|Subject:||[socialcredit] Re: negotiable|
|Date:||Friday, May 18, 2007 07:55:12 (-0700)|
|From:||william_b_ryan <william_b_ryan @.....com>
My quibble is simply over your use of the term,
non-negotiable. Otherwise, I am in agreement with
your message. Will you do me a favor? Please look up
the word negotiable in an English legal dictionary. I
may be mistaken, but I think you'll find the
definition to be the same as in an American legal
An IOU may be evidence of a legally enforceable debt,
but it may not be negotiable in the legal sense of the
term, which means that it may be tendered or traded to
another by its holder without the specific permission
of its maker. This is not ordinarily the case with
debt. To be negotiable it must meet certain criteria.
For example, it must be in writing. It must state
that it is tendered in trade for something received in
return, which may be as simple as stating on its face
that it is being tendered "for value received." It
must state the terms that require its redemption by
its maker, etc.
Banks are in the business, in their lending process,
of exchanging the less generally acceptable notes of
their customers for their more generally acceptable
notes, in the form of bank deposits.
To a very large extent this is what makes the modern
industrialized multi-staged economy with its division
of labor possible. Salaries, wages and dividends are
received in the form of generalized "tickets,"
acceptable in every retail store. Profit received at
the point of retail from consumers works itself up the
structure of production, signaling what and how much
to produce to independent managers and entrepreneurs,
in the competitive system. It is the complete
opposite of a centralized, bureaucratic system.
As for overdrafts, so far as I know they have always
been legal in this country. They are certainly legal
now. I have several accounts, each with overdraft
--- Ercouncil@aol.com wrote:
Half the problem is that overdrafts were, and maybe
still are, illegal in the USA.
It MAY be possible for a bank to securitise a loan to
me, or as you would have it securitise my IOU to them
(I think in reality it is usually the first, not the
second) and then sell it on as a kind of negotiable
instrument. But that is NOT an essential aspect of the
credit-manufacturing procvess, nor in this country is
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