Social Credit News

Saturday, 09 August 2014 02:22

Re: "The Costliest Money Mistakes"

Written by Oliver Heydorn
Rate this item
(0 votes)

According to the latest edition of the “Money Minute”, the Royal Bank of Canada has discovered that 75% of Canadians struggle with consumer debt and that, on average, they owe 16,000 dollars per head (not including mortgage debt): https://ca.finance.yahoo.com/video/playlist/money-minute/costliest-money-mistakes-172856785.html

The solution according to Ashleigh Patterson? Canadians must get their financial houses in order: they must start saving and stop using credit cards! Don't live beyond your means! Saving will help to prepare them for unexpected costs or unexpected losses/reductions in income, while not borrowing on credit cards will preserve them from having to pay interest charges that will erode their incomes in the future, thus intensifying the struggle with debt at a later stage (10,000 dollars borrowed at the standard 18% and compounded monthly yields 49,693 dollars in interest over a ten year period).

What Patterson does not seem to realize or want to admit is that if Canadians were to put their financial houses in order along the lines which she suggests, the economy would be even more anemic than it already is at the present time. More and more people saving greater sums of income and fewer and fewer people borrowing-to-to buy would reduce the amount of consumer purchasing power available to meet the prices of goods and services in the marketplace. If some other entity such as the government did not intervene by injecting more purchasing power into the economy (by increasing its mortgage, i.e., the public debt), a recession, increased unemployment, and an increase in bankruptcies would be the inevitable result of a lack of ‘consumer confidence’. Under the present economic system with its structural gap between prices and incomes, you cannot demand that certain economic actors must or should balance their budgets without causing other economic actors to unbalance theirs if any semblance of financial equilibrium is to be maintained.

The real solution is to recognize that there is a lack of consumer purchasing power derived from consumer incomes. A financial system which automatically reflected the physical economic facts would provide a sufficiency of supplementary consumer purchasing power (debt-free, as it were) in the form of a compensated price and a National Dividend. Consumers could then consume without falling into debt by relying on credit cards, lines of credit, or standard bank loans, while businesses would never have to deal with an artificially induced lack of consumer demand.

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 a Coronavirus UBI
    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…
    Written on Monday, 23 March 2020 18:01 Read more...
  • Thus Spake C.H. Douglas ... Zoroastrianism and Social Credit
    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…
    Written on Thursday, 05 March 2020 17:34 Read more...
  • Social Credit and Modern Monetary Theory (MMT)
    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.
    Written on Sunday, 01 March 2020 16:43 Read more...