| Subject: | [socialcredit] An exchange with two other correspondents re Social Credit | | Date: | Tuesday, July 15, 2008 03:34:20 (-0600) | | From: | Wallace Klinck <wmklinck @....ca>
|
The following comments were offered to two other correspondents who
had been discussing Social Credit on a Blog.
> In response to your exchange regarding the "Protocols" and C. H.
> Douglas's Social Credit theory of money:
>
>
>
> Douglas was a widely and internationally experienced engineer
> accustomed to working with concrete things in a scientific way. He
> was called in as Assistant Director of the Royal Aircraft Works in
> Farnborough to solve a costing muddle and without even making a
> working hypothesis began in an inductive manner to investigate the
> nature of the problem. He discovered that the plant was generating
> financial costs and prices in excess of the financial incomes being
> dispersed. Subsequently investigations into a large number of other
> British businesses revealed the same phenomenon. He then formulated
> his A + B Theorem which was a formal statement describing the
> operation of the existing price system which he described as
> mathematically unsound inasmuch as the discovered chronic and
> increasing deficiency of consumer income required an increasing
> dependency on debt for the processes of production and consumption
> to carry on. He recommended that non-repayable consumer credit be
> distributed to the community in the form of a National (Consumer)
> Dividend and sums paid to retailers at point of sale to institute
> Compensated (falling) Prices. The central problem is that consumers
> are currently charged in price with additional allocated charges in
> respect of capital which do not in the current cycle distribute
> equivalent consumer financial purchasing power. The consumer is
> properly charged with capital depreciation but not properly credited
> against these charges with capital appreciation which historically
> increases much more rapidly than capital depreciation. The purpose
> of the Dividend and Compensated Price is to correct the deficiency
> of consumer purchasing-power by conferring upon all citizens as
> consumers a beneficial (not direct) share in the communal capital--
> in the form of ensured access to all goods emanating from each
> production cycle, irrespective of whether of not a citizen is
> actually working in the productive system. Each citizen is
> considered to be of value as a consumer and to have an inalienable
> right to an inheritance in the communal capital--which grows as
> technology replaces labour as a factor of production through
> automation, etc. It is the increased proportionate use of physical
> capital which under historic cost accountancy conventions
> constitutes the core cause of the increasing deficiency of
> purchasing power. The injection of debt into the area of consumer
> spending is inflationary and as such is an attempted violation of
> natural law. The true cost of production is the mean rate (measured
> in financial terms as at present) of total national consumption
> divided by the mean rate of national production--historically and
> increasingly less than a value of one. We should have a falling
> price-level with the ability of all consumers, dynamically, to draw
> fully with increasingly independent financial income on current
> production without resort to financial debt, i.e., without
> mortgaging the future. The implications are immense.
>
>
>
> Fiat money is usually defined as money issued by decree by a
> political authority and not being guaranteed as to redemption--
> usually in gold. Social Credit financing of production is done only
> for a demonstrated capacity to produce in terms of the assessed real
> (i.e., physical) credit of society to deliver in terms of available
> resources. The Social Credit consumption credits are issued only as
> a reflection or measure of actual goods as they emanate in finalized
> form from the production process. If consumption were to rise
> relative to production the Dividend would be reduced as would the
> Compensation of Prices and the price-level would rise. This is not
> characteristic of the historic progressive advancements of the
> patterns of production and consumption, however, and would not be
> expected in normal circumstances. Excess and wasteful production
> (which finds its most destructive and reprehensible form in physical
> warfare) would no longer be required merely to generate additional
> consumer income in order to make up for the existing deficiency so
> that consumers can access past production. Nor would nations be
> forced by financial necessity into destructive patterns of intense
> competition in order to capture financial credit from other nations--
> while exporting an excess of actual wealth. "Unemployment" would be
> seen as a blessing--and a welcome release from endless toil
> necessitated now purely for abstract and erroneous financial
> accountancy reasons quite unrelated to realistic physical
> considerations concerning the real potential for actual abundance
> measured in terms of available goods and services and increasing
> leisure. In the context of Social Credit policy money is issued for
> production and cancelled, or redeemed, on consumption. It is issued
> for production according with actual determined physical capacity to
> perform and for consumption only in respect of goods which have
> actually been produced. Consequently, the term "fiat" is a clear
> misrepresentation of credit as issued in accord with Social Credit
> policy.
>
>
>
> During the time of Douglas's original research, the Protocols were
> fairly well known and Douglas was aware of them. However, the
> origin of his insights was primarily in his purely inductive
> research. He did live in an essentially Christian culture and his
> proposals more by accident than by design are consonant with the
> Christian Doctrine of Salvation through Grace as opposed to the
> notion of Salvation through Works--an inherently, although not
> exclusively, Jewish concept. Social Credit is therefore
> distributive in nature. It is not legalistic and aims toward the
> realistic integration of ends and means, the incarnation of policy
> in the realistic affairs and relationships of mankind. It is,
> therefore, opposed to Utopianism and Abstractionism. Social Credit
> does not profess to know the absolute end purpose and nature of
> human life--but believes that these can best be approached and
> realized in the context of human freedom and individual initiative
> unimpeded by centralized and arbitrary external power. Social
> Credit holds that maximal economic security is essential for such
> optimal conditions of immanent sovereignty to obtain in the lives of
> individual persons. Although the "Protocols" seem very prescient
> and certainly the unfolding of events closely parallels their
> contents they do have precedent historic expressions of policy.
> They are not intrinsic to the existence and/or emergence of Social
> Credit philosophy and policy which are essentially both scientific
> and Christian in nature--and Social Credit exists quite independent
> of any other policy although it may be, and is in certain unique
> ways, both compatible and incompatible with policies deriving from
> other philosophies. Social Credit has been defined as the ability
> of humans in association to maximize the increments of association
> (while minimizing the decrements of association) in a manner so that
> these increments redound to the genuine satisfaction of
> individuals. It has been defined as "practical Christianity."
>
>
>
> I attach some PDF documentation for your reference. Some Web links
> are:
>
> Major Douglas -- The Policy of a Philosophy
>
> Social Credit by Major Clifford Hugh Douglas
>
> Social Credit Blogspot
>
> Social Credit Secretariat
>
> SOCIAL CREDIT SCHOOL OF STUDIES
|
An exchange with t
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