|Subject:||[socialcredit] Re: in continuing reply to Jim Schroeder|
|Date:||Sunday, March 6, 2005 12:06:59 (-0800)|
|From:||william_b_ryan <william_b_ryan @.....com>
[SCHROEDER] The simple point of A+B is that the loan
which originates with some capital good is cancelled
before the cost is ever completely cancelled in the
consumer good. Like you state, the average "flux-
reflux" rate is 3 weeks, yet some capital, like a
building, is depreciated over 30 years. That is the
crux of A+B, and it has nothing to do with "labour
[REPLY] Then you put yourself in direct opposition to
Douglas, who emphasized labor displacement in almost
every expression of the theorem. I will send you a
copy of his «Credit-Power and Democracy» in PDF
format if you do not have it. In chapter II he
prefaces the theorem with a discussion of the
changing ratio of Atlas' lever. Then closes with
"At the moment the point to be borne in mind is that
B is the financial representation of the lever of
capital, and is constantly increasing in comparison
[SCHROEDER] I reject the debt virus theory outright.
[REPLY] You reject the term rhetorically but not the
essence. You deny Douglas' labor displacement
hypothesis and substitute an alternate hypothesis,
that the higher the rate of interest the greater is
the gap between prices and purchasing power.
Presumably, at a zero rate of interest there would be
no gap. Douglas' hypothesis is correct. Yours is
Schroeder: "My point was that increasing interest
rates can cause consumer debt to be cancelled (i.e.
the principal cancelled) at a faster rate."
Yes, your point, not Douglas' point.
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