What is Social Credit?

Clifford Hugh Douglas and Social Credit    

In the immediate aftermath of the First World War (1914-18) Clifford Hugh Douglas was introduced to Orage. As an engineer working for major international companies, Douglas had observed that, in the case of any individual project, there was only ever one problem which could not be overcome, and that was lack of finance. If a project was considered desirable for a local community, it was always possible to find the tools, the machinery, the skills, the materials, the workers and all essential resources. But if the finance was not forthcoming, the project was invariably scrapped, or put on hold until the finance was available. In other words, policies were being determined by the availability of finance.

During the First World War, Douglas was in charge of sorting out the finances of Farnborough Aircraft Factory. He turned his engineering mind to the observation of the movement of finances through the productive enterprise, first at Farnborough and later in 100 different firms throughout the country. His observations held true. The rate of flow of

incomes, in terms of wages, salaries and dividends, did not match the rate of flow of prices of goods coming onto the market. Douglas followed his initial researches into the financial system with a study of the methods used by the Government to finance the unprecedented waste of the ‘War to End All Wars”. The technical details of his analysis of the capitalist financial system are fully explained in Douglas’ many books, speeches, pamphlets and articles, many of which are available elsewhere on this website.

For some months, Douglas and Orage held long discussions. Orage quickly recognised that Douglas held the answers to his concerns about the financing of production, whilst Douglas applied his purely financial theorising to the political philosophy of Guild Socialism. The result was a body of socio-economic theory which became known as ‘Social Credit’.

Good Work and the National Dividend

Like a great many people of his times, Douglas delighted in the potential of the Machine Age to open up the lives of ordinary people so that they could enjoy the benefits of the new technologies. However, he also foresaw the dangers of allowing economic growth to be driven by purely financial considerations. As things stood, the debt-financing of industry was leading to ever-increasing wasteful production of superfluous consumer items, and the ultimate destruction of resources in warfare. Instead of becoming free, people had made themselves slaves of the Machine, bound to work for a wage or salary as the primary means of obtaining an income. This is not a necessary state of affairs.

Adam Smith’s very early observations on the economics of the Machine Age make interesting reading. By coming together into a factory, dividing up the labour and using more sophisticated machinery, production can be increased geometrically, out of all proportion to the efforts of any single individual. To whom, therefore, should the benefit of the vast increase in output belong? Is it to the owner of the factory? To the individual workers in that factory? Or to families in the community as a whole who, after all, supply the workers to all factories and places of ‘work’ without financial charge? Social Credit literature raises many questions of this type, and provides far more satisfactory answers than can be found in conventional economics textbooks.

A central plank of Social Credit literature is the observation that no single individual can make any significant contribution to total wealth by their own efforts. No matter how talented or skilled they might be, or how much energy and time they put into their work, every individual relies upon complex networks of transport and farming systems and so on. In short, the Bill Gateses of this world could make nothing whatsoever without the massive development of tools and processes built up over untold generations. This ‘common cultural inheritance’ forms the source of all wealth in the Machine Age. It would therefore make sense for all members of the community to receive their birthright in the form of a ‘dividend’ payable, like any dividend on shares, independently of any income from employment. The case for and against the payment of a ‘National Dividend for all’ is well rehearsed in the Social Credit literature available on this website.

A Credit-driven Financial System

Douglas had no quarrel with banks or with machines. Operating efficiently and in harmony, the financial system and the new technologies had created the potential for a sane economic system, offering sufficiency for all. The new technologies, and sensible financial policies could be used to eliminate poverty and scarcity. However, as things stood during Douglas’ lifetime, finance-driven policy decisions were creating poverty amidst plenty, environmental degradation and war on an unprecedented scale. Finance and the new technologies would make excellent servants of humanity. But they were making very bad masters.

As things stand to this very day, finance dominates the lives of virtually every single person on the planet. From the moment of birth to the moment of death, the availability or lack of finance dictates what a person can and cannot do. Yet very few people can attempt to explain with any clarity exactly how it is that finance rules our lives. Clifford Hugh Douglas was one individual who, by observation and interpretation, came to a rigorous understanding of the financial system which had arisen during industrialisation.

Douglas observed, as a matter of fact and not mere opinion, that finance flows into the economic system as bank-created debt. Firms use the debt-created finance to pay their costs of production. The wages, salaries and dividends paid out by firms form incomes to households. With their incomes, households can purchase the stream of goods and services coming onto the market. As the modern economic system has developed, it has created a massive bureaucracy. Behind that bureaucracy, obscured by the very complexity of the system, financial speculation, profiteering, marketing, advertising and a whole range of growth-driven economic activities are making human existence increasingly precarious. In Douglas’ view, this is not a necessary state of human affairs. The system is there to be studied. Such study will reveal that, by using relatively straightforward accounting methodology, production, distribution and exchange – i.e., all economic activity – can be credit-driven rather than debt-driven.

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Breaking the Bondage of Interest

 

 

 

 

 

 

 

 

 

 

 

 

Usury is the “Hidden Hand” in history. It is behind wars and revolutions, booms and busts, and the travesty termed “poverty amidst plenty.” It causes civil wars and class wars. Many problems of the world could be resolved with clarity once the dust the money-lenders throw in one’s eyes is removed. The financial system is the means by which power politics functions at all levels.

As one historical example of the “hidden hand” at work: How many Anglophobic Irishmen understand the real reasons for the “potato famine”? Henry Kelliher wrote that anecdotes were told to him of the harrowing starvation of the Irish. It was subsequently that he found the Irish famine was the result not of over-population, as claimed at that time among some quarters – nor even due to food shortages, since it was only the potato crop that failed. In 1845 (while the famine was to claim the lives of 1,029,000) 779,000 quarters of wheat and flour, 93,000 quarters of barley, and 2,353,000 quarters of oats – enough to feed for a year every person who died of starvation, nearly four times over – were exported from Ireland.[24] Kelliher commented:

When the true story of Ireland is written it will be found that all that stood between starvation and the available plenty, was the crushing interest burden that had to be paid to outside money-lenders, that the country was not suffering from famine, but from what we choose today to call “depression.” A famine is the absence of food caused by a lack of food; a depression is the absence of food caused by a lack of food, caused by a deficiency in the medium of exchange – money.[25]

How many are aware that a major cause of the French Revolution, the epochal event that was one of the first victories of Money Power over Tradition, was caused not by the masses yearning to overthrow the tyranny of Monarchy, but by the economic dislocations caused by debt, when 50% of state expenditure went to pay interest to money-lenders? And so we might continue, up to the present: how much of the aggravation between Islam and the West is caused (apart from the betrayal of the Arabs dating back to the Balfour Declaration and the Sykes-Picot Agreement) by the aim of international finance to control the Islamic world, where usury is regarded as “sin,” as it once was by Western Christendom? Remove the “Hidden Hand” of usury and once the perspective becomes clear, issues might be resolved with justice between many that are presently at each others’ throats while the real culprits remain invisible.

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I was aware that debt was instrumental in the downfall of the French Monarchy, I haven’t before thought about the influence of money power, interest, and usury in relation to the Irish Famine. If so, people like Gerry Adams, Martin McGuinness should be hating international finance, not the English. It seems to me that our main enemy is the banks. Almost every evil thing can be traced back to the shadowy group of obscenely wealthy men, who sit in vast palatial piles, served by swarms of servants, indulging in every perversity one can imagine, and they manage to do this by accruing money from everyone else in the world. Whether it is states that borrow and then dump the interest payments on the taxpayers, businesses who are encouraged to take massive loans to expand, or just average people who are encouraged to take out mortgages, credit cards and loans. All of these things increase the wealth of the money lenders, and increasingly leads us into deeper poverty.

It is now common knowledge that the Russian Revolution was due in large part, to external funding of various revolutionary parties. Large Wall Street and City of London bankers loaned money to the newly established Soviet state, and the banks continued to fund the Soviets throughout the Cold War, right up to the end. It amazes me how people didn’t see this, how the McCarthys who were trying to root out communism in America couldn’t see their own government lending vast amounts of money to the Soviets.

We know that Germany and Japan rejected the powerful bankers in the thirties and were destroyed. Perhaps their economic policies were only a small part of the reason for war, but I can’t imagine it played no part at all. It was these same banks who profited from the blood bath of the Great War, they made money from every war since, huge amounts of money, they have indebted almost every nation in the world, they have indebted many individuals as well. And when they make their obscene profits, they hoard the money, when they lose, as they did four years ago, they make us pay again! So we use money, much of it borrowed from the banks at interest, and we bail out those very same banks with the very same money, we lend it at no interest, and then have to figure out how to pay back the trillions we borrowed to bail the banks out, to the very same bailed out banks.

They issue their own bailout money and we have to pay interest on it! How crazy is that? How absurd!

The banks need to go.

I like the idea of Social Credit, it seems a way in which we could use money, without drowning in debt and usury, perhaps when the inevitable happens, when the economy completely implodes, perhaps something like Social Credit can be used to restore the ruins of our economy .

European Quagmire

It was quite apt, I think, that the new Italian prime minister was sworn in by the Italian president with the European Union flag, the most prominent among all the flags in the room. We have now seen, for better or worse, the first coup d’état in Europe. Well actually the second, the coup in Greece was the first but that was inevitable.

Italy is a strange nation, it is in many ways a collection of ‘patrias’ the old kingdoms of Naples, Sicily and Sardinia, the old republics of Venice, Florence, Sienna, Genoa and Pisa. Then there were the dukedoms and principalities in the north. It has never been a united nation, it is a culture, not a nation.

When the Masonic Garibaldi, Cavour and their puppet king Vittorio Emmanuel stormed the Italian peninsula in the 1860s and 70s they forced together a disparate and alien group of people’s into an artificial state, with an artificial monarchy and an invented history and ever since, the old loyalties of the patrias have trumped the artificial created state of Italy.

Corruption has been associated with Italy and the Italian states for a very long time, but in truth it has never really held Italy back, Venice, the queen of the sea was able to rule a substantial empire for over a thousand years, separated from the mainland by its famous lagoon, Genoa and Pisa were for short times great maritime powers on a par with Venice, but did not have the protective lagoon to keep them from greedy neighbours. Florence for a time was the centre of the world and Milan has had some of the best of glory years. Even in the deep south, in the kingdoms of the Two Sicilies or later on the kingdoms of Naples and Sicily we were able to glimpse greatness, attested today by the sheer number of wonders that the forebears of these people left to us.

Italy may be artificial, it may be an abomination, but it is more then the whole, it’s glory lies in the sum of its parts. It must therefore be afforded the honour as one of the pillars of the west, not a mean honour!

And it passed that this once great collection of proud and glorious states has ended its days in the enslaving embrace of a cruel and harsh taskmaster, the even most abomnomous European Union.

Berlusconi was a cad and a fool, he was most likely a member of those international organisations such as the bilderburgers, the CFR, and others, he was probably a mason, although I have no proof of this, and he partied, whilst Italy slid into bankruptcy.

Berlusconi’s fall is evidence, if any of us needed it, that the European Union will not tolerate failure, they will not allow anyone to endanger their plans, that of complete pan continental power, power over our money, the armed forces, the laws and regulations and even religion. Is is a sinister group of people, hidden in shadow and empowered by the enemies of Christendom.

Before anyone thinks otherwise, I’m not anti- Europe. Europe is my home, it is my past and by God it will be my future, it is from her that almost all the good of the world has sprung, it is from our shore that hope and charity spread across the world like a storm, wiping away the cruel despots of lesser peoples and it is here where the battle for this age is and will continue to take place.

But my Europe and ‘their’ Europe are two very different things! Their Europe is the laboratory for all the sick fantasies of the NWO, they wish to see a propositional empire, ruled by cold logic, and peopled by a sea of animals. In this Europe we shall have no liberty, we shall have no justice and our history will be twisted away to a point where it will not have any basis in reality, their Europe is a vision of hell, ruled by an amoral, occultist elite, and they shall rule over a degraded, lost and enslaved peoples, many of them half castes, who will be unable to understand the horror of their existence.

My Europe is different. I am a true European. My ancestors were a mix of Gauls, Franks, Northmen, Anglo- Saxons and Gaelic Celts. My fathers side came to Ireland with the Normans, they were of course Norman, they conquered lands in Ireland and married the Irish. They remained a part of the Anglo-Norman people, or perhaps the Hiberno-Norman people, they later on became part of the Anglo-Irish aristocracy, yes I know! We are the baddies in Hollywood lore!

Well through family misfortune and drink, we lost everything a few generations ago, I am now lucky to be middle class, although I am still proud of where I have come from and the men and women who I count as my forebears. There are terrible tales of loss and grief, amazing stories of glory and honour, from battlefields as far apart as India and the Western Front, it is an history that makes me feel a part of the European soil, a part of its spirit and I will not let the whores and traitors in Europe destroy everything my forebears fought for!

This is my home is is our home, and it is here that we must win the fight! There will be no refuge across the seas, for they are in as perilous as situation as we are, we all lose or we all win.

I have been made more aware of this fact by my travels in Europe, I have seen the glories of Italy and Spain, I have walked the cobbled streets of Paris, Prague and Zurich, I have seen with my own eyes the precious thing that is our home. Recently I travelled to Germany and used Couchsurfing to stay with a German biochemical engineering student. I was shocked by his generosity and his trust in me, he allowed me to stay in his room, he gave me a set of keys to his flat, he gave me the password to his Internet and introduced me to his friends. It was a joy to be somewhere European. There were no savages in that city, there was no crime that I could see and there was a trust and civility that one can only find in a true European city.

Whilst there I was able to speak to a few Germans who seemed to understand instinctively the crisis in which Europe has been thrust by our whoreish leaders, they seemed glad to have a fellow to confide in, I think I can be of more use there then in the cesspool that is modern London.

I have not been defeated, but I know that both Ireland and England are no longer places for me, the rot is to painful to behold, too unbearable to witness every day. The summer riots were the last straw. Now it is time to spend the rest of my short youth in a European city, perhaps to help some of the lost and frustrated souls there, to give them hope that not all is lost and to build a life that can be free from the constant fear of violence and thuggery.

Europe is my home, not just a small part, but all of it, and wherever I will go I will resist the tyranny that threatens to overwhelm us.

Remember Tours, remember Vienna, remember Lepanto!