Joe, these are interesting quotes from Douglas. You juxtapose them against my statements. None of the Douglas quotes contradict my statements.
I've interjected some commentary below: -- >>>C H Douglas, "The New and the Old Economics" : ~ "The method by which most modern financing is done, under cover of a smoke screen, provided by comparatively small subscriptions from the public, is that the financial institution actually creates the money, taking debentures on the new factory as security. <<< ---- Here Douglas disputes the standard explanation that investment derives from savings from earned income. It is a statement of fact. -- >>>.....But there are two practical objections, leaving aside any question of ethics. The new money, or credit, is claimed by the financial institution as its property, and therefore when it is lent, creates a debt against the public. <<< ---- Statement of fact. It is not an argument against banking. -- >>>.....Secondly, there is no provision in this method of financing for the money required to pay the interest on the debentures, which in fact can only be paid, if it is paid, by the issue of fresh money to pay it, which, under existing circumstances, comes from the same source, that is to say, the financial system. <<< ---- Statement of fact. This does not mean that debt compounds because of interest. Nor does it mean that you borrow money to pay interest. You borrow money for new investment. That presumably increases the earnings of those who borrowed previously. -- >>>From this point of view, it is the difference between usury and profit ~ a difference clearly drawn in the Middle Ages. <<< ---- Statement of fact. Remember this was written in the 1930s, some fifteen years after he started. It is in the context of the A+B theorem, which assumes that income is normally insufficient to amortize debt, not because of interest, but because of labor displacement. The whole situation is usurious because it is impossible for debtors in the aggregate to receive sufficient income to amortize their debt. Eliminating interest does not resolve nor touch the matter. That's why you will never find a recommendation from Douglas to that effect. -- >>>C H Douglas, "The Breakdown of the Employment System" ~ "As the situation stands at present, the banker is in a unique position. He is probably the only known instance of the possibility of lending something without parting with anything, and making a profit on the transaction, obtaining in the first instance his commodity free." <<< ---- Statement of fact. Douglas does not here call for the abolition of banking. -- >>>C H Douglas, "Economic Democracy"~ "Broadly, remuneration, or the system by which the amenities of civilization are placed at the disposal of the individual, is of three varieties; payment by financial manipulation (profit)... etc. .... Payment by financial manipulation, whether through the agency of profit (other than that earned by personal endeavour), stock manipulation, or otherwise, is quite definitely anti-social. It operates to neutralise all progress towards real efficiency by diluting the medium of exchange...." <<< ---- Yes. Remove the aspect of financial manipulation from profit and interest. Leave the reward for personal endeavour. You do that with a monopoly through oversight and control. -- >>>C H Douglas, "Macmillan Report" ~ "During the period covered by the curve, in which the bankruptcies have risen from about 900 per annum to nearly 7,000 per annum....every large bank in Great Britain has maintained or increased its dividend, has enormously expanded its premises, and placed large sums to its visible reserve, and created still larger invisible reserves, and this in spite of the enormous losses alleged to have been made in respect of loans to industry." <<< ---- Yes, banking, being the most pervasive monopoly, will do better than other businesses during tough times. Again, statement of fact. ____________________________________________________________ Get advanced SPAM filtering on Webmail or POP Mail ... Get Lycos Mail! http://login.mail.lycos.com/r/referral?aid=27005 ==^================================================================ This email was sent to: [EMAIL PROTECTED] EASY UNSUBSCRIBE click here: http://topica.com/u/?a84IaC.bcVIgP.YXJjaGl2 Or send an email to: [EMAIL PROTECTED] TOPICA - Start your own email discussion group. FREE! http://www.topica.com/partner/tag02/create/index2.html ==^================================================================
