| Subject: | Re: [socialcredit] U.S. Economics Test | | Date: | Sunday, August 12, 2007 12:02:22 (-0700) | | From: | william_b_ryan <william_b_ryan @.....com>
|
| In reply to: | Message 4960 (written by Richard Cook) |
Yes, dumbing down. But I really had thought that it
was generally accepted now by economists that loans
create deposits, rather than deposits funding loans.
Then I was really astounded when I saw the report the
other day in The New York Times of the 12th grade
economics assessment. It's not just that it is a
single stupid question from the test, but one that's
trumpeted by the promoters themselves as being
representative of the test.
Attached is a short excerpt from Mark Scneider,
Commissioner--National Center for Education Statistics
of the U.S. Department of Education, at Wednesday's
presentation and press conference. The full audio and
video is at http://www.c-span.org
"The Nation's Report Card: Economics 2006" was
released by the National Assessment Governing Board.
The report contains achievement results for U.S.
12th-grade students on the 2006 National Assessment of
Educational Progress (NAEP). The report includes data
on economics course-taking and provides examples of
what students know-and don't know-about national and
international economic issues and personal finance
topics.
8/8/2007: WASHINGTON, DC: 53 min.
----------------------
The following is from Douglas's 1923 testimony in
Ottawa. The page numbers refer to the PDF that I
posted on Friday.
-
>>>page 33
Douglas: The deposits of money in a bank are only a
smoke screen for the major operations of the bank. If
the public could not see that a certain amount of
money went into a bank, they would not believe that it
was possible for any considerable amount of money to
come out of it. But the bank’s business is a loss in
respect of its deposits, and only part of it in
respect of its disbursements. It has to carry on a
certain amount of business at a loss in order to form
a screen for the very much larger amount of business
which it carries on at a profit, but it would be
perfectly possible for a modern banking business to
function exactly as it does at the present time
without any deposits.
By Mr. McMaster: Q. So they pay three per cent and
invite the public to deposit by advertisements just to
get a smoke screen?—
A. I should say that.
>>>page 34
Q. Tell us how a bank could function without deposits.
It has a small nominal capital, but it has no
deposits. Will you just carry us through the stage of
that operation?—
A. It is really very simple. If a bank could issue a
draft for any amount, a banker’s draft for any amount,
which would always be accepted as money and would
never be asked for in the form of legal tender—
Q. Suppose I were going to London and I wanted to buy
a draft on London, would I never be asked for the
money?—
A. They probably would ask, but I say under certain
circumstances.
Q. If a bank did not have any deposits or any capital,
how would they pay that? How would they pay? For
instance the London and Midland Bank, say.—
A. The only liability of a bank is to pay legal tender
on demand. If there is no demand for legal tender, if
its draft is always accepted without changing it into
anything else, or if it were in the position of being
able to issue $1 cheques, which passed from hand to
hand as $1 notes, then just so long as that
hypothetical state of mind exists, I mean it could not
exist, because it is not practical, but just so long
as it existed, that bank could carry on a flourishing
business without having any deposits. In other words,
it would be creating its own currency and these would
be claims on goods. It would not be paying these
claims on goods.
Q. When you say a bank could carry on business without
any deposits and practically without any capital, is
not that putting it in a pretty extreme way?—
>>>page 35
A. I do not say that it could in the sense that it is
a practical proposition, but I say that it might.
Q. If everybody believed it could be done?—
A. If everybody believed it could be done.
Q. That is to say, banking might be based on a state
of mind, and not on deposits?—
A. I should say banking is based on a state of mind at
the present time.
By Mr. Stevens: Q. Do you think this case that you
mention is within the realm of possibility in
practical business?—
A. All I can say is that the British clearinghouse
deposits during 1922 showed that only 1.7 of 100 per
cent of the business of the country was done in legal
tender.
By Mr. Spencer: Q. I would like to ask Major Douglas
if he considers that all loans create deposits to an
equal amount?—
A. I do.
>>>page 38
...By Mr. Irvine: Q. On page 43 [of the Bankers'
Association pamphlet they were discussing], arguing on
that, that the farmer should not be allowed to have
any more credit because “the money they lend (that is,
the bankers) represents customers’ deposits, which
they must be ready at all times to pay on demand.”
Have you any remarks to make in that regard?—
>>>page 39
A. Yes. I think that that is yet another instance of
the extraordinarily careful wording of this pamphlet.
You see that that paragraph says—I have it written
down here, “the money they lend represents customers’
deposits.” Represents customers’ deposits. You will
notice that it does not say that the banks lend
customers’ deposits. That is a very, very tricky and
careful difference. It states carefully—loans and
deposits are a reflection of it—but it does not state
what is the fact, that the loan comes first, that it
is the loan which creates the deposit, not the deposit
which enables them to make the loan.
-
--- Richard Cook <rickycook21@hotmail.com> wrote:
> It's part of the official dumbing-down educational
> policy. Check out the
> movie "Idiocracy."
>
>
> >From: "Keith Wilde" <keithwilde@sympatico.ca>
> >Reply-To: socialcredit@elistas.com
> >To: <socialcredit@elistas.com>
> >Subject: Re: [socialcredit] U.S. Economics Test
> >Date: Thu, 9 Aug 2007 22:49:09 -0400
> >
> >The sinister aspect is the possibility that these
> high school teachers do
> >believe that one of these is the right answer. That
> means someone told them
> >so. Who?
> >
> >----- Original Message ----- From: "John Hermann"
> <hermann@picknowl.com.au>
> >To: <socialcredit@elistas.com>
> >Sent: Thursday, August 09, 2007 9:17 PM
> >Subject: Re: [socialcredit] U.S. Economics Test
> >
> >
> >>The "right" answer Keith, is that none of the
> >>options provided is correct.
> >>John Hermann
> >>
> >>>KEITH WILDE wrote:
> >>>Are you going to keep us guessing about the
> "right" answer?
> >>>Keith
> >>>>From: <william_b_ryan@yahoo.com>
> >>>>Reply-To: socialcredit@elistas.com
> >>>>To: socialcredit@elistas.com
> >>>>Subject: [socialcredit] U.S. Economics Test
> >>>>Date: Thu, 9 Aug 2007 08:17:59 -0700 (PDT) The
> graphic accompanying the
> >>>>article in The New York
> >>>>Times, which I've attached below, contains this
> sample
> >>>>question: "What happens to most of the money
> deposited in
> >>>>checking accounts at a commercial bank? "A. It
> is used to pay the bank's
> >>>>expenses. "B. It is loaned to other bank
> customers. "C. It is kept in
> >>>>the bank's vault until depositors
> >>>>withdraw the funds. "D. It is paid to owners of
> the bank as return on
> >>>>their investment."
____________________________________________________________________________________
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