| Subject: | Re: [socialcredit] Smoothing the cycle | | Date: | Wednesday, March 1, 2006 17:00:13 (-0700) | | From: | Martin Hattersley <hattersleyjm @.........com>
|
| In reply to: | Message 3541 (written by Jeffery Smith) |
Isn't one factor here that, if a businessman can foresee a rate of profit
that is greater than his bank borrowing rate, his return on his investment
will be greater the more he can use bank credit to finance his business, and
the less of his own capital.
Martin Hattersley
1970-10123-99 St.,
EDMONTON AB CANADA
Phone (780)423-4081;Fax(780)425-5247
e-mail: hattersleyjm@interbaun.com
----- Original Message -----
From: "Jeffery Smith" <jjs@geonomics.org>
To: <socialcredit@elistas.com>
Sent: Tuesday, February 28, 2006 1:35 PM
Subject: [socialcredit] Smoothing the cycle
> On Feb 27, 2006, at 11:47 PM, Joe Thomson wrote:
>>
>> I think many companies have a mix of both short term and long term debt,
>> and this would be considered quite healthy so long as the company was
>> profitable, or had a positive cash flow, and both types of debt were
>> being serviced as per the loan agreements.
>
> Yet, with the positive cash flow or profits, why not save and re-invest in
> itself instead of borrow and incur interests? Tax favors might answer
> that.
>
>> when the businessman has the opportunity to use his facilities more
>> fully, and produce not only a profit for the banker from his borrowing,
>> but also an additional, (and often larger), profit for himself as a
>> result of the additional business that borrowing enabled, what in the
>> name of all that's Holy is wrong with that?
>
> "Wrong" might not be the right word. What's curious is that a business
> chooses first to indebt itself, not to save or sell stock or whatever.
>
> While some business is seasonal - like farming - an unjust economy might
> exaggerate any seasonal swings. To compare, a transit system or system of
> power plants must be built for peak use, but sits idle the rest of the
> time, which is not efficient at all. If business could be smoothed out
> thru-out the year by some reform equivalent to shrinking the workweek so
> people could their two to 20 hours any time, you'd not have "rush hour"
> and lose all that waste. What could make it easier to turn a profit
> steadily thru-out the year might be things like geonomics - replacing
> taxes with land dues and replacing subsidies with rent dividends. Not
> paying taxes on profits while getting a share of society's surplus lets
> people spread out both their production and their consumption.
>
>> most 'community currencies' I've witnessed seem to have very limited
>> acceptability. Would your 'site tax' be payable in one?
>
> Burlington Vermont is, or is becoming, the first to accept its local
> currency for local taxes.
>
>> We would be seriously limited, though, if they were the ONLY sources of
>> credit available to every business.
>
> Rather than limit, let's head the other way and simultaneously reduce need
> for debt and distribute surplus justly.
>
> SMITH, Jeffery J., President, Forum on Geonomics
> 7536 SE Milwaukie Av, Portland Oregon 97202 USA
> 503/232-1337; jjs@geonomics.org; www.geonomics.org
> Share Earth's worth to prosper and conserve.
>
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