| Subject: | Re: [socialcredit] Re: Extrapolating A+B Part 1 | | Date: | Monday, September 19, 2005 13:23:30 (-0700) | | From: | William B. Ryan <w_b_ryan @.....com>
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| In reply to: | Message 2838 (written by cymric) |
"...not to mention the huge reduction in staff by
banks in recent times."
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The displacement of labor.
-
"Interest over time makes the otherwise finished price
up to many times it original."
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It does not though I will acknowledge this is an
article of faith with "monetary reformers" such as
yourself.
-
"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."
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But you are merely alleging certain conclusions based
on the false premise that "interest has to be created
by borrowing."
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"The banks dividends are not a national dividend and
comes back after the damage and doesnt compensate it."
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But no less an authority than C. H. Douglas described
bank dividends as one of the few examples of
"unattached purchasing power" in the present system.
In fact, the dividend paid to everyone from the
national credit account is the functional equivalent
to a bank dividend, rationally applied.
Please do tick with us, Peter, as we work our way
through this extrapolation.
-
--- cymric@xtra.co.nz wrote:
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
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