Saturday, 24 January 2015 19:54

Usury, Social Credit, and Catholicism

Written by

As I tried to show in my recent blog entry on “Social Credit and Usury”, the claim that usury, defined as the charging of interest on loans, is THE problem and that Social Credit means nothing more than “usury-free money” is a serious but all too common misrepresentation of the Social Credit diagnosis and remedial proposals.

Friday, 07 November 2014 19:44

Social Credit and Usury

Written by

One of the most common misunderstandings where Social Credit is concerned is the notion that the Social Credit diagnosis can be adequately summarized along the following lines: "The problem with the existing financial system is that the banks create money out of nothing in the form of bank credit and then proceed to charge interest on the money that they loan out. Unfortunately, they do not create the money to pay the interest and this leads to a continual build-up of unrepayable debts, etc., etc." This popularized interpretation of Social Credit is erroneous.

Latest Articles

  • Financial Credit as a Merit Good
    The debt­-finance system, by generating a chronic insufficiency of purchasing power, thereby requiring increased borrowing (in lieu of large trade surpluses) if economic activity is not to grind to a halt, causes the State ­ with its great, almost unlimited capacity to borrow, thanks to its power to tax (i.e. creditors are eager to lend to it in the knowledge that it will always have a means to pay them back), to expand its role in the economy. Thus, as society finds its purchasing power increasingly insufficient to satisfy its requirements, the State steps in, with its role becoming larger and larger as it fills the growing gap. Caught unawares by these developments, which they were utterly incapable of anticipating, economists scrambled to come up with theories explaining ­ and indeed, justifying ­ such extensive government intervention.
    Wednesday, 29 August 2018 14:16 Read more...
  • Visualizing the Gap
    The central contention of the Social Credit critique of contemporary economic management (or rather mismanagement) is the existence of a gap between prices and incomes in the operation of any modern economy - i.e. an economy based on debt-finance and multi-stage, mechanized production. This underlying deficiency of purchasing power, makes it impossible to liquidate the costs of production without resorting to increased debt and/or a large trade surplus - since prices cannot fall below costs without putting the continued operation of an enterprise in peril, (unless it can rely on direct or indirect government support). Furthermore, the critique contends that this gap is bound to grow as the economy becomes more sophisticated - i.e. as production involves more and more stages, and use of machinery increases - entailing spiralling debt and increasing trade tensions if the necessary financial remedies are not applied.
    Tuesday, 28 August 2018 13:37 Read more...
  • Social Credit and Democracy: The Problem - Part Two
    In this second article, I will continue to examine some of the structural problems with conventional democratic political systems that Douglas had identified in the course of his writings, especially in the writings of his latter years. Beyond the particular defects in the voting system which were discussed in the previous month’s article, there are also problems with the party system and with how the voting and party systems interact with each other. Since there is quite a bit of information to cover, I beg the reader’s indulgence if the following is reminiscent of a lawyer’s seriatim brief.
    Monday, 20 August 2018 17:27 Read more...