While there are significant differences between Modern Monetary Theory (MMT) and Douglas Social Credit, Professor Kelton’s talk allows us to turn our attention, for a change, on some of the points of commonality.
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In the last twenty years, a local alternative currency model referred to as “the Unity Dollar” has been trialled in a few towns in Eastern Canada. While these experiments ran, they achieved some positive results in terms of easing the economic burden of participants alongside the provision of a few important lessons for future local currency advocates. Given the present economic and political climate, with ever-tightening covid restrictions/pressures and the looming threat of a “Great Reset”, the time has come to seriously consider locally based alternatives to the conventional financial grid. The following text, which was recently prepared to explain the Unity Dollar project to Canadians, is nevertheless accessible to all people of good will the world over. The specific name that might be given to a local alternative currency based on this idea of a “universal coupon” is, of course, changeable and, as with many of the more minor details of the project, can be adapted to suit time and place, as well as local cultures and conditions.
Indeed, Social Credit itself, as a social vision involving monetary, economic, and political reform, is firmly ensconced in a broader Tory framework. That is to say, Social Credit is the fruit of authentic Tory thinking and it is also the necessary means, as I hope to soon illustrate, for the restoration of an authentically Tory political regime.
In essence, what has been put forward is a temporary implementation of the bare-bone essentials of the Douglas Social Credit monetary reform, as part of the U.S. government’s financial response to the Covid-19 crisis. Imagine that, all this time—countless decades in fact— Social Crediters have been calling for certain changes to the financial and economic structure of society, and now, if this bill is passed and becomes law, we will have a taste of it, ironically, without any of its proponents having known anything at all, presumably, about C.H. Douglas. That very fact confirms of one of Douglas’ key predictions: The increasing financial stress induced by ever-increasing debt in combination with steady labour displacement will eventually force a solution along Social Credit lines; the Coronavirus was merely the proverbial feather that broke the Camel’s back. Make no mistake about it; what we are looking at here is Douglas Social Credit in embryo.
But what if there is another way by means of which Australia could fund the stimulus package without driving up the National Debt? What if the stimulus money, something which both the economy as a whole and individual consumers desperately need, could be issued not as a debt, but as a ‘debt-free’ credit, or, in other words, as money that never need to be repaid by its recipients to the issuer, in this case, to the government viafuture taxes? This would obviously provide the benefit without imposing the disadvantages associated with increased debt.
If we examine the financial system in terms of one of its chief products, i.e., debt, we can easily come to understand the essence of the Social Credit analysis and remedial proposals. In sum, the problem with the existing financial system from a Douglas Social Credit point of view is that it functions after the pattern of a positive feedback loop, amplifying debt, whereas it should, in the interests of stability, functionality, and therefore human satisfaction, function after the pattern of a negative feedback loop, dynamically liquidating excess or surplus debt in the chain of production with debt-free credits. The Social Credit remedial proposals were designed to change the financial dynamic from a positive feedback loop to a negative feedback loop.
The great danger, therefore, with a Coronavirus UBI is that, while it may be introduced sans conditions initially, the state, or rather the powers that control the state, might eventually decide to make all sorts of demands on UBI recipients. They may require vaccination, for example, as a condition of receiving it, or specific community services in exchange for it, or the surrender of privacy and other civil rights. The tying of any such stipulations to a UBI or a National Dividend would be completely at odds with the Douglas Social Credit vision for society and must be vehemently opposed on that basis by freedom-loving people everywhere. A conditional UBI would not lead to greater freedom in the long run, but only to less freedom, perhaps even to much less freedom than we enjoy at present, depending on the nature of the conditions the state imposes and their scope. In the limit, we can imagine a society in which a UBI is granted in exchange for total state-direction of people’s lives:
“The abolition of poverty in the midst of plenty, important as that is, is not the core of the problem. It is conceivable that people might be provided for as well-fed slaves.”
“… the primary characteristic of the slave is not bad treatment. It is that he is without any say in his own policy.”
 C.H. Douglas The “Land for the (Chosen) People” Racket: http://www.yamaguchy.com/library/douglas/land.html
We have been accustomed, in Social Credit circles, to describe Douglas Social Credit as ‘practical Christianity’, and I think that this is indeed correct. Nevertheless, for some time I have noticed various points of contact between Social Credit and the Zoroastrian religion. This, too, shouldn’t come as any surprise or be seen as a contradiction, since the particular vision of the world shared by the prophet Zoroaster exerted a heavy influence, especially during the Babylonian Captivity, on Old Testament Judaism and thereby on Christianity. The Persian Zoroastrian King, Cyrus, is recognized in the Bible as being anointed by God and inspired by Him to liberate the Jews in Babylon. Cyrus, for his part, appears to have recognized the God of Israel and his own God as being one and the same. Furthermore, there is a direct connection between Zoroastrianism and Christianity insofar as Zoroaster had predicted the coming of a Saoshyant, or world saviour, who would be born of a virgin … the three Magi who visited the Christ Child were, in fact, Zoroastrian priests who had correctly read the anticipated signs, both of the times and in the heavens, so as to be alerted to the timing of His birth.
Since MMT is receiving more and more press and would appear, in my view at any rate (and more on this shortly), to be the system’s answer to the neo-liberalism of the past 30-40 years, it is crucially important that Social Crediters become aware of what MMT claims and what it proposes and also what the due Social Credit response to MMT should be. In what follows, I will attempt to outline some of the more salient MMT propositions and policy-prescriptions and to indicate both the points of contact and commonality with Social Credit, as well as the key areas of disagreement where the two part ways.