DEAR SUBSCRIBERS: Some comments are inserted. Replies are welcome.
WALLY
[EMAIL PROTECTED] wrote:
>
> Not a buildup of goods--that wasn't the proposition.
> Producers cut back on production and sell at some
> price what has been produced.
[WALLY: They cannot long sell below cost and remain solvent.
Historically, outright destruction of product has been resorted to in
times of credit contraction.]
>
> The debt steadily increases until the bubble bursts
> and cancels the debt.
[WALLY: The bubble has cyclically collapsed due to the debt increase
which reduces liquidity, lack of confidence and or deliberate policy.
The debtor is dispossessed and the strong crediters acquire the
foreclosed assets. The banking institutions, having issued the
accountancy reflection of the community's assets and claiming it as
their own are in the ultimate favored position.]
>
> The Bank of Japan is contemplating purchasing and
> writing off the inventory of "non-performing loans"
> held by the commercial banks to reinvigorate their
> economy.
[WALLY: What could be a more convincing vindication of Douglas's
position that the operation of the price-system under the orthodox
financial debt system is increasingly non- self-liquidating? The
Japanese had been known to have "pirated" Douglas's works during the
1930's. They have a practical need to heed his words; if they had the
Christian philosophical basis and "drive" for policy-making the
implemention of Social Credit measures should come with ease. Without
this, they merely want to "adjust" the system without fundamentally
altering it.]
>
> [WALLY--more below.]
>
> --------- Original Message ---------
>
> DATE: Tue, 24 Jun 2003 23:00:15
> From: [EMAIL PROTECTED]
> To: [EMAIL PROTECTED]
> Cc:
>
> >Douglas´ theorem suggests that without his proposed remedy, there would
> >be a
> >steady build-up of goods
[WALLY: Not necessarily. The present system facilitates the purchase of
goods through debt expansion--consumer debt, debt for new production and
state debt. This allows acquistion for use but DOES NOT ADEQUATELY
LIQUIDATE FINANCIAL COST. Indeed, one of our problems is the necessity
to create an excess of superflous production in the form of excess,
unneccessary or undesired capital or consumer goods to generate the
"income" to allow the acquistion of past production. This "works" only
so long as the debt is allowed to expand. The process is not, however,
Social Credit, and involves the policy of centralization of power which
is fundamentally incompatible with it.]
of and ´Price´ and a corresponding displacement of
> >labour. Since his remedy has never been applied (other than partially,
> >and
> >for a short while only, in one state in Canada)
[WALLY: Social Credit has never been applied in Canada. (Very small
"Dividends" were paid for two or three years but they originated from
within the price-system, not from without as is required by Social
Credit policy.) An army was recruited but the battle was never won due
to various factors including lack of knowledge, ineffective strategy,
political/legal/financial/media opposition, sabotage from within,
destruction of initiative due to personality cult, fatigue, lack of zeal
because of an inadequate vision and emergence from the Great Depression
with a return to "prosperity" due to War spending, etc.]
and, can anyone show me that
> >there is an accumulation of un-purchased goods in the world? [WALLY: Go
> >to the supermarkets--do you stand in line to find nothing remaining as
> >happened in the old communist states? What other than potential surplus
> >is the massive waste in armament production for war which can only be
> >"consumed" by deliberate policy and action? Refer to my comments above
> >about the role of debt in facilitating consumption.] Also, are there
> >any statistics to show that the proportion of ´unemployed´ is any
> >greater now
> >than, say, the period immediately before the Industrial Revolution?
[WALLY: Surely, the role of automation, robotization, etc. is well
documented and the ability to produce enormously more goods and services
with fewer and fewer workers is well known. More specifically, by way
of example, in the United States from the eighteenth century to the end
of the twentieth, the percentage of the work force engaged in
agriculture for home consumption and export went from about seventy-five
percent to less than three percent. This has not translated into a more
leisured, civilized life because we operate on the deliberate and
purposive Anti-Christian philosophy of "do ut des" ("this for that")--or
the doctrine of Salvation through Works. That is, we are firmly
compliant with the proposition (neglecting the reluctant recognition of
minimal "charity" in the form of a few crumbs offered in extreme cases)
that humans must work for everything they receive. Hence, the absurd
policy of "full-employment" which we are determined to implement no
matter how much irredeemable debt and centralized direction is required
to make it work--even if it means periodic collapse, war, and tragic
waste of human energy and natural resources to make it "work." Everyone
to the treadmill! Release the latent productivity of the system and
ensure its distribution without unrepayable debt and you would then see
the stupendous potential for leisure--which we so perversely seem to
regard as some social disease. During the days of Merry England I
understand there were about one-hundred and fifty holidays per year.
Are we really making progress?]
> >
> >I suppose I should also ask if there is in fact a large, and steadily
> >increasing, value of unliquidated loans in the banking system? [WALLY:
> >Yes, that's what makes the system "go"--and what eventually makes it
> >collapse. For example, since 1944 consumer debt in Canada has increased
> >from about five percent of annual income to currently over one-hundred
> >percent. The attempt of various levels of government to deal with
> >escalating debt by downloading it all along the way down to the private
> >sector and the indiviual has resulted in massive insolvency and
> >bankruptcy--corporate and personal.]
> >
> >Jessop.
> >-----------------------------------------
> >
> >On Tuesday 24 Jun 2003 6:09 am, Ekky Irion wrote:
> >> Douglas having discovered the covert mechanism that ..." 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 A+B theorem demonstrates that they would have it if it [money]
> >> were
> >> not for labor displacement. Furthermore, the theorem demonstrates that
> >> loans cannot self-liquidate in the presence of labor displacement even
> >> at a
> >> zero rate of interest."
[WALLY: To say that our economic problems stem from the banks issuing
loans and wanting more paid back than they loan because of added
interest is so facile for those determined upon simple answers and
prescriptions. It is not Social Credit. The A+B Theorem deals
comprehensively, among other considerations, with rates of flows of
price generation, embracing ALL external payments by industry, and
income, including ALL internal payments of industry. This involves the
capitalizaton of industry which is directly related to the replacement
of labor--and understanding the issues involved requires considerable
unavoidable study which no honest person could possibly say is "easy."
If civilization is to survive, I believe we have no alterative to make
the required effort to comprehend things first as the they rreally are
and, secondly, as they might more desirably be.]
>
>
>
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