| Subject: | Re: [socialcredit] Extrapolating A+B Part 1 | | Date: | Tuesday, September 20, 2005 08:13:48 (-0700) | | From: | Joe Thomson <thomsonhiyu @....ca>
|
I think we should come back to Bill's original question. To which I haven't
yet seen anyone provide a credible answer, (and mine below may not be
either.) The question was:-
> We look at the economic situation from the statistical
> perspective of the economy as a whole, or
> *macroeconomically.* We look at the behavior of banks
> in the aggregate; firms in the aggregate; and
> consumers (households) in the aggregate as they
> concatenate through time.
>
> Looking down on the economy from that perspective, we
> see a continuous flux of money from banks into the
> economy at large. We see a simultaneous reflux back
> to the banks.
>
> The flux from the banks consists of loan principal,
> ordinary business disbursements plus dividends to bank
> stockholders.
>
> The simultaneous reflux back to the banks consists of
> the repayment of loan principal plus interest and
> other fees.
>
> Question:
>
> "For what logical reason should the banks' ordinary
> business disbursements plus dividends NOT equal the
> payment of interest and other fees to the banks?"
--------------------------------------------------------
Answer:- I would say there is no logical reason, though what is called
''ordinary business disbursements" might need some clarification.
Would, in the case of a bank, an "ordinary business disbursement" include
'investment' of some of their revenue from interest and fees received in
'reserves' against possible loan losses? Also, if this 'investment' is an
"ordinary business disbursement", does it not, in a larger sense, actually
help insure what it's supposed to be guarding against will happen in any
overall economy with ongoing labour displacement?
Joe
|
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