"Douglas made the issue very clear in stating
unequivocably that "we" Social Crediters never said there was never sufficient
money in the hands of consumers to match the price of available consumer
goods. Depending on how much capital production and/or debt is being
created there could be an excess of financial demand. What he did say was
that in order to distribute consumer goods coming off the production line we are
required to engage in increasing amounts of unneccessary and wasteful activity
and/or to incur debt, which processes register as financial claims against
FUTURE production cycles.
"What Social Credit does say is that there is
increasingly insufficient consumer income to currently and permanently liquidate
or cancel the financial costs incurred and emerging in consumer prices in the
same period of production. That consumers may possess sufficient financial
demand to purchase goods currrently emerging from the production line is simply
an observable fact which in no way invalidates the Social Credit claim of an
increasing deficiency of purchasing-power. If that purchasing-power is
issued only on condition that it is a charge against future production it cannot
be defined as effective demand capable of liquidating or cancelling production
costs in the the same cycle of production. This is simply a manifestation
of the Slave State--something entirely incompatible with Social Credit
philosophy and policy. The policy of Social Credit is NOT to create work
(i.e., "employment") but rather to minimize the requirement for it and to
maximize the opportunity for leisure. As Douglas said, if the desired
policy is to create work the present orthodox financial system works almost
perfectly. This has nothing to do with Social Credit objectives--other
than being diammetrically opposed to them.
"All too often, we seem to get all tied up in
debate over financial issues before considering the prior and fundamental claim
of Douglas that on a PHYSICAL level the true cost of production is consumption
and is declining--and that the financial system should reflect this
fact.
"If one were to earn $50,000 per year and borrow
$50,000 from the bank one would obviously have $100,000 of buying power--but it
would be a patent falsehood to run around the community telling people that
one's effective earned income was $100,000 per annum."
Wally
Social Credit and 
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