Social Credit v. Federal Reserve

[missouriboy]

Suggested reading for those inclined to pursue ideas on improving the status quo...

Thinkers and philosophers have been searching for ways to unite the people of the world and stop a lot of the bickering and wars. Well, there is a topic nearly a hundred years old that might work, at least by uniting all the common folk against all the robber-baron banksters. It's about exposing the Federal Reserve-type money system that has grown worldwide now, and how it creates poverty amidst plenty. It's tragic how the people are being robbed blind by the fact that the banksters get to create the money needed by all, and charge us interest just for the mere existence of it. This makes for a two-class society, one composed of the super-rich banking elements, and the other being everyone else who are doomed to everlasting debt, because the money needed to pay that interest NEVER gets created! So the banksters keep on eternally collecting interest on debt that keeps on compounding ever larger and larger. And it's a scam that was designed that way on purpose!

Well, there is a solution to this travesty, conceived in 1918, and refined further ever since by some intellectuals in the Catholic Church. It's a system of money creation called "Social Credit" (not to be confused with Socialism, which is fully recognized as an equally bad scam). The Social Credit system would eliminate the bankster scam of perpetual interest paid to the elite, and would also eliminate poverty! How? It's amazing! But it's a heavy subject that cannot be glossed over lightly, lest we get the wrong impression.

There is a Catholic website in Canada with a wonderful 10-lesson course on the whole subject, including its history. I think it should be read by everybody who cares about human survival, and about existing with the quality of life we should all enjoy. The introductory web-page, with links to all 10 lessons, is here (http://www.michaeljournal.org/10lessons.htm). Read the Introduction first, then click on each of the 10 links in turn. Warning: this will take a long time, not just a few minutes, so be prepared for some college-level endeavor. Note also that the last two lessons are merely the Catholic doctrines that coincide with the proposal. As you read the Introduction first, you'll see a sentence that reminds you of a certain line in the Lord's Prayer: "Give us this day our daily bread..." (emphasis added). This reveals an essential clue to the whole concept, which may indeed seem quite radical at first. But what is the present system, of charging interest for the mere existence of money, if NOT radical?

Now, I'm not a Catholic nor am I even particularly religious. But I rate this idea among some of the best I've ever studied. Enjoy!

[Boreas]

British Columbia had a party called the Social Credit party. It is gone and now is morphed into the "Liberal" party of BC, which is actually quite right winged, and neo-liberal.

You pose an interesting question. I had never really heard of or possibly understood social credit until I came here. It is my understanding that it is a neoliberal/neoconservative approach under a different mask. I will read some of your information and think about this.

[Sanman]

Not to "steal your thunder", but for those who would rather watch a video than read, here are two excellent vids covering much of the same material...

Money as Debt
http://video.google.com/videoplay?docid=-2550156453790090544
(the first 20 seconds is blank, but be patient)

The Creature from Jekyll Island - A Second Look at the Federal Reserve
http://video.google.com/videoplay?docid=-8484911570371055528

Of course, the reading material is much deeper in detail that these videos if you prefer having details.

[missouriboy]

Not to "steal your thunder", but for those who would rather watch a video than read, here are two excellent vids covering much of the same material...Thanks for the links.

I haven't watched the videos, but I assume they only describe the present system, and its history. Do they offer a solution?

The Social Credit link I gave describes in adequate detail where we are right now, the major flaws in it, and then proposes an alternative. It's this alternative system that's really the subject of this thread. Had you heard of Social Credit before? I had not, so I thought I would share it here.

Thanks again.

[Sanman]

G. Edward Griffin does indeed offer a solution, and there are many others associated who are actively trying to make a change. One such current attempt is Ron Paul's bill in congress, HR1207, to audit the federal reserve.

[bobk]

Thanks, man. I'll read it and report, not right away. As you say, it will require some time to digest.

[missouriboy]

British Columbia had a party called the Social Credit party. It is gone...It's GOOD that the party is now gone. Here is an excerpt from their brochure (http://www.michaeljournal.org/realsc1.htm) on the subject of parties: ...we cannot see a masterful idea like Social Credit - which transcends political parties and would enrich them all - being in some way confined in a political party. Social Credit is a universal. A political party is a part, a piece. To call a party "Social Credit" is to want to enslave a universal into a limitative.

As soon as you use the words Social Credit to name a political party, you exclude the possibility for the member of another party to declare himself in favour of Social Credit; it would be to declare himself for an opposing party. He will object to you that he cannot be at the same time for his party and the Social Credit Party.

Also, I have just reviewed the quotation that appears in your signature. It is amazingly descriptive of the proposed doctrine of Social Credit!

Thanks for posting. :)

[missouriboy]

G. Edward Griffin does indeed offer a solution, and there are many others associated who are actively trying to make a change. One such current attempt is Ron Paul's bill in congress, HR1207, to audit the federal reserve.I have now watched the ONE hour ELEVEN minute video of your second link; I assume that's the one by G. E. Griffin? Though 15 years old now (1994) it's an excellent presentation by a very dynamic speaker. I really enjoyed and appreciated seeing and hearing it. I don't recall any specific alternative given, only the fact that the present usury system must be eliminated for the survival of America "before it's too late. And there's still time left". And now there's 15 years less time left...

I'm also aware of Ron Paul's bill to audit the Fed, which he introduces in every session of congress. This time certainly looks better, since it now has over 270 co-sponsors (last I heard anyway). This bill would not repeal the Fed money system, but would certainly be a good first step, by exposing what really goes on there. IF the audit were really honest and thorough. But if the government itself does the audit, it will most likely find everything "just swell"... remember Waco and the government's "investigation" of itself? And the exoneration of the government sniper who killed Vicki at Ruby Ridge? And the 9/11 Commission? Ad Infinitum.

[missouriboy]

Well, Ron Paul's FED audit bill now has 282 sponsors in the House, plus 23 in the Senate. And it seems if the audit happens, it could lead to abolishment, or nationalization, of the FED.

Keep watching, it's getting interesting.

[Naturist Mark]

The Fed is using Social Credit to dig Wall Street out of the hole it fell into, but of course has adapted it to serve the elites rather than the citizens.

Banks increase the money supply by making loans, but destroy it when it is paid back - including the increased amount paid in interest, which means that there must be an ever increasing pile of debt in order for the economy to grow.

Unless ... you charge NEGATIVE interest on certain loans.

Now there are no banks openly offering negative interest loans ... but the Fed has devised a work around. It offers interbank loans to its member banks that are effectively zero interest. The banks then redeposit the loans with the Fed, at 5% interest, rather than loaning it out to home buyers or businesses. This loan/deposit two step is the equivalent of a social credit dividend paid only to certain favored banks. It is free money to the banks that comes from nowhere - the money the Fed provides is not from deposits or reserves - it is created by bookkeeping entries, even the interest it pays on deposits is just created on the spot.

In Social Credit theory money is created out of nothing in order to balance consumption with production - a transaction that is inflation neutral as long as it is limited to the correct amounts - and is distributed equally to all citizens as a social dividend - since they are the collective "owners" of the economy. But this would not be acceptable in a plutonomy (http://blogs.wsj.com/wealth/2007/01/08/plutonomics/) like ours, where 1% own the majority of everything. Social Credit may the the cure for the debt spiral, but in a nation dominated by elites it can't be allowed to be equally distributed, thus the Fed's adaptation of an effective negative interest loan that is only available to selected member banks rather than the social dividend that goes to everyone.

[missouriboy]

Social Credit may the the cure for the debt spiral, but in a nation dominated by elites it can't be allowed to be equally distributed, thus the Fed's adaptation of an effective negative interest loan that is only available to selected member banks rather than the social dividend that goes to everyone.Thanks for posting, Mark.

Social Credit isn't the only cure for the debt spiral; other remedies would also do that. In fact, the original Constitutional authority for the government to create money worked fine; there was no debt spiral until creation of the Fed in 1913. It's the bankster's greed of demanding interest just for the mere existence of money that has caused the debt spiral since then.

In addition to fixing that, Social Credit would also mitigate poverty by providing everyone with enough money for the bare necessities of life, up to some so-called "poverty level." Not ALL money created would be distributed this way. The total money created would equal the value of all production, not just the amount needed for survival, and would be vastly more than the amount distributed as the "dividend." Those who desire more than the dividend would have to earn it in the workplace, or marketplace, by participating in creating the production that drives total money creation... in other words, get a job.

I agree with you that overcoming the resistance of the "elite" (read "banksters") to switch systems would be nearly impossible now, because it would require the elimination of their private-playhouse cash cow, the one we euphemistically call The Federal Reserve.

I also feel dubious about any bureaucracy created to determine the proper amount of money, because it would be subject to the same inescapable human traits that cause the foibles of the present system: Greed and Power!

So what are we to do? The economic survival of this country, and perhaps the whole world, at least demands getting back to the constitutional wisdom of interest-free money creation. After that, we could take another look-see.

[Sanman]

Money as Debt II specifically addresses the interest and money supply issue... http://www.youtube.com/watch?v=_doYllBk5No (part 1 of 8)... 2-8 can be foud from there.