| Subject: | Re: [socialcredit] In reply to Keith, more on A+B | | Date: | Thursday, April 12, 2007 09:34:36 (-0700) | | From: | william_b_ryan <william_b_ryan @.....com>
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| In reply to: | Message 4683 (written by Martin Hattersley) |
"Additionally, surely it is possible to work on a
'feedback' basis, so common in nature. If what we do
is causing inflation, we cut back a bit on our
dividend or just price. If the economy is running
below capacity, we jack these up."
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It is slightly more complicated than that. It depends
on what is causing the inflation.
If A + B is increasing in respect to real production,
then we tighten a bit on bank credit by increasing
required reserve ratios. If A + B is remaining
constant in respect to real production, but if A + C
is increasing significantly in respect to real
production, then perhaps we back off a bit on the rate
of increase to C. But we don't want to be too worried
that if our policy isn't absolutely perfect the
economy will spiral out of control. We reject the
orthodox assumption of unstable equilibrium.
What we want to do in the very beginning is have the
central bank phase out of its so-called open market
operations, and transfer its creation of credit into
the dividend/discount program.
And we want to continually ratchet up the
dividend/discount from that point forward.
--- Martin Hattersley <hattersleyjm@interbaun.com>
wrote:
Aren't we missing something here?
What we are trying to do is to balance the rate of
flow of costs with the rate of flow of incomes.
That is a simple exercise in arithmetic, and there is
no need to estimate e.g. the price of lumber or
anything else to do this - only what the
manufacturer's or retailer's financial overhead has
been, and what consumer incomes have been.
Additionally, surely it is possible to work on a
"feedback" basis, so common in nature. If what we do
is causing inflation, we cut back a bit on our
dividend or just price. If the economy is running
below capacity, we jack these up.
Martin Hattersley
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