|Some brief comments to another correspondent who had offered a critique of another author. Offered in the hope that they may relevant to Richard Cook's current endeavors:|
"You are quite correct in noting that author Philpott fails to deal with the consequences of the replacement of labour by technology, this being of crucial importance as it relates to the present defective financial system.
"Countless authors point to many of the obvious painful symptoms of our flawed financial system which fails to facilitate consumption without creating spiralling, accumulating and unrepayable debt. The central economic problem is not primarily production but one of consumption and this problem is directly related to the mechanism of finance and banking to which we so tragically adhere. Any sovereign state can issue production credits to facilitate deployment of its proven available creative resources. It can also issue consumption credits directly to all citizens and also to all retailers to effect a falling price level and full consumer access to the output of each production cycle--within that same cycle. The present financial system creates financial costs and prices at an increasing rate relative to the rate at which it distributes financial incomes. Unfortunately, it only issues money in the final analysis for production and never for consumption except as bank debt which has to be repaid out of future production. This simply creates an increasing imbalance between financial costs and distributed consumer income. I attach a document which was prepared during the 1930s but which remains relevant today. It was largely inspired by Mr. L. Denis Byrne who subsequently was sent to the Province of Alberta by Major C. H. Douglas to advise that Province's newly elected (and first ever) "Social Credit" Government in 1935. Social Credit until it was betrayed from within--which betrayal took only several years to accomplish. So long as financial, economic and social problems are "attacked" from the puritanical standpoint of providing "work", they will only worsen--because such an approach constitutes a fundamental violation of natural law which must always carry its own unpleasant consequences. In nature, organisms have immediate access to the physical means of existing; the process is dynamic. Orthodox finance and economics is static; individuals can only consume the output of any production cycle after they first have borrowed against future incomes (thereby incurring debt) and/or produced, additionally, something else in order to acquire fully sufficient financial income required to obtain the goods and services which are required or desired. Social Credit would implement measures which would establish dynamic vs static economics.
For your interest, I also attach an essay concerning "Ezra Pound and Social Credit" and the poet's flawed understanding of the later."
On 15-Apr-07, at 8:29 AM, Richard Cook wrote:
I just want to point out that the proposals I am workinig on just now include both direct creation of credit by the government (non-tax, non-debt) for infrastructure spending and a national dividend for citizens. I believe that in today's conditions, both are needed.