Posted to Mish Shedlock’s Blog 03/09/2016

Cynicism is not a critique of the truth. And Old Guy….neither is puritanism. If a business takes out a loan of $1million to buy/create productive means and facilities that costs $600k they have to make $1 million PLUS $600k to replace their productive capability plus interest from the prices they charge their customers, or when those productive means wear out or become obsolete go to the Bank and take out ANOTHER loan to stay in business….and that probably means bye, bye business. Wake up! Social Credit is the only theory that accurately considers this concrete cost accounting reality and offers a systemic solution for it.

In other words you conservative/puritanically moralistic/austerian theorists are unwilling/incapable of seeing the inherently destabilizing effects of depreciation costs as well as the diminutions of income from the circular flow. Just drop the habitual/obsessive moralizing and look at the system AS IT ACTUALLY IS!!!

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