| Subject: | RE: [socialcredit] Swanwick | | Date: | Monday, May 28, 2007 21:31:02 (+0000) | | From: | John G Rawson <johngrawson @.......com>
|
Sorry Bill, I don't get this at all. If savings are to be banned from use for
production, as is clearly stated, what are they to be used for? Speculation? I
take it that Douglas wanted to stop the use of savings completely, to prevent
their effect in reducing p;urchasing power.
What parameter have I missed?
Regards. John R.
From: <william_b_ryan@yahoo.com>
Reply-To: socialcredit@elistas.com
To:
socialcredit@elistas.com
Subject: [socialcredit] Swanwick
Date: Mon, 28
May 2007 07:19:52 -0700 (PDT)
>This is what Douglas said at Swanwick:
>
>"The
credits required to finance production shall be
>supplied not from savings, but
be new credits relating
>to new production."
>
>Firstly, I don't see anything
here about the "banning"
>of the use of savings for investment.
>
>An increase in
the rate of saving for the economy as a
>whole would have a depressing effect on
production
>inasmuch as it would reduce sales over the retail
>counter in respect
to the costs of production being
>impressed to the point of retail by the
conventions of
>double entry accounting, thereby reducing
the rate of
>profit and the incentive to produce--if that were all
>there was to
it.
>
>But it isn't all there is to it.
>
>The credits required to finance
production are not now
>supplied from savings, if by finance production we
>mean
the financial facilitation in the increase to the
>rate of production.
>
>Our
theorem is that loans create deposits, which
>applies to the financial system as
it now exists, and
>will continue to exist under social credit. If the
>rate in
the flow of loans is increasing in respect to
>their reflux, it cannot
mathematically be the case
>that that the flow is being funded by an equal
and
>contemporaneous abstention in spending by the
>recipients of that flow. New
credit is being created
>through the assistance of the financial
system.
>
>What "saving" really means in the modern creditary
>economy is that
the recipients of income, with
>increasing wealth, are increasingly
purchasing
>securities of one form or another, or holding on to
>the dollars they
are receiving, which are already
>securities, rather than purchasing consumer
goods and
>services with those dollars.
>
>Social Credit would simply rationalize
that natural
>process through accounting
adjustment.
>-------------------------------
>
>1. The cash credits of the
population of any country
>shall at any moment be collectively equal to
the
>collective cash prices for consumable goods for sale
>in that country, and
such cash credits shall be
>cancelled on the purchase of goods for
consumption.
>
>2. The credits required to finance
production shall be
>supplied not from savings, but be new credits relating
>to
new production, and shall be recalled only in ratio
>of general depreciation to
general appreciation.
>
>3. The distribution of cash to individuals shall
be
>progressively less dependent upon employment. That is
>to say that the
dividend shall progressively displace
>the wage and
salary.
>
>
>---------------original message---------------
>
>Douglas was
brilliant, but no man is infallible. I
>think this is shown also in his "Swanwick
principle"
>Peter mentioned, banning completely the use of savings
>for
production. Think about the establishment of a
>new and risky enterprise. Savings
couldn't be used
>and no wise bank manager would fund an unproven
>enterprise to
any extent. Are we going to have
a
>State enterprise from which every crackpot can demand
>funding to start up
something new? If not, nothing
>new would ever be started, except by big
monopolies
>with assured access to funds. New private enterprise
>would be
impossible. I know why Douglas advocated
>this, at a time when it was obviously
desirable that
>people spend as much as possible rather than saving,
>as advised
also by Keynes and others. But times are
>different
now.
>
>
>
>
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