| Subject: | [socialcredit] In continuing reply to Jessop Sutton | | Date: | Monday, April 18, 2005 09:48:37 (-0700) | | From: | William B. Ryan <w_b_ryan @.....com>
|
"Jim, When your bank grants you an overdraft facility
of $1000, you can draw on it in cash which comes out
of the cash in general circulation outside of the
statutory (fractional) reserve held at the Reserve
Bank."
----------------
-----------------
No, it does not come out of general circulation. The
general theorem, from Douglas's third book, *Social
Credit,* is: Loans create deposits; the repayment of
loans cancel deposits.
http://www.mondopolitico.com/library/socialcredit/socialcredit.htm
It is a statistical concept relating to the economy
as a whole.
By the way, Post Keynesianism, founded by Professor
Paul Davidson, editor of the Journal of Post
Keynesian Economics, acknowledges the validity of the
theorem.
-
"Incidentally, you say 'The essence of the fraud is
the claim that the money that they create is their
own money'. Where is the fraud since the bank hasn't
actually 'created' anything?"
----------------
-----------------
If you would actually read Douglas, rather than
merely pontificate about him and his theory, you
would find the answer to your question. Perhaps you
will not agree with the answer, but that's another
matter:
From Douglas's evidence before the Alberta
legislature, 1934:
http://www.geocities.com/socredus/douglas-alberta-1934.txt
:-
"...Now that was, of course, originally--and I say
this quite dispassionately because it is working to
the end of a practical result which is important--
that was a system which originated in fraud; it was a
system which originated by the issue of more receipts
than there were gold coins, on the assumption, which
was generally true, that all the receipts would not
be presented at once for honouring. So long as the
actual gold behind those deposits was not all drawn
at once, it was working perfectly successfully or
fairly successfully for quite a long time.
"It didn't work when everybody exercised his legal
right to draw this gold; but it became so recognized
that it became the basis of banking and it is now,
and although there has been in the past few years a
good deal of discussion about the matter, the subject
is now a dead issue. There is no question at all
about it that a right has been assumed by slow
process (which I have been endeavouring to sketch),
on the part of the banking system actually to issue
new purchasing power by the process of issuing more
receipts for wealth than the bank possesses the basis
for.
"Now the question is that since that system up to
certain point works, what is the basis on which these
additional receipts are issued? There is no question
at all, none whatever, that the basis on which those
receipts are issued is the general wealth of the
community, and they are issues of receipts, or
demands if you like, for payment by the general
community, of real wealth, which demands only have
value because of the existence of this real wealth.
The real wealth does not belong to the people who
issue the receipts, although the receipts are issued
as the property of the issuers and not as the
property of the owners of the real wealth for which
they are a demand.
"I hope you have grasped that because it lies at the
bottom of the soundness of any radical amelioration
of the existing financial system."
:-
Jessop, we've made other materials available at
http://www.geocities.com/socredus/compendium
Please take a look at them.
-
Vic [Bridger] says: "The financial and banking powers
ARE against the introduction of Social Credit which
would reduce or even eliminate their power base.
There is sufficient evidence to substantiate this."
Jessop: Could you cite some?
----------------
-----------------
Well, for example, the official website of the Dallas
Fed,
Public Affairs Department
Federal Reserve Bank of Dallas
P.O. Box 655906
Dallas, TX 75265-5906
http://www.dallasfed.org/research/ei/ei9601.html
under various loaded headings like:
"Rediscovering the Value of Honest Money";
"Honest Money";
"Examining the Moral Dimensions of Monetary Policy"
we find this exact quote:
"Before the turn of this [the twentieth] century, an
entire generation of preachers and ministers
concluded that a moral monetary policy was an easy-
money policy. 'Give the people more money and
credit,' was the cry of the populist ministers. 'Down
with gold, up with silver.' They mistakenly believed
that the Treasury's printing press was the key to
earthly salvation.
"Even as late as the 1940s, this ideology is evident
in film. As much as I love the Christmas classic,
It's a Wonderful Life, a careful viewer can detect
its social credit homiletics..."
:-
Now, if that is not anti-Social Credit propaganda
emanating from the epicenter of banking, I don't know
what could be.
Perhaps not so coincidentally, the date on this Fed
propaganda corresponds to the date of publication of
the self-styled "Austrian" economist Gary North's
http://freebooks.entrewave.com/freebooks/docs/2166_47e.htm
anti-Social Credit screed: *Salvation Through
Inflation," on the identical theme. In my mind, a
coordinated effort cannot automatically be
discounted. Of course, that IS my "conspiracy
theorist" self talking.
-
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