| Subject: | Re: [socialcredit] 10 can't pay 11 fallacy, continued | | Date: | Sunday, July 15, 2007 12:42:12 (-0600) | | From: | Martin Hattersley <hattersleyjm @.........com>
|
| In reply to: | Message 4922 (written by John G Rawson) |
John -
Would you expand a little on the concept of "reinvestment in some form"? I'm
not clear what you mean by this, even though it is a promising lead.
Martin Hattersley
5929 - 189 St., NW
EDMONTON AB CANADA T6M 2J1
(780)483-5442
e-mail: jmartinh@shaw.ca
----- Original Message -----
From: "John G Rawson" <johngrawson@hotmail.com>
To: <socialcredit@elistas.com>
Sent: Saturday, July 14, 2007 5:37 PM
Subject: RE: [socialcredit] 10 can't pay 11 fallacy, continued
> Thanks, Bill. I agree with this absolutely except for one reservation:
> banks also carry out the equivalent of reinvesting; they do not pay out
> all their income in the way you suggest.
>
> But your argument shows up the fallacy in the "Island" example and I
> believe it explains why many Social Crediters have brought ridicule on the
> movement by greatly overestimating the "gap" in the eocnomy as a whole.
>
> And I stick with my suggestion that the main, possibly sole, cause of the
> discrepancy Douglas discovered can be attributed to reinvestment in some
> form, where costs are charged twice into the price of goods but the
> equivalent purchasing power is only paid out once.
>
> Regards. John R.
>
>
> ------------------------------------------------------------------------------
> From: <william_b_ryan@yahoo.com>
> Reply-To: socialcredit@elistas.com
> To: socialcredit@elistas.com
> Subject: [socialcredit] 10 can't pay 11 fallacy, continued
> Date: Thu, 12 Jul 2007 09:44:00 -0700 (PDT)
> >"Therefore, I suggest: a) Two boxes one for the
> >principal the other for interest: b) The interest can
> >be reused but only paid in full only at the end. c)
> >The principal paid cannot be re-used."
> >------------------------------------------
> >
> >Naturally on these restrictions 10 cannot pay 11. When
> >10 in principal is repaid there is a remaining
> >1 owed that cannot be paid inasmuch as there is no
> >money in existence. It must be borrowed thereby
> >compounding the debt. That is how this fallacy goes.
> >
> >But it doesn't begin to describe the real world
> >condition. In the real world banks are members of
> >their communities, spending for goods and services
> >needed to perform their services and conduct their
> >operations, as does every firm in their communities.
> >The economy is a great cooperative commonwealth in
> >continuous rotation. So, during the period that 1 in
> >interest accrues, banks are spending, which increases
> >the money in circulation available to pay both
> >principal plus interest back to the banks.
> >
> >If banks create the money that they loan, they are
> >certainly capable of creating the money that they
> >spend during the period that 10 is lent and 11 becomes
> >due, before they have received the first payment in
> >this tortured example. During this period their
> >spending is charged against their accrued income
> >accounts.
> >
> >It's all done according to the rules of double entry
> >accounting consistent with the concept of profit and loss.
> >
> >
> >
>
> >____________________________________________________________________________________
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> >---------------------------------------------------------------------
> >Some introductory materials to the discussion topic of this list are at
> >http://www.geocities.com/socredus/compendium
> >You're subscribed to this list with the email johngrawson@hotmail.com
> >For more information, visit http://www.eListas.com/list/socialcredit
>
>
>
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> ---------------------------------------------------------------------
> Some introductory materials to the discussion topic of this list are at
> http://www.geocities.com/socredus/compendium
> You're subscribed to this list with the email hattersleyjm@interbaun.com
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>
>
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