Sorry, below should read we need "NOT the creation of incomes through wasteful and destructive activity", et. Wally Wallace M. Klinck wrote: > Hello Jessop! (and Others) > > I sympathize with you and have posted the remainder (first part) of > Chapter 8 (The Remedy) from "H.M.M."'s THE STRUGGLE FOR MONEY hoping > that this may answer some of your questions. When a bank makes a loan > or purchases a security it creates new credit-money; when it receives > repayment of a loan or sells securities, it destroys credit-money. The > money supply is thereby increased or decreased as the case may be. > Money issued for Social Credit National (Consumer) Dividends or > Compensated Prices, etc. would be drawn against the National Credit > Account which would be written down accordingly as it represents > consumption. (The National Credit Account would be written up in regard > > to capital production loans because this represents an addition to Real > Credit.) Credit issued without debt for these purposes would be > cancelled when spent and returned to the banks in respect of outstanding > > loans. > > I have a PDF file that I could send you if I had your e-mail address > entitled "The Cancellation Bogey" which explains the cancellation > process. > > The Social Credit position is that consumers (all of us) collectively do > > NOT have enough purchasing-power to purchase all consumer goods (which > include the cost of capital goods) and so to cancel the financial costs > of production. We acquire consumer production by being carried by > unrepayable debt. Yes, we do regard the whole thing as fraudulent and > unsound-- because it is subject to increasing overload, being based upon > > increasingly unrepayable financial debt. This is a violation of natural > > law--there is no "debt" in nature. Look at recent massive destruction > of equity values in the financial markets--lost values of human effort. > Redistribution of income can do nothing to overcome a fundamental > insufficiency of effective demand. > War is a depletion and misdirection of a nation's real credit and source > > of genuine wealth capable of satisfying consumer needs or wants. It is > honest national financial accountancy which is needed for prosperity and > [NOT] > the creation of incomes through wasteful and destructive activity. We > need Dividends, not war. And those who call for "full employment" are > calling for war--because they wrongly assume that income can only be > paid directly for work and if work cannot earn adequate income then > wasteful, useless or destructive activity becomes essential to "make up > the deficiency". It does not, of course, because the wasteful activity > is carried by a debt against the future. > > Sincerely > Wally >
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