|Subject:||Re: [socialcredit] dialog|
|Date:||Wednesday, August 4, 2004 17:14:51 (-0600)|
|From:||martinh <martinh @....net>
What the critics of Douglas's A+B theorem seem to ignore is the fact of
timing. Capital financed by new bank credit distributes purchasing power
at a time when no new production is coming on the market, and so is
inflationary. When the Bank credit has to be repaid, after the capital
investment has long been made, those "B" payments are deflationary,
because they are a charge on prices for which no consumer is getting an
income with which to pay. Hence orthodoxy's continual striving for
"economic expansion" so that we can distribute incomes with more new bank
financed capital expansion, to buy goods already on the market for sale.
Martin Hattersley: 1970-10123-99 St.
Edmonton, Alberta, Canada T5J 3H1
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