| Subject: | [socialcredit] Re: Extrapolating A+B Part 1 | | Date: | , September 19, 2005 21:27:10 (+0200) | | From: | cymric <cymric @.......nz>
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Wiliam demanded ans answer from Marc:
"If banks recieve interest from the public and pay interest to the public as
well as paying ordinary business expenses and dividends to the public, please
explain why interest should cause debt to polarize- why the Banks in the
aggregate becoming net creditor, and the public net debtor."
Firstly the level or volumn of saving today compared to the level or volumn or
borrowing is so grossly in contrast it is non-sense to talk like this.
The Bank charges are besides interest and not mentioned, they are increased from
time to time in such increases that makes inflation look like a snail, not to
mention the huge reduction in staff by banks in recent times.
Interest over time makes the otherwise finished price up to many times it
original. That interest has to be created by borrowing so the debt load
increases over time exponentially not only to keep on paying over the same items
but to replace the money it sucks out of the future cycles of the economy- paying
for the past by future earnings is not consistent with a balanced system as
alleged by William.
While this dynamic has the economy carrying a paracite the economy goes into
recessions and back to booms, effected by prices and markets responding to
negatives of mankind and nature that add to the gauntlet while the banking
dynamic like rust never sleeps twenty four hours a day seven days a week.
While the inflation it generates helps over time to clear the debt ( keeps the
host going for the paracite) it also reduces the value of the 'currency'and if
the system is so self balancing and an even deal then the currency shouldnt be
devaluing over time either.
The banks dividends are not a national dividend and comes back after the damage
and doesnt compensate it.
Peter H
"William B. Ryan" <w_b_ryan@yahoo.com> wrote:
>
> "The function that makes the inactive depositors
> account balance grow as you describe is the same
> function that makes the balance of a debt grow..."
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Re: Extrapolating 
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