Re: OWNERSHIP: the phalangism of Michael Bindner

["William B. Ryan" <william_b_ryan@hotmail.com>]

***>In theory, there is no limit to the amount of
productive credits that can be issued, save the
amount of productive assets that can be created. <***

That is certainly true: what is physically possible
is (or should be) financially possible.  The problem
is equating the flow of "price values" to the flow of
"purchasing power" into the hands of consumers.  The
two flows do not automatically coincide.  They will
definitely diverge if there is labor displacement.

***>But consumer credit is usury; it literally "uses
up" the stock of capital in society without replacing
it. <***

It is not usury ipso facto.  The false assumption
here is that there is only so much "credit" divided
between "investment" and "consumption" and that the
funds for "investment" derive from withheld
"consumption."

Consumer credit meaning consumer loan credit has its
place.  Surely it is better to be able to purchase a
home today using lifetime income rather than being
required to "save" for many years before you can
become an owner.

It becomes usurious if it is impossible for
tomorrow's income to increase proportionately to
today's spending, in which case it becomes impossible
to amortize the loans.

That's exactly what happens if there is labor
displacement where income is falling in respect to
the costs of production.

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