Re: James A. Baker III

[GGard97342@xxxxxx]

In a message dated 21/12/00 15:50:36 GMT Standard Time,
eo200@xxxxxxxxxxxxxxxxxxx writes:

> As a matter of fact it happens routinely and is known as "interest".
>  A borrower may spend credit and a lender may spend interest.


I am not quite with you , Harry.

A lender who "spends" interest is assigning a debt. A borrower who spends
credit is increasing his own debt and the credit balance of person with whom
he spends it.

When banks charge interest to a borrower's account, exactly the same sum is
credited to profit and loss, so both sides of the balance sheet rise together
and equally.

A credit can no more exist without a corresponding debit than a single sided
coin can exist.

Even the possessor of a coin is a creditor of society, for he holds the coin
as evidence that he has provided goods or service without receiving anything
in return. His debtor is anyone who honours the debt by taking the coin in
return for supplying goods or service. Adam Smith noted that. So coins are
anonymous debt tokens, as neither the creditor or the debtor is named on the
coin.

The only definition of "money" which works is "money is assignable debt."

Geoffrey Gardiner