| Subject: | Re: [socialcredit] note | | Date: | Thursday, May 5, 2005 09:44:02 (+0100) | | From: | Timothy Carpenter <timbeau_hk @........uk>
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Re: [socialcredit] note
Hi Jim,
When I said ‘deflation’ I did not mean it to mean price decreases, but in an economic sense.
Looking forward to your further replies
Tim
On 3/5/05 6:09 pm, "Jim" <jschroeder@shaw.ca> wrote:
In my correspondence with Tim Carpenter I said:
It's really quite simple. You are correct in saying that the initial loan causes inflation, and then when the item sells it's deflation, so in your mind it all balances.
This is factually incorrect, but I want to explain this to Tim using his terminology. The loan never causes "deflation".
What Tim means is that is that the money distributed in advance of the cost showing up in a consumer good is equivalent to the cost in the consumer good. The money is then taken back in the price of the consumer good (what Tim is deeming "deflation"). This is not deflation as it's not a decrease in price. However; what he means is that the money distributed in advance is taken back in the future via price.
This is true. And the quantity distributed in advance of the cost showing up in a consumer good would be equivalent to cancel that cost. However; the money distributed in advance is not saved up as purchasing power (i.e. saved in a sock). It is reinvested back in industry; thus creating a second, or more, set of costs.
I just wanted to make sure that I was aware of the incorrectness of my original statement, but you cannot teach someone something in your terminology. First they must understand the underlying problem, then debates over semantics can take place.
There is no actual "deflation" that takes place when a capital cost shows up in the price of a consumer good sold.
Jim
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