|Subject:||Re: [socialcredit] inflation discussion|
|Date:||Saturday, December 1, 2007 11:20:59 (-0500)|
|From:||Joe Thomson <thomsonhiyu @....ca>
|In reply to:||Message 5119 (written by william_b_ryan)|
I do not disagree with any of this, Bill, but I find it hard to believe that
after all these years the supposedly 'educated' people who are
'policy-makers' could not have arrived at similar conclusions to those
illustrated by Douglas.
It's entirely possible, I know, but still it takes quite a stretch of the
imagination to believe that they couldn't. Not if they were seriously
interested in acting in OUR best interests. It's small wonder that there has
been so much emphasis placed in Social Credit circles on 'conspiracy', even
though that emphasis may have often been grossly distorted.
For me, the question remains why should a policy that really bears the Banks
no harm whatsoever, and in fact would be of as much benefit to them as to
the other sectors of our economy, be so adamently opposed by them?
Is it just that so many 'Social Crediters' have completely mis-represented
Douglas's real intentions over the decades? Certainly that has happened,
and is still happening. But even so, his ideas must have been correctly
understood by SOME people, and 'some' of them must have been 'policy
makers', I would think.
If so, we come right back to the 'philosophy' element again, do we not? And
how do we overcome that?
----- Original Message -----
Sent: Friday, November 30, 2007 12:50 PM
Subject: [socialcredit] inflation discussion
> "Can we assume that the present downward spiral of
> indebtedness is irreversible under the present
> financial system?"
> I should say that is the case so long as the present
> policies persist under the present financial system.
> It is not a matter of changing the present financial
> system to something fundamentally different. Our task
> is to persuade those in charge to change their
> policies, which would involve the implementation of
> the retail discount and consumer dividend programs.
> Practically all the tools required to do so are
> already there in the hands of the policy makers, which
> wasn't the case when C. H. Douglas first wrote, more
> than eighty years ago.
> His most thorough explanation of inflation is in his
> book *Social Credit,* Part II, Chapter II, found in
> our compendium at
> The entire text of the book is at
> "Wages and salaries costs are purchasing-power, and
> collectively are much less than collective prices.
> Imagine both collective wages and collective prices to
> be diminished by a equal amount -*x*-. This may be
> "Costs = purchasing power.
> "Costs are < prices.
> "Therefore: costs/prices is < 1.
> "Therefore: costs minus *x*/prices minus *x* is <
> "An addition to both the numerator and denominator of
> the fraction, such as is brought about by a rise of
> wages, accompanied by a rise in price, has, of course,
> the opposite effect; it brings the ratio of
> purchasing-power to prices nearer, though never to
> unity, with the result, seen in Germany in the
> inflation period, of immense, though unstable,
> economic activity, accompanied by great hardship to
> the professional and rentier classes, both of whom
> have claims to consideration, and a most undesirable
> concentration of economic power, resulting infallibly
> in the enslavement of the artisan."
> This analysis says that, because of labor
> displacement, it is impossible to have stable prices
> so long as wages are increased, because that involves
> an equal addition to both the numerator and
> denominator of the fraction. It supplies theoretical
> justification to the empirically observed Phillips
> Curve, which informs central banks like the Federal
> Policy makers at the Federal Reserve believe that the
> economy is at best in an unstable equilibrium between
> what would otherwise become spiraling inflation or
> plummeting employment, which the Federal Reserve can
> maintain only through continuous fine-tuning. It is
> impossible to maintain full employment unless it is
> defined arbitrarily, such as in the NAIRU. So some
> measure of inflation and unemployment at the
> equilibrium point becomes an inevitability.
> The Social Credit solution is to add to the numerator
> (the purchasing power side of Douglas' fraction)
> without simultaneously adding to the denominator (the
> prices side of the fraction), through the retail
> discount and dividend programs.
> The economy can thereby be brought up to higher levels
> of productive activity in the absence of inflation.
> Bill Ryan
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