THE LOST FIGHT AGAINST INFLATION

A recent issue of a well-known newsletter for investors, stresses that its readers must, in an attempt to protect themselves, accept the reality of a progressive overall increase in inflation. Similar newsletters are openly advertising that inflation can be exploited in order to "make money". A survey of the numerous newsletter services being offered around the world shows that most accept the prevailing finance economic policies. Different views are expressed about whether it is best to invest in gold, silver, postage stamps, art, or real estate. But all are in agreement that inflation is going to continue to move upwards.

From the time the League of Rights was born, shortly after the Second World War, it has been warning that conventional finance economic policies made progressive inflation a mathematical certainty. Inflation was halted during and after the Second World War by the simple technique of financing consumer price discounts, which resulted in comparatively stable cost of living figures and wages. The Liberal-Country Party Coalition fought the 1949 Federal elections primarily on the inflation issue. Inflation had returned immediately the Chifley Government abolished consumer price subsidies. Robert Menzies and Arthur Fadden pledged that they would "put the shillings back into the pound" by reducing taxes and restoring consumer price discounts on the basic items in the economy. Six months after being elected the first Menzies-Fadden Government had retreated and over the years inflation continued to move upwards.

It is an irrefutable fact of history that the "fight" against inflation was progressively lost. How pathetic, then, to hear Federal Treasurer John Howard claiming that he is continuing a "fight" he has already lost. One of the economic newsletters referred to states that the Australian inflation rate will be at least 15 percent within three years. Under present financial policies a higher rate of inflation can be predicted with absolute certainty.

Mrs. Thatcher's British Government has managed a fractional reduction in the inflation rate with policies, which have been economically and socially disastrous. But the capitulation to the threat of miners to stage a national strike, has demonstrated that the "Iron Lady" and her "monetarist" advisers are starting to retreat. The paralysing strike by public servants, determined to try to offset continuing inflation by higher wages, provides further evidence of the shape of things to come from the British. The creation and election of a new political party in Britain, which now appears highly likely, cannot do more than temporarily slow down the accelerating rate of disintegration.

As the inflation rate moves upwards everywhere, the pressure is increased on every section to try to protect itself. Centralisation in every sphere is a major manifestation of the process. And as the crisis deepens, strikes become increasingly destructive. The Marxist revolutionaries understand what is happening, and welcome the process. Mass demonstrations by a public increasingly bitter about strikes, are understandable. It is highly commendable that a few should get out and urge their fellows to make it clear that they are "fed up".

The urge to "let us do something" can only result in an aggravation of the crisis unless action is constructive and directed towards removing CAUSES. If a few thousand marched demanding a reduction in TOTAL TAXATION and a financial policy, which abolished inflation and the basic cause of strikes, this would cause concern amongst the politicians.
We well recall the mass city marches by farmers back at the height of the rural crisis. Because these marches were not geared to any constructive policy to unite all sections of the community, they had no effect on the progressive destruction of rural Australia.

Having contributed towards the erosion of their own traditional rural base, the Country Party has emerged as the National Party and now seeks to widen its electoral support. This must bring it increasingly in conflict with the Liberal Party. But a new type of National Party cannot alter the course of events any more than can the new Social Democratic Party in Britain - NOT UNLESS IT SEEKS TO UNITE THE ELECTORS BEHIND POLICIES WHICH WILL CONSTRUCTIVELY REVERSE INFLATION.

We do not doubt the goodwill of many of those attempting "to do something". But so long as there is no challenge to a policy which insists that all new credits can only be issued as a debt carrying high interest charges, and that in the face of the technological revolution, production for the sake of production, to try to maintain "full employment", must be insisted upon, inflation must get worse along with every type of social disintegration. Those who take the view that all they can do is to try to adopt investment policies, which will protect them, are merely fighting a rearguard battle. There is no genuine stability for any under present debt policies. We have returned to this question to stress the importance of constructive action over the next few critical years.

TRUDEAU PLANNING FOR NEW INTERNATIONAL ECONOMIC ORDER

In spite of freezing weather Canadians are turning out in force to hear visiting speaker Mr. Jeremy Lee, who sends the following report from Medicine Hat, Alberta
"It is increasingly evident that the New International Economic Order is what Trudeau is really about. He wants Canada totally in his pocket when he partakes in a hectic round of conferences later in the year, now described in 'UNese' as the GRN (Global Round of Negotiations!). Like Australia, there is a major attack on the integrity of farmers, especially those in the grain and cattle industries.

The weekly "Alberta Report" this week said: "Alberta's agricultural community this month is being presented with a proposal that the federal government assume the same controlling and central role in the production and marketing of grain that it has assumed in the production of oil and gas... What Alberta's farmers will be presented with this month is called M.A.P. the Market Assurance Plan

... MAP's critics, chief among them the provincial government and the cattle industry, see many and further sinister implications. They say that MAP will mean that in about two years the federal government will be telling prairie farmers what they will grow, how much they will grow, how much they will sell it for, and to whom they will sell it, making them in effect civil servants at low pay. MAP will terminate the free market in wheat, oats and barley. MAP will eventually bring rapeseed and flax under federal control, though rapeseed farmers six years ago voted down federal marketing of their newly developed product.

MAP will bring the Alberta cattle industry under both federal control and eventually federal subsidy because cattle farmers depend on the free market for feed grain supplies ... Finally MAP will make western Canada more dependent than at any time since the Second World War on decisions from Ottawa, thereby giving the federal government new political clout in the West which it will use to whip unruly provincial governments into compliance with federal policy.."

The plan... is being pushed by the leftwing National Farmers' Union, chief advocate being former president "Red Roy" Atkinson. It's so much like Australia, I could be home! The Province of Alberta is so hostile to the scheme that it is considering pulling out of the Canadian Wheat Board agreement, which operates in three Provinces. However, there is no real constitutional delineation of provincial rights such as the States enjoy in Australia. Australia's States don't know how lucky they are to have had such a sound constitutional position at the time of Federation (as Gough Whitlam has been ruefully telling Canadians!). What would happen if Canberra gained monopoly control of production and trade can be seen in Alberta's sorry plight at the moment.

Trudeau has three irons in the fire, ready for the establishment of the Common Fund, which Canada ratified in January. He has the N.E.P. (National Energy Policy) rapidly socialising - with the consent of the major oil companies - the energy industry in Canada; the M.A.P. being used to socialise agriculture; and a new equivalent for the manufacturing sector being hammered out on the Trudeau anvil at the moment.

So the constitutional battle will be the most historic in Canada's history - and there are signs that Canadians have begun to grasp the truth about Trudeau's plans, and are girding their loins for the struggle ahead."