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Re: Why jobs disap William
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The Money System T Arian F.
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Subject:Re: [socialcredit] Why jobs disappear
Date:Sunday, June 7, 2009  14:19:34 (+1200)
From:William Hugh McGunnigle <wmcgunn @.........nz>

HI Per
          Although your argument appears sound, Wallace has hit the nail on 
the head with respect to how the problem can be overcome. You appear to 
still be in the pre SC thinking mode, and living in a world that is 
dominated by the "work ethic " and "orthodox economics" as the only 
criterion whereby the worth of any action can be evaluated to judge the 
value of each individual to the society. Until your thinking mode changes I 
fear that your ability to understand the full implications of an SC system 
of financial mangement will remain limited to say the least.

----- Original Message ----- 
From: "Per Almgren" <almgren_per@telia.com>
To: <socialcredit@elistas.com>
Sent: Tuesday, June 02, 2009 10:10 AM
Subject: [socialcredit] Why jobs disappear


> This is why jobs disappear!
>
> Imagine that you pick out a group of eleven people from society. Ten of 
> these are businessmen who themselves, or together with others, work to 
> produce a variety of products, each one within their specialized area. The 
> eleventh is a person lending money to the others.
>
> The money lender charges 10% interest (to simplify the calculations) on 
> the money he lends. All businessmen borrow $2,000,000 each to cover 
> expenses for purchase of raw materials, wages to employees, plus their own 
> living expenses for one year. The whole amount of the loans is then used 
> to buy from the economy, which in principle consists of all other 
> businesses, people and institutions, including the sector financed by 
> taxes. The economy has received a sum of $20,000,000.
>
> To cover expenses, including interest payments, each of the businessmen 
> has to sell products for at least $2,200,000. We assume that the lender 
> buys products and services and pays taxes for a total of $500,000, which 
> thus is funneled in to the economy. The market can then as a whole buy 
> products and services from the mentioned group of businessmen for 
> $20,500,000. But since each businessman has to sell $2,200,000 worth of 
> goods, as a group they have to sell $22,000,000 worth. One or more of the 
> businessmen will therefore not be able to sell products at the required 
> level if the rest of the economy doesn’t increase its debt by $1,500,000. 
> At least one or more of the business owners have to file for bankruptcy 
> or, if the lender agrees to it, borrow another $1,500,000.
>
> The companies faced with the threat of bankruptcy have to fire employees 
> and/or loose the collateral for the loans. This will be repeated year 
> after year and more and more businessmen loose out, since all other groups 
> in society will be affected by the same economical principal. It is the 
> lenders, who already have more money than they need, who create a growing 
> debt as soon as they do not buy products and services or pay taxes on 
> their income from interest payments for the total amount earned.
>
> It is therefore very important to think in new terms – we have to change 
> to an interest free economy. This would benefit the largest group of the 
> people while the existing system only benefits a small percentage of the 
> population.
>
> Per Almgren
>
> From borrowers’ purchases 20,000,000
>
> _From lender’s purchases 500,000_
>
> To the economy 20,500,000
>
> Purchases from the economy 20,500,000
>
> Interest on loans -2,000,000
>
> _Payments on loans -20,000,000_
>
> Borrowers’ deficit -1,500,000
>
> ---------------------------------------------------------------------
> Some introductory materials to the discussion topic of this list are at
> http://www.geocities.com/socredus/compendium
> You're subscribed to this list with the email wmcgunn@maxnet.co.nz
> For more information, visit http://www.eListas.com/list/socialcredit
> 


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