Money Paradigm: Public Debt is Private Savings

In a prior post I examined the spirited conflict of ideas between Karl Denninger and Mike Norman on Lauren Lyster's program.

Perhaps what we may have here is a failure to communicate.  The reason for the failure might be illustrated by the classic face and vase paradigm shift.

http://www.maxdstandley.com/art_info/face_vase.html





Perception shifts from a face to a vase or vice versa depending on which is perceived first.

Some people cannot make the paradigm shift therefore the other object does not exist (is impossible to exist) for them.

It is perhaps entirely only coincidental that the Public Debt is the mirror image of Private Savings as presented by the MMT graph exactly like the illusion above.  It can be seen two ways, two different things.  Some can't see it as anything other than one thing.  Not because of visual perception interference of some kind but as thought process interference.

Looking at the picture as either Public Debt or Private Savings determines what the primary aspect of the picture is and what methods are used to change it.  Choosing one or the other determines which leads and which follows and by what mechanisms it does that over time.

What has really happened over time to date to create the symmetrical cyclical chart and what those things were it is what will continue to happen from this date forward.  Karl and Mike each claim different causal factors, therefore different conclusions for actions based on their perception of which big picture is chosen.

The face and the vase is the classic example of a paradigm shift.  It is a visual example.

I think the day will come when the classic conceptual example of a paradigm shift in our social world will be when society suddenly shifted its view of money from one of debt money to asset money.  We currently have a debt money system.  How quickly and how easily could the shift be made?

Could it be the next Berlin Wall.

The world does not change quickly.  Historically true.  However it is changing at an increasingly greater rate (more Quickly).  Physical changes directly related to conceptual changes previously constrained the rate of change.  In the Information Age, concepts relating to the organization and management of things in our physical world have become increasingly separated from their physical constraints.  We can still talk on the telephone like people did in 1910.  The physical constraints to doing that (wires) have disappeared.

Because the physical constraint of wires necessary to talk on the phone have literally disappeared, subsequent progress and changes in the less tangible physical world of space and time have happened quicker.  The shift from analog to digital information being carried on radio waves was (relatively) painless and quick with great benefit.

Things can change even quicker in the conceptual world.  Except for religion.

Might it be possible that Karl will someday see the face instead of the vase and instantly see the light?  Or will it be Mike?

I bet on Karl shifting.  A shift is a change at the speed of light.  Must be a formula to express that.

(When will the last telephone pole be protected as a World Heritage artifact like we put cathedrals on the same list.)

For the MMT people:  Can you somehow devise the Public Debt/Private asset graphic to be a Face/Vase visual paradigm shift to illustrate your point?

Neat trick if it could be done but that is exactly what you have to do in the minds of those that you present it to.  It must be exciting when you see that shift happen during a presentation.  Maybe only a small percentage of those in the room.  That however is what teachers thrive on.  The light goes on nd somebody gets it.

Money Paradigm: Public Debt is Private Savings

Is that right or wrong?

Is it the better way to look at things leading to better solutions to the problem domain.  Positive Solutions that we can't get to by looking at it in any other way?  Or, if we don't change our way of looking at the problem will take us into equal symmetrical negative territory below the line balancing in a mirror image increases above the line measuring degree of ignorance?

Now there is an interesting concept to express in a graphic chart:  Degree of ignorance related inversely and directly, to the penny, as a mirror image of our inability to solve the problem.  Problem solution therefore defined as approaching, over time, the zero point where neither ignorance not problem exist any longer.

Is that the end point goal of the human race on the micro and ultimately macro level.

Macro level: Heaven on earth.