Social Credit Views

Tuesday, 18 November 2014 04:54

Social Credit Perspectives: What is Wrong with the Economy?

Written by Liam Allone
Rate this item
(0 votes)

The following was submitted by Liam Allone of http://www.economiccures.com/

I can demonstrate the fundamental gap or “shortage of money” that is built into the money system the entire world – without exception – is using at both a macro and micro level so that it becomes obvious that the analysis is correct.

Macro proof: If you consider the US, its GDP is presently about $14T/year. This is the PRICE that was ACTUALLY achieved for the purchase of all the goods and services produced by the US for the stated year. The Bureau of Labor Statistics reports that the total wages, earnings and dividends reported to the IRS comes to $8T. $14T - $8T = $6T GAP or shortage of purchasing power. Divide the number of American men, women and children into that and it comes to about a $16K per capita SHORTAGE OF MONEY.

Micro proof: Consider any good or service and ask yourself: "Is there anything offered whose price is only comprised of wages, earnings and/or dividends?" The conclusion is always no. Now ask yourself: "Is there any good or service that has no price component consisting of wages, earnings or dividends? Again the obvious answer is no.

The inevitable conclusion is that wages, earnings and dividends cannot possibly pay for the goods the earners have worked to produce. So the skeptic then asks, “Well then how could the price of $14T have been paid for in full? ” The answer is the secret the banksters don’t want you to realize. The money needed to make up for the deficiency in purchasing power IS BORROWED! AT INTEREST! FOR THEIR EXCLUSIVE BENEFIT! How so? Government bonds, taxation (the extraction of interest mechanism), corporate lines of credit, venture capital, home loans, car loans, credit cards, personal lines of credit. All these serve to fill the gap in purchasing power. All we are doing is continuously kicking the can of debt down the road with the inevitable and relentless result that public, private, and corporate debt is ever expanding and prices (i.e., cost-push inflation) are ever rising. We are all debt slaves and the master is the banksters.

How do they keep sucking us into this trap? We have all bought into the lie that we need to WORK FOR THE MEANS OF OUR BREAD. This is salvation by work. We need salvation by grace – the free gift of excess capacity that technology has won humanity as a whole so that we – humanity - have, in fact, already EARNED a certain amount of rest from work! In other words, we need the gap to be filled by an adequate volume of debt-free money that is freely distributed to consumers.

Last modified on Sunday, 11 February 2018 05:01

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

Latest Articles

  • Social Credit and Democracy: The Problem - Part Three
    Thus far in this series of articles exploring the relationship between Social Credit and democracy, we have seen that conventional ‘democracy’ suffers from a large number of design faults which vitiate it and render it ineffective. That would be bad enough, but Douglas goes one step further and claims that the ineffective mechanisms of conventional ‘democracy’ provide the best possible cover for the operations of a hidden dictatorship. Not only do they provide the best possible cover, but the same mechanisms which are ineffective from the point of view of fulfilling the true purpose of political association can be rendered most effective (by being cleverly manipulated) for the purpose of fulfilling an alternative policy-objective, one that is imposed by an agency that is external to the elected ‘government’.
    Tuesday, 18 September 2018 22:58 Read more...
  • 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...