[GJM] Article 101 Maastricht Treaty.........and Credit Creation as temporary new unearned money....

[robert searle]

Dear Rodney, and Co,

      All this is very interesting because it raises
the question whether the taxpayers funds are  being
used at all, or if ofcourse new unearned money is
being created. It is assumed that the latter would be
based on an existing portion of earned money. But,
this would be bizarre because it is NOT the taxpayers
payers money at all but new funding created out of
thin air. Do you get my drift...??

It also adds credibility to my own work in TFE. The
reason being ofcourse that everyday new money is being
created by banks out of thin air. This means that for
a time this money is temporarily non-repayable (ie
being paid off  gradually over time as something which
ofcourse is ultimately repayable). 

It also helps to knock on the head that new unearned
money can instantly hyperinflate the economy as
someone indicated in connection to my TFE
project...conveniently forgetting, or probably
ignoring the super-flexible electronic controls, and
the registration of products,services, and "fixed
wages....

It is interesting to note that Social Credit critics
used to claim that it was inflationary. However, this
is not the case if one studies the subject carefully.
Admitedly, TFE can be inflationary but it cannot be
hyperinflationary as the super-flexible electronic
controls would instantly swing into action with an
array of methods to slow down prices on a national
scale using positive (eg.price subsidies) or negative
incentives (eg. inflation "taxation" on the purchasing
power of money rather than the actual amount of it
usually associated with "real" taxation).


Robert Searle




--- Rodney Shakespeare
<rodney.shakespeare1 at btinternet.com> wrote:

> Dear All,
> I wrote to the Governor of the Bank of England
> asking about where the Bank's money for Northern
> Rock came from, and was it created out of nothing.  
> 
> The reply (from an acolyte of the Governor -- the
> Bank cunningly uses this device so that, if
> necessary, it can say the response was not really
> authoritative) claims the money comes from "
> 'reserve balances which is money held by the banking
> system in accounts at the Bank....".
> 
> I suspect that this sentence is in effect a lie but,
>  in any case, the next sentence from the acolyte
> starts like this:-- "These balances are a form of
> 'central bank money' and the Bank has taken steps to
> offset the creation of central bank money by lending
> less in its regular market operations than it would
> otherwise have done."
> 
> So, all in all, there is an admission that the money
> was created by the Bank and the fun really will come
> if the money gets lost by Northern Rock because I
> happen to know that somebody has written to the Bank
> asking how that loss would be written in the Bank's
> accounts..........Watch this space....--- but I
> expect that the Bank will never answer that
> question.
> 
> Anyway,  in response to another question the acolyte
> says that Article 101 of the Maastricht Treaty makes
> it illegal for central banks to provide loans to
> governments.
> 
> Er hem -- except when it's Northern Rock, of course.
> 
> But I asked about lending to the government in the
> context of loans to governments for public capital
> projects (thereby halving or more the cost of the
> projects).  So you can see how the banking system
> has worked to stitch up everything so that all
> lending is always done at interest -- even lending
> for hospitals.
> 
> And, of course,  the acolyte, said that lending to a
> government "could be inflationary".  NB  The Bank
> does not think that banking system lending at
> interest is inflationary -- oh no -- and it does not
> occur to the Bank that if the banking system is
> restricted in its lending (the lending which is
> causing the present global financial crisis) it
> could then open up a supply of interest-free loans
> for the development and spreading of productive (and
> the associated consuming) capacity. 
> 
> The Bank's letter is,  in practice, an expositon of
> the mainstream economics definition of endogenous
> money which, it claims, always has to be
> bank-created interest-bearing money, such money, it
> is claimed, always being allocated for the
> efficiency purposes of a market economy.   
> 
> Rodney Shakespeare.
>   ----- Original Message ----- 
>   From: Zack Johnson 
>   To: discussion at globaljusticemovement.net 
>   Sent: Monday, February 11, 2008 3:45 PM
>   Subject: Re: [GJM] MORE CLEARER INFORMATION ON
> INFLATION CONTROLS IN TRANSFINANCIAL ECONOMICS (FEB
> 2008)
> 
> 
>   Robert, you again fail to explain how, in a modern
> industrial economy, where government spending is
> approaching half of all spending, if government
> stops taxing, but continues to spend, how the
> economy would not rapidly devolve into inflationary
> chaos.
> 
>   Your apparent belief in magic is not ameliorated
> by this insipid little essay.
> 
>   Zack
> 
> 
> 
>     ----- Original Message -----
>     From: "robert searle" 
>     To: discussion at globaljusticemovement.net
>     Subject: [GJM] MORE CLEARER INFORMATION ON
> INFLATION CONTROLS IN TRANSFINANCIAL ECONOMICS (FEB
> 2008)
>     Date: Mon, 11 Feb 2008 13:53:21 +0000 (GMT)
> 
> 
>     Dear All,
> 
>     The following comes from my present essay
>     (changed yet again to include more on inflation
>     data)on Transfinancial Economics. It is to do
> with
>     more light on super-flexible controls to control
>     inflation levels, and valuation of currency. I
> also
>     exclude from the data below my old idea of part
>     registration of products, and services which was
> the
>     outcome of woolley thinking unfortunately!!!
> 
>     Regards,
> 
>     Robert Searle
> 
> 
>     3.Advanced Computer Programming for the Direct
>     Super-Flexible Controls over Inflation.
> 
> 
>     In TFE there is the realization for the need to
>     develop advanced computer programming to
> directly
>     control levels in inflation. It is not our
> intention
>     to go into too much detail as this can be a
> somewhat
>     technical subject.
> 
>     It must also be stressed that we are not
> discussing a
>     command economy but rather a capitalist one in
> which
>     there is little government intervention. What
> follows
>     is essentially "simplistic", and is only a brief
>     presentation on super-flexible electronic
> controls
>     over inflation.
> 
>     Since money in the main exists as electronic
> data
>     transmitted from one bank account to another it
> can be
>     tracked, and controlled. This concept is central
> to
>     the proper understanding of Transfinancial
> Economics.
> 
> 
>     A.Mandatory Registration for Businesses instead
> of
>     Income Tax Declarations.
> 
> 
>     Most products,services, and indeed, "fixed"
> incomes
>     could be subjected to a mandatory super-flexible
> price
>     registration which is notably indexed linked
>     electronically to inflation for businesses. In
> other
>     words, most people running large, or small
> commercial
>     enterprises would have to declare the trade
> costs, and
>     retail prices of their products.Details about
> their
>     profits, and other sources of income would be
>     unnecessary unlike the present income tax
> regime.
> 
>     The data concerned ofcourse goes onto authorized
>     computer systems that simultaneously deal with
>     transactions. Such work could be undertaken by
> banks,
>     or some other commercial body. Alternatively, an
>     independent public authority could be created
> possibly
>     working with the private sector. The tax
> authorities
>     themselves though could be replaced by a
> National
>     Inflation Control Authority.
> 
>     Unlike the present income tax system there is no
> huge
>     bureaucracy, or much form filling (or online
>     registration ofcourse)and compliance on
> inflation
>     legislation using electronic techniques could be
>     directly used to ensure efficiency.
> 
> 
> 
>     B.Comprehensive Electronic Price Index.
> 
> 
>     Anyway,a special comprehensive electronic
> National
>     Inflation Price Index (NIPI)notably listing the
>     average prices of cars, phones, books,and the
> like
> 
=== message truncated ===>
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