Re: Creditary Economics (CE)

[GGard97342@xxxxxx]

29th April 01

I do not think this will work; as far as the public is concerned their bank
balances are "money." So let us define "money" as "assignable/transferable
debt." Scientifically it works; other definitions do not seem to me to be any
real use.

Geoffrey Gardiner


In a message dated 20/04/01 15:59:22 GMT Daylight Time,
ecbm@xxxxxxxxxxxxxxxxxxx writes:

>
>  ON Wed, 18 Apr 2001 22:09:26 -0700,
>  John O'Donnell <jackodonnell@xxxxxxxx>
>  wrote:
>
>  >Why do economists have such difficulty admitting that
>  >intermediated credit is a money substitute and not money?
>  >Terminology like this horizontal - vertical distinction only
>  >further obfuscates the simple fact that intermediated credit
>  >is a reliable and efficient method of net transfer of money
>  >between banks and internal transfer of promises to pay among
>  >a bank's own depositors.
>
>  This is a semantic question, not a substantial one.
>  Clearly, in our system bank deposits SERVE as a
>  medium of exchange, a store of value, a standard of
>  deferred payment.  In other places and other eras,
>  they might not have.  Now, the convention of referring
>  to something that does those things as "money" can
>  be changed, and we can restrict "money" to whatever
>  it is accepted in settlement of public debts.  And
>  then call horizontal money "direct systemic money
>  substitute", or DSMS (pronounced dizumz) for
>  convenience.  And then rewrite everything that refers
>  to the role of money in a monetary production economy
>  to that it talks about the role of money and DSMS in
>  a monetary and DSMSary production economy ...
>
>  ... but it would be a lot of extra effort for no
>  substantial gain.  The distinction between vertical
>  and horizontal money makes the desired distinction,
>  without threatening to bring us back into the mainstream
>  economic fairytails about happy people in their happy
>  villages higgling and haggling in their barter markets
>  until someone got the bright idea of creating money.
>
>
>
>
>  Virtually,
>
>  Bruce McFarling, Shortland, NSW
>  ecbm@xxxxxxxxxxxxxxxxxxx