|Subject:||Re: [socialcredit] social credit in one nation|
|Date:||Tuesday, December 14, 2004 16:38:12 (+0000)|
|From:||Timothy Carpenter <timbeau_hk @........uk>
Here is a flaw in SC as I see it. One cannot inject liquidity only for
domestic output of production otherwise international trade orgs will slam
down on that country.
On the other hand a country which does not differentiate will be, in effect,
'exporting' part of their national subsidy to the benefit of the overseas
producer, for, all things being equal, if without subsidy the market will
absorb 10000units but with subsidy it can consume 20000, an SC domiciled
producer will sell 10000 domestically and export 5000 to country X. Country
X producer will export to SC country 10000 units and sell domestically 5000.
Ergo, trade deficit of 5000 units. This is a common problem with a growing
economy that ends up importing to satisfy consumer spending growth and so
exporting its wealth!
Alas the "option" of (near) simultaneous SC globally is unlikely to occur
and as such is not a viable alternative.
Thus the options that remain are to infuriate the free trade environment by
local protectionism OR to encourage and grow a trade deficit to eventual
implosion as an ever increasing proportion of the productive wealth occurs
abroad. It would just exaggerate the effect of trade imbalance like a form
of short-circuit feedback loop.
On 13/12/04 7:26 pm, "firstname.lastname@example.org" <email@example.com>
> [Tim Carpenter] "Joe, as to rebates...how else is it
> then implemented? If you rebate the cost of something
> then it costs less and people can then buy more,
> right? If it costs less which goods are going to be
> rebated? Are you seriously suggesting that country A
> rebates goods produced from country B? It does not
> matter if you rebate the purchaser, reduce the sales
> tax or subsidise the producer, whatever happens the
> net "ticket" price goes down and the company gets the
> sale, right? Help me out if this rebate operates in a
> different way, Joe."
> It is not a rebate, because it is not "rebated" from
> anything, but a credit (in the nature of an
> accounting adjustment) applied at the point of retail
> to the benefit of the final consumer, effectively
> lowering the price he has to pay.
> As to whether or not there should be domestic content
> restrictions, such restrictions are generally
> prohibited by international trade agreements, which
> of course represent degradation in national
> From the perspective of the Douglas financial theory,
> such restrictions are in fact not necessary in
> specific reference to the credit, because the export
> of the credit for goods does not immobilize its
> equivalent in domestic production, since it was not
> costed into domestic production. As it stands now,
> the net export of a dollar that in its distribution
> was costed into domestic production (the trade
> "deficit") destroys its equivalent in domestic
> productive capacity.
> In my opinion, the problem can be ameliorated in the
> short-term only through tariffs and quotas on
> imports, not exports. I don't see any other way.
> Until and if that happens, the "Western" economies
> must progressively and inevitably lose their
> respective industrial bases, to the detriment of both
> net importer (the "Western" economies) and net
> exporter (China, etc.) Once the importer's
> industrial base is gone, its ability to financially
> support its trade deficit is gone, and comes down the
> exporting economy that was (parasitically in the
> financial sense) sustained by it. The present
> arrangement perpetually enslaves the net exporter's
> workforce, while at the same time impoverishing the
> net importer.
> The long-term solution is to implement Social Credit
> (whatever the accounting adjustment is called)
> throughout the world. Once the "gap" between
> "prices" and "purchasing power" has been closed in
> the economies of the world, the irrational
> "imperative to export" will have been eliminated.
> Trade between nations will more naturally emphasize
> their respective comparative advantages.
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