Re: S=I, an old debate.

["William B. Ryan" <william_b_ryan@xxxxxxxxxxx>]

Forwarded message:

----Original Message Follows----
Date: Sun, 16 Aug 1998 10:21:26 +1000
To: "William B. Ryan" <william_b_ryan@xxxxxxxxxxx>
From: Victor Bridger <socred@xxxxxxxxxx>
Subject: Re: S=I, an old debate.

At 14:16 15/08/98 PDT, you wrote:
>Louis-Philippe Rochon had written:
>http://csf.colorado.edu/mail/pkt/nov97/0113.html
>

>From V.J. Bridger:

Money is introduced both to finance investment and consumption as per
the increase in Bank Card "Credit". All money introduced in this way is
debt and bears an interest charge. The theory of Savings and Investment
was wrong when Keynes first introduced it and it still wrong and
therefore not worthy of discussion. The chicken and egg argument is just
as fallacious as has been pointed out the flow of money in and out of
the system is not static but is a continuous flow. In this sense money
is a "rate" and this is a concept that has eluded economists for
decades.

I would suggest that the operative factor is debt not credit. There is
no such thing as debt in nature only real credit. The debt is a creation
of man in the form of money allegedly representing the real credit.
Unfortunately there is no correct accounting procedure in place to
reflect the truth of this.

Someone should attempt a simple exercise of assuming an amount of raw
material and at the same time placing a monetary value on this and then
assume that the equivalent amount of money exists. Pay the money to
someone to produce something from the raw material. You will now have
finished products that "cost" the amount of money that exists which will
now have changed hands. Now have that new possessor of the money "save"
some and reinvest it a new cycle of production. The new cycle of
production will have incurred a new cost equivalent to the amount
invested or "saved". The result is that either some goods from the first
cycle will remain unsold or the second cycle will remain unsold. The
"saved" money cannot do both. The only remedy is to introduce some new
money and this is how the system works and why there is, and must be,
under the current financial system, increasing debt.

V. Bridger
Social Credit School of Studies
http://www.scss.gil.com.au



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