"... since money and credit ("the means of payment") cost the banker nothing to create, there is nothing to prevent him giving it away free to the community if circumstances require it, as they most, assuredly do today, if the debts he creates so willingly against us and all human "societies" — via hire purchase (paying through the finance company or in installments — Ed.) for instance — are ever to be liquidated.
The harm it admittedly does at present resides in the fact that the banker regards the costless money and credit he creates, as his own personal property, oblivious to the fact that he creates no tangible real wealth of any kind to back up his loans.
Also, the fact that he only lends and never gives away the "means of payment" to anybody means that the debts he creates and imposes on the community every day, to enable it to carry on its business, can never really be liquidated, they can only grow; and all the world's huge National Debts testify to the fact that they do grow.
Today's borrowings and debts can only be liquidated: (nominally) by larger borrowings and debts tomorrow — larger because of the added interest — and all succeeding tomorrows must repeat the process.
It follows from these facts that every new credit the banker creates and lends is an act of inflation, which automatically dilutes and devalues everybody's money, raises prices and increases taxation."
Excerpt from a letter by H. M.M.
appearing in The Social Crediter, 5-3-60
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