Report from the Bank for International Settlements on Financial Derivatives activity.

[Wallace Klinck]

Some members of this list may be interested in this document published by the BIS reporting on financial derivatives activity.

Yes, we have come a long way--into a surreal world of enumerated abstraction increasingly divorced from the real world of production, distribution and consumption of goods and services for the benefit, needs and pleasure of mankind. I think that one way of looking at the matter is to say the the cultural heritage has been caught up in a swirling numerical maelstrom where it does not devolve to the benefit of society and is simply a plaything for the manipulators of a financial system evermore separated from reality. I doubt that Douglas would really be that surprised at this progression of events but that surely would not lessen his disapproval of it.

[helge nome]

I fully agree with your statement below Wally, and the sooner we in the Social Credit movement begin to tackle these new realities, the better.

Helge

Wally Klinck
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[Steve Hummel BenFranklinWasRight]

Yep. Most of the recent Derivatives are just not able to be unwound
without some "biggies" taking a big loss. These financial "products"
are in actual fact just the disguised vices of gambling.....with the
stability of the economy and money system. I think justice might be
them eating those losses...instead of everyone else suffering
instead.

That aside, what is the opinion of the group on a modern debt jubilee
like Steve Keen has proposed wherein money is distributed to
individuals with the proviso that it first be used to pay down their
debts? I understand it is not the complete and final solution. I
think it actually places the cart before the horse, and that the
dividend and discount must be understood to be the final
solution.....however, if that necessity could be firmly planted in the
minds of the populace...a jubilee could be a very big bulwark against
the likelihood of a false flag war "occurring" that drags us all into
a calamitous destruction of productive capacity. Choices.

On May 27, 11:14 pm, Wallace Klinck <wmkli...@shaw.ca> wrote:
> Some members of this list may be interested in this document published by the BIS reporting on financial derivatives activity.
>
> Yes, we have come a long way--into a surreal world of enumerated abstraction increasingly divorced from the real world of production, distribution and consumption of goods and services for the benefit, needs and pleasure of mankind.  I think that one way of looking at the matter is to say the the cultural heritage has been caught up in a swirling numerical maelstrom  where it does not devolve to the benefit of society and is simply a plaything for the manipulators of a financial system evermore separated from reality.  I doubt that Douglas would really be that surprised at this progression of events but that surely would not lessen his disapproval of it.
>

>  BIS OTC 2011.pdf
> 229KViewDownload
>
>
>
> Wally Klinck

[Wallace Klinck]

I think, Steve, that you have described the situation quite accurately. Unfortunately, these large financial players have shown an unwillingness to bear their losses and as we have seen recently enabling legislation has been passed in several nations which actually legitimizes the actual pirating of the financial assets of individuals in order to cover the defaults for which the individual account holder is in no way actually responsible. Legislators who are mesmerized by false education in financial matters are susceptible in their desperate plight to mischievous banker-inspired slogans such as the "need to live within our means" (meaning, of course, our financial means) and are almost invariably brought to heel in capitulating to demands from the citadels of financial credit that the real economy be curtailed in the interests of reducing our financial debt. If one momentarily casts aside the business of making evaluations through distorted financial glasses one might ask how one can in a real sense settle an obligation by restricting one's capacity to produce real wealth. Only actual physical wealth is capable of satisfying human needs and wants and the only realistic way to settle a debt must be, therefore, to offer some of one's real wealth to a creditor. But today, in the normal course of doing business, the last thing that creditors want is goods and services: they primarily want money. Real wealth is only acceptable at fire-sale bankruptcy prices which the financial powers arrange periodically by means of induced cyclical credit contractions. This coveting of money over real wealth typically is the manner in which international trade is conducted and is of course the overriding cause of war in the modern industrial world. Alas, we are poor because we have too much! (And John Rawson fusses about the danger of orthodox economists painting Social Crediters as foolish!)

The National Debt is largely the result of a constant and accelerating aggregation of financial claims accrued by the constant filching of consumer income through wrongful inclusion of allocated capital charges embedded in final consumer prices--charges that add to prices while not adding commensurately to available purchasing power in each respective production cycle.. Douglas asks if anyone has ever contemplated the real fictitious nature of the National Debt and proposed converting it to a National Credit from which Dividends and Compensated Prices can be financed. This poses the question of who actually owns this financial debt--the banking institutions as creators of debt-credit "money" or the community at large. There can be no question of the legitimate claims of individuals who have lent money acquired by genuine effort or sacrifice--but surely the status of credit-creating institutions which through exercise of their art have established a financial claim upon the wealth of society in perpetuity falls in an entirely different category. Does Steve Keen recognize the "legitimacy" of such debt with its alleged false claim upon the productive resources of society? If so, then surely he does not understand the nature of the existing financial arrangements which have allowed credit-creating institutions literally to appropriate the communal credit. Surely, society should not be required to pay again for that which has already been paid by "sweat and toil"? Again, we must--as did Douglas--return to fundamental considerations. In nature there is no debt. Any good that has been completed and is ready for final consumer acquisition has, in the physical sense, already been fully paid for--its real cost being merely the energy (human and non-human) and material required for the conversion of raw material acquired as a" gift" from nature by application of energy into forms useful to humans. An appreciation of the real nature of cost as contrasted with the financial representation of cost via conventional orthodox pricing is essential to an understanding of Social Credit at base level. Orthodox financial accountancy indicates continuous increases in real production costs by producing a continuous rise in financial prices--which representation is an inverse reflection of reality. The financial system sabotages every genuine efficiency-enhancing improvement in industrial process through rising financial prices which can be met only by increasing financial debt.

The Social Credit Consumer Dividend and Compensated Price, implemented from a properly constructed actuarial National Credit Account, must be regarded as the fundamental continuing solution to our costing problems because they address an ever-present and growing defect in the price-system of the modern capital (real) intensive economy, viz., a growing deficiency of genuine consumer buying-power. The word "genuine" in this context means purchasing-power capable of finally liquidating a financial cost. On a continuing basis, the Dividend and Compensated Price constitute a continuing, dynamic, ever-present and instantaneous "Jubilee". Failure to institute them has resulted in the exponential aggregation of the massive financial debts which bears upon society.

For your convenience i will forward by separate message a PDF of R. L. Northridge's treatise on "The Convention of Cost" originally published in the Douglas quarterly, "The Fig Tree", June, 1938.

Sincerely
Wally Klinck

[John G Rawson]

Wallace, I thought you had played a part in political action!
If you had spent thousands of hours and,  yes, thousands of dollars fighting against the propaganda of the financiers, you would fuss too.  I gather you have never witnessed, for example, a Prime Minister on TV pointing out the ridiculousness of our claim that the cost of raw materials os part of the cause of the "gap" . Stating quite correctly that such have no value until someone wants them and that payment is made to provide them. That alone probably cost us 50,000 votes.  It would do the same to any organisation working apolitically. Then there os the "problem" of cancellation of money introduced under S C policies.  It took some of our people a long time to counter that one and the discussion split the movement for a while.  I see people on this list fussing about (demand) inflation, obviously as gulled by bank propaganda as some of us were.
Of course I fuss when I see people promoting Social Credit in a way that looks irrational and discoherent. 
There is an example in your message.
A National Ndebt is a result of government borrowing.  Nothing more,  What you are referring to, is total national indebtedness, and you are completely right in that context.
J R
 
 

> Subject: Re: [socialcredit] Re: Report from the Bank for International Settlements on Financial Derivatives activity.
> From: wmkl...@shaw.ca
> Date: Thu, 30 May 2013 02:23:20 -0600
> To: social...@googlegroups.com

[Jim Schroeder]

Hi Wally:

 

What we need to make clear is that the statistics you provide are merely a symptom of the disease, and a form of economic sabotage. This is not the disease itself, but merely a new symptom.  Eliminating the symptoms will not eliminate the disease.  Only by eliminating the disease as outlined in Douglas's A+B threorem will all of the symptoms, including this one, be eliminated.

On Tue, May 28, 2013 at 12:14 AM, Wallace Klinck <wmkl...@shaw.ca> wrote:

Some members of this list may be interested in this document published by the BIS reporting on financial derivatives activity.

Yes, we have come a long way--into a surreal world of enumerated abstraction increasingly divorced from the real world of production, distribution and consumption of goods and services for the benefit, needs and pleasure of mankind.  I think that one way of looking at the matter is to say the the cultural heritage has been caught up in a swirling numerical maelstrom  where it does not devolve to the benefit of society and is simply a plaything for the manipulators of a financial system evermore separated from reality.  I doubt that Douglas would really be that surprised at this progression of events but that surely would not lessen his disapproval of it.

Wally Klinck
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