| Subject: | Re: [socialcredit] In reply to Keith, more on A+B | | Date: | Tuesday, April 10, 2007 07:44:08 (-0700) | | From: | william_b_ryan <william_b_ryan @.....com>
|
| In reply to: | Message 4667 (written by KEITH WILDE) |
"Do you mean the ratio of A+B to A+C, or that A+B is
itself a ratio rather than a sum?"
-------------------------------------------------
------------------------------------------------
A + B is a sum in which the ratio of B is increasing
to A because of labor displacement. If that is the
case, it is impossible for the reflux from A to
amortize A + B without the inclusion of C.
-
"Or is what we want a rate of change in A+B to be
equal to the rate of change in A+C?"
-------------------------------------------------
------------------------------------------------
Not necessarily equal but proportional at any point in
time. You must be clear by what is meant by "rate of
change." I refer you to the attached diagram, with
time depicted on the horizontal axis as flowing from
left to the right.
Depicted is quasi-steady state expansion in the first
third of the diagram, steady state in the middle, and
quasi-steady state contraction in the last third. The
lines are drawn as "parallel" or "proportional" except
during the transient periods of change. The vertical
lines represent points in time.
The red and blue lines represent flows in terms of
rates. Their slopes represent increase or decrease to
their rates.
-
Think of C as the throttle pedal in your car. You
don't calculate beforehand how far you will push it
down. You push it down. You have your speedometer
and what you see happening out your windows to
determine how you will adjust the pedal as you go
along.
The Federal Reserve is already injecting central bank
credit into the system through its so-called open
market operations. That credit is in offset to
commercial bank debt. It raises the rate of profit
dollar for dollar as it is injected. It is helping to
close the "gap" between "prices" and "purchasing
power."
Step One of the Social Credit Program would have the
central bank to phase out of its open market
operations while at the same time introducing the
dividend/discount paid at least monthly if not weekly
or daily. The amount to be paid in the
dividend/discount would be roughly equivalent to what
is now being injected through open market operations
in the very beginning. That would be the bottom line.
C would be increased continuously thereafter to the
limit of productive capacity and real demand.
That would have the new credit percolate up from the
point of retail rather than trickling down from Wall
Street, so its effect would be more significant in
terms of economic democracy.
--- KEITH WILDE <keithwilde@sympatico.ca> wrote:
OK Bill, you have clarified that it is the term
“precise amount” to which you object. I suspected
that was target of your comment. But it seems to me
that your explanation adds precision to the nature of
required calculations (and data gathering/estimation)
rather than to support the assertion that “there is no
need to calculate any amount whatsoever”.
You have in fact affirmed my presumption that “we want
to look at…the ratio of A + B, or entrepreneurial
spending, to real production”.
This seems clearly to imply some work for a central
data gathering and analysis agency. That was the
point of my comments to Joe. (I remain interested and
uncertain over just what that activity entails and
what its ramifications and implications might be.)
You add the further precision that “what we want to is
introduce an element C through the dividend/discount
such that the ratio A + B remains constant to A + C
through time”.
Do you mean the ratio of A+B to A+C, or that A+B is
itself a ratio rather than a sum? Or is what we want
a rate of change in A+B to be equal to the rate of
change in A+C? “The ratio will not become constant
until C is raised sufficiently. You keep increasing C
until, if and when, the ratio becomes constant.”
Keith
____________________________________________________________________________________
Get your own web address.
Have a HUGE year through Yahoo! Small Business.
http://smallbusiness.yahoo.com/domains/?p=BESTDEAL
|
Re: [socialcredit]
Reply to this message