Wally, why don't you add [EMAIL PROTECTED] to your copy list? As it stands, your list is closed and is unavailable to anyone not on the list. [EMAIL PROTECTED] has an open archive available to anyone with a search engine who wants to learn about the subject. It also makes it possible for others to join the discussion and learn thereby, and us to learn from them. It also means that only those who have asked to receive the messages will receive the messages.
That means you will have to open yourself to criticism. But if you want to preach to the choir, then preach to the choir. The choir is getting smaller and smaller, as you should well know. It is a type of mental inbreeding that is an intellectual dead-end. So if you want to stay in a 1930s time warp, fine.
There are several important points in your post that really demand clarification, which you will never get from a closed list, for example your contention that:
"The critical advantage in foreign trade is held by the nation with the lowest price level...Obviously, if one nation implemented Social Credit, all others would be unable to compete with it in the international markets."
A social credit economy would not seek to export merely to receive credits to enable its consumers to consume what it can produce, since those credits could be created internally through the dividend and discount--this is true.
Here's the thing--no matter how much you lower the domestic price level, the predatory foreign producer will always sell at a lower price, thereby progressively bankrupting domestic producers one by one as he augments his productive capacity. He can do this because he can recover most all his costs of production from his own captive workforce. He can drop the price of what he sells into your market to whatever low level it takes to capture your market. Since he has recovered most of his costs of production from his own workers, whatever low level he sells into your market is pure profit to him. So job number one for social credit to work there have to be controls limiting imports.
The problem that social credit faces is the problem facing every social reformer, as Curtiss Priest already informed us. If you force the domestic producer to clean up his smokestack, you drive production overseas where there are no such restrictions. If you force the domestic producer to maintain a safe working environment, you drive production overseas where producers have no such requirements. If you force the domestic producer to pay a decent wage, you drive production overseas where there is effectively slavery, and so on--if your market is open to the foreign producer.
Job number two for social credit to work there will have to be capital controls. At the very least you will have to limit the negotiability of the social credits so that they can only be used to purchase domestic production. But then you still face the dilemma that by doing so you free up the already existing credit to go overseas either for the purchase of consumer goods or investment, negating much of the beneficial effect of the social credits by draining purchasing power from the domestic economy. If you try to compensate for the capital flight by disbursing still more social credits, you have the recipe for inflation that will accelerate without limit.
---original message---
Date: Fri, 11 Jul 2003 00:42:31 -0600
From: "Wallace M. Klinck" <[EMAIL PROTECTED]>
Subject: Re: H.M. Murray on Credit Creation and Bank Interest--from"The Struggle for Money": Wally replies
Hello Curtiss and Others--sorry to be so late in replying.
Under the present financial rules [snipped]
_________________________________________________________________
MSN 8 with e-mail virus protection service: 2 months FREE* http://join.msn.com/?page=features/virus
==^================================================================ 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 ==^================================================================
