credit guidance - TOWARDS LIFE-KNOWLEDGE

This paper proposes a constitutional order for monetary and credit governance in which the life-sequence of value normatively rules the money-sequence of value. The framework synthesizes John McMurtry’s Life-Value Onto-Axiology (LVOA) with Kate Raworth’s Doughnut Economics and John Fullerton’s regenerative principles, while operationalizing economic policy through Modern Monetary Theory (MMT) and the complementary stock-and-flow analyses of Steve Keen (private-debt stocks) and Richard Werner (credit-flow composition). The central mechanism is a binding Life-Value Impact Assessment (LVIA) that screens all major fiscal, monetary, and prudential actions for their effects on universal life necessities within ecological ceilings. Operational feasibility is disciplined by a Resource Board that paces injections to real capacity and biophysical thresholds. Stability and allocation are ensured by a targeted household debt jubilee (stock correction) and a prudentially embedded credit-guidance taxonomy (flow steering), supported by a public development bank. A quarterly dashboard — Life-Value Index, Debt Harm Index, Credit Map, Resource & Inflation Map, and Distributional Accounts — closes the loop from evidence to policy adjustment. Sectoral applications (health, education, housing, energy/food) illustrate how civil-commons provisioning becomes the explicit end of macro-finance. The result is an enforceable architecture that reconciles normative universality with plural ends-in-life, aligns money creation with regenerative design, and measures success by sustained advances in access to universal life necessities within planetary boundaries.

The prevailing global monetary architecture is structurally misaligned with the conditions required for long-term human and ecological flourishing. Rising household indebtedness, speculative credit growth, and the under-provision of universal life necessities have converged to produce chronic instability, widening inequality, and systemic ecological degradation. Conventional monetary policy, grounded in the loanable funds and neutrality of money doctrines, remains ill-equipped to address these challenges. This paper presents the Life-Coherence Monetary Governance Model, an integrated policy framework that synthesizes Life-Value Onto-Axiology (LVOA) as a normative compass, Modern Monetary Theory (MMT) as an operational foundation, and the complementary insights of Steve Keen’s “stock” approach to private debt management and Richard Werner’s “flow” approach to credit allocation.

The model positions the Life-Value Impact Assessment (LVIA) as a binding precondition for all monetary and fiscal actions, embeds a debt-jubilee mechanism targeted at life-necessity debt overhangs, and establishes a credit-guidance taxonomy to channel new lending toward productive, ecologically regenerative uses. By aligning sovereign fiscal capacity with universal life necessities and regulating the stock and flow of credit within real-resource constraints, the framework aims to deliver macroeconomic stability, equitable prosperity, and ecological resilience. The paper outlines the theoretical foundations, policy instruments, institutional arrangements, and evaluation metrics required for effective implementation, and concludes with a call to reorient monetary governance toward the preservation and expansion of life’s carrying capacity.