| Subject: | Re: [socialcredit] Social Credit and Inflation--and related issues | | Date: | Sunday, February 12, 2006 20:01:45 (+0000) | | From: | John G Rawson <johngrawson @.......com>
|
| In reply to: | Message 3384 (written by W. McGunnigle) |
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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