Vic, this is the Douglas chart from The Monopoly of Credit you tried to send that I have converted to plain text. I don't know why it didn't transmit through Topica. The file in its original pdf format is small and I think should have gone through. The limitation seems to be that the message plus attachments cannot exceed about 60KB. Possibly you forgot to attach it. Topica should normally forward attachments with the messages but will not archive them.
-- GREAT BRITAIN LTD.
*Assets* [left side of chart]
(Population. Education. Morale) i.e. Human Potential Policy Organization Natural Resources Developed Power Plant (Railways, Buildings Tools etc.) Public Services Goodwill (Tradition, reputation, etc.). Work in Progress Consumable goods
*Liabilities* [right side of chart]
National Debt. Bankers (Potential creators of effective demand) Insurance Companies (Mortgage and bondholders) Cash at call Taxation for Public Services
An examination of a document constructed on these principles will at once reveal the fact that it differs in certain important particulars from any official or public account. The liabilities are not defined, the fixed assets appear on the opposite side of the account to the money assets and the two sides do not balance In short, the financial system is seen to be, as it is, in opposition to every other interest. --
If I may interpret this, Vic, the term "cash on call" that Douglas is using here is simply the former (archaic) accounting term for the "current liabilities" that have to be met in the current accounting period. Accountants group the actual "cash" the firm has on hand among "current assets." This is perfectly consistent with the idea that cash, currency, bank checking deposits, checks, etc. are liabilities of their makers and assets to their holders.
As Douglas makes clear, this is not an ordinary balance sheet. It simply reflects the pluses and minuses from the perspective of the citizen "stockholder" of the nation. Public services are a plus. The taxation for public services is a negative, and so on. Bankers are a negative because as "potential" creators of effective demand they are not doing their job very well at all. Particularly this was the case during the 1920s and 30s, and remains the case today.
Douglas emphatically made the point at Swanwick in 1924:
"...the true assets of banks collectively consist of the difference between the total amount of legal tender, or Government money, which exists, and the total amount of bank credit money, not only which does exist, but which might exist, and which is kept out of existence by the fiat of the banking executive." http://www.geocities.com/socredus/compendium/swanwick1924.txt
---original message--- From: Victor Bridger <[EMAIL PROTECTED]> Subject: Re: [SOCIAL CREDIT] to Victor Date: Sat, 12 Jul 2003 17:27:56 +1000
Bill. the difference , I think in our approach is: (1) I have stated that interest can only come from subsequent creations of credit (ie. bank lending). If at any time I borrowed from a bank with an attached repayment of interest and from that point on no new lending occurred there would be insufficient money to repay "someone's" debt. (2) I still adhere to my statement that money is not an asset (at least not in Social Credit) terminology. It is a "claim, a means" by which an asset or anything else may be obtained. By itself money is a nothing and I agree with Douglas that it is psychological in that it can be anything we want it to be provided it is acceptable by others, as per our definition of Money. (3) I have attached in PDF an extract from Douglas's "Monopoly of Credit" in which he clearly accepts that money is a liability not an asset. He refers to "Fixed Assets and Money Assets" in his following explanation but the use of Money Assets is a reference to the fact that these "Assets" can be converted to or are a claim on money and also included Cash at call. It is simply a recognition that "Money" is or should be a reflection of reality i.e., those things he has shown under assets. Vic
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