| Subject: | [socialcredit] Fw: Re: question regarding Australia and New Zealand during the Depression | | Date: | Friday, May 1, 2009 08:47:45 (-0700) | | From: | william_b_ryan <william_b_ryan @.....com>
|
--- On Fri, 5/1/09, Ellen Brown <ellenhbrown@gmail.com> wrote:
> From: Ellen Brown <ellenhbrown@gmail.com>
> Subject: Re: question regarding Australia and New Zealand during the Depression
> To: william_b_ryan@yahoo.com
> Date: Friday, May 1, 2009, 10:46 AM
> I don't think I was offering it to support the
> "Greenbacker" argument. I
> was showing how we could fund infrastructure development at
> a fraction of
> the cost at which it is financed now. The central bank no
> doubt simply
> created the credit on its books. The point was that it was
> a publicly owned
> central bank. Our central bank has started to do that now,
> which I think is
> good; that is how public projects should be financed. But
> up to now they
> have been financed by issuing bonds to private parties,
> putting the govt in
> debt to private parties at substantial interest. Debt to
> the Fed is now at
> under 1/2% interest, because the Fed rebates most of its
> profits to the
> govt.
>
> On Fri, May 1, 2009 at 8:41 AM,
> <william_b_ryan@yahoo.com> wrote:
>
> >
> > In my research, I found that in another paper from Ms.
> Brown, "Letter To
> > The United Nations: How To Cut Sustainable Energy
> Costs In Half, at
> >
> >
> http://www.opednews.com/articles/1/opedne_ellen_br_071109_letter_to_the_united.htm
> > she quotes in support of her argument from a book
> published in New Zealand
> > by the Ministry of Works in 1949, *State Housing in
> New Zealand." Now it so
> > happens that photo-copy of this book is available
> online at
> >
> http://www.hnzc.co.nz/hnzc/web/research-&-policy/our-archives/books.htm
> .
> >
> > This is Ms. Brown's version of the excerpt from
> that book:
> >
> > "To finance its comprehensive proposals, the
> Government adopted the
> > somewhat unusual course of using Reserve Bank credit,
> thus recognizing that
> > the most important factor in housing costs is the
> price of money – interest
> > is the heaviest portion in the composition of
> rent...This action showed...it
> > was possible for the State to use the country’s
> credit in creating new
> > assets for the country."
> >
> > This is the complete paragraph from the book:
> >
> > "To finance its comprehensive proposals, the
> Government adopted the
> > somewhat unusual course of using Reserve Bank credit,
> thus recognizing that
> > the most important factor in housing costs is the
> price of money--interest
> > is the heaviest portion in the composition of ordinary
> rent. The
> > newly-created Department was able, therefore, to
> obtain the use of funds at
> > the lowest possible rate of interest, the rate bing 1
> per cent for the first
> > £5,000,000 advanced and 1 1/2 per cent on further
> advances. The sums
> > advanced by the Reserve Bank were not subscribed or
> underwritten by other
> > financial institutions. This action showed the
> Government's intention to
> > demonstrate that it was possible for the State to use
> the country's credit
> > in creating new assets for the country."
> >
> > Notice that the meaning of the complete paragraph is
> completely different
> > than in Ms. Brown's redacted version. In Ms.
> Brown's version the
> > implication is that the money was in the form
> Greenbacks, or their
> > equivalent in the form of credits, that the government
> simply spent into
> > circulation. In the complete version it is clear that
> the money was from
> > loans, albeit from the government owned central bank
> at low interest rates.
> > So the money had to be repaid in the conventional
> manner. The central bank
> > was acting very much like a conventional bank. That
> was not particularly
> > revolutionary or innovative, nor does it in any way
> support the Greenbacker
> > argument.
> >
> >
> >
> >
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