(Peter wrote:-) If 'we mandate' what banks do
with their profits then Joe is observing the very thing he was afraid
of- abuse of greater centralised power.
(Joe replies:-) No, I don't think so. We haven't
'abused' any Bank's shareholders by having that Bank distribute its
profits rather than hide them in various 'reserves'. It is, after all,
their 'money'.
(Peter continues:-) I would expect that if the
banks lose the 'ownership' of the money supply then 'reserves' would melt away
and working capital increase even to the point of copying the Muslim banks in
becoming silent business -partners for a percentage of the profits equal to
what they get in interest rates at present, and all be on the stock
exchange. Saving should start becoming investment/shares, both direct
and through their banks, which would reduce bank liabilities.
(Joe replies:-) I think those financial
options already exist, Peter. But many sound businesses would likely
still sooner 'borrow and repay', in the traditional manner, than have to take
the Bank in as 'partner' to any greater extent than it already is under that
'traditional' arrangement.
(Peter continues:-) This money will be in demand
because not only will the economy be more boyant with much less debt
deadweight ( making banks busier) but simply because the NCA doesnt
create money against the future, only the non-static 'present'.
Forcing banks to loosen up profits into the
economy wont unravel nor compensate the compounding financial demands on the
future economy and its ability to meet societies needs, which is
deminishing continuously.
(Joe replies:-) Well, if the 'profits' have come
from 'interest' that is a 'cost' to the borrower, and if that 'borrower' was a
'firm' it will show up in 'price'. So to the extent that a greater
portion of Bank profits are distributed, either as 'dividends' to their
shareholders, or as 'interest' to their depositors, we are moving collective
incomes closer to collective prices.
----- Original Message -----
Sent: Tuesday, March 20, 2007 7:46
AM
Subject: Re: [socialcredit] Economic
Democracy
Good points, Joe, and I'll be interested in comments from others.
Regards. John R.
From: Joe Thomson <thomsonhiyu@shaw.ca>
Reply-To:
socialcredit@elistas.com
To:
socialcredit@elistas.com
Subject:
Re: [socialcredit] Economic Democracy
Date: Mon, 19 Mar 2007
06:43:33 -0500
(John Rawson wrote:-) You people must have much more friendly banks
than we have. Ours charge like wounded bulls all the time. I
don't think a fee of perhaps 1% or less would hurt much. And if we
take their pretence that they lend money deposited with them, it would
make their funds a lot cheaper! (Forgive a little facetiousness.) But
since the move would reduce and eventually eliminate the need for debt
in perpetuity at full interest rates, I think the objection is a litle
fatuous.
(Joe replies:-) If the bank is
regarded as a 'business' it's going to have to pass its costs on, the
same as any other business has to, isn't it?
So the public just ends up paying the
'fee', however small it is, to use its own money.
Don't we pay enough to do that
already? Or do you expect the bank is just going
to 'swallow' the extra 'fee' without passing it on?
Why don't we just mandate that the banks
distribute more of their profits instead? Wouldn't that be
more in keeping with what Douglas wrote about the size of bank dividends
and their effect as a distribution of debt-free 'purchasing
power'?
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