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Message 1158
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| Subject: | Re: [socialcredit] Re: Reply to Trevor Crosbie -- and further to Don. | | Date: | Sunday, May 1, 2005 00:22:27 (-0700) | | From: | William B. Ryan <w_b_ryan @.....com>
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Which "recent posting" is that, John? Be specific.
The one you just posted trumpeting debt virus, your
favorite "theory"?
The meaning of the theorem is not obvious. Otherwise,
you wouldn't have "professors," like the one Jessop
just quoted, touting the money multiplier model, which
is that reserves create deposits.
They (meaning the Post Keynesians) differentiate
between what they call the "endogenous" perspective,
where credit derives from transactions, as opposed to
the "exogenous" perspective, where "reserves" are
dropped into the economy, like from a helicopter, by
the Central Bank or Treasury.
I could go further into the explanation, but I'm
afraid it's a bit too abstract for the mental capacity
of a debt virus "theorist" to comprehend.
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--- John Hermann <hermann@picknowl.com.au> wrote:
> At 08:52 AM 30/04/2005 -0700, Bill Ryan wrote:
> >The general theorem, as enunciated by Douglas in
> his third book (I know of
> >no-one who stated it earlier) is: Loans create
> deposits; the repayment of
> >loans cancel deposits.
> >
> >In a system where most transactions are conducted
> through the transfer of
> >bank deposits from transactor to transactor, the
> theorem becomes critical
> >to any sound analysis.
> >
> >The theorem is accepted in exactly those same
> words, though not attributed
> >to Douglas, by the school of economics called "Post
> Keynesian," founded by
> >Professor Paul Davidson, editor of "The Journal of
> Post Keynesian Economics."-
>
>
> It's not a theorem - it's a fairly obvious fact.
> That's why Davidson felt
> no obligation to attribute it to anyone. The
> conclusions that Bill Ryan
> continues to trumpet about loans and deposits follow
> from elementary
> analysis using the accountancy equation (which,
> incidentally, was
> not discovered by Douglas). My recent posting
> provides the details.
>
> John Hermann
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