Understanding social credit

Understanding Social

Credit

Understanding Social Credit

Christopher M. Quigley

B.Sc., M.I.I. (Grad.), M.A., QFA.

Qualified Financial Adviser.

Dublin, Ireland.

4th. May 2016

[email protected]

• The Gap is Growing• “As we have seen, the more automatic machinery

replaces men, the wider becomes the gap between buying power and prices because salaries and wages are thus reduced, leaving other cost items proportionately increased. When we stop to realize that the gap is constantly widening as efficient machine-power rapidly replaces inefficient man-labor in doing the work of the world, it becomes evident that we are reaching the senseless absurdity of a maximum production and a minimum of consumption. Yet we wonder at the paradox of poverty in the midst of plenty !”

• “From Debt To Prosperity” Crate Larkin.

Social Credit

Contemporary Overview

• Rolling Financial Crises Since 1929 Are Not Happening By Accident.

• Technology Axiomatically Leads To Fewer High Paying Jobs.

• Efficiencies Ensure That Systematically More Is Being Created With Less.

• We Should Be Experiencing Deflation (Money Buying More) Due To Technological Efficiency.

• We Are Actually Getting Inflation Due To Debt Money Being Issued To Counter Collapsing Real General Incomes.


• Interest Bearing Debt Has Been Introduced Systematically To Counter “Collapsing” Wage Distribution.

• Banking Monopoly Of Credit Lending Leads To Ever Increasing Centralization Of Industrial Ownership.

• Increasing Cost Levels Of Technology, Plant, Interest And Taxation Are Consistently “Inflating” Prices.

• Contemporary “Prices” (Costs) Can Never Be Liquidated. The “System” Is Therefore Bankrupt According To “Orthodox” Accounting.

• Society And Our Civilization Are Thus In Crises And At A “Dead End”.• The Problem Was Understood A 100 Years Ago But Its Reality Has

Been Well Concealed In Cant, Sophistry, Mis-Information And Mis-Education.


• The Gold Standard Cannot Be Introduced Due To The Exponential Expansion OF The World Economy.

• It was Tried After The First World War And Resulted In The Great Depression Of 1929.

• This Depression Proved The Utter Failure Of “Orthodox Economics”.



• Review of World Financial Instability.•

• Summary: (World: US Dollars: Approx).• 11. Total Value of Derivatives (Notional): 1,200 Trillion (1.2 Quadrillion).• 10. Total Value of All Assets (Fin. /Real Estate): 318 Trillion (8. Plus 9.)• 9. Total Value of Financial Assets: 198 Trillion• 8. Total Value of Real Estate: 120 Trillion• 7. All Debt. (Owned by Banks): 257 Trillion (5. Plus 6.).• 6. Total Priv. Debt. (Owned by Banks): 193 Trillion (Priv./Corporate).• 5. Total Gov. Debt. (Owned by Banks): 64 Trillion• 4. World GDP: 60 Trillion• 3. Total Value of Derivatives (Cash Val.): 20 Trillion• 2. Total Value of Circulating Currency: 4 Trillion• 1. Total Value of Gold Reserves: 1.5 Trillion

• Ref: World Gold Council Dec. 2013.


• Current Orthodoxy Developed By John Maynard Keynes (Keynesianism) To “Solve” 1929 Type Mass Unemployment Cannot Continue.

• It Involves A Mixed Economy Of Part Capitalism, Part Socialism (Demanding Massive Public Debt).

• This Is Now Failing Due To The Bankruptcy Of Most Sovereign Governments And The Widespread Insolvency Of Fractional Reserve Banks.


• Social Credit Too Has Its Failings Mainly Due To The Political And Religious Views Of Its Founder And The Level Of Bureaucratic Socialism Involved In Implementing Some Of Its Policy.

• However Its Main Insight; The Collapse Of Consumer Wages And Its Banking And Social Credit Solution, Offers A Valuable Intellectual Insight Into The Possible Manner On How A New Economic And Accounting Orthodoxy Could Be Developed.

• If We Do Not Society Will Continue To Economically Collapse.

What Is Social Credit.

• Social Credit Was Founded By A British Engineer Named Major Clifford Douglas.

• Born In Manchester And Educated At Cambridge.

• After College He Worked For The Westinghouse Electric Corporation.

• While Working For Royal Aircraft During The First Word War He Had His Social Credit “Epiphany”.


• Douglas Discovered: That Weekly Costs Of Goods Being Produced Were Greater Than The Sums Paid Out For Wages, Salaries And Dividends. This Contradicted Richardian Economics Which Held That: “Costs Are Simultaneously Distributed As Purchasing Power”.


• Douglas Proceeded To Research A Further 100 Large Businesses And Categorically Concluded: “We Are Living Under An Orthodox Economic System Which Renders The Delivery (Consumption) Of The Nation’s Goods And Services A Technical Impossibility”.


• Douglas Thus Comprehended That Orthodox Economics Had A Catastrophic Fatal Flaw: Society Had Insufficient Money (Purchasing Power) Generally Distributed To Finance Consumption Of Production .

• Reasons:

• 1. Wages, Interest And Dividends Could Never Cover Production Costs (Prices) In The Average Production Cycle.

• 2. Banks Having Gained A Monopoly Of Credit Only Issue New Credit By The Issuance Of New Interest Bearing Debt. New Money Is Never Issued To Service The New Interest. Thus The System Has A Self Destructive Dynamic Which Rears Its Ugly Head Every “Business Cycle”. A Cycle Which In Effect Is A Bank Induced Credit Cycle Of Inflation Then Deflation.

• “Inflation Is The Web, Deflation Is The Mastication”.

Social Credit Is The Policy Of A Philosophy

• The Philosophy Is:

• The Individual Is Supreme.

• Society Should Operate For The Benefit Of The Individual Not Vice Versa.

• Institutions Should Be Subservient To Man.

• Society And Culture Are Built Upon The Historicity Of Human Association And As Such Belongs To All, Not An Elite Group.

Social Credit Beliefs

• The Common Cultural Heritage Belongs To All.• People Cannot Have Social Freedom Without

Economic Freedom.• Economic Freedom Is A Function Of Purchasing

Power.• Without Purchasing Power The Individual Is

Prevented From Effective Engagement With The Resources Within Society.

• Credit, Which Is Based On The Trust Within A Community, Should Not Be Controlled By A Private Group.

Social Credit Beliefs

• All Social Production Originated As A Common Cultural Heritage.

• People Cannot Have Social Freedom Without Economic Freedom.

• Personal Freedom Is A Function Of Purchasing Power.

• Without Purchasing Power The Individual Is Prevented From Effective Engagement With The Resources Within Society.

• Credit, Which Is Based On The Trust Within A Community, Should Be Distributed Generally Not Controlled By A Private Monopoly.

Social Credit Solution

• A 4 Step Social Credit Solution Using Private Banking:• 1. Set Up A National Credit Account. At Present We Only A National Debt

Account: The Banks Have Privately Usurped All Credit – To Create National Debt.

• 2. Institute A National Dividend For Every Citizen.

• 3. Finance New Investment (Interest Free) On The National Credit Account Through A Private Banking Non Fractional Reserve System Which Operates Of A Fee Basis Not An Interest Basis.

• 4. Annually Allow A Just Price Discount On All Personal Purchases to Balance Production And Consumption. (This Mechanism Also Helps Cancel The Effects Of Inflation).

• Reference: “The Struggle For Money” H. M. Murray.


• Policy Objectives:

• Distribute Purchasing Power To Citizens.

• Develop Debt Free Banking Backed By The Nations Credit Which Will Stimulate Investment And Development And Is Self Liquidating When Paid Off.

• Adjust And Balance Production With Consumption Through The “Just Price Discount”.

Holistic Purchasing Power Example

• Henry Ford’s Detroit Car Plant Early 1900’s.

• Cancelled Dividends.

• Doubled Wages.

• Halved Model T Price

• Lowered Staff Turnover Dramatically.

• Efficiency Doubled, Then Tripled.


• Detroit Economy Exploded.• Price Of Suburban Land Increased, Further

Distributing Wealth To Farm Owners.• Farmers, Ford Workers, Carpenters, Builders,

Butchers, Salesmen, Shop Owners, Handymen, All Could Afford Ford Cars.

• Ford’s Car Demand Exploded.• Efficiencies Exponentially Increased.• Within Three Years An Increased Dividend Was

Reintroduced Annually To Ford Stock Owners.


• Henry Ford Had Understood The “Holistic” Nature Of Demand And Purchasing Power.

• Without Money, Consumer Demand Was “Ineffective”

• He Understood That The Purpose Of His Factory Was Not Production But Consumption.

• With Purchasing Power In The Hands Of Every Citizen Consumption Was Impossible.

Detroit Historical

Detroit Historical

Detroit Historical

Detroit Historical

Economic Orthodoxy Today

• The Exact Opposite Of Ford’s Holistic Approach Is Being Applied.

• Purchasing Power Is Being Contracted Not Expanded For The Average Worker.

• Technology Is Being Used To Destroy Average Wages Not Increase Them As Should Be The Case Due To Increased Efficiencies.

• The Situation Will Continue To Deteriorate Until The Source Of The Problem Is Finally Acknowledged.

Downtown Detroit 2016.

Abandoned Detroit 2016.

Abandoned Detroit 2016.

Detroit 2016.

Detroit 2016.

Detroit 2016.

Detroit 2016.


• PROBLEM: COLLAPSING PURCHASING POWER AND OVER CENTRALISATION OF INTEREST BASED BANKING.

• SOLUTION: DISTRIBUTED PURCHASING POWER AND DEBT FREE BANKING.

Social Credit SolutionWhat Can You Do?

• Seek Truth.• Raise Consciousness.• Educate And Inform Yourself And Those Around

You.• Empowered Men And Women Through The

Realization That There Is A Solution.• Increase The Money Consciousness Of The

Average Citizen.• Champion Economic, Accounting And Banking

Reform.

• “Banking and credit are too important a business for citizens and

politicians to be ignorant of. Upon its fair and equitable administration

rests the very existence and future of our society."

Major Clifford Douglas 1879 – 1952.

Economy & Finance

Understanding social credit