beyond interest rates

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

The following is from Eric Lonergan in the Financial Times, September
9, 2002:

"A consensus is starting to emerge that the most direct monetary solution
to Japan's problems would be for the BoJ to finance private sector debt
repayment. If the BoJ repaid 30 per cent of all household and corporate
debts outstanding, financed by monetary base expansion, there would be
a recovery in domestic demand..."

Lonergan adds:

"Equivalently, and perhaps more equitably, the BoJ could simply post
a cheque for the Yen equivalent of, say, $10,000 to every household.
If this has little impact, they could send another one."
----------

This is one-half of the Social Credit solution.  Simply giving people
money does not mean that they will spend it - the old story of pushing
on a string - which is why Douglas always insisted that dividends must
be coupled with a program of retail discounts paid directly to retailers
to enable them to pay their creditors, thereby canceling debt.

The full text of Lonergan's article is attached.


--
William B. Ryan
william_b_ryan@xxxxxxxxxx - email
voicemail/fax - 1-866-678-3967 - toll free

Attachment: lonergan-09-09-02.pdf
Description: Adobe PDF document