Which is it, "Creditary" or "State"?

["William B. Ryan" <w_b_ryan@xxxxxxxxx>]

The "Creditary" Circuit:  Three primary sectors:
Banks - Firms - Consumers.  Treasury aggregated with
Firms.  Fed aggregated with Banks.  Firms and
Consumers spend Bank credit.  Firms normally in
deficit to account balances held by Firms and in
deficit to account balances held by Consumers -
accommodated by availability of credit from Banks.
Production represented by efflux into account
balances held by Firms and Consumers.  Consumption
represented by reflux from Consumers to Firms.
Desire to consume is *imperative* to produce.

The "State" Circuit:  Two primary sectors:
Government - Private.  Government is consolidated
balance sheet: treasury - fed.  Private is
consolidated balance sheet:  firms - commercial banks
- consumers.  Transactions between firms, commercial
banks and consumers "net to zero."  Net financial
assets held by Private derives from deficit of
treasury/fed to Private.  Tax liability creates
*imperative* to accept twintopt ("that which is
necessary to pay taxes") on Government's terms to pay
tax in reflux.  Private "leverages" twintopt
permitted to be retained into "money" required for
trade.




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