| Subject: | [socialcredit] Per's A+B | | Date: | Friday, September 30, 2005 10:23:51 (EDT) | | From: | Triumphofthepast <Triumphofthepast @...com>
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I've had a chance to look over Per's charts and accompanying text. Banks are treated as any other institution. The fact that ALL money comes from banks and that money has a life-and-death cycle is not incorporated into the charts. Rather, bank loans is in a small box as if it were a trivial element.
The charts attempt to illustrate money flows in business. In "Money flows to and from the steps in production chain" the left half illustrates Costs, with payments to previous production step* at the top and payments to individuals (Consumers) at the bottom. However, neither the word Costs nor Prices appears. The right half illustrates "Purchase from production step N," in other words, Sales.
It's confusing that the previous step to N is called N+1, instead of N-1. The chart "Money flow to and from the consumers and to step 1 in the production chain" shows why: the LAST step in the production chain is called "step 1." This chart shows "Purchase from production step 1," that is, Sales, on the left and payments to individuals, from the previous chart, on the right. So it does illustrate that payments to individuals constitute the Purchasing-Power to purchase production. However, the word Purchasing-Power does not appear, nor is there any suggestion of Purchasing-Power falling short of Costs and creating a problem making Sales.
To discover such a phenomenon, Per would have to incorporate Improvement of Process and would also have to model Time better. In "Money flow to and from the steps in the production chain," for example, one step is on the left, and the next step is on the right, but payments to individuals (Consumers) is in the no-man's-land between them. Yet payments to individuals should be synchronous with each production step, and that should be compared to "step 1" Costs for goods going on the market at that moment.
Conceptually, I think part of the problem is that Per illustrates payments as made to "steps," i.e., to a preceding time. But of course, they are not made to "steps," they are made to companies existing in the present time, to reimburse Costs from a preceding time.
I would suggest clearly making synchronous periods in vertical columns. I would also have Banks as a horizontal element at the top extending the entire width of the chart, with money cycling down from, and back up to, the Banks in every synchronous period.
Michael
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Per's A+B
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