how can you take these people seriously if
they dont even know what they are saying?
Saturday, January 29, 2011
Saturday, January 22, 2011
Just-Tiis?
MEMORANDUM CIRCULAR NO. 04
Series of 2010
STANDARD OFFICE PROCEDURES IN EXTENDING LEGAL ASSISTANCE TO
DELINQUENT CREDIT CARD HOLDERS
Section 1. Clients – Pursuant to the mandate under the Administrative Code of 1987 and in relation to Republic Act No. 9406,
"the Public Attorneys Office shall provide free legal services
to qualified credit card holders as set forth under Memorandum
Circular No. 18, series of 2002,as amended"
Requirements To Qualify for Legal Assistance:
1.Latest Income Tax Return or pay slip or other proofs of income; or
2.Certificate of Indigency from the Department of Social Welfare and Development, its local District Office, or the Municipal Social Welfare and Development Office having jurisdiction over the residence of the applicant; or
3.Certificate of Indigency from the Barangay Chairman having jurisdiction over the residence of the applicant.
http://www.pao.gov.ph/28/Persons-Qualified-for-Legal-Assistance
Sunday, January 16, 2011
Quantity Theory of Money and Social Credit
By: Socred - B.A., SCMP
The quantity theory of money can be simply expressed by the equation: MV=PQ, where M is the quantity of money in the economy, V is that money’s “velocity of circulation”, P is the average price level, and Q is real output. Proponents of the theorem generally argue that Q and V are constant, or at least not influenced by the quantity of money. This implies that any change in the quantity of money has a direct relationship with price levels. In other words, increase the money supply and increase price levels (i.e. inflation), or decrease the money supply and decrease price levels (i.e. deflation). The theorem deduces that the fundamental source of inflation is increases in the quantity of money “in circulation”. The theorem also assumes that money is an exogenous variable to this equation.
C. H. Douglas was quite critical of this theory, claiming that, “the velocity of circulation of money is a complete myth”. While econometric models have generally demonstrated a correlation between money and prices in the long run (which is what the theory predicts), there is less of a correlation in the short run, and it should be noted that correlation does not prove causation. Perhaps there is another variable which is causing an increase in the money supply and an increase in inflation over the long run? Before we explore that possibility, let us look at the “velocity of circulation”, what it means, and why Douglas called it a “myth”.
If we rearrange the quantity theory of money (MV=PQ) we see that V=(PQ)/M, and if we assume that PQ equals nominal GDP (an assumption that implies equilibrium), then the velocity of circulation can be calculated by dividing nominal GDP by the money supply. Does this rearrangement of the equation give us the velocity of circulation? Or is this merely an instance of petitio principii (begging the question)? Leaving aside the assumption of equilibrium, let’s explore this “velocity of circulation” in more detail, and why economists believe that money “circulates”.
The early quantity theory can be traced back over 200 years to at least as far back as the philosopher David Hume. (Blomqvist, Wonnacott and Wonnacott “Economics First Canadian Edition”, pge. 248). The early theorists believed that the inflation at the time was due to the influx of gold and silver from the New World. They believed that this increase in the money supply accompanied with a relatively fixed quantity of goods available for sale led to a rise in prices. As we can see, this theory holds that money is an exogenous variable, and the quantity of money is determined by forces outside the equation itself (i.e. an influx of gold from the New World). To what extent gold was actually used as money is a discussion beyond the scope of this essay, but even in the 18th century (and even much further in the past) it can be shown that the vast majority of money was actually credit (*see Alfred Mitchell – Inness, “What is Money”).
One of the events which Douglas claimed led to the development of his analysis was a conversation he had with the Accountant-General of Bengal named J.C.E. Branson. Branson used to have long discussions with Douglas about credit, and one of the things he told Douglas was “Silver and gold have nothing to do with the situation. It nearly entirely depends on credit.” (J.W. Hughes “Major Douglas The Policy of a Philosophy, pge. 34) The idea that money “circulates” goes back to the idea that money is a commodity (such as gold or silver) and goes about circulating through the economy as goods and services are purchased. A good example of the quantity theory is given in The Alberta Post War Reconstruction Committee:
“A wage-earner A. uses a $10 bill of his income to buy two
pairs of shoes from a shoe merchant B., who immediately goes into the
adjoining store and spends the $10 to purchase some shirts from C.,
C in turn immediately goes across the street to grocer D. and buys
some provisions costing $10, grocer D. then takes the $10 bill across
to the local garage E., to buy some gasoline and oil.
The contention is that the $10 bill provided purchasing
power to the extent of $40 during the day by virtue of its "velocity of
circulation" in enabling $40 worth of goods to be purchased by consumers.”
The problem with this theory is the neglect of money as credit (or debt). It implicitly assumes that money just “falls from the sky”, and does not examine how money comes into existence as a debt that needs to be repaid. The vast majority of money is credit created by banks through loans to businesses and individuals. This money does not “circulate”, but instead operates in an “accounting cycle”. Ignoring consumer credit momentarily, which is just a mortgage on future incomes, money flows from the bank to businesses and finally to consumers as income. The income is then spent by consumers on goods and services and flows back to the bank via businesses and in the process cancels all the debt created in order to produce the good or service. In other words, money is not a stock that can be simply added up; it is a flow which has direction (either flowing from the bank to the consumer as income, or is recovered from the consumer in the form of prices and taxes and flowing back to the bank and cancelling debt). Money created as consumer debt also operates in an accounting cycle, but does not involve the intermediary of businesses in the first part of the process. Consumer debt is the futile attempt to cancel a debt with a debt. With consumer debt, money flows directly to the consumer, and is recovered by business through the agency of price and then continues to flow back to the bank as it cancels debt.
If money does not “circulate”, then the whole quantity theory of money is a fallacy. The “velocity” of circulation is merely an example of petitio principii, and is defined within the confines of the equation itself (i.e. GDP/money supply). If the quantity theory of money is a fallacy, then why does there appear to be a direct relationship between money supply and price levels in the long run? This is due to a third factor which influences both. This factor is the increase in overhead charges relative to income as efficiencies in production are realized. Douglas stated in his first article, “The Delusion of Super – Production”, "it may almost be stated as a law that intensified production means a progressively higher ratio of overhead charges to direct labour costs”. According to Douglas’s A+B theorem, prices equal A (income) plus B (overhead charges). If overhead charges are constantly increasing relative to income, then in order to maintain or increase income, prices must rise. Further, since the vast majority of production is financed through the issuance of new credit (i.e. through loans to businesses), the capitalization of industry proceeds with an increase in the money supply. In other words, the fact that overhead charges are increasing relative to income increases prices and the money supply. A third factor is increasing both the money supply and prices: it’s not the increase in the money supply that is causing inflation, but the increase in overhead charges relative to income that is causing both.
If the quantity of money is not causing inflation, and if money is actually a flow instead of a stock, we can increase the money supply and reduce prices. This is done by introducing money as a “reverse flow”. A "reverse flow" of money would cancel overhead costs. This would equate purchasing power with prices and reduce prices. By giving consumers credits directly at the point of retail in the form of a price rebate, we can increase the quantity of money and reduce prices to consumers. The reason for doing this is based upon Douglas’s A+B theorem and his demonstration that the economy is not in equilibrium in any permanent fashion. The quantity theory of money implicitly suggests equilibrium and is at odds with the Social Credit analysis. A price rebate given to consumers is necessary in the Social Credit paradigm because the real cost of production is consumption over an equivalent period of time, and in any technologically advanced society, consumption is always less than potential production. The price rebate is designed to bring consumption and production into equilibrium, and reduce prices. The cries that Social Credit policies are inflationary are explicitly, or implicitly, based upon the quantity theory of money. The purpose of this essay is to help expose the quantity theory of money as a fallacy, and help alleviate some people’s concerns over one aspect of Social Credit policy.
The quantity theory of money can be simply expressed by the equation: MV=PQ, where M is the quantity of money in the economy, V is that money’s “velocity of circulation”, P is the average price level, and Q is real output. Proponents of the theorem generally argue that Q and V are constant, or at least not influenced by the quantity of money. This implies that any change in the quantity of money has a direct relationship with price levels. In other words, increase the money supply and increase price levels (i.e. inflation), or decrease the money supply and decrease price levels (i.e. deflation). The theorem deduces that the fundamental source of inflation is increases in the quantity of money “in circulation”. The theorem also assumes that money is an exogenous variable to this equation.
C. H. Douglas was quite critical of this theory, claiming that, “the velocity of circulation of money is a complete myth”. While econometric models have generally demonstrated a correlation between money and prices in the long run (which is what the theory predicts), there is less of a correlation in the short run, and it should be noted that correlation does not prove causation. Perhaps there is another variable which is causing an increase in the money supply and an increase in inflation over the long run? Before we explore that possibility, let us look at the “velocity of circulation”, what it means, and why Douglas called it a “myth”.
If we rearrange the quantity theory of money (MV=PQ) we see that V=(PQ)/M, and if we assume that PQ equals nominal GDP (an assumption that implies equilibrium), then the velocity of circulation can be calculated by dividing nominal GDP by the money supply. Does this rearrangement of the equation give us the velocity of circulation? Or is this merely an instance of petitio principii (begging the question)? Leaving aside the assumption of equilibrium, let’s explore this “velocity of circulation” in more detail, and why economists believe that money “circulates”.
The early quantity theory can be traced back over 200 years to at least as far back as the philosopher David Hume. (Blomqvist, Wonnacott and Wonnacott “Economics First Canadian Edition”, pge. 248). The early theorists believed that the inflation at the time was due to the influx of gold and silver from the New World. They believed that this increase in the money supply accompanied with a relatively fixed quantity of goods available for sale led to a rise in prices. As we can see, this theory holds that money is an exogenous variable, and the quantity of money is determined by forces outside the equation itself (i.e. an influx of gold from the New World). To what extent gold was actually used as money is a discussion beyond the scope of this essay, but even in the 18th century (and even much further in the past) it can be shown that the vast majority of money was actually credit (*see Alfred Mitchell – Inness, “What is Money”).
One of the events which Douglas claimed led to the development of his analysis was a conversation he had with the Accountant-General of Bengal named J.C.E. Branson. Branson used to have long discussions with Douglas about credit, and one of the things he told Douglas was “Silver and gold have nothing to do with the situation. It nearly entirely depends on credit.” (J.W. Hughes “Major Douglas The Policy of a Philosophy, pge. 34) The idea that money “circulates” goes back to the idea that money is a commodity (such as gold or silver) and goes about circulating through the economy as goods and services are purchased. A good example of the quantity theory is given in The Alberta Post War Reconstruction Committee:
“A wage-earner A. uses a $10 bill of his income to buy two
pairs of shoes from a shoe merchant B., who immediately goes into the
adjoining store and spends the $10 to purchase some shirts from C.,
C in turn immediately goes across the street to grocer D. and buys
some provisions costing $10, grocer D. then takes the $10 bill across
to the local garage E., to buy some gasoline and oil.
The contention is that the $10 bill provided purchasing
power to the extent of $40 during the day by virtue of its "velocity of
circulation" in enabling $40 worth of goods to be purchased by consumers.”
The problem with this theory is the neglect of money as credit (or debt). It implicitly assumes that money just “falls from the sky”, and does not examine how money comes into existence as a debt that needs to be repaid. The vast majority of money is credit created by banks through loans to businesses and individuals. This money does not “circulate”, but instead operates in an “accounting cycle”. Ignoring consumer credit momentarily, which is just a mortgage on future incomes, money flows from the bank to businesses and finally to consumers as income. The income is then spent by consumers on goods and services and flows back to the bank via businesses and in the process cancels all the debt created in order to produce the good or service. In other words, money is not a stock that can be simply added up; it is a flow which has direction (either flowing from the bank to the consumer as income, or is recovered from the consumer in the form of prices and taxes and flowing back to the bank and cancelling debt). Money created as consumer debt also operates in an accounting cycle, but does not involve the intermediary of businesses in the first part of the process. Consumer debt is the futile attempt to cancel a debt with a debt. With consumer debt, money flows directly to the consumer, and is recovered by business through the agency of price and then continues to flow back to the bank as it cancels debt.
If money does not “circulate”, then the whole quantity theory of money is a fallacy. The “velocity” of circulation is merely an example of petitio principii, and is defined within the confines of the equation itself (i.e. GDP/money supply). If the quantity theory of money is a fallacy, then why does there appear to be a direct relationship between money supply and price levels in the long run? This is due to a third factor which influences both. This factor is the increase in overhead charges relative to income as efficiencies in production are realized. Douglas stated in his first article, “The Delusion of Super – Production”, "it may almost be stated as a law that intensified production means a progressively higher ratio of overhead charges to direct labour costs”. According to Douglas’s A+B theorem, prices equal A (income) plus B (overhead charges). If overhead charges are constantly increasing relative to income, then in order to maintain or increase income, prices must rise. Further, since the vast majority of production is financed through the issuance of new credit (i.e. through loans to businesses), the capitalization of industry proceeds with an increase in the money supply. In other words, the fact that overhead charges are increasing relative to income increases prices and the money supply. A third factor is increasing both the money supply and prices: it’s not the increase in the money supply that is causing inflation, but the increase in overhead charges relative to income that is causing both.
If the quantity of money is not causing inflation, and if money is actually a flow instead of a stock, we can increase the money supply and reduce prices. This is done by introducing money as a “reverse flow”. A "reverse flow" of money would cancel overhead costs. This would equate purchasing power with prices and reduce prices. By giving consumers credits directly at the point of retail in the form of a price rebate, we can increase the quantity of money and reduce prices to consumers. The reason for doing this is based upon Douglas’s A+B theorem and his demonstration that the economy is not in equilibrium in any permanent fashion. The quantity theory of money implicitly suggests equilibrium and is at odds with the Social Credit analysis. A price rebate given to consumers is necessary in the Social Credit paradigm because the real cost of production is consumption over an equivalent period of time, and in any technologically advanced society, consumption is always less than potential production. The price rebate is designed to bring consumption and production into equilibrium, and reduce prices. The cries that Social Credit policies are inflationary are explicitly, or implicitly, based upon the quantity theory of money. The purpose of this essay is to help expose the quantity theory of money as a fallacy, and help alleviate some people’s concerns over one aspect of Social Credit policy.
Saturday, January 15, 2011
AC/DC - Awayin and Collect or Dayain and Collect
Guidelines For Credit Card Collectors:
1.Gulpi De Gulat
Call them by identifying yourself as either from:
a.Bank
b.Legal Department/Law Office
c.Court – RTC/MTC
d.Police/NBI
e.Newspaper
f.Barangay
g.City Hall
By pretending to be from any of these sources, CC defaulters will be AFRAID of you - they are always afraid of having a case!
2.Give them a number to call and look for Atty.Ek-ek or SPO 123 for arrangement “otherwise…….”
Be sure to be on the other side of the line to continue the scam.
It does not matter also even if you give the correct number of the bank or court.
But it is always better to have somebody as accomplice on these places.
Variation:
Ask a barangay tanod or a corrupt police to deliver a small piece of paper to the Debtor.
Indicate mo na may kaso siyang “Serious Physical Injury” kaya dapat tawagan ang Manila City Hall.
After tumawag sa number mo, tell the caller to call Atty. Mando Rugas ( ikaw din yun) otherwise itutuloy ang kaso.
Pag-tumawag, jackpot! Singilin mo sa sa utang niya!
3.Tell them about promo and amnesty offers.
Give them a deadline. To qualify, ask them that they should give at least P 5,000.00 tomorrow “to show willingness to pay”.
pag-nagbayad,inuman na,libre pulutan pa!
"Sir/M'am, sorry po disapproved yung Amnesty ninyo /wahaha
or
Tell them about RA 8484, Warrant of Arrest, Publishing their Faces, or Estafa.
4.Other techniques
a.Pa-konsiensya Effect - Nagamit mo naman yan…
b.Pa-galit Effect – Balasubas!
c.Pa-Blackmail Effect – Tatawag kami sa HR ninyo
Tell them anything that sounds “legal” – warrant of distraint, credit abandonment or preliminary attachment. They won’t know it anyway.
See? Ang dali lang maging collector no? meron dyan matagal na at supervisor ngayon – si ESB. Kilalanin mo!
Saturday, January 8, 2011
"Small Claims" Court
1. Scope
-purely money claims not to exceed One Hundred Thousand Pesos (P100,000.00);and
-does not include interest and costs.
2.Kinds of claims covered
a. actual damages caused to vehicles, other personal property,
real property or person.
b. Money owed under
- a contract of lease
- contract of loan
-contract of services
- contract of sale or
- contract of mortgage
-It also includes purely civil actions for payment of money covered
by a bounced or stopped check.
-An amicable settlement reached in the barangay or an arbitration award involving a money claim may also be enforced under this rule.
3.Are lawyers allowed at the hearing?
No, lawyers are not allowed to appear at the hearing
unless they are the plaintiff or the defendant.
4.What happens if the parties do not appear at the hearing?
a. If the plaintiff does not appear:
the claim shall be dismissed without prejudice.
b. If the defendant does not appear:
the effect will be "failure to file a Response"
c. If both parties do not appear:
the claim and counterclaim shall be dismissed
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