more likely than now…without it. The dividend of course is variable and could be somewhat lowered actuarially with the elimination of welfare and unemployment taxes which would become immediately redundant, and even social security taxes could be phased out eventually. So Take $36000 times half the number of individuals 18 and over which in a Google search I just did turns out to be about 108,800,000 and that equals 3.9168 trillion dollars per year. Considering that there is already a deficit of actually available spending, that the discount would mathematically eliminate inflation at any level of income, that further reduction in the dividend could be accomplished without loss of purchasing power by eliminating much of the money that is wasted in the economy, that the increased profits of businesses from both the dividend and the rebated discount monies would substantially reduce their normal financial costs and finally the financial costs of the consumer will be greatly reduced as well making the ultimate relative amount of the dividend probably considerably less and yet still supportive of a middle class level of lifestyle.
A Distributive Economy Based on an Ethic of Grace and With Monetary Policies That Reflect Grace as in the Free Gift…The Natural Ally of Public Banking as a Structural Competitor of Private Banking and also as in a Central Bank That Truly Operates in the Interests of the Individual.
What is wrong with capitalism? And what is its evolutionary, not socialist and reactionary replacement? First of all, normally I’m not one to quibble over words so actually one could still call the following system capitalistic, but it would be a Distributive Capitalism, not the often cruel, onerous, unstable and ecologically rapacious Finance Capitalism we currently have. So you could just call it Distributism or Distributive Capitalism.
Capitalism is actually an anachronism, an appendix, an economic and social system which has gone on too long and that refuses to integrate with anything other than the wholly inadequate primary purposes of profit and power. Not that profit and even power are wrong in and of themselves, but if one integrates economic theory and aligns its philosophy and policies with a truly human and adequate primary purpose…profit and power will still exist within such a system, but they will be tempered if not transformed by the guidance of such adequate philosophy and policies.
So what is the philosophy and what are the policies of such a system? Well, as Wisdom is the integrative process and the pinnacle result of such integrative contemplation is a philosophy, an ethic and the experience of graciousness, then Grace and policies completely aligned with Grace are exactly the the idea and the paradigm we need to focus on. The major characteristics of the idea, the policies and the experience of Grace are balance, equilibrium and flow as in, “The dancer flowed gracefully across the dance floor in perfect balance and equilibrium.” That these same characteristics are the sine qua non and intended goals of economic theory is no coincidence. Such a system based primarily on Grace and its reflective policies would be a more human and encompassing philosophy and would not destroy, but rather evolve. And policies enacted that aligned with such a philosophy would immediately transform the system and end the reign of the asymmetrically powerful individuals and entities that currently “control” the present system. Finance which, in what is allegedly free market theory, enjoys a glaring monopoly on credit creation, and whose product and sole paradigm is Debt…would immediately have that monopoly balanced by policies aligned with an aspect of Grace, namely monetary grace the free gift to the individual. In sufficient quantity this would immediately transfer unextortable power to make policy/determine which economic entities would survive and those who would not…from a self interested elite into “the many hands of individuals.” With such policies in place it matters not whether everyone immediately sees the efficacy of such philosophy and policies. Wisdom after all by definition is the best, most ethical, most practical and yes the necessary guide for both individual development and systemic policy, and also the highest integration of both thinking and acting. Hence it cannot be irrelevant. The concept of Grace is not “pie in sky” but rather the signature, the hallmark and the result of the fully integrated personality,….and policies based on that same concept are powerful, ethical and necessary. Necessary? Yes, the one common denominator of every period of relative economic “good times” is more money actually available for the consumer to spend and so make the economy flow…and the lack of such readily available money is also the one common denominator of every economic downturn.
So enough of the mereness, the fragmentation and lack of clarity and alignment of economic theory with Humanity whose species designation is homo sapiens, wise and discerning man. Let us have Wisdom as our guide, because of ourselves and despite our flaws. A Distributive Wisdomics, a Gracenomics is the necessary, the liberating and the more fruitful future for the cynic, the oppressed and even the already powerful.
Now how does Public Banking factor into this economy? Just as the title of this post says, as a structural competitor to private Banking on the state level and as an intermediator of funds distributed for necessary infrastructure by a public Central Bank which also compiles, computes and distributes the monthly dividend and discount percentage…and so elevates the Public Banking concept to a higher level which truly serves the individual’s interests.
Ellen Brown: Thanks, $4 trillion is the sort of figure I was looking for. I don’t follow how we can prove it wouldn’t inflate prices though. What does this mean?
“the discount would mathematically eliminate inflation at any level of income”
Me: That should have been stated: the discount would mathematically eliminate inflation at any level of dividend income. The Discount mechanism of Social Credit is derived from a ratio of the total cost of what is purchased at retail sale over the total cost of production including all exported production and all interest charges in the same period of time. This is a macro-economic formula and a percentage discount that is applied to every good and service at retail sale. This an unobtrusive and non-manipulative kind of price control because the merchant is allowed to find his price before it is applied and the total discounts the merchant gives to the consumer are completely rebated back to them (the merchants). To the consternation of libertarian pundits this mechanism totally refutes and proves incorrect their irrational fear of central planning. It also mathematically eliminates any inflation because it monetarily balances the costs of consumption and production. Now, because of the amount of waste that takes place in the economy, it is unlikely that asset inflation will outstrip the discount percentage, but even if it did it would be a simple matter to tax the entities that inflated their prices above that rate, and it would be perilous for merchants to inflate their prices beyond such rate…because their competition could then just under bid them and acquire their market share. It’s a very gracious, win-win policy for the consumer, for businesses and for the overall stability of the economy. In fact it’s a non-dominating way of offering businesses “an offer they cannot refuse.”
Response to a question by Ellen Brown on another thread: “Why did Varoufakis back off from that proposal?”
Me: If you’re a member of a left wing (or right wing) political party you have to submit to their mindset and their agenda.
On the other hand if your agenda is primarily implementing policies that will accomplish and maintain individual economic freedom and systemic freeflowingness, even over and above maintaining power and control, …you don’t have to submit to such elitist stupidities.
Scott Baker: “Several writers, including me, have been saying for a long time now that Greece cannot survive unless it introduces some form of complimentary currency….”
Me: A complimentary currency is again, a nascent recognition of a scarcity of individual income, and no its not just during times of economic downturn. The continual injection of money by the Banks in the form of loans tends to obscure and palliate the inherent scarcity, but it never actually equates costs and incomes with which to liquidate prices. Why? Because loans obviously incur an additional cost to both the enterprise and the system…which then just gets passed along to the individual in the form of cost push price inflation. You have to short circuit this inherent price inflation by directly gifting the individual….which solves the individual’s scarcity and does not incur an additional cost to him, to the enterprise or to the system.
Rent of course being a diminution to the circular flow of money is an aspect of the Gap (the gap consists of both excess costs and reduction of money to the circular flow as well as wasted effort like for instance the titanic waste of defense spending which could probably be halved without diminishing security) so eliminating the Gap with a universal dividend and a retail discount would compensate for all diminutions and excess costs….and because of the discount there would actually end up being falling prices due to innovation. All of the valid insights (but none of the invalid conclusions of some of these theories) of Georgism, Marxism, Keynesianism of whatever stripe, DSGE, etc. are compensated for by Social Credit’s more underlying and monetary paradigm changing and transforming policies. All of these thinkers deserve credit for correct observations, but why settle for mere palliation and why not unite behind the deeper, more encompassing and total solution?????
Public Banking is also a valid insight, and actually that insight that deals with the most asymmetrically powerful aspect of the systemic problem…the dominating and manipulating monopoly powers enjoyed by the business model of Finance. A synthesis of the Social Credit insight and the expansion and elevation of the goals of Public Banking from only public state banking to both state banking and a truly Public central Bank that disburses the monies for the dividend and discount and also disburses/regulates on a rational ethic basis the funds for the individual banks to lend.
Transformation First! Rational and ethical regulation…right along with it!
Response to Gary A: The Eurozone will likely keep funding the Greek banks. If they don’t, and the ATMs are shut off, then Greece will have to fund the banks with Drachmas. If that happens, the Greek bonds, Billions of dollars of them, that were used as pristine collateral in swaps deals and loans, up until Feb, 2015, would all be worthless. Billions upon billions upon billions of dollars in swaps could be in danger. The holders of the bad swaps, the risky swaps, would have to put up billions more in collateral and if they couldn’t, it would be a panic. A Euro panic.
Me: Inflation is actually mostly of the cost/push variety. All of the paranoia about monetary inflation is just Banker’s hype. As Steven Zarlenga exposed in his book The Lost Science of Money it was the compliant central bank of Germany who lent money to speculators who then shorted the Deutsche Mark that led to hyperinflation. What needs to happen is the complementary currency/social credit needs to happen and then reformers here and in Europe and Greece need to immediately and loudly scream bloody murder if the ECB, FED and/or Greek central bank lends to unethical and greedy “whales” in order to “prove” the bugaboo of monetary inflation.
What also needs to happen is any swaps etc. already on the books need to be unwound between the banks and the individuals/institutions that made them…without attempts to save such individuals/institutions by bailing in the mass of the populace. If this results in Banks and individuals going bankrupt…fine. The system needs resetting, structural reforming and transforming anyway in the Social Credit/Universal Dividend/Retail Discount/Public Banking mold anyway.
If you don’t go to the level of idea/paradigm you are doomed to lose the war because you have to play on their field (Debt only) and by their rules (loan only).
Response to why would the financial authorities do what is correct:
Of course they won’t. It’s up to us to band together and offer alternatives, comprehensive and complete alternatives. I don’t disagree that ultimately, and even if not just with Greece but also the remaining indebted states of the Eurozone, the ECB is holding a very weak hand. But as we have seen before in the midst of crisis and collapse compliant pols can be coerced/hypnotized/gleefully embrace enacting the agendas of the wealthy and powerful. All the more reason to band together and market our alternatives to the mass of individuals, to businesses whose interests are aligned with consumers having more money and the system not being inflationary, and then insistently herd the political apparatus toward the correct policy enactments/threaten the individual careers of those who are dumb, bought and/or otherwise mentally challenged on the concept of individual economic freedom and systemic flow.
I’m formulating an outlined marketing plan I call Project Grace that would include both Social Credit and Public Banking as mentioned above that aims at each of the constituencies above.
Also, if we’d implement “a modern debt jubilee” as Steve Keen has suggested [and that by the way perfectly reflects the nature of Social Credit’s philosophy and policies, that is, the forgiveness (of debt), abundance (of Grace) and cancellation (of debt in a digital creditary money system) aspects of the concept of Grace] there would be a much more robust economy because of the increased discretionary spending ability of the individual resulting from the cancellation of debts….even though the MBS etc. infected nearly everyone to one degree or another. And if those derivative pieces of sh!t were equitably unwound it ought to result in not that many taking a disastrous hit anyway.
Me: It’s obviously a knuckling under to the elitist, hierarchical socialist power and control agenda….the same way that businesses and politicians must knuckle under to the elitist, hierarchical Finance capitalist power and control agenda. The only way we can avoid such power and control agendas and have true economic democracy is by placing true economic freedom in the form of cold hard cash/purchasing power directly into the many hands of the individual. Gifting/monetary grace the free gift IS THE ONLY IDEA AND POLICY THAT CREATES, THAT EFFECTS INDIVIDUAL ECONOMIC FREEDOM AND THAT ALSO TAKES THE OPPRESSIVE STING OUT OF HIERARCHICAL POLITICAL ADMINISTRATION.
Me:
“If there is no struggle there is no progress……..Power concedes nothing without a demand. It never did and it never will.”
Frederick Douglass 1857
Ultimately that is correct, however if we can only operate in and on the terms of the paradigm of debt…we’ll never win. Never. Transformation and balance of the system via monetary Gifting first! Rational and ethical regulation right along with it!
Post in reply to a post by Steven Lesh:
SL: I don’t believe realism is ever irrelevant.
Me: There are kinds of partial “realisms” and then there is the realism of the sages and various Wisdom traditions of our history. That’s not just me saying that, and I would hope that you able to discern the difference between the latter and the former.
SL: And realism doesn’t become cynicism just because someone disagrees with your diagnosis of the “enslaving nature of the current system” and the fixes you propose.
Me: I never said that it did…..in fact I’ve been careful to include the truths of numerous reform perspectives in what I post and have simply tried to urge the differing viewpoints to integrate with each other…the better to resolve the exact and whole problem and combat the forces we confront.
SL: If all you do to address these underlying causes is print
more money to balance the books, what do you really expect to
accomplish?
Me: You’re obviously missing what Social Credit is ACTUALLY doing with its two mechanisms. First and foremost it is battling Debt on the level of the idea, the paradigm. That, if you care to believe the sages like Ghandi and guys like Bucky Fuller is how you ACTUALLY defeat an oppressive enemy with as much finality as the temporal universe is capable of giving us. Structural reform is fine as well, I’ve been careful to point that out too, but the real battlefield is in the minds of men, mindset, philosophy…and the alignment of policy with philosophy.
Secondly Social Credit is based on valid economic and scientific thinking and their correct integration with each other, and that is why its second mechanism the retail discount does what it is supposed to do. It maintains the equilibrium the dividend virtually creates…because a plus and a minus is the anatomy of equilibrium. It rectifies the primary targets that need the plus (individual incomes) and the minus (prices) so that there is an equilibrium of consideration for the individual (dividend) and the system (discount). And as per above fights and balances the monopoly idea/paradigm of the Banking and financial systems use to oppress. And of course it is open to reforms that are rational and ethical as well.
SL: The psychopaths who run the system – and maybe a lot
of the rest of us – are incapable of the profound transformations of
character – the gifting and grace – upon which you base your
prescriptions
Me: The psychopaths, like the poor in the pre-scientific days of the first century A.D. “you will always have with you”. So other than to carefully and correctly identify them…they are not nearly as relevant as focusing on the best most relevant and correct philosophy and its aligned policies….and awakening the necessity in the minds of the mass of the populace of their being enacted.
Grace as a philosophy consistently and thoroughgoingly contemplated will lead to the experience of grace and graciousness to all but the most damaged or other intentioned. This is simply applied and valid human psychology and not anything “airy fairy” at all. In fact it is the epitome of Wisdom identified by other words than Grace in all of humanity’s wisdom traditions.
SL: Just putting some money in people’s pockets – or letting them and their governments borrow it interest free – or waiting for a cloud of Grace to envelop humanity is not going to cut it.
Me: Just answered all of that misconception above. The integration of a comprehensive philosophy, valid policy and a winning social and political strategy is all I’m after. I’m open to the integration of other agendas that do not violate the underlying philosophy and welcome anyone not merely other intentioned.
Posted to a thread about moving beyond capitalism:
Moving beyond capitalism is not socialism. Let’s be clear about that. At least the re-distributive aspect of socialism. The true evolution of capitalism is Distributism which qualifies as a true integration of the best aspects of capitalism (dynamism and efficient allocation of costs) and socialism (bringing moral and ethical rigor to economics), but again, none of either’s flaws and/or untruths. Integrating an actual Duality is required to attain a Trinity which is an elevation and Unity of truths.
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Public Banking as a STRUCTURAL competitor to Private Banking, and that I have no problem with, still does not address or solve the uncountered monopoly PARADIGM/IDEA of Debt. If costs are produced at a higher rate of flow in the economy than are individual incomes with which to liquidate those costs/prices in its normal and unfettered operations, then Debt will inevitably build up and become unrepayable…..even at 0% interest. Furthermore, if the ONLY ways that individual income can be increased is employment which is acceleratingly being diminished by innovation and AI or by a loan which incurs an additional cost to both the system and the individual, then the unbalanced and uncountered PARADIGM/IDEA of Debt will continue to de-stabilize the economy….unless the idea of monetary gifting balances it…because it does not incur an additional cost. Public Central Banking that operates truly in the interests of the individual and the system by being the governmental agency that is mandated to distribute the monetary gifting of a universal dividend and a retail discount completes the structural application of the paradigm of gifting.
Social Credit/Wisdomics/Gracenomics/ Gracientialism 