Hi Bill (McGunnigle),
I have no doubt that a rise in interest rates
can indeed have serious consequences for those who must pay those increased
charges from an income that hasn't increased.
But as a practical matter wouldn't it make more
sense to try to determine "why" those interest rates have risen than to
imagine that all would be "sweetness and light" if 'interest' itself could
only be abolished? Which would be totally impractical to do
if we want to preserve any measure of a free market economy and all the
benefits it entails.
The point is, 'interest' can be reduced in
respect of its largest component, a 'premium' assessed for the risk of
default, simply by reducing the risk of default.
We can do this on an overall, or
macro-economic basis, through the proper application of the Social Credit
prescriptions of the National Dividend and Compensated Price
Discount.
These National 'accounting adjustments' ensure
there is always going to be sufficient 'effective demand' present to enable
'real demand' to be fully satiated so long as there is the physical capacity
available to fill it.
They allow the rate of profit necessary to
more fully amortize loans to be maintained, and with that capablility the
'risk of default', and the interest premium charged in respect of it,
is either eliminated or greatly reduced.
In the whoile economy, itt could be reduced to
the point where the interest cost on many well-secured loans would basically
entail the cost of providing the financial service itself (the
'bookkeeping'), plus the minimum amount of profit to make it
worthwhile anyone providing it.
This method is practical. The
alternate idea that a 'government' could simply provide all the money
'interst-free' will NOT lead us towards any kind of 'economic' or
'political' democracy where the 'free-will' of each individual in
"making his own Policy effective unto himself" will ever be allowed to
flourish.
Regards,
Joe
----- Original Message -----
Sent: Wednesday, November 05, 2008
12:56 AM
Subject: Re: [socialcredit] Re: The "Cook
Plan"
hI joe
Sorry I am at it again. Your comments about interest are very pointed. If
the equation is extrapolated and you postulate increased interest rates
you very quickly reach a point where the whole of a single earner family's
income becomes totally used up servicing the Mortgage debt. This has
horrendous consequences on family life. I know by personal experience. I
lost a wife because of that. I was forced to work to keep up with the
needs of wife and family and grew apart from them. Result I now live on my
own in lonely retirement. All because I allowed myself to be conned into
the evil debt system. It has been a very hard lesson but it is one that
convinced me of the iniquitious damage that the debt fuelled economy can
do to an individual. I am now a dedicated monetary
reformer.
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