| Subject: | Re: [socialcredit] Economic Democracy | | Date: | Saturday, March 24, 2007 14:13:36 (+1200) | | From: | Peter <cymric @.......nz>
|
Martin is arguing that banks should do the drawing against the Community
Credit and should be charged. Also sees not reason for a physical limit.
William argues that the better approach would be for banks to increase
reserves to tighten 'loan credit' as 'cash credit' increases.
I see it as the community ( individuals/business entities etc) drawing on
the Community Credit not the banks, although the banks are the agents of
distribution. So the banks shouldnt be charged, but the applicants pay a
fee for the paper work to the banks, unrelated to the figures involved, and
that reserves behind banks should deminish over time.
I expect that there would be a natural tightening of demand (money) from
sources outside the Community Credit current allocation, simply because the
Community Credit allocation is based on the current situation not as against
the future which is the current basis of credit creation.
If this is true then there is a natural physical limit at any one time to
the lending/credit available, because no one will be creating credit against
the future. ( this is the nub)
Naturally there would be huge public and political party debate once the
Community Credit/National Credit Office was immanent and that would include
the issue of where is it all to go and I cant see the allocation for the
Dividend and Just Price being able to be syphoned off into some other aspect
of the economy. Thus there will obviously be consideration for bulk
'funding' into 'zones', eg 20% dividend etc, 15% local govt/regional
development, 40% business sector and so on in any one month. Private
lending, eg Finance Co/banks etc will cover the private and business needs
not met, especially bridging finance until an application is successful,
like the following month if one misses out. This is how bank mortgages were
done a few decades ago when they were not the major lenders here in that
market.
The 'ownership' issue of credit is tied up with the future, its about who
owns both, not just the communities credit. So the implications of what we
are arguing is about who should 'own' the 'future'. Once we take the
'future' out of creation of credit it becomes clear who is the owner/ in
control.
Peter H
----- Original Message -----
From: <william_b_ryan@yahoo.com>
To: <socialcredit@elistas.com>
Sent: Tuesday, March 20, 2007 5:44 AM
Subject: Re: [socialcredit] Economic Democracy
>I again don't see what this "fee" is supposed to
> accomplish except perhaps in demonstrating to the
> banks who's now in charge. Assuming of course that a
> new regime is now in place. And I would presume that
> this would be after a lengthy period of public
> discourse, where the bankers themselves might have
> become persuaded, obviating the need for the "fee."
>
> A more meaningful policy would be to gradually
> increase reserve requirements on the banks as the
> dividend/discount is gradually increased. This would
> tighten "loan credit" as "cash credit" is increased.
> Closing the gap between prices and purchasing power.
>
> The keyword here is "gradual," allowing accommodation
> for unforeseen circumstances.
>
>
> --- Martin Hattersley <hattersleyjm@interbaun.com>
> wrote:
>
> Regarding the idea of the banks being allowed to "make
> a draw against the National Credit".
>
> My idea would be that Banks, who make loans of what
> they allege to be legal tender money but in fact is
> thin air made valuable by people's acceptance, would
> be charged some appropriate amount for doing so. Their
> money creation, after all, reduces the amount
> determined by the National Credit Office to be
> otherwise payable to the public in Dividend and
> Discount payments, and in fact is a form of borrowing
> from the public at large by diluting the value of the
> currency that they hold.
>
> As long as the charge for so doing is appropriate, I
> see no reason why there would have to be physical
> controls on the actual lending that takes place.
>
> Martin Hattersley
>
>
>
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