Absolutely no argument with your assessment of neo-classical macro’s characterization of the money creation process. Problem is, enlightening that fact may enable clearer thinking about the matter and even effect some palliative reforms…but it won’t solve the biggest problem of money creation which is that the banks wield the monopoly paradigm for the creation and distribution of all new money, that is the APPLIED CONCEPT of Debt Only. This enables the banks to dominate every other economic agent both commercial and individual because the wonderful tool of money after all is both the agent of economic action and the very means of survival itself. So how stupid is it that we allow the banks to wield such MONOPOLISTIC POWER? Its obvious that Finance has been standing astride the world like a collossus since forever, first by the palace and now by the banks…and that will continue even if we invalidate neo-classicalism’s fallacies…because long standing paradigms, MOST especially monopoly paradigms are dominating and gather anomalies UNTIL someone figures out what the new paradigm is and how to most efficaciously APPLY it.

So like what we did with The Holy Roman Catholic Church dominating everyone with the paradigm of Salvation Via Catholic Sacraments ONLY we need to break up The Holy Modern Church of Private Banking’s Monetary Paradigm of Debt ONLY.

A few suggestions: 1a) Recognize that historically every new paradigm has always been in complete conceptual opposition to the present anomalous paradigm so in this case its from Debt Only to Strategic Monetary Gifting which is in the required complete conceptual opposition but also still allows lending but breaks up the monopoly aspect of the present paradigm 1b) give every economic agent both individual and commercial an account at the central bank 2a) Implement a 50% Discount to the consumer/Rebate back to the commercial agent policy at retail sale and mandate that the central bank rebate the monetary gifts to make the commercial agents whole on their gifted discounts to the consumer which policy inverts the chronic realities of inflation into beneficial price and asset deflation 2b) do the same policy at the retail point of Finance which is one’s monthly mortgage, automobile, insurance or other big ticket item payment. 3) check out a bunch of other policies that stabilize and secure the new monetary paradigm to the benefit of all…even the banks here: https://www.amazon.com/Wisdomics-Gracenomics-New-Monetary-Paradigm-Policies/dp/B08X7MZ4KH/ref=tmm_pap_swatch_0?_encoding=UTF8&qid=1552358772&sr=1-1-catcorr

All of what you say regarding neo-liberalism is correct. Full stop. However, the even deeper problem is that macro-economics almost entirely abstracts out the individual agent and thus it sets up an ethic that says Man was made for Systems…rather than Systems were made for Man. We need an ethical/humane macro-economics. We can accomplish that by integrating a new monetary paradigm of Strategic Monetary Gifting into the current monopoly paradigm for the creation and distribution of all new money which is Debt ONLY. The word ONLY designates it as a monopoly paradigm the same as Salvation Via Roman Catholic Sacraments ONLY was a monopoly paradigm and The Reformation ended that inhumane/unethical reality. We require a monetary reformation or the current dominating monetary paradigm wielded by the private banking system will continue to stand astride the world like a collosus…forever. I’m not suggesting we eliminate debt altogether, that would simply replace a monopoly paradigm with another monopoly paradigm. However, if we implemented a policy of a 50% Discount/Rebate at retail sale 50% of all new money would be a gift that benefitted both commercial agents AND individual agents and (because your monthly automobile, mortgage or other big ticket item’s monthly payment is the retail point of finance) the retail discount policy would integrate finance into the actual economic/productive system instead of allowing it to be a dominating and very costly exterior parasite on everyone and the actual economic system. Applying the 50% Discount/Rebate at the retail point of finance would actually benefit the banks because if everyone got a 50% discount on price for consumer goods and then an additional 50% reduction when they bought a big ticket item (example: a $500k house is reduced to $250k at its purchase point, and then the central bank paid 50% of your monthly mortgage payment the individual gets that $500k house for a payment equivalent of a $125k loan)…the market for mortgages quadruples or more because virtually EVERYONE IS CREDITABLE!

GW: Complimenting Steve Keen: Super! From Ptolemy to Copernicus in Economic theory. Better late than never!

Me: Not quite. His systemic analysis is all perfectly true, but his remedy is more like Ptolemaic cosmology’s “epicycles”, that is, a (false) fix because it doesn’t penetrate to the core problem which is the monopoly monetary and economic CONCEPT of Debt ONLY.

Me: I’m all for public banks, but the change from private to public banking doesn’t enable the kind of total problem resolving and temporal universe change as a change in the nature of credit ITSELF…from Debt Only to Debt and Strategic Monetary Gifting. A change in CONCEPT is a change in paradigm because…paradigms are themselves concepts…like the change from geo-centrism to helio-centrism for instance. The private banks and even a public bank will still only create money as debt. Again, the only way to break up their monopoly paradigm concept of Debt Only is to integrate the new monetary paradigm concept of Gifting…into the Debt Only current system…like with a 50% Discount/Rebate policy at retail sale. That way a $500k house is discounted to $250k and the government or central bank rebates the entirety of the discount back to the home builder so they are made whole on their entire price. And then, as your monthly mortgage payment is the retail point of Finance, the government or central bank pays for 50% of your monthly payment so you get a $500k house for an equivalent mortgage payment of a $125k loan. Nice huh? But wait, the benefits don’t stop there. For instance make the 50% Discount/Rebate include all sales taxes and the non-sovereign state, county and local governments get 50% of their revenues paid by the federal government…Not you…and with GIFTED money…NOT debt. Inflation? Getting $100 worth of groceries for $50 and a $500k house for the equivalent of $125k is a funny kind of inflation called beneficial price and asset deflation.

DP: Canada’s central bank went from private to public in 1938. Since then its money creation went from about 50% of the economy, to 23% in the early 1970’s, to less than 5% today. Form, follows function, follows form etc. Without the proper feedback structure, it’s only a matter of time before regulatory capture results in less public consideration. Just like the CDC and FDA, as was recently exposed.

In the U.S. binary economics ties credit creation to the INDIVIDUAL through Section 13 of the Fed Reserve Act, the discount window. 0% interest loan, only for the purchase of shares in existing or new productive proper, onetime bookkeeping fee, collateral by insurance.

You can start with 2 minute video, watch the 10 minute video on the Economic Democracy Act on the home page at gjmer.org

My home province has an institution far superior to the Bank of North Dakota, the other publicly owned ‘state’ bank in North American. It is the Alberta Treasury Branches, designed by REAL social crediters. Alberta autonomy or independence can lead to this shaking off the Supreme Court of Canada ruling against money creation.

Me: Dan, Did you see my post above? The 50% Discount/Rebate at retail sale is an innovation of Douglas’ Compensated Retail Price and is a full concept/paradigm change in the economy and money system. Douglas was way ahead of everyone else with Social Credit, but like virtually everyone he lived within his present cultural horizon with classical economics’ orthodoxy of general equillibrium and hence never considered a high percentage CRP. Also, he preceeded Kuhn’s analysis of paradigms/operant concepts.