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Despite the somewhat histrionic reply from John,
his analysis is correct. 'Stagflation" always seems to coincide with supremely
high interest rates. It seems logical to me therefore that the bulk of the money
supply at such times has been subverted into debt servicing and hence the
necessary financial wherewithall to conduct normal business is being removed
from circulation at an ever increasing rate. This explains the rapid slow down
in commercial and manufacturing activity and the stagnation of the economy.
Normality only returns when interest rates decrease thereby allowing sufficient
finance to become available for "normal" commercial activity. We are assuming,
of course, that debt servicing is NOT a normal activity. This assumption is
valid because all normal people do not normally willingly accept large debts
over long periods of time.
Government spending however
obeys different rules. Governments can and do accept large debt burdens for all
sorts of different political reasons. This enables them to expend considerable
amounts of the nations wealth on projects like armaments. The wages and salaries
paid out to the workers in this industry plus the subcontracting to smaller
firms boosts the money supply and creates a financial atmosphere of affluence
and well-being among the general population. Diversion of effort into armaments
removes consumer goods production from circulation and hence a dearth of
consumer goods. This creates an artificial shortage in certain areas of the
financial market, and consequently price increases as greedy entrepenuers take
advantage of the situation. "War time expediency mentality".
I have not
done an exhaustive analysis of this situation yet, but I am sure that mechanism
operating our present financial system operates along this type of line.
Shortages of vital commodities like food, shelter, fuel and clothing can
and are deliberately created simply by manipulating the money supply to prevent
sections of the community having access to these important commodities. Most of
the "poor " in the USA are actually fully and gainfully employed, but "the
Market" has been twisted so that virtually all their income is diverted into
providing the necessities of life. In NZ maintaining a household now
necessitates two incomes. Both NZ and USA have resources enough to provide a
basis living standard well above subsistence level, but many still live below
that level. The only factor preventing proper distribution of those resources is
an adequate debt-free money supply. Debt servicing has become a major stumbling
block to human developement in the world. Banks and financiers are only
interested in exploitation of individuals for their benefit. Until this is
changed the present unstable world financial situation will continue. I hope
that some madman doesn't plunge us all into a final internecine conflict before
our international financial system is totally reformed.
Bill McGunnigle
----- Original Message -----
Sent: Tuesday, February 21, 2006 12:46
PM
Subject: RE: [socialcredit] Inflation and
Price Control
Wonderful, sdoppy, emotional claptrap!
As Douglas showed, if governments didn't go into debt to produce completely
useless non-consumer items of this type, those who are hungry would go
hungrier and the naked even more naked.
Were there a shortage of resources, the statement would be true, but while
the controlling factor is not production but its fair distribution, i.e. the
money system, it is absolute rubbish.
Regards. John R.
From: "Daniel Morin" <dan@danmorin.com>
Reply-To:
socialcredit@elistas.com
To:
<socialcredit@elistas.com>
Subject: RE: [socialcredit]
Inflation and Price Control
Date: Sun, 19 Feb 2006 19:10:56
-0500
>Hi Ken,
>
> > " Every warship, every tank,
and every military aircraft built is in the
> > final sense a theft
from those who are hungry and are not fed., and those
> > who are
naked, and not clothed."
>
>Amen!
>
> >
-----Original Message-----
> > From: Kenneth Palmerton
[mailto:kenpalmerton@cix.compulink.co.uk]
> > Sent: Sunday,
February 19, 2006 12:50 PM
> > To: socialcredit@elistas.com
>
> Cc: kenpalmerton@cix.compulink.co.uk
> > Subject: RE:
[socialcredit] Inflation and Price Control
> >
> >
>
> In-Reply-To:
<NCBBKCEMIKELNEFLLFEHKEDDGLAB.dan@danmorin.com>
> > Hi
Dan.
> >
> > "The Soviet economy was based on military
expenditures" :-)))
> >
> > Beware of living in glass
houses :-)
> >
> > " Every warship, every tank, and every
military aircraft built is in the
> > final sense a theft from
those who are hungry and are not fed., and those
> > who are naked,
and not clothed."
> >
> > Dwight D. Eisenhower. One time
President of this worlds most deeply
> > indebted nation. The
United States of America.
> >
>
>
>
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