Would Social Credit Cause Inflation?

on Wednesday, 01 June 1955.

So much false and misleading propaganda is spread about the monetary proposals of Social Credit, that it is necessary to examine a few questions frequently asked.

Does Social Credit advocate the use of worthless ‘paper money'?

No, it does not. Social Credit is not concerned with the physical composition of money. Today the most convenient and widely used medium is paper money – legal tender (bills) and chequebook money, drafts and so on. But we do not consider the paper money and credit instruments we use today to be worthless. The Government's stamp on our bills gives us confidence, even though they are made of paper.

Would Social Credit advocate the manufacture of money indiscriminately?

No, it would not. Social Credit teaches that money itself is not wealth — it merely serves as a claim on wealth, a claim on goods and services. It is disastrous to have a dollar without a corresponding dollar's worth of real wealth; i.e., production - goods and services. But it is folly to have the dollar's worth of real wealth and not have the dollar to facilitate its distribution and consumption. We need a dollar to represent every dollar's worth of our production, if we are to enjoy full distribution and consumption, which in turn means full production and a high standard of living.

The basis for all money must be Goods. And the volume of purchasing power must bear a scientific relationship to the price of goods for sale. But we must have the goods and services to back up the dollars. No more dollars would be created than there were goods for sale.

Therefore, Social Credit would not manufacture money indiscriminately (as it is today, with periods of inflation and deflation). Money or credit would be created scientifically, based upon production of goods and services, and financial policy would be so oriented as to reflect the physical facts. What is physically possible, would be made financially possible — without forever going into debt and taxation.

Didn't some similar 'scheme' cause inflation in Germany after World War I?

No, it did not. Money was issued indiscrimanately in Germany, without the goods and services to back it up. Money was issued without having any relationship to goods and services. But this was deliberately done by the international bankers in their own greedy interests. In the book, UNROBING THE GHOSTS OF WALL STREET, we read the following account of the 'German’ inflation:

"In a conference in Paris and later in Berlin, in 1937, an outstanding German Banker explained to me (the author) that the German mark was not destroyed by the German Government, but by the International Bankers of Germany and other nations; that Germany had no more control of her finances at that time than has the United States today; that Germany as a nation, had it had control of its money, could have managed very well and retained the mark. All that was necessary was to raise the price level of labor and commodities to correspond with the increased number of marks, or in other words reduce the purchasing power of the mark scientifically. But this would have reduced the purchasing power of capital and interest, and this the big bankers objected to, so after they had sold their marks to America and other nations, and disposed of their German bonds, or had them reissued in the new gold mark, they destroyed the old German mark, and let the people and other nations suffer the loss.

“The banker also explained that one year or more previous to the destruction of the German mark that there was a whispering campaign going on among the class that controlled the money of Germany (and their friends and relatives were let in on the secret) advising them to buy all they could and promise to pay one year hence when the German mark would be worthless. This was all a premeditated plan by the International Bankers, the same as is our money panics.

“This banker informed me that the confiscation of property in Germany was largely due to this whispering campaign. Those that had been informed actually got property for practically nothing. This banker further informed me that the terrible poverty of Germany during the time Von Hindenburg was President was caused by the old mark being destroyed and the new mark restricted in volume by the German International Bankers, so it made a terrific scarcity of money, that naturally was followed by extreme poverty. That it was not so much the destruction of the old mark, but the restriction in volume of the new mark that created Germany's dark days of poverty."

So we see that both Inflation (too much money) and Deflation (not enough money) are weapons of international money-lenders to impoverish peoples and break nations. Both are against the interests of all concerned — except perhaps the international money manipulator who grows rich and powerful at the expense of others through manipulating and stealing the financial credit of peoples and nations.

Would the implementation of Social Credit monetary proposals really guarantee security, freedom, and a high living standard?

Yes it would. Because security is really dependent upon a continuous and adequate income — dollars in our pocket.

Security, without freedom, is without meaning. They 'enjoy' this in any well-run jail.

On the other hand, in this modern age with men thrown together in great centres and divorced from the soil, without the assurance of an adequate and continuous income to supply the minimum needs of the family, there can be little genuine freedom.

Social Credit is based squarely upon the Christian philosophy, which teaches that:

Man is created by God in His own image. Man, in turn, created systems and institutions to SERVE, not master, him. Man's rights are derived from God, not from the state.

Consequently, Social Credit recognizes the sovereignty and dignity of Man as an Individual, and his right to freedom to worship God and live his own life — so long as he does not interfere with the same rights of others.

A sound financial and economic system, reflecting the physical facts of Abundance and serving Man, would assure that minimum of security so essential if we are to preserve and enhance the dignity, sovereignty, and freedom of the individual.

Keeping in mind our vast and varied resources in Canada, and the fact that under a Social Credit policy anything physically possible would be financially possible, we can understand how a steadily increasing standard of living would be possible. Our standard would be limited only by our ability to produce.

Therefore, the implementation of Social Credit monetary principles would guarantee security and freedom as long as we have rich resources and God makes the sun to shine and the rain to fall.

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