| Subject: | Re: [socialcredit] Re: Request for William B. Ryan | | Date: | Friday, December 7, 2007 01:57:09 (-0700) | | From: | Wallace Klinck <wmklinck @....ca>
|
| In reply to: | Message 5123 (written by Swieto Radosci) |
Kristof, if I might intercede, credit does not necessarily denote debt
in Social Credit terminology. We recognize two forms of credit, viz.,
"real credit" meaning the actual ability of society to deliver goods
and services "as, when and where required" and "financial credit"
meaning the ability to deliver money "as, when and where required."
The two should match. C. H. Douglas, founder of Social Credit,
formalized in his "A + B Theorem" an explanation of how the normal
operation of the existing price-system leads to a rate of flow of
financial prices emanating from industry which increasingly exceeds
the rate of flow of effective consumer incomes. This growing
disparity is to be compensated by new consumer credits which are non-
repayable by the recipient consumers and would be made available to
all citizens in the form of a National (Consumer) Dividend and what
Douglas referred to as the Compensated Price, the latter being also an
issue of non-repayable consumer credits to businesses at point of
retail on condition that retail price be lowered. These new consumer
credits are to be created by an appropriate statistical institution,
e.g., a branch of the Treasury or a National Credit Office and paid
from a National Credit Account which would be a statistical record of
all the nations real assets--anything which could become a cost of
production. The payment of the Dividend and Compensated Price would
be drawn on the National Credit Account and as an item of consumption
would diminish it. The National Credit Account would be increased by
the addition of all new capital assets and would be growing more
rapidly than deductions from it. Today, the widening disparity
between prices and incomes is "bridged" in a haphazard manner by new
credits issued as ever increasing debt to the banking system. While
this new "money" issued as debt allows consumer access to a large part
of production, it does not cancel the financial costs of production
but merely passes them on as inflationary charges to be recovered from
future cycles of production--even though the actual physical costs of
each production cycle have fully been met when consumer goods are
completed in final form for use by the consumer. The Social Credit
consumer credits will be cancelled as purchasing-power when the
retailer pays his production loan just as are the credits issued as
debt today via bank loans are cancelled. I will send you some
documentation in PDF format which may be of assistance to you in
understanding the Social Credit position. Essentially, under the
existing orthodox financial regime the consumer is charged, quite
properly, with capital depreciation--but quite wrongly not credited
with capital appreciation. Over to Bill who may have his own comments
to make on the subject.
Sincerely
Wally
On 6-Dec-07, at 2:23 PM, Swieto Radosci wrote:
> Thanks, Bill, for your kind reply.
>
> Could you explain what you mean by "accounting adjustments by
> rationally applied credits from the
> central bank to the accounts of final consumers". Is that credit
> interest bearing and who is going to get it - all citizens or
> fraction of them. Is it repayable?
> If not repayable - is that non-repayment called " accounting
> adjustment"?
>
> regards
> Kristof
>
> ----- Original Message ----- From: <william_b_ryan@yahoo.com>
> To: <socialcredit@elistas.com>
> Sent: Monday, November 26, 2007 8:41 PM
> Subject: Re: [socialcredit] Re: Request for William B. Ryan
>
>
>> I thought I gave you a serious answer, Kristof. I
>> certainly didn't intend it to be a joke.
>>
>> The best financial reform is along the lines of
>> Douglas' national dividend and retail discount
>> programs.
>>
>> I am quite disdainful of most of what passes as
>> "monetary reform," which generally involves some
>> fundamental change to the structure of the financial
>> system, such as the abolition of interest, and/or the
>> spending of money into circulation exclusively by the
>> government. The structure of the present financial
>> system is itself very nearly perfect.
>>
>> The problem is at the macreconomic level due to a flaw
>> in accounting, where the costs of production are being
>> expensed against retail sales at an accelerating rate
>> in respect to sales, which is explained through the A
>> + B theorem, or something similar.
>>
>> The solution are , in a
>> form of accounting adjustment, boosting effective
>> demand, bringing the expensing of costs to the point
>> of retail into proportionality with sales, thereby
>> sustaining the rate of profit in the dynamically
>> growing economy, with naturally occurring labor
>> displacement.
>>
>> The present continuous fall to the rate of profit
>> induces entrepreneurs to continually pinch off
>> production short of real demand and productive
>> capacity, causing the permanency of poverty in the
>> midst of plenty through much waste of resources. It
>> is an illusion of scarcity due to financial
>> inadequacy.
>>
>> Beyond that I would suggest a protectionist foreign
>> trade policy, protecting domestic industry against
>> predatory foreign competition. The strength of the
>> American economy was built during the nineteenth
>> century behind a tariff wall, allowing free trade and
>> competition between the states, with similar cultures
>> and standards.
>>
>> Bill
>>
>>
>> --- Swieto Radosci <radosc@radosc.x.pl> wrote:
>>
>>>
>>> From: <william_b_ryan@yahoo.com>:
>>> > I think I said, Kristof, that I do not call myself
>>> a
>>> > social crediter, but do admit to being profoundly
>>> > influenced by the writings of . I do not
>>> > admit to agreeing with every word that he wrote,
>>> but
>>> > admit to not understanding much of it. One of the
>>> > purposes of this list is to help us gain an
>>> > understanding of what he really wrote and said.
>>>
>>>
>>> The undrerstanding of what C. H. Douglas wrote or
>>> said is not of my
>>> particular concern. More what today reformists do
>>> with his inspirations and
>>> inuitions.
>>>
>>> I agree with Douglas's general idea of the deficit
>>> of purchasing power in
>>> the growing areas of the globe. I calculated that
>>> deficit on real numbers
>>> taken from Polish corporation where I served as CEO
>>> and for sure Douglas was
>>> right showing us this problem comparable to the
>>> unefficiency of heart-pump
>>> in human body. Purchasing power leaks out of
>>> producing communities and
>>> producers are forced to extend specialization and
>>> import-export practicies.
>>> If they don't, they alternatively hang on growing
>>> debt.
>>>
>>> Now we have world-blood deficit in many places and
>>> plentitude of it in
>>> others - a zero balance situation from the double
>>> accounting point of view,
>>> but close to heart breake from the social one. I
>>> personally attribute that
>>> deficit of purchasing power to logistic (energetic)
>>> and educational
>>> (informatic, including money as information)
>>> problems of our civilization.
>>> In my opinion local money could serve better than
>>> "retail discount programs"
>>> proposed by Douglas - as local by-passes on global
>>> defficiency in money
>>> distribution.
>>>
>>> National dividend is ok but it strongly affects the
>>> way national budget is
>>> created, so it is not easy to implement from
>>> grassroots.
>>>
>>> But, William, I asked you about your personal
>>> opinion on Douglas proposals
>>> in present socio-legal environment and you answered
>>> by a joke... Please
>>> answer seriously.
>>>
>>> Kristof Levandovski
>>
>>
>>
>> ____________________________________________________________________________________
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>> ---------------------------------------------------------------------
>> Some introductory materials to the discussion topic of this list
>> are at
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>>
>>
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>>
>
> ---------------------------------------------------------------------
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> at
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