It explains stagflation.
It explains the need to keep building up the economy for expansion's sake.
It explains why we only had prosperity all of last cenntury when it was linked
with expenditure for war or reconstruction afte it. (As forecast by Douglas).
It explains why, when the "credit squeeze" in this country reduced the money
supply from 31% of (then) GNP to 13%, inflation rose from about 3% to 14% per
annum.
I believe that is a hell of a lot simpler that most of the convoluted and
unnecessary considerations that have been going on in this group.
I'll ignore the still less logical part of your comment.
Regards. John R.
>From: "William B. Ryan"
<w_b_ryan@yahoo.com>
>Reply-To: socialcredit@elistas.com
>To:
socialcredit@elistas.com, ownership@cog.kent.edu
>Subject: [socialcredit] RE:
scale in a+b
>Date: Fri, 1 Jul 2005 10:39:48 -0700 (PDT)
>
>The step, "therefore
this applies to the whole
>economy" is hypothetical, as evident from
the
>immensely lengthy discussion here, at best difficult
>to show deductively,
but just plain simple if tested
>inductively against
reality.
>---------------------------------
>The fact that you think it's "plain
simple" tells me
>you don't understand the theorem whatsoever, and
>explains to
me why you New Zealanders can recommend
>everything (greenbaker stuff) BUT the
uniquely Social
>Credit
solutions (dividend and discount) suggested by
>Douglas.
>
>Douglas was himself
under no illusion that it was
>simple.
>
>The Modernist Journals Project, a joint
effort by
>Brown University and the University of
Tulsa,
>http://www.modjourn.brown.edu/MJP_NA.htm
>has put on-line the New Age
issues published under
>Orage, which includes much of Douglas' early
work,
>including the full text of his first two
>books--Economic Democracy and
Credit-Power and
>Democracy. I can now say confidently that the
>suppression of
the Douglas thought (mostly by
>self-styled social crediters) in the half
century
>since his death is ended. This early Douglas work is
>now in the public domain,
unequivocally, and may be
>freely distributed, reproduced and
discussed
>throughout the
world.
>
>The September 25, 1919 issue contains a diagram drawn
>by Douglas
which contains this
caption:
>http://www.geocities.com/socredus/diagram
>
>:-
>
>_In the above
diagram the shaded portion shows the
>growth of the cost of an article (or,
equally, of the
>production of a community) under the bank-credit (so-
>called
capitalistic) system, by the successive
>addition of all the sums paid out in all
forms of
>remuneration, as shown in the vertical columns.
>
>_The cross-hatched
portion of the vertical columns
>shows the money-value of the cost of living of
the
>persons amongst whom the remuneration is distributed;
>this represents over
90 per cent. of the sums
>distributed as wages and salaries. In the case
of
>large individual incomes, although
considerable
>surplus purchasing power is available, there is no
>psychological
demand, except for the purpose of
>"making money." There is consequently an
increasing
>surplus production which must be met by credit.
>
>_If the above
statements are correct for any industry
>chosen at random, they must be true for
all industry.
>
>Consequently an increasing proportion of the product
>of
industry must be appropriated by the financier and
>the entrepreneur who control
credit, in
>contradistinction to the ultimate consumer who does
>not.
>
>_It
should, of course, be borne in mind in connection
>with the above diagram that
the economic system is
>dynamic, not static. All the components of it should
>be
visualised as changing both in position,
>direction, and magnitude. A vector
diagram could be
>constructed to represent the condition, but it would
>not be
generally intelligible. C. H. D._
>
>:-
>
>What Douglas is telling us in the
final paragraph is
>that the two dimensional diagram is merely suggestive
>to us
of his very abstract thinking on the matter,
>which he conveyed through metaphor
and story in the
>attempt to make it comprehensible to people like us
>with more
ordinary gifts.
>
>What I am trying to accomplish (through participation
>in
various forums) is to find someone, somewhere in
>the world, who is capable of
picking up Douglas' baton
>and carrying it forward into the twenty-first
and
>future centuries. That requires someone with a
>similar intellect and
educational foundation to his;
>not only that, but the speaking ability and
charisma
>he must certainly have had, and the drive to succeed.
>
>I have not
yet found such a person, present company
>included, not excluding
myself.
>-
>
>
>
>
>
>--- John G Rawson <johngrawson@hotmail.com> wrote:The
>whole
economy is not just a consumer production
>system. There is the banking system,
that produces no
>consumer products that have not been costed into
>industry
elsewhere and which nowadays to a greater and
>greater extent finances
consumption rather than
>production. There are government agencies, central
>and
local.
>
>The step, "therefore this applies to the whole
>economy" is
hypothetical, as evident from the
>immensely lengthy discussion here, at best
difficult
>to show deductively, but just plain simple if
tested
>inductively against reality.
>
>As Vic Bridger said, "It has proved
itself." Why on
>Earth do we continue to confuse ourselves and
>outsiders with
lengthy, tedious, unnecessary argument
>about debatable detail?
>
>Refgards. John
R.
>-
>
>__________________________________________________
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