Re: PK epistemology

["Gunnar Tomasson" <gunnar.tomasson@xxxxxxxxxxx>]

Bill:

Re. the following:

> Actually, what we generally call "money" is that form
> of credit paid as salaries, wages and dividends by
> government and the private sector.  The most
> important function of banking within modern
> industrialized market economies is to transform the
> various individualized credit instruments of
> individual producers (including government) into this
> most fungible form of credit, enabling the democracy
> of consumers to determine the course and direction of
> production.

Comment:

Agree.

Actually, your statement that "the most important function of banking within
modern industrialized market economies is to transform the various
individualized credit instruments of individual producers (including
government) into this most fungible form of credit" mirrors PRECISELY in
substance and NEARLY in form relevant passages from my 1970s working notes
on related issues!

Gunnar


----- Original Message -----
From: "William B. Ryan" <william_b_ryan@xxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>; "Warren Mosler" <mosler@xxxxxxxxxxxxxx>
Cc: <gunnar.tomasson@xxxxxxxxxxx>; <socialcredit@xxxxxxxxxx>
Sent: Monday, April 21, 2003 2:57 PM
Subject: Re: PK epistemology


> I'd replace it with:
>
> The state, desirous of transferring real goods and
> services from private to public domain:
>
> 1.  Levies taxes, fines, fees, etc. payable in the
> State's designated unit of account.
>
> 2.  The State issues the thing it demands in payment
> in exchange for said desired goods and services.
>
> This unit of account subsequently generally functions
> as 'money.'
> --
>
> Actually, what we generally call "money" is that form
> of credit paid as salaries, wages and dividends by
> government and the private sector.  The most
> important function of banking within modern
> industrialized market economies is to transform the
> various individualized credit instruments of
> individual producers (including government) into this
> most fungible form of credit, enabling the democracy
> of consumers to determine the course and direction of
> production.
>
> --
>
> On Sun, 20 Apr 2003 16:03:46
>  Warren Mosler wrote:
> >
> >
> >>
> >>     3. Money is the social institution devised to
> >> address uncertainty.
> >>     It serves as the denominator of labor and debt
> >> contracts, and allows
> >>     capitalist economies to function.
> >> >     (Dow 2001, 19)
> >>
> ><snip>
> >
> >  I would
> >> accept 1, 2, 4, and
> >> 5 but replace (3) with:
> >>
> >>     3'. Material processes occur in irreversible
> >> historical time, and we
> >>     expect that, in any particular place or time, a
> >> variety of social
> >>     institutions enable and/or constrain the
> >> time-arrangement and
> >>     time-coordination of those material processes.
> >>
> >
> >I'd replace it with:
> >
> >The state, desirous of transfering real goods and
> >services from private to public domain:
> >
> >1.  Levies taxes, fines, fees, etc. payable in the
> >State's designated unit of account.
> >
> >2.  The State issues the thing it demands in payment
> >in exchange for said desired goods and services.
> >
> >This unit of account subsequently generally functions
> >as 'money.'
> >
> >From Innes, 'what is money':
> >
> >
> >But a government produces nothing for sale, and owns
> >little or no property; of what value, then, are these
> >tallies to the creditors of the government? They
> >acquire their value in this way. The government by law
> >obliges certain selected persons to become its
> >debtors. It declares that so-and-so, who imports goods
> >from abroad, shall owe the government so much on all
> >that her imports, or that so-and-so, who owns land,
> >shall owe to the government so much per acre. This
> >procedure is called levying a tax, and the persons
> >thus forced into the position of debtors to the
> >government must in theory seek out the holders of the
> >tallies or other instrument acknowledging a debt due
> >by the government, and acquire from them the tallies
> >by selling to them some commodity or in doing them
> >some service, in exchange for which they may be
> >induced to part with their tallies. When these are
> >returned to the government treasury, the taxes are
> >paid. How literally true this is can be seen by
> >examining the accounts of the sheriffs in England in
> >olden days. They were the collectors of inland taxes,
> >and had to bring their revenues to London
> >periodically. The bulk of their collections always
> >consisted of exchequer tallies, and though, of course,
> >there was often a certain quantity of coin, just as
> >often there was one at all, the whole consisting of
> >tallies.
> >=====
> >Warren Mosler, www.mosler.org
> >c/o James River Capital Corp
> >5007 Chandler's Wharf, Suite 201/202
> >Christiansted, USVI  00820
> >340-719-8813 office phone
> >340-719-8804 Fax
> >Primary email contact:  mosler@xxxxxxxxxxxxxx
>
>
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