Pretend my degree is in public policy and finance rather than in banking (which is in fact true). What actions happen on what date by whom to distribute the national credit?
Let me venture a guess and you can tell me if I am correct.
Sept 15: Federal Reserve estimates amount to be distributed to national credit account.
Sept 22: Federal Reserve transfers funds to U.S. Treasury to write checks for national credit.
Oct-Nov: U.S. Treasury issues cheques or direct deposits credit cheques to individuals. Cheques and deposits are the same for each citizen, regardless of income.
Is this a likely scenario, or would payments be spread out throughout the year, lets say quarterly. How large would you estimate each cheque to be? $100? $1000? Give me a ballpark.
Michael Bindner
[EMAIL PROTECTED] wrote:
[EMAIL PROTECTED] wrote:
***>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.
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