January 28, 2015
FILLING THE GAP DEBT-FREE
Comments for “Social Credit: A Simple Explanation”
Nishit said (January 29, 2015):
The article has good logic but a major flaw in my opinion. The flaw is that it proposes a solution called social credit or debt free money. Everyone proposes a solution that in turn is another system that must be controlled and regulated. In my opinion the solution is not another monetary system but understanding to break free from the system. This can only be done by individual effort, not by group think. When a person is conscious and is not a slave to the money banking system or any other system, then the person can easily adopt to whatever system that is in place, do his duty of work and feed his family. I think the flaw of most good hearted people is that they propose a system, instead of simply understanding of how the system, matrix works.
As Bruce Lee says, “Man, the living creature, the creating individual, is always more important than any established style or system” and “….To me a system (martial arts/ money system) that clings to one small aspect of combat is actually in bondage.”
Dean said (January 28, 2015):
What does Social Credit look like for the man in the street? If you consider that the Canadian GDP (i.e. the realized price of everything sold that year) is about $1.2 Trillion and the US GDP is about $14T and then consider that the statistics organizations of both countries report total incomes (i.e. effective demand money with which to meet the price) of $770 Billion and $8T respectively, that is a gap in purchasing power of 43%. How does this relate to us all as individuals? It is an annual per-capita shortage of purchasing power amounting to about $17,000. This means that every adult over 18 could be given a guaranteed income of $2000/month and retail goods merchants could give consumers a 20% sales credit at the cash register; all this while causing neither inflation nor deflation. How do you pay for this? You make it up out of thin air – just like bankers do! In the US Constitution, Article 1, Section 8 specifically provides for it. The not-so-subtle difference between how our economy works now and how it would work under Social Credit? There would be no interest debt tied to this new money and thus no need for repayment of either principle or interest. This would effectively dismantle the welfare state and radically lower taxes and this would put even more money in the pockets of consumers. It would also loosen the hold that big money holds over our political system with their lobbying and campaign contribution “bribes” that corrupts and undermines our political democracy.
For those who presume that this debt-free issue of money would result in inflation, consider this. Producers need to borrow their capital costs so the loaned money is effectively the creation of money. As production is sold, the first place producers apply this revenue is to settle the loans as they impact profitability; but the loaned money is destroyed the instant the bank receives it.
Consequently the economy becomes short-circuited by exactly this amount – principal and interest. The debt-free issue of money in the form of guaranteed-income dividends and sales-credit compensated price fills the gap caused by this short circuit. The bottom line is that this is a FUNDAMENTAL FLAW in our cost accounting systems that must be recognized and fixed. Social Credit is the easiest fix. There have been others proposed though. Consider Nobel Lauriat Professor Fredrick Soddy and his National Economy proposals that also recognize this gap and offers a less equitable and effective remedy. Bill Still, who ran as Libertarian Party Presidential candidate in the last US election is an advocate of Soddy’s method.
If this – i.e. prosperity and less government control over our lives – is something you the reader would like to see happen in your lifetime, maybe it is not only in your best interests to learn more about Social Credit, but it is your duty to yourself and your family.
JG said (January 28, 2015):
Loans can only thrive in a fiat financed economy for so long before the rubber meets the road and that day of reckoning is coming soon for the world economy.
The American economy is run more by debt now than anytime in it’s history.
1) Inflated Home mortgages that will never be paid back
2) College loans to the tune of 100,000 dollars that will never be paid back
3) An UNAFFORDABLE HEALTH CARE PLAN that most people don’t have the money to buy
4) And then more loans from the banks to the investment firms based on “derivatives” from an inflated asset held as collateral that won’t be paid back either
This is all the result of an economy functioning on debt
When debts can no longer be paid back the economy will collapse because debt will eventually make the real money that does exist scarce thereby producing deflation. It’s already happening right now.
Robert K said (January 28, 2015):
The real basis of personal freedom is economic autonomy. The Age of Robotics contains the potential to bring this condition to every person, and our (currently perverted) money system is ideally suited to be adapted to this end. What is commonly called “democracy”–i.e., Political Democracy, the right to cast a vote in elections–is a sham so long as Economic Democracy–the power to command economic policy as consumers–is attenuated. In the context of the most astounding productive capacity in history, such phenomena as economic insecurity and government austerity policies are anomalies that must shock and repel any thinking individual.
Henry Makow received his Ph.D. in English Literature from the University of Toronto in 1982. He welcomes your comments at
Source Article from http://henrymakow.com/2015/01/social-credit-a-simple-explanation.html
Social Credit: A Simple Explanation
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