| Subject: | Re: [socialcredit] Finance: Credit "Crisis" and "Depression" | | Date: | Monday, December 1, 2008 07:07:10 (-0800) | | From: | william_b_ryan <william_b_ryan @.....com>
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| In reply to: | Message 5733 (written by Martin Hattersley) |
It would be equivalent to a "Goods and Services Tax" in reverse, but I would be
reluctant to accept a commingling of the tax and dividend systems. Too much of
an incentive to increase the tax rate to offset the dividend due the people.
At the very least money created by the Mint would need the cooperation of the
banks. During and after the Civil War, the banks refused to accept deposits of
Greenbacks, which greatly limited their acceptability. The banks achieved
complete victory with the passage of the Specie Resumption Act, which mandated
that the Greenbacks be redeemed by the government in gold. This greatly enriched
the speculators who had amassed Greenbacks at steep discount.
Legal tender status is not sufficient to guarantee acceptability. The
Greenbacks had legal tender status that was eventually approved by the Supreme
Court. Legal tender status did not require the banks to accept them for deposit.
It only required that creditors accept them in payment for debt. But Alberta
didn't even have the legal authority to convey legal tender status to its notes.
All money is debt by its creator to its bearer. That will always be the case.
It is a subset of the more general concept of contract for future performance,
which fits very well with Douglas' "ticket" metaphor. See the Innes papers at
http://www.geocities.com/new_economics/innes/
--- On Sun, 11/30/08, Martin Hattersley <jmartinh@shaw.ca> wrote:
Yes, I'm certainly in favour of a "Just Price", which in Canada could easily be
achieved through making our "Goods and Services Tax" mechanism go into reverse as
a subsidy on prices, so introducing money into the economy in a way that actually
reverses inflation, that money being created by the Mint rather than the banking
system.
The one essential thing we have to do is to create our money supply without
creating debt at the same time, and there's certainly no sense in spending money
on infrastructure (or wars) if what we get from it all isn't anything we need.
Martin Hattersley
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