| Subject: | Re: [socialcredit] the reality? | | Date: | Wednesday, November 17, 2004 11:49:26 (+0200) | | From: | Jessop Sutton <sutton @...........za>
|
On Tuesday 16 Nov 2004 6:26 pm, william_b_ryan@yahoo.com wrote:
> [REPLY] The borrowers together with the banks
> participate cooperatively in the "money creation"
> process. The borrower has exchanged his note or
> negotiable security for the banker's notes in the
> modern form of bank deposits transferable by check or
> electronically. .. ... ... ... Effectively, the banker is endorsing the
> borrower's note, making him personally liable if the
> borrower defaults. The function of banking is to
> thereby make "fungible" the individualized credit of
> market transactors, without which the system of free
> enterprise could not exist.
============================
This is about the first statement about banks and the money-creation process
that this hard-to-convince sceptic can agree with. Provided we understand
that the borrower's note or negotiable security does include anything from
assets that retain (or grow in) value such as landed property, to a trust in
the borrowers's potential to produce saleable goods or to otherwise obtain
income. The sum-total of all credit will always be less than the values of
the underlying bonded properties or earning/production-potential.
Thanks, Bill.
Jessop.
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