(Peter
Haines wrote:-
) I made the comment many
months ago that I thought that the issue of 'interest' was a red herring and I
still do. The whole economic system is based on the preponderance of debt
(( 97% of the money supply)) not credit. If it
was credit the value of its use to the community would be a determinant.
Because its debt to the banking system its availablitiy reflects a different
value, and so businesses can fall because while they meet the former they
dont the latter or similarly for various reasons including the fluctuating
rates of interest that can be fatal after contracts for supply are
commited to. IE businesses are falling through cracks that need not be
there. There is a case of musical chairs, so many fatalities for every
success.
(Joe replies:- ) I think maybe you’re trying to say that the Banks
don’t fully ‘monetize’ wealth. Is that correct?
(Peter:- ) A slice of time or time
freeze if you like such as saying that at the time the loans is deposited, the
principle equals the debt and no interest involved at that point is
pointless and misleading.
(Joe replies:- ) But as a matter of bookkeeping, it’s nevertheless
true, is it not? Interest ‘accrues’
over time. It is a bookkeeping figure
within the accounts of the Bank. A ‘residuum’
~ what’s left over. Like ‘savings’ to you and I as
individuals, and ‘profit’ to a business. Interest doesn’t come out of the specific flow of the individual
loan from the bank, but from the overall, ever
ongoing flow of loans as they are made and repaid. These three things, ‘interest’, ‘profit’
and ‘savings’ are part of the totality of unliquidated
debt to the extent that they are retained and are accumulating in various
account balances. And their retention there affects the flow of
the total amount of purchasing power necessary to fully amortize loans in each cycle of production. Unlike the Marxist, the Gesellist
and the Crank, Social Credit recognizes each for what it really is. And that each is still a necessary thing in any rational economic
system, since they are all indicators of the correctness of entrepreneurial, (including
Bank as ‘business’), or individual action. But while they are all valuable indicators in
the sense of individual, entrepreneurial and Bank ‘bookkeeping’,
their signifigance as ‘money’ ~ unliquidated ‘debt’ ~ in the overall economy,
requires some further ‘bookkeeping’ at the ‘macro’
level to allow each business cycle to be fully financially self liquidating. Especially where there is, as there now is, ever ongoing ‘labour
displacement’. This we accomplish with a proper set of national accounts,
including a National Balance Sheet and a National Credit Account from which the
ongoing ‘gap’ can be closed periodically as necessary by means of ‘debt-free’
new credits to consumers, through price
reduction, and/or direct dividend.
RE: [socialcredit]
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