Saw you on the Steve Keen podcast a few days ago and I really appreciated your thinking, particularly regarding integrative thinking and the need to analyze on the paradigmatic/applied conceptual level. I consider Keen to be the best economic thinker extant, but until that last podcast he seems to have resisted analysis on that level. Economics has a plethera of problems, but I think we can all agree that Finance/Money is where the core of the core problem exists. I believe that problem is the current paradigm that says new money can only be created and distributed as debt, in other words Debt Only. Two of the signatures of historical paradigm changes are that:

1) the old and the new paradigm are always in complete conceptual opposition and

2) the new paradigm solves the anomalies of the old because its application results in a complete inversion of temporal universe reality (for instance helio-centrism instead of geo-centrism and nomadic hunting and gathering to homesteading, urbanization and agriculture).

I have written a book entitled Wisdomics-Gracenomics: The New Monetary Pardigm and Its Policies which is available on Amazon. Among its policies is a 50% Discount/Rebate policy at retail sale utilizing the same accounting operations that the banks use to create all new money only as debt…in other words with a burden to repay. In this case the retail merchant opts into the policy and gifts the consumer a 50% discount on virtually every item and opens a T account labeled Retail Sales Discounts and the monetary authority/government simply rebates the entirety of those discount amounts back to the merchant thus zeroing out the account and making them whole on their entire price. This single policy would invert chronic erosive inflation into, hold you’re breath…beneficial price and asset deflation as in a complete inversion of temporal universe reality. So what is the concept in complete opposition to Debt Only as in the burden to repay? Direct and Reciprocal Monetary Gifting. So there is the new monetary paradigm concept…applied.
There are numerous other policies in the book like a sliding scale of required investment of gifted money in order to mitigate the increase in consumption into what I call eco-bonds at 6% that would supplement the mega fiscal deficits necessary to invest in R & D to confront climate change…and enabled by the termination of inflation by the 50% Discount/Rebate policy. Many other policies also found in a small but pungent book.

I look forward to communicating with you about these things, and hopefully about how we can begin a mass movement to communicate their benefits and so get them implemented. The new monetary paradigm’s time has come.

Indeed accounting is a powerful temporal universe reality anchoring discipline especially when it is wielded by banks to enforce their monopoly paradigm of Debt Only as in the burden to repay in the creation and distribution of new money.

But what if utilizing the accounting equation we credited 50% of the price of virtually everything to the consumer at retail sale, and the government rebated that credit back to the merchant granting it to the consumer? That would macro-economically implement beneficial price and asset DEFLATION which is a destruction of the profit-making orthodoxy that deflation is bad for commercial agents, and enlightens the fact that retail sale is the sole aggregative as in universally participated in/personally economically effecting point in the entire economic process (worthy of a non-Noble prize in economics if I do say so myself) and is thus the perfect place to implement the above monetary policy because:

1) it mathematically doubles everyone’s purchasing power and so

2) potentially the demand for every enterprise’s goods and services,

3) ends inflation forever and last but not least

4) transforms the often onerous experience of going to the store to buy something into the greatest opportunity to self actualize gratitude for a gift since meditation and prayer. Exactly what an increasingly hostile and chaotic world needs.

I have a few questions. – As far as I understood, your suggestion would result in creation of “rebate money” by Govt so that money will become public’s savings (on purchases). Is it correct? – I assume that nothing can stop merchants from increasing prices, especially when rebate-driven demand will increase. So, how the proposed policy will “end inflation forever”? Thank you.

Me: You assume wrongly. In order to opt in to the discount/rebate policy and all of the other benefits of the new paradigm like greatly reduced personal, corporate and eliminated payroll taxes retailers will have to pledge that they would not raise their prices. In my book there is also a tax/rebate policy on any business to proceeding business where any revenue garnered from arbitrary price increases (greed -flation) will be taxed at 100% and rebated back to the proceeding business who suffered the additional costs. Repeated breaking of these reasonable stabilization of such personal and commercial benefits will result in loss of their discount rebate and tax/rebate privileges. I also suggest a new govt. department I refer to as The Dept. of Competition, Innovation, Boycotting and The Public’s Bully Pulpit that will have weekly press conferences pointing their finger at any transgressors and recommending the public boycott those businesses that are trying to game and destroy their 100% increase in purchasing power. If this takes an army of Bill Black style forensic accountants….wonderful!!!. As for any complaint that this is oppressive govt. please spare us. We’ll see how many right wingers refuse to sign up for the $1000/mo. universal dividend on “principle”…especially when you cant’t opt into it thereafter for 5 years if you don’t do so initially. And even then, no one is forcing them to keep the benefits of such. They can always pay full price for a $500k house instead of the $125k they’d get it for with the discount at retail and the debt jubilee at note signing.

AT: Thank you Steve.

You did not answer my 1st question, so I’m assuming implicit Yes.

Me: Sorry, yes the money created by the government or central bank, whichever is mandated to create and distribute the rebate monies, saves the consumer half the price. In the case of the Gift/Debt Jubilee policy at point of loan signing the bank sends the owner or home builder the remainder of the $250k and then the government would gift 50% of the total interest earned on the term of the note immediately to the bank which they could pocket as revenue in exchange for reducing the note by 50% to $125k.

The way to either bring true competition to Finance, or put every non-adapting of the new monetary paradigm bank out of business.

Incorporate it as the first new paradigm competitor to traditional banking and have it loan at no more than 4%. Innovation is a key signature of historical paradigm changes.

If an exporting nation raises their prices or have raised them by relative high ppercentages before a tax/tarriff of 100% of such price increase will be measured on them and rebated back to the imported enterprise.

…so be grateful…and apply the concept behind it, which is grace, in every one of our systems. Act to implement grace because action is an essential aspect of that concept.

Its the next mega-paradigm change for humanity.

25% Gift/Debt Jubilee policy for commercial loans. No debt jubilee for any purely financial/speculative purposes, any derivative “products” or currency speculations which will also be severely regulated.

Hence the aspects of grace are the prelude, the program and the postlude for life, living and evolutionary change.

New paradigms are Bucky Fuller Trim tabs in that they cause significant change with the application of a single concept. Especially if that application is 1) the very expression of the new paradigm itself and 2) that expression temporally results in resolving the anomalies of the old/present paradigm because it actually is the key new concept that resolves. IT’S THE SOLUTION EXPRESSED AND APPLIED. Its as simple and as powerful as that. Its helio-centrism instead of geo-centrism. Its agriculture instead of nomadic hunting and gathering. Its Monetary Gifting instead of 1) Debt as in the Burden To Repay and 2) Debt as the sole monopolistic form and vehicle for the creation and distribution of new money. This doubly anomalous paradigm is especially problematic because it not only poses a logical paradox, as all new paradigms do, but also potentially presents a moral response which the morally orthodox can use to resist needed change. The last such paradigm change was The Reformation where the paradigm of Salvation via the Roman Catholic Sacraments Only was challenged by Luther’s paradigm that one could have a direct personal relationship with god.

Why? Because grace as in love in action is the most integrative of opposites concept in the world…so “as inside so outside” and the best way to self actualize a reality is to experience it daily if not continuously which means if you can feel grace as in gratitude for a continuous external reality you’re going to make that experience more real to your self.

Contemplate the various aspects of grace and create the opportunity to experience gratitude continuously in our temporal universe systems, and you’ll get a synergistic increase in the highest and most rewarding experience humanity can have.

This is what can occur with the implementation of the new monetary paradigm of Gifting. The opposites of self and systems integrated by grace.

Use double-entry bookkeeping which is probably the most temporal universe anchoring discipline humanity has ever invented, and a new monetary idea that, like all new paradigms is always in complete conceptual opposition to the present anomalous one…and just so happens to resolve the anomalies because its the solution to the key outnesses like “money, debt and banks” for instance. Come on, Keen. You can follow this and you know the history of the Copernican cosmological paradigm change. You’re just not following through with the conceptual/philosophical analysis and policy alignment.