A Simple 7 Minute Power Point Presentation Explaining Social Credit.

1. Understanding Social
Credit

2. Understanding Social Credit
Christopher M. Quigley
B.Sc., M.I.I. (Grad.), M.A., QFA.
Qualified Financial Adviser.
Dublin, Ireland.
4th. May 2016
cmqesquire@gmail.com

3. • The Gap is Growing
• “As we have seen, the more automatic machinery
replaces men, the wider becomes the gap between
buying power and prices because salaries and wages
are thus reduced, leaving other cost items
proportionately increased. When we stop to realize
that the gap is constantly widening as efficient
machine-power rapidly replaces inefficient man-labor
in doing the work of the world, it becomes evident that
we are reaching the senseless absurdity of a maximum
production and a minimum of consumption. Yet we
wonder at the paradox of poverty in the midst of
plenty !”
• “From Debt To Prosperity” Crate Larkin.
Social Credit

4. Contemporary Overview
• Rolling Financial Crises Since 1929 Are Not
Happening By Accident.
• Technology Axiomatically Leads To Fewer High
Paying Jobs.
• Efficiencies Ensure That Systematically More Is
Being Created With Less.
• We Should Be Experiencing Deflation (Money
Buying More) Due To Technological Efficiency.
• We Are Actually Getting Inflation Due To Debt
Money Being Issued To Counter Collapsing Real
General Incomes.

5. Contemporary Overview
• Interest Bearing Debt Has Been Introduced Systematically To
Counter “Collapsing” Wage Distribution.
• Banking Monopoly Of Credit Lending Leads To Ever Increasing
Centralization Of Industrial Ownership.
• Increasing Cost Levels Of Technology, Plant, Interest And Taxation
Are Consistently “Inflating” Prices.
• Contemporary “Prices” (Costs) Can Never Be Liquidated. The
“System” Is Therefore Bankrupt According To “Orthodox”
Accounting.
• Society And Our Civilization Are Thus In Crises And At A “Dead End”.
• The Problem Was Understood A 100 Years Ago But Its Reality Has
Been Well Concealed In Cant, Sophistry, Mis-Information And Mis-
Education.

6. Contemporary Overview
• The Gold Standard Cannot Be Introduced Due
To The Exponential Expansion OF The World
Economy.
• It was Tried After The First World War And
Resulted In The Great Depression Of 1929.
• This Depression Proved The Utter Failure Of
“Orthodox Economics”.

7. Contemporary Overview

8. Contemporary Overview
• Review of World Financial Instability.
•
• Summary: (World: US Dollars: Approx).
• 11. Total Value of Derivatives (Notional): 1,200 Trillion (1.2 Quadrillion).
• 10. Total Value of All Assets (Fin. /Real Estate): 318 Trillion (8. Plus 9.)
• 9. Total Value of Financial Assets: 198 Trillion
• 8. Total Value of Real Estate: 120 Trillion
• 7. All Debt. (Owned by Banks): 257 Trillion (5. Plus 6.).
• 6. Total Priv. Debt. (Owned by Banks): 193 Trillion (Priv./Corporate).
• 5. Total Gov. Debt. (Owned by Banks): 64 Trillion
• 4. World GDP: 60 Trillion
• 3. Total Value of Derivatives (Cash Val.): 20 Trillion
• 2. Total Value of Circulating Currency: 4 Trillion
• 1. Total Value of Gold Reserves: 1.5 Trillion
• Ref: World Gold Council Dec. 2013.

9. Contemporary Overview
• Current Orthodoxy Developed By John Maynard
Keynes (Keynesianism) To “Solve” 1929 Type
Mass Unemployment Cannot Continue.
• It Involves A Mixed Economy Of Part Capitalism,
Part Socialism (Demanding Massive Public Debt).
• This Is Now Failing Due To The Bankruptcy Of
Most Sovereign Governments And The
Widespread Insolvency Of Fractional Reserve
Banks.

10. Contemporary Overview
• Social Credit Too Has Its Failings Mainly Due To The
Political And Religious Views Of Its Founder And The
Level Of Bureaucratic Socialism Involved In
Implementing Some Of Its Policy.
• However Its Main Insight; The Collapse Of Consumer
Wages And Its Banking And Social Credit Solution,
Offers A Valuable Intellectual Insight Into The Possible
Manner On How A New Economic And Accounting
Orthodoxy Could Be Developed.
• If We Do Not Society Will Continue To Economically
Collapse.

11. What Is Social Credit.
• Social Credit Was Founded By A British
Engineer Named Major Clifford Douglas.
• Born In Manchester And Educated At
Cambridge.
• After College He Worked For The
Westinghouse Electric Corporation.
• While Working For Royal Aircraft During The
First Word War He Had His Social Credit
“Epiphany”.

12. What Is Social Credit.
• Douglas Discovered: That Weekly Costs Of
Goods Being Produced Were Greater Than The
Sums Paid Out For Wages, Salaries And
Dividends. This Contradicted Richardian
Economics Which Held That: “Costs Are
Simultaneously Distributed As Purchasing
Power”.

13. What Is Social Credit.
• Douglas Proceeded To Research A Further 100
Large Businesses And Categorically Concluded:
“We Are Living Under An Orthodox Economic
System Which Renders The Delivery
(Consumption) Of The Nation’s Goods And
Services A Technical Impossibility”.

14. What Is Social Credit.
• Douglas Thus Comprehended That Orthodox Economics Had A
Catastrophic Fatal Flaw: Society Had Insufficient Money (Purchasing
Power) Generally Distributed To Finance Consumption Of Production .
• Reasons:
• 1. Wages, Interest And Dividends Could Never Cover Production Costs
(Prices) In The Average Production Cycle.
• 2. Banks Having Gained A Monopoly Of Credit Only Issue New Credit By
The Issuance Of New Interest Bearing Debt. New Money Is Never Issued To
Service The New Interest. Thus The System Has A Self Destructive
Dynamic Which Rears Its Ugly Head Every “Business Cycle”. A Cycle Which
In Effect Is A Bank Induced Credit Cycle Of Inflation Then Deflation.
• “Inflation Is The Web, Deflation Is The Mastication”.

15. Social Credit Is The Policy Of A
Philosophy
• The Philosophy Is:
• The Individual Is Supreme.
• Society Should Operate For The Benefit Of The
Individual Not Vice Versa.
• Institutions Should Be Subservient To Man.
• Society And Culture Are Built Upon The
Historicity Of Human Association And As Such
Belongs To All, Not An Elite Group.

16. Social Credit Beliefs
• The Common Cultural Heritage Belongs To All.
• People Cannot Have Social Freedom Without
Economic Freedom.
• Economic Freedom Is A Function Of Purchasing
Power.
• Without Purchasing Power The Individual Is
Prevented From Effective Engagement With The
Resources Within Society.
• Credit, Which Is Based On The Trust Within A
Community, Should Not Be Controlled By A
Private Group.

17. Social Credit Beliefs
• All Social Production Originated As A Common Cultural
Heritage.
• People Cannot Have Social Freedom Without Economic
Freedom.
• Personal Freedom Is A Function Of Purchasing Power.
• Without Purchasing Power The Individual Is Prevented
From Effective Engagement With The Resources Within
Society.
• Credit, Which Is Based On The Trust Within A
Community, Should Be Distributed Generally Not
Controlled By A Private Monopoly.

18. Social Credit Solution
• A 4 Step Social Credit Solution Using Private Banking:
• 1. Set Up A National Credit Account. At Present We Only A National Debt
Account: The Banks Have Privately Usurped All Credit – To Create National
Debt.
• 2. Institute A National Dividend For Every Citizen.
• 3. Finance New Investment (Interest Free) On The National Credit Account
Through A Private Banking Non Fractional Reserve System Which Operates Of
A Fee Basis Not An Interest Basis.
• 4. Annually Allow A Just Price Discount On All Personal Purchases to Balance
Production And Consumption. (This Mechanism Also Helps Cancel The Effects
Of Inflation).
• Reference: “The Struggle For Money” H. M. Murray.

19. Social Credit Solution
• Policy Objectives:
• Distribute Purchasing Power To Citizens.
• Develop Debt Free Banking Backed By The
Nations Credit Which Will Stimulate
Investment And Development And Is Self
Liquidating When Paid Off.
• Adjust And Balance Production With
Consumption Through The “Just Price
Discount”.

20. Holistic Purchasing Power Example
• Henry Ford’s Detroit Car Plant Early 1900’s.
• Cancelled Dividends.
• Doubled Wages.
• Halved Model T Price
• Lowered Staff Turnover Dramatically.
• Efficiency Doubled, Then Tripled.

21. Holistic Purchasing Power Example
• Detroit Economy Exploded.
• Price Of Suburban Land Increased, Further
Distributing Wealth To Farm Owners.
• Farmers, Ford Workers, Carpenters, Builders,
Butchers, Salesmen, Shop Owners, Handymen, All
Could Afford Ford Cars.
• Ford’s Car Demand Exploded.
• Efficiencies Exponentially Increased.
• Within Three Years An Increased Dividend Was
Reintroduced Annually To Ford Stock Owners.

22. Holistic Purchasing Power Example
• Henry Ford Had Understood The “Holistic”
Nature Of Demand And Purchasing Power.
• Without Money, Consumer Demand Was
“Ineffective”
• He Understood That The Purpose Of His
Factory Was Not Production But
Consumption.
• With Purchasing Power In The Hands Of Every
Citizen Consumption Was Impossible.

23. Detroit Historical

24. Detroit Historical

25. Detroit Historical

26. Detroit Historical

27. Economic Orthodoxy Today
• The Exact Opposite Of Ford’s Holistic Approach Is
Being Applied.
• Purchasing Power Is Being Contracted Not
Expanded For The Average Worker.
• Technology Is Being Used To Destroy Average
Wages Not Increase Them As Should Be The Case
Due To Increased Efficiencies.
• The Situation Will Continue To Deteriorate Until
The Source Of The Problem Is Finally
Acknowledged.

28. Downtown Detroit 2016.

29. Abandoned Detroit 2016.

30. Abandoned Detroit 2016.

31. Detroit 2016.

32. Detroit 2016.

33. Detroit 2016.

34. Detroit 2016.

35. Social Credit Solution
• PROBLEM: COLLAPSING PURCHASING POWER
AND OVER CENTRALISATION OF INTEREST
BASED BANKING.
• SOLUTION: DISTRIBUTED PURCHASING
POWER AND DEBT FREE BANKING.

36. Social Credit Solution
What Can You Do?
• Seek Truth.
• Raise Consciousness.
• Educate And Inform Yourself And Those Around
You.
• Empowered Men And Women Through The
Realization That There Is A Solution.
• Increase The Money Consciousness Of The
Average Citizen.
• Champion Economic, Accounting And Banking
Reform.

37. • “Banking and credit are too important a business for citizens and
politicians to be ignorant of. Upon its fair and equitable administration
rests the very existence and future of our society."
Major Clifford Douglas 1879 – 1952.