***>and how does money get into the national credit account? Further, what is done about the hording of B funds?<***
Keep in mind that the banking system as a whole, to the extent it can be considered to be one big bank with many branches--has what is tantamount to an unlimited overdraft account with itself, against which it writes checks. The present arrangement is that they go exclusively toward funding loans. It's what we call the Monopoly of Credit. The Monopoly works against its own best interests since it is not possible for the loans to amortize in their totality so long as there is labor displacement. They don't know that. It's our job to so inform them. Some of those checks could fund dividends, which would enable the amortization of the loans. The National Credit Account carries a balance available to fund dividends that is estimated to be the totality of latent productive capacity. I don't know for sure what you mean by "hoarding of B funds." I suppose you're referring to the B in A + B. The short answer is--nothing. The "hoarding" is compensated through the dividend (and retail discount) program so that prices equate to purchasing power. During normal times account balances are not "hoarding" but working capital necessary for day to day to day operations. There is a functional relationship between economic activity and the account balances that facilitate that activity. During abnormal times there is indeed hoarding in the ordinary sense of the word, but it is the effect and not the cause of the abnormality. ____________________________________________________________ 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 --^----------------------------------------------------------------
