Non Credit Money

Dear Mr. Reagan,
Two years ago I sent you a summary of my economic theory, but you did not replay to me.
Therefore, I suppose that you are not acquainted with my work.
I firmly believe that my theory introduces a revolution in economic science. By my theory, in modern economies the global (national and world) sum of utilities is greater than the global sum of cots, while by traditional theory – they are always equivalent. So for example, in his comment of my theory, Mr. Milton Friedman said that the fundamental defect in my reasoning was the failure to recognize that each profit (surplus) is a part of some cost, and that, therefore, there is not the difference between the sum of costs and the sum of utilities. I think that I have convincingly confuted this thesis.

Since, by my theory, the sum of incomes results from the sum of utilities, and not from the sum of costs, the sum of incomes is also greater than the sum of costs and, therefore, a part of taxes (equivalent to the surplus of utility over costs, and today, by error of economic science, incorporated in costs) is completely needless and must be annulled. On account of this necessary taxes (necessary only for satisfying the dogmas of traditional economic science), the consumers pay too much and the producers win to little, which provokes a diminishing both in consumption and in production. Consequently, the policy of budget equilibrium is the most profound cause of modern economic crisis.

The mentioned non-equilibrium in national accounts between costs and utilities is the fundamental economic law of each successful economy and is being realized at any rate – today in American economy through budget deficit.

Dear Mr. Reagan, in essence, through the last two years, you have led an economic policy just adequate to my economic theory and completely opposite to traditional theory which demands the budget equilibrium. However, I suppose that the present congruity between your policy and my theory is only accidental and since I firmly believe in correctness of my theory, I except that your returning to traditional policy must lead in new crisis, namely, while my theory instructs in what manner the present boom can be continued, the traditional policy insists upon diminishing the deficit which must a new provoke both a stagnation and unemployment. Under present conditions for prolonging the expansion of economy is necessary an endless expansion of national debt and budget deficit which provokes a profound anxiety among theoreticians and politicians. Fortunately, there is the better way for realizing the non-equilibrium between costs and utilities – more acceptable for American allies and Third World than the enormous budget deficit, interest-rates and the inflow of European capital in USA. According to my theory this way is the way of emission of non-credit money as a monetary expression of the surplus of utility.

I see my theory as a theoretical basis for your economic policy. Would you read my work and recommend it to your economic experts, please. May I get the addresses of them?

Yours sincerely

Stojan Nenadovic
Sremska Mitrovica
Borisa Kidrica 19
Yugoslavia
……..
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Letter for Reagen