----- Original Message -----
Sent: Sunday, November 03, 2002 2:05
PM
Subject: Re: MONETARY: Re-turn of the
crank
Dear Monetary Reform members,
Bill Ryan in responding to Dan
Parker is continuing to confuse two issues. The first is that the
banks create money out of nothing. That is agreed. And I have
previously pointed out the massive public ignorance about the
matter.
The second is whether the
bank's ability to make loans is unlimited -- and I do not remember Dan saying
that it was unlimited.
Rodney, I have said that the Bank's ability to
create money was *not*
unlimited, at least twice now, maybe three times
in this group.
Once was to correct something that Keith sent that a friend had
written that had said it was unlimited, on this very
thread about
cranks.
I don't see Mr. Ryan's posts in my inbox, and
have to look for them
elsewhere should I choose to read the odd
one. I have stopped doing
even this now, as I can see no progression
that can come out of
communications between Mr. Ryan and
myself.
The lesson I took from here is how to design an
Internet communications
system for monetary reformers so that
progress can occur between
participants.
I have been on newsgroups where those who
favoured the status
quo reiterated a lot of incorrect information
about the banking system.
In my opinion, Mr Ryan has outdone them all, not
only about money,
but about social credit. I agree with you that
the small capital reserve
requirement banks are required to hold have very
little effect on the
overall dynamic of the unjust monopoly of
credit.
rgds
Dan Parker
Furthermore, suppose there is miniscule
limitation on banks making loans (as there undoubtedly is) how can that
detract from the main issue -- that the banks create the money out of
nothing? It cannot.
And if there is substantial
limitation (e.g. an inability to fund credit-worthy borrowers) that, too, does
not detract from the fact that the banks create the money out of
nothing.
The creation happens because
the individual banks receiving deposits can on-lend and that lending can end
up as deposits elsewhere which can in turn be on-lent. It would be
nice if there were to be no further obfuscation of this
matter.
Rodney
Shakespeare.