Re: MONETARY: Discussion of Monetary Reform

[Norman Kurland <thirdway@cesj.org>]

Dear Harry Frazee,

Your understanding of money is generally consistent with that of binary 
economists, of which Rodney Shakespeare is one of that breed. Here's my 
paper, "A New Look at Prices and Money: The Kelsonian Binary Model for 
Achieving Rapid Growth Without Inflation": 
http://www.cesj.org/binaryeconomics/price-money.html
Is this in any way inconsistent with your views on money? I think we 
have addressed the usury issue through Kelso's concept of "pure credit" 
universally available interest-free for productive investment with 
capital credit insurance handling traditional risk or collateral 
requirements.

Incidentally, you may be interested in joining the Kelso Binary 
Economics discussion group as well, if you have not already done so. 
There have been a number of posting on monetary reform that should be of 
interest to you.

Norm Kurland
Center for Economic and Social Justice
www.cesj.org

Harry Frazee wrote:

> Dear Mr. Shakespeare and others discussing monetary reform.
>
> It is difficult to tell if you were the one that posted those words so 
> I will start with an apology if it was not you. Of course if it was 
> you then I hope you will read and head these words. First it is 
> impossible to show that the monetary mechanism, the one in place today 
> in every modern country benefits any one except the banks and bankers. 
> It is easy to show the this mechanism is responsible for every kind of 
> social distress cursing the societies of our planet.
>
> Here is why in the simple terms. When a bank makes a loan it does not 
> get the money from somewhere. The money is created out of thin air. It 
> has no material existence. “Money” from nothing. This is the only kind 
> of money in circulation except for coins. Their amount is negligible 
> for the discussion. While debt “money” circulates it works to exchange 
> the goods and services we create. Here is the rub. It is not really 
> money though that is what we call it. It is debt and evidence of debt. 
> When paid back it is extinguished, destroyed, no longer circulates, no 
> longer imagined to exist. Because of interest charged for its use more 
> money is required for repayment than is originally created. The 
> ramifications of these simple facts are endless and they are all 
> harmful to society. If you cannot see the harm of this system just let 
> me know and I can give you endless examples. Here are some.
>
> Where else in the business world is it possible to create an imaginary 
> product which accrues a perpetual profit.
>
> The dictum of business in today’s world is make a profit or die. This 
> means that business must charge more for their goods or services than 
> they cost to produce. That is a self evident fact. But wait a moment. 
> Now get this. It means the workers are never paid enough to consume 
> the products or services they produce.
>
> Profit for business as a whole is impossible. Those that succeed have 
> done so at the expense of other which, of necessity must fail.
>
> I’ll finish up this little missile with the basic proof. When the 
> banks loan money there are three requirements written into the loan, 
> otherwise there would be no loan. Keep this in mind while we learn 
> what happens. (1)We all know money cannot, will not multiply unless 
> someone works which means time has to pass. It may be a short time 
> like the harvest of crops or it may be a long time as in the growing 
> of forest for timber. (2) Risks must be run. No one can control risks. 
> (3), For a major duration of the loan the money is inaccessible, not 
> liquid. It no longer exists for the borrower. As we have noted it 
> never really existed at all. It was paid out in wages, materials etc. 
> I can only be repaid if the project succeeds, that is, makes a profit, 
> which now means success. These conditions are not rules set by 
> economist. They are conditions contingent on the exchange of solar 
> energy in conjunction with raw materials. They require labor. They are 
> part of the physical system of the universe. There is no question of 
> their abrogation.
> “Minor usury” like industrial share holding etc means the borrower and 
> lender run an even risk and parties are content to wait for success of 
> the enterprise. Major usury , the case in most gilt edged investments, 
> especially government loans and credit creation by banks the 
> circumstances are different. When employing major usury the community 
> must satisfy three conditions laid down by the bank, (1) interest & 
> payments are due immediately, (2) No risk is run, (collateral 
> securities are required) and (3) the loan can be recalled at the 
> discretion of the bank, ( the money is always liquid); these 
> conditions are unworkable. This impossible procedure is the universal 
> practice, the basis of banking. Our money is created by a usurious 
> process to which all three conditions are attached.
> We all partake of usury in its major and most disastrous form. The 
> structure of credit is built on it. The mortar binding it is the old 
> bitter blend of blood and tears. This may sound overstretched, 
> fantastic, poetic. It is truth. This is the reason for social distress.
>
> This hardly begins to enumerate the inequities of this pernicious system.
> Let me know if more “proof” is required as there is tons of it to be had.
>
> Warmest personal regards, Harry Frazee Address and EMail on file
>
>
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