(Jim wrote:-) In my opinion, the
problem with Vic's statement is that it focuses solely on "call loans", which,
as you state below, do not represent most financing arrangements.
I think the point that should be made is
that banks have the power to set the terms of any loan, and according to those
terms, the loans most often get repaid before the goods that they brought into
existence can be consumed, and this produces a "gap" between income and
prices.
(Joe replies:-) I'm
sure there are a great many more ways of 'financing' available now than
there were in Douglas's time. So I think there would be quite a bit more
flexibility nowadays in regards to 'terms' than was once the case.
But the business still has to
have 'prospects' of success, and likely produce
financial projections of viability, or have very solid collateral
security, or both.
And I don't think you'd
find any banker, even from the Canadian government's own Business Development
Bank, ("the lender of last resort", as it used to be known),
who'd want to extend the period of repayment past the expected life
of the asset being financed. Unless he had a death wish for his
bank.
I would think that a properly
constituted National Credit Office would record and make the necessary
corrections in regards to having sufficient effective demand available in the
economy as a whole in order to bridge the collective 'gap' that develops
from this cause.
Re: [socialcredit]
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