| Subject: | [socialcredit] Replying to Rawson 3 | | Date: | Friday, October 21, 2005 08:41:01 (-0700) | | From: | William B. Ryan <w_b_ryan @.....com>
|
[Rawson] "And, of course, if we take the (to me
ridiculous) point that there will be no savings..."
-------------------------------------
Who has made that ridiculous point, John?
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To which you now reply:
"(Ridiculous point...) Henry Raynel quoting Bridger in
very recent correspondence. More or less "all new
production must be financed by new credits, not
savings..."
-------------------------------------
Please note, John, the sentence structure and actual
words Vic used (or you paraphrased). Vic certainly
did NOT make the ridiculous point that there will be
no savings, but that new production must be financed
by new credits, not savings. Do you see the
difference?
In point of fact, new production is not now financed
by savings, and hasn't been for centuries, if not
millennia--IN THE DYNAMIC or MACROECONOMIC SENSE.
With social credit we are dealing with macroeconomic
phenomena, attempting to understand, regularize and
refine them with the help of Douglas and others, so
the world might be a better place.
Let me introduce you to the concept of dynamics in
economics.
Individuals save to spend later, so in the
macroeconomic sense (meaning from the perspective of
looking at the economy in the whole), the pool of
savings may the thought of conceptually as a delay
circuit.
In the condition of steady state, though it is a delay
circuit, the delay is apparently zero, for every
single dollar that one person is saving, there is
correspondingly a single dollar that someone else has
previously saved that he is now spending. The volume
of the pool of savings therefore is remaining
constant. The delay is ascertainable only when the
volume is increasing (or changing).
"Evenly rotating" is the term that economists apply to
an economy in hypothetical steady state.
For every unit of capital degrading to the point where
it has to be replaced, there is statistically an
identical unit of capital that simultaneously becomes
available to replace it.
The continuous production of this replacement capital
in the evenly rotating economy is not "new production"
in the dynamical sense. New production is the term
that applies to the incremental increase to the rate
of production.
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----------original message----------
Subject: RE: [socialcredit] Replying to John Rawson 2
Date: Thursday, October 20, 2005 20:59:55 (+0000)
From: John G Rawson <johngrawson@hotmail.com>
(Ridiculous point...) Henry Raynel quoting Bridger in
very recent correspondence. More or less "all new
production must be financed by new credits, not
savings..."
(...exponential increase to the costs of
production...) You quote a phenomenon, not the cause.
(.... reducing loans...and increasing consumer
credits...) Excellent, provided the manufacturers are
allowed to use these funds to finance the next cycle,
as opposed to the Swanwick principle Henry quoted.
Again, dead short on practical mechanism.
But thank you. At last I have got a direct answer to
a question I have been asking in one form or another
for a long time. Next question (not in this group,
the aim of which is to study Douglas' writings, not
practical applications) to decide whether the Master
was indeed correct in his approach on this point.
Regards. John R.
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