Under present financial rules to inflation is deflation.
We do not believe, of course, that the dictators of financial policy will permit a major depression to develop. "Controlled inflation" is now official policy, and restrictive credit and taxation policies are the instruments used to insure that price rises are not sufficiently great to produce effective opposition. Apart from "controlling" inflation, the use of these instruments also progressively forces economic centralism upon all sections of the economy.
It can be taken as granted that the rate of credit expansion will be increased this year. But this credit expansion will also be used to foster economic centralism. There is a call for Government expenditure to ensure that a depression does not develop. Not only does this mean increased Governmental expenditure and a further increase in the bureaucracy; it also means that an increasing number of private business organizations will be directly and indirectly dependent upon Government business to remain solvent.
Present financial policies lead inevitably towards Socialism and Communism...
Most Social Crediters have believed — or hoped — that the development of labor-saying devices and the oblivious impossibility of every nation obtaining a "favorable balance of trade" would eventually force a change in financial policy. But it now appears possible that if a sufficient number of young people can be conditioned to make them "scientists', they will be prepared to devote their lives uncritically to using enormous quantities of materials and power to develop various space projects. The universe offers an unlimited export market with little possibility of imports to complicate the bookkeeping!
There is no answer to the crisis confronting mankind unless there is a more widespread recognition amongst responsible people that the true-purpose of man is self-development, that the true purpose of the production system is to supply the genuine requirements of the individual, and that the financial rules should be modified in order that the individual can control his own life.
Control of financial credit is control of life and the purposes of life. This is the great issue of our times, and how it is resolved will determine the fate of Western Civilization.
The New Times (Melboume, Australia.)