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Before
making your own definition of inflation to fit your A+B model, here is the
definition of Inflation according to my Webster
Dictionary:
"An increase in the volume of money and
credit relative to available goods and services resulting in a continuing rise
in the general price level."
Source: Webster Collegial Dictionary, 1996.
First, define inflation. Invariably, it is measured as "rising
prices", which therefore that is my, and I think our Party's, definition
of it. It may be caused by "too much money ...", when it is "demand-pull
inflation", or by other factors (e.g. rising oil prices or higher interest
rates) when it is "cost-push inflation".
And, once again, the A+B model postulates as a corollary that we have
cost-push inflation more than demand-pull. "There are factors in the
economy (B costs) that push the cost of goods above the level of consumer
purchasing power." So of course economists who deny the Douglas analkysis
don't understand where inflation is coming from.
Regards. John R.
From: "W. McGunnigle" <wmcgunn@maxnet.co.nz>
Reply-To:
socialcredit@elistas.com
To:
<socialcredit@elistas.com>
Subject: Re: [socialcredit]
Social Credit and Inflation--and related issues
Date: Sun, 12 Feb
2006 23:04:53 +1300
>Hi Kenneth
> I had not really
considered that question of "inflation"
>as it operated in our
economy, but was intrigued by your comment that
>socalled "economic
experts" have never produced a really satisfactory answer
>as to why
it happens. I find that, on reflection, all their
"explanations"
>appear to be waffle with little or no substance to
back up their comments.
>They are very good at manipulating figures,
but very short on statisdtical
>analysis of those figures. They always
have an excuse as to why their
>forecasts are incorrect. My youngest
brother has a theory that inflation has
>nothing to do with money or
product availablity, but is the direct result of
>propaganda
perpetrated by banking organisations who encourage price
>increases by
simply stating that inflation is increasing and prices must
>increase
to compensate for it. They don't have to state any reasons,
but
>simply create an atmosphere whereby price increases are accepted.
Inflation,
>i.e. increased costs for goods and services, follows on as
a self-induced,
>self-fullfilling prophesy. Effectively "inflation" is
a mind set rather
>than an economic consequence. I cannot see how this
can be quantified, but I
>can see the logic in his argument. It
certainly explains the "stagflation"
>phenomena where costs still
increased despite falling industrial production
>and increasing
unemployment.
> Bill Mc Gunnigle
>----- Original Message
-----
>From: "Kenneth Palmerton"
<kenpalmerton@cix.compulink.co.uk>
>To:
<socialcredit@elistas.com>
>Cc:
<kenpalmerton@cix.compulink.co.uk>
>Sent: Friday, February 10,
2006 5:40 AM
>Subject: Re: [socialcredit] Social Credit and
Inflation--and related issues
>
>
> > In-Reply-To:
<00aa01c62844$b0b3d320$6400a8c0@cdv73pbgpo6eny>
> > Hi
Wallace.
> >
> > For a very long time I have been of the
opinion that economists do NOT
> > understand "inflation". Even
their attempts to describe it, and offer a
> > definition leave me
much less than convinced of their competence.
> >
> > They
seem to offer no logical explanation of why prices rise.
>
>
> > I have sat with fellow directors of a manufacturing
company around our
> > board room table looking at each other
wondering if our competitors would
> > let us get away with a price
rise of our products.
> >
> > This was not so much an
exercise in maximising our profits, as trying
> > desperately to
cover our costs. This I believe is a common scenario,
> > common to
most companies in mature markets.
> >
> > Coming to
understand later the rightness of A+B has helped, with its
> >
reference to purchasing power, which was the other thing we
Directors
> > agonised over. Would our customers have the money in
their pockets when
> > they chose our products ?
>
>
> > This enlightenment came too late for me and mine I fear
:-))
> >
> > Ken.
> >
>
>
>
>
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