| Subject: | Re: [socialcredit] Swanwick no. 2 | | Date: | Tuesday, December 13, 2005 07:53:42 (-0700) | | From: | Jim <jschroeder @....ca>
|
Hi Bill:
(Bill) If growth is labor displacing, the ratio of B
payments is increasing to A payments.
(reply) Is this assumption necessary for you conclusion to be true?
(Bill) But the second case would require the
manufacturing sector to sell to the consuming sector
at a continuous loss on a cash flow basis. It is
credit expansion in a growing economy that enables the
manufacturing sector to sell to the consuming sector
at cost, plus profit.
(reply) Then you are saying it is possible for existing credit to be used
for investment, but it cannot do so indefinetely because the manufacturing
sector would be forced to sell below cost?
Take care,
Jim
----- Original Message -----
From: "William B. Ryan" <w_b_ryan@yahoo.com>
To: <socialcredit@elistas.com>
Sent: Tuesday, December 13, 2005 5:41 AM
Subject: Re: [socialcredit] Swanwick no. 2
>
> [3] If growth is labor displacing, the ratio of B
> payments is increasing to A payments. This could be
> accommodated by credit expansion into the B circuit;
> or, it could be accommodated by reducing A payments,
> and diverting these funds into the B circuit. In
> neither case could increases in proportional B
> payments derive from consumer or manufacturing sector
> saving. But the second case would require the
> manufacturing sector to sell to the consuming sector
> at a continuous loss on a cash flow basis. It is
> credit expansion in a growing economy that enables the
> manufacturing sector to sell to the consuming sector
> at cost, plus profit. For an economy in assumed even
> rotation, this should correspond to the real increase
> in consumable goods and services. The dilemma is that
> while credit expansion into the B circuit is
> occurring, the manufacturing sector's market is
> contracting due to labor displacement, resulting in a
> falling rate of profit.
>
>
> --- Jim <jschroeder@shaw.ca> wrote:
>
> Douglas was perhaps the first to recognize that the
> incremental increase to investment for the economy as
> a whole is not now financed from savings but credit.
> It is mathematically impossible for it to be
> otherwise. That was in the early 1920s. In the
> mid-1930s Keynes said that savings are a "residual."
> So Swanwick 2 is not instituting a new mechanism but
> is recognizing the existing reality so that it might
> be formalized and controlled.
> -------------------------------------------------
>
> Bill, are you saying the new costs that are created
> via savings cannot be cancelled without an increase in
> credit, or are you stating that it's impossible for
> existing credit to be used for investment purposes?
>
> Take care,
>
> Jim>
>
>
> __________________________________________________
> Do You Yahoo!?
> Tired of spam? Yahoo! Mail has the best spam protection around
> http://mail.yahoo.com
> ---------------------------------------------------------------------
> Some introductory materials to the discussion topic of this list are at
> http://www.geocities.com/socredus/compendium
> You're subscribed to this list with the email jschroeder@shaw.ca
> For more information, visit http://www.eListas.com/list/socialcredit
>
|
Re: [socialcredit]
Reply to this message