| Subject: | [socialcredit] Re: Extrapolating A+B Part 1 | | Date: | , September 24, 2005 07:22:31 (+0200) | | From: | cymric <cymric @.......nz>
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The argument about interest being taken out of circulation, is not inferring
that it is cancelled like the principle and obviously the Banks re-invest that
income one way or another back into the economy.
The argument is merely to substantiate the theoretical situation that the
'principle' borrowed ( its a deposit and a loan) cannot pay the principle and the
interest ( arguing in a similar fashion to the A pls B )which is the basis of the
argument. This theoretical truism is merely anothet type of 'gap' that is one of
the dilemmas of the economic system.
As for the flux and reflux, I have already spoken of that in the form of the
borrowers account at the bank in a reply to Joe. Its merely double entry
bookkeeping. If the banks accepted the interest and the principle as being one
and the same I would agree with you but in that borrowers account there is no
provision to show the interest which has to come from someone elses borrowings -
just as the volumn equal to interest need in any economic cycle hasnt been
created for the purpose to balance the system. ( Douglas has made proposals that
has 'credit' created and dispursed to balance the system)
Interest can be claimed as just another business expense in the economic
process. We can accept admin. and function costs as in the bank fees. The
difference is that the banks claim to own the money is false. I therefore hold
to a view that if the economy intertained false expense claims across the board
it will imploded. Some might argue- its bad enough with one industry doing it so
lets leave like it is.
Its an unnecessary and false expense with no value added.
If we dont watch it we will end up saying that the impossible debt burdon is due
to the profit margins throughout the economy and we need to move to a non-profit
economy.
Either the system of 'accounting' by which the economy is run is based on
reality or it is not. It clearly is based on the banking system and the banking
system is either a reflection of reality or it is not. The exponential debt
which economies cannot match and the interest are directly resulting from the
banking system, which is the cost of defying reality.
The 'bottleneck' and the 'scarsity' relating to money volumns which Douglas
referred to are what gives the perpetual control to the banking system over the
economy irrespective of the advance of technology to produce more and cheaper.
The flux/reflux conception is totally oblivious to the power of the Banking
system. This conception is what would be talking place in a social credit
society, where the 'accounting system' would be serving the economy reflecting
the public demands not Banking policy.
Peter H
"William B. Ryan" <w_b_ryan@yahoo.com> wrote:
>
> "Obviously the interest is taken out of circulation of
> the subsequent money supply loaned for productive and
> or consumptive reasons etc..."
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Re: Extrapolating 
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