All of the things you suggest we do are well and good. However, their effect does not recognize the core of the problem and how to resolve it. As you have said before every year the banks create upwards of 97% of all new money. Thats a monopoly percentage. The problem is the monopoly paradigm of Debt Only as the sole form and vehicle for the creation and distribution of new money, and its solution is the strategic integration of Monetary Gifting into the Debt Only system with a 50% Discount/Rebate policy AT THE POINT OF RETAIL SALE. Doing that macro-economically (because EVERYONE participates in and/or is effected by the price at retail sale) doubles potential demand while simultaneously implementing beneficial price and asset deflation thus invalidating the quantity theory of money (the heads of the orthodox explode).
This policy actually integrates private finance back into the actual economic process as presently it is a wholly exterior cost adding parasite on the actual productive economy because Debt/loans are always pre-production or post retail sale. So for instance with the 50% Discount/Rebate policy a $500k house is reduced to $250k at retail sale and then at the newly recognized retail point of Finance, i.e. your mortgage payment, one's payment is reduced to the quivalent of a $125k loan while the bank receives its full payment on the $250k loan.
Presently we are stupider than the ancients who used periodic debt jubilees to reset their economies. The problem with that was it enabled finance to re-dominate everyone for another 70+ years because it didn't change the paradigm of Debt Only. What we need is to become smarter than the ancients by strategically integrating continual debt jubilee into the economy with the 50% Discount/Rebate policy at retail sale.
Thanks for helping to clarify the interest on reserves question for me. Somewhat bizarrely it had been on my mind in the last couple of days before your post, because I had been thinking about how the US economy has managed to defy most predictions and weather the storm of higher interest rates and QT. Clearly there are significant factors keeping it afloat, and paying 6% of GDP per year to the banks (and money market funds now as well?) will be one of these.
Re: "Neoclassical macroeconomic models do not include banks, or private debt, or money." I really struggle to believe that any serious thinker could create such a model or be taken seriously if they said something like that publicly.
I can still remember reading about the problems with lending in the US housing market in a British financial magazine...in 2006 and 2007. They clearly understood and laid out what was going to happen. It never made sense to me that financial journalists could predict this but economists (with one or two notable exceptions!) couldn't.
All of the things you suggest we do are well and good. However, their effect does not recognize the core of the problem and how to resolve it. As you have said before every year the banks create upwards of 97% of all new money. Thats a monopoly percentage. The problem is the monopoly paradigm of Debt Only as the sole form and vehicle for the creation and distribution of new money, and its solution is the strategic integration of Monetary Gifting into the Debt Only system with a 50% Discount/Rebate policy AT THE POINT OF RETAIL SALE. Doing that macro-economically (because EVERYONE participates in and/or is effected by the price at retail sale) doubles potential demand while simultaneously implementing beneficial price and asset deflation thus invalidating the quantity theory of money (the heads of the orthodox explode).
This policy actually integrates private finance back into the actual economic process as presently it is a wholly exterior cost adding parasite on the actual productive economy because Debt/loans are always pre-production or post retail sale. So for instance with the 50% Discount/Rebate policy a $500k house is reduced to $250k at retail sale and then at the newly recognized retail point of Finance, i.e. your mortgage payment, one's payment is reduced to the quivalent of a $125k loan while the bank receives its full payment on the $250k loan.
Presently we are stupider than the ancients who used periodic debt jubilees to reset their economies. The problem with that was it enabled finance to re-dominate everyone for another 70+ years because it didn't change the paradigm of Debt Only. What we need is to become smarter than the ancients by strategically integrating continual debt jubilee into the economy with the 50% Discount/Rebate policy at retail sale.
Thanks for helping to clarify the interest on reserves question for me. Somewhat bizarrely it had been on my mind in the last couple of days before your post, because I had been thinking about how the US economy has managed to defy most predictions and weather the storm of higher interest rates and QT. Clearly there are significant factors keeping it afloat, and paying 6% of GDP per year to the banks (and money market funds now as well?) will be one of these.
Re: "Neoclassical macroeconomic models do not include banks, or private debt, or money." I really struggle to believe that any serious thinker could create such a model or be taken seriously if they said something like that publicly.
I can still remember reading about the problems with lending in the US housing market in a British financial magazine...in 2006 and 2007. They clearly understood and laid out what was going to happen. It never made sense to me that financial journalists could predict this but economists (with one or two notable exceptions!) couldn't.