| Subject: | Re: [socialcredit] Extrapolating A+B Part 1 | | Date: | Tuesday, September 20, 2005 19:46:07 (+0000) | | From: | John G Rawson <johngrawson @.......com>
|
| In reply to: | Message 2844 (written by Joe Thomson) |
Hi Joe. Like any other business, Banks reinvest some of their profits. There
may be some other reason, but I don'tsee it if there is.
John R.
From: Joe Thomson <thomsonhiyu@shaw.ca>
Reply-To:
socialcredit@elistas.com
To: socialcredit@elistas.com
Subject: Re:
[socialcredit] Extrapolating A+B Part 1
Date: Tue, 20 Sep 2005 08:13:48
-0700
>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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