***>Doesn't this make the creation of money, to some extent, a Ponzi scheme - which crashes down when too many bad loans are made (such as for the creation of the dot.coms)?<***
Not from what I said in that particular post. Ponzi finance means you are borrowing merely to pay earlier loans. The lending process is not by its nature Ponzi if the borrowing is for constructive purposes, such as organizing the factors of production into their more efficient combination, as ultimately judged by consumers in free markets. It is what economists call investment. The alternative is some permutation of a command economy where bureaucrats bark orders. Ponzi finance derives from the fact that loans in general do not "self-liquidate" if there is labor displacement, as explained through the A + B theorem. To correct that problem social credit proposes the Retail Discount and Dividend paid from the National Credit Account. ____________________________________________________________ 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 --^----------------------------------------------------------------
