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Message 5007
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| Subject: | [socialcredit] Re: underconsumption fallacy | | Date: | Saturday, September 1, 2007 10:58:06 (+0930) | | From: | John Hermann <hermann @............au>
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william_b_ryan@yahoo.com wrote:
[COMMENT] It is not true that banks are the only firms
> which create credit. As a statistical matter all
> firms create credit together with their customers and
> suppliers, in a great number of varieties. Banks are
> very important specialists in the firms sector, who
> exchange their fungible credit instruments in the form
> of deposits and notes for the individualized credit
> instruments of their customers, which have been
> submitted to them, making the competitive market
> possible. That is to say, members of the general
> public are not required to shop in their particular
> employer's company store.
Credit is not money, it is potential money. You have to distinguish between
credit and credit-money. The latter consists of creditary deposits in the
accounts of customers with registered depositories. These consist of banks,
credit unions, building societies, and a variety of more specialized
creditary organizations. All central banks maintain lists of registered
depositories, and no other financial entities create money. What
distinguishes depositories - from all of the other financial institutions
and companies - is their obligation to maintain creditary accounts with the
central bank.
John Hermann
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Re: underconsumpti
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