[GJM] [gang8] Transfinancial Economics Project/ Revealing Comments 1. Latest Development.

[robert searle]

Dear All,

        Since posting the material below the Gang 8
yahoo discussion group have now started to putting my
communications onsite including the one below the
introductory email. This shows that perhaps some of
the members onsite might actually be taking TFE
seriously but are unwilling to speak up. 

R.Searle.


--- robert searle <dharao4 at yahoo.co.uk> wrote:

> Dear All, 
> 
>         I managed to get my project on
> Transfinancial
> Economics accepted onto the moderated Gang8
> discussion
> yahoo group site. This  is connected with the
> Michael
> Hudson website on creditary economics. This seems to
> attract economists, and their kind. Unfortunately,
> TFE
> stretched their intelligence too far..and the piece
> below did not appear on their Gang8 yahoo discussion
> site. 
> 
> Evidently, the basic right of reply is a no go area
> especially if it REALLY exposes the inadequacies of
> the academics concerned......
> 
> I include critique 1, and critique 2 in a separate
> email...if indeed, they could be seen as critiques
> at
> all..as many people make superficial,and ignorant
> comments on TFE simply because they have not read
> the
> present essay on TFE properly on the internet.
> 
> R.Searle
> 
> 
> 
> Dear Gang8,
> 
>        It was revealing what comments were made by
> the
> two academics. One thing is clear at the outset is
> that we are dealing with the old guard of the
> economic
> world who are probably also right wing if they are
> honest enough.
> 
> i) The project may seem at first sight to be "nutty"
> but actually it is not if one has the time, and
> patience to read through it carefully, and
> sensibly...ideally without preconceived notions
> ofcourse!. Certainly, TFE is radical in extremis
> especially for old guard economists though I have
> come
> across more enlightened beings. 
> 
> ii) It is quite clear that the issue of money
> creation
> in spite of what has been published is still a grey
> even among those who claim to be economists. This
> does
> not bode well. It is as if a veil of secrecy were
> placed over it!!
> 
> iii) Fractional Reserve Banking is not a concept but
> a
> reality of most (note the word most) countries. This
> is backed up by any number of sources, including
> textbooks at graduate level by people who are NOT
> so-called monetary cranks.
> 
> iv) I would agree that my presentation of the
> Fractional Reserve Banking was deliberately
> simplistic, and undoubtely there will be variations
> of
> it, plus certain "systems" quite dissimiliar to it
> in
> a minority of countries in the world. This is still
> subject to research, and clarification with the aid
> of
> relevant literature, and "experts".
> 
> 
> v) Ofcourse, I am NOT necessarily suggesting that
> interest free loans should be created by state banks
> as opposed to private ones. This would probably be
> undertaken by commercial banks but the profits
> (including services charges of one sort, or another 
> would be generated by an independent public body,
> and
> this would depend on the customers business/account
> records).
> 
> However, on the other hand, unlike the State Banks
> of
> the old Soviet Union there would be tighter controls
> to ensure money was not wasted. Incidently, in TFE
> the
> amount of credit creation would in theory be
> infinite
> without fear of inflation as this would be
> controlled
> by advanced computers systems.
> 
> 
> 
> I have to confess certain comments about banking
> made
> by the two learned gentlemen seem "fantastical", and
> they should have know better not to have made them
> in
> a public forum. I am not going to repeat them here
> as
> it is pretty obvious to anyone as to what I am
> referring to.
> 
> It would be interesting to see if the forum gives me
> a
> right of reply on all this (which it did not
> ofcourse
> but Michael Hudson made the point that banks can
> lend
> to NON-BANK customers). 
> 
> 
> Regards,
> 
> Robert Searle.
> 
> 
> PS. I remember talking to an old guard
> Economist(!!!)
> at the LSE in the UK, and when I mentioned about the
> possiblity of state banks he went beserk. He likened
> the idea ofcourse to the failed Soviet experiment in
> monetary reform. Ofcourse, there is no reason to
> believe that in the future there could be public
> bodies which could create credit interest free. Yet,
> the right accountable legislation would need to be
> developed to ensure their success!
> 
> 
> --- "D.J.Bezemer" <d.j.bezemer at rug.nl> wrote:
> 
> > Goeffrey,
> > 
> > Agree, I had not even replied to this idealistic
> > project since it 
> > seemed nutty to me -  plus people would presumably
> > start to create 
> > their own forms of credit if the state did not
> > extend it to them.
> > 
> > But: > Banks are only intermediaries. They do not
> > create money for
> > >themselves but for their depositors.??
> > 
> > 
> > Not so sure. Here we return to an old debating
> > issue. If the credit 
> > market is truly quantity rationed then, as Richard
> > Werner argues, 
> > banks have a remarkable ability to ' push loans',
> > far beyond the 
> > abiltiy of clients to demand loans. Effectively,
> > banks' not client 
> > preferences determine the creation of loans.
> > > 
> > > 'Fractional Reserve Banking' is a concept, not a
> > reality. It does 
> > >not exist in the British monetary system. The
> > reserves a UK bank 
> > >keeps are not a fraction of its deposits but its
> > estimated liquidity 
> > >requirements in the next few days. The supply of
> > liquidity is totally 
> > >under the combined control of the Central Bank,
> the
> > FSA, and the 
> > >Treasury. The liquid reserves consist of Bank of
> > England debt and no 
> > >other bank can force the Bank of England to go
> into
> > debt.
> > > 
> > > As a good rule of advice, if you find a
> 'monetary
> > reformer' talking 
> > >about 'fractional reserve banking', you can take
> > that he does not 
> > >understand the system and should be ignored.
> > > 
> > > 
> > > 
> > > GWG
> > > 
> > >  ----- Original Message ----- 
> > >  From: dharao4 
> > >  To: gang8 at yahoogroups.com 
> > >  Sent: Thursday, September 27, 2007 10:13 AM
> > >  Subject: [gang8] Transfinancial Economics
> > Project.
> > > 
> > > 
> > > 
> > >  Dear All,
> > > 
> 
=== message truncated ===



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