Re: 'Stability' Of Equilibrium w/Zero-Cost Money

["John Gelles" <jjgelles@xxxxxxxx>]

            The fact that most money is created as an IOU
            that must be repaid, and only a lesser share of
            modern money is created without new debt, is
            not the reason modern money is too weak to
            end poverty and precipitate sustainable growth
            in the minimum standard of living. Debt is not
            the chief obstacle to such growth.

            Lack of production know-how is.

            Where a nation knows how to produce and
            how to finance consumption it can use debt
            based money to sustain a high minimum standard
            of living. The effect of debt and interest is
            managed in such countries by their system of
            taxation and government spending.

            I would side with Harry Veeder, however, if
            we were designing a more perfect system --
            one with less taxation and more debtless money.
            The design would, of course, have to be based
            on gaining the know-how of production on which
            all else depends. This includes production of
            finsihed necessities and all that goes into them.
            Nations that cannot feed themselves must be
            world class competitors in producing the things
            with which to buy a reliable supply of food.


        John Gelles
         email    1944@xxxxxxxx
             url    http://www.1944.org
                     http://www.1944.org/whatsnew.htm

----- Original Message -----

From: Harry Veeder <eo200@xxxxxxxxxxxxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>
Sent: Thursday, September 21, 2000 3:57 AM
Subject: Re: Re.: 'Stability' Of Equilibrium w/Zero-Cost Money


Gunnar Tomasson wrote:

<snip>
>8. Now, money impacts real-world economic developments - once it is
>recognized that modern money is created with the stroke of a computer key,
>the proposition that "Walras's theory and all others along those lines -
>including Samuelson's - are little better than nonsense" does not hold
water
>- THEY ARE NONSENSE!
<snip>

This would be accurate if modern money weren't always created with a
corresponding amount of debt.

Harry Veeder