Re: [SOCIAL CREDIT] Social Credit reasoning versus General Theory reason

John Gelles wrote (on socialcredit@topica.com):
>           As businesses fail, if they do, and as
>           workers are laid off, if they are,
>           government must impose on its central
>           bank the role of lender of last resort.

1.  I refer people to an interesting person who
directs FAME (Foundation for the Advancement of 
Monetary Education) located in Washington, D.C. --
Dr. Larry Parks.

He was recently interviewed by Jim Puplava -- "the
Financial Sense Newshour"

This can be listened to here:

http://www.netcastdaily.com/1experts/exp110902.ram

and the transcribed text is here:

http://www.fame.org/HTM/Parks%20interview%20Puplava%2011-4-02%20Financial%20Sense.htm

[if URL wraps, you know the drill]

And in that interview Parks says:

  Mr. Greenspan is very explicit about this. He says we are
  subsidizing the banks. Part of the subsidy, and he repeats
  this five times — I take it as a warning — is that the Federal Reserve
  stands ready to create money “without limit” to bail the banks if
the    need arises. He repeats that five times in different places in
  the lecture, creating money — flat out of nothing — “without
  limit.”

  [Source: Remarks by Chairman Alan Greenspan At the Catholic
   University Leuven, Leuven, Belgium, January 14, 1997
   "Central Banking and Global Finance"

  http://www.federalreserve.gov/boarddocs/speeches/1997/19970114.htm
                ]

So John and Greenspan appear to be in agreement.

2.  However, the idea of "printing oneself out of trouble" is
something that the Germans tried to do in the mid to late '30s

They found out, as every other country that has tried to print
itself out of a mess, they cause "hyperinflation" and currency
becomes worthless.

Picture the political cartoons about Germany, Deutche Marks,
and using "wheel barrows" to move them.

So.  And I don't say this lightly, "God help us if Greenspan
really does make good on this promise."

Regards,

Curtiss Priest
-- 


           W. Curtiss Priest, Director, CITS
      Center for Information, Technology & Society
         466 Pleasant St., Melrose, MA  02176
         Voice: 781-662-4044  BMSLIB@MIT.EDU
      Fax: 781-662-6882 WWW: http://Cybertrails.org