ALOR - Science of the Social Credit Measured in Terms of Human Satisfaction

"All that is necessary for the triumph of evil is that good men do nothing"
Edmund Burke

24 June 1983. Thought for the Week: "The modern theory, if it can be called modern, of the totalitarian state ... to the effect that the state is everything and the individual nothing, ... is a revamping of the theory of the later Roman Empire, which theory, together with the financial methods by which it was maintained, led to Rome's downfall not by the conquest of stronger Empires, but by its own internal dissensions. It is theory involving complete inversion of fact, and is, incidentally, fundamentally anti-Christian, in that it exalts the mechanism of government into an end rather than a means, and leads to the assumption that individuals exist for the purpose of allowing officials to exercise power over them."
C. H. Douglas in "The Tragedy of Human Effort".

MR. HAWKE'S MESSAGE FROM NEW YORK

In spite of his reputation for being "his Own Man", Prime Minister Hawke has revealed that he knows where the real source of power resides in today's world. Before the recent Federal Elections, Mr. Hawke was emphatic that taxes could and would be reduced. But last week in New York, the major centre of International Finance, the "Democratic Socialist" Prime Minister of Australia assured Wall Street - and indirectly the Australian electors - that there would be no income tax cuts in the Budget for two years.
One would have thought that such a blatant breaking of a pre-election promise would have been more appropriately made direct to the people Mr. Hawke is betraying; viz preferably in the Federal Parliament, and not at a luncheon of the American Foreign Policy Association, attended by the representatives of International Finance and Multinationals.

The type of language being used by Mr. Hawke must sound like pleasant music in the ears of those trying to use their financial power to reorganise the whole world. Mr. Hawke has accepted the view of the Reagan Administration's "experts" that a "substantial" American recovery was now under way, and that a "durable" recovery would go into and beyond next year.
In spite of an increase in the nation's money supply, the great majority of Americans see no evidence of any improvement in their standard of living. But Prime Minister Hawke uses his American platform to tell Australians that they must continue to pull in their collective belts in order to take advantage of the alleged American recovery.

Mr. Hawke, the self-professed authority on economics, does not explain why the vast unused productive capacity of Australia cannot be used NOW to supply what Australians require, starting with houses and furniture. Presumably if the U.S.A. disappeared tomorrow, Australians are doomed to a programme of permanent depression!

As observed by several commentators, Mr. Hawke and his Treasurer, Mr. Paul Keating, have been using language reminiscent of Mr. Malcolm Fraser and Mr. John Howard. Which is not surprising, as the Hawke Government is marching down the same road his predecessors followed, worshipping the same false idols - such as the deficit.
A master at manipulating the media, Mr. Hawke makes a virtue out of breaking promises; he is determined to make the necessary "tough decisions" in order to act "responsibly". In a striking manifestation of pure pragmatism, Mr. Hawke told his American audiences that he was not going to allow ideological "purity" to prevent him from taking the necessary steps to obtain power and to hold onto power. Mr. Hawke is well aware that he is badly upsetting the Socialist radicals in the Australian Labor Party, as witnessed by the resolutions carried at the Victorian branch of the ALP last weekend, but he is confident that he can beat off all threats, which we believe he will, at least in the short term.

However, after enjoying the heady euphoria associated with his overseas trip, Mr. Hawke is now back to earth. His greatest asset is the pathetic state of the Opposition, not only in a state of shock following a series of electoral disasters, State as well as Federal, but unable to mount any genuine initiatives, basically because Mr. Hawke, both internationally and domestically, is doing basically what they would be doing. The Liberals are also sadly divided on issues like the Human Rights proposals, with former Minister Ian Macphee revealing his humanistic philosophy with strong support for the proposal that Australia should ratify the UN Convention concerning "discrimination".

The stage has been set for further increases in taxation in the August Budget and other impositions. Events continue to confirm our view that Mr. Hawke, the man who says he is a great "survivor", who is in the business of winning, may well decide next year to seek a double dissolution and make a bold bid for a renewed mandate for his "responsible" policies.
Should the Socialist radicals inside the Labor party seriously challenge Mr. Hawke, and force a major split, Mr. Hawke is capable of leaving the Labor Party to lead a new "consensus" political grouping to preside over a national crisis. Billy Hughes did just that, as did Joe Lyons during the Great Depression.

Whatever happens, a completely new political situation has now developed in Australia, one which we believe is pregnant with the possibility of a new type of political movement designed to give coherence to that increasing number of completely enchanted with the cynical dishonesty of the political parties.

BRIEF COMMENTS

Unlike many who like to describe themselves as Conservatives, we do not find ourselves warming to Prime Minister Margaret Thatcher. Prior to the Falklands war she was rated one of the most unpopular Prime Ministers in British history. Her ruthless economic policies, which bankrupted thousands of British firms and threw millions on to the dole, were allegedly designed to "discipline" the British economy and to make Britain more competitive internationally. Her Government sacrificed one of the loyalist groups of Britons in the world, the Rhodesians. The truth is that the Falklands affair provided Mrs. Thatcher with the unique opportunity to show determined political leadership and to touch something deep in the British psyche - a patriotism that transcends parties. She was also assisted by the deep divisions in the Labor Party and the futile Foot. She has also been greatly assisted by North Sea oil revenues. But if Mrs. Thatcher perseveres with financial orthodoxy, we can predict now that the current euphoria will soon become a nightmare.

Those who saw on television the personal confrontation between Pope Paul-John and the Polish Communist leaders, and the mass support given to the Pope by demonstrators defying the Communists, were presented with inspiring evidence that the Christian Church is not cowed in Poland. The huge demonstrations, with hundreds of thousands chanting, "Solidarity, Solidarity, Long Live Lech Walesa, Long live the Pope", have shown the Polish Communists just how fragile their rule is. But if the Communists do abolish martial law, this will be designed primarily to have Western nations agree to a "re-scheduling" of their debts on much easier terms.

With his appointment as President of the Soviet Union, Andropov now has the supreme power, which Stalin exercised. The Soviet leader warns that the Soviet will increase its armed forces and spare no effort to prevent the West from achieving military superiority. Andropov said last week, "We must become the world's best performer here", calling for greater use of automation and computers. No doubt he is confident that the Soviet will still obtain the most advanced technology from the West.

"The Australian Jewish News" of June 10th reports that a former prisoner of Auschwitz concentration camp has offered to fly Mr. Jim Keegstra, the Mayor of Eckville, Alberta, Canada, to Poland to show him that the alleged Holocaust is not Jewish propaganda. Mr. Keegstra has become the centre of a national Canadian storm since being fired from his teaching position for casting doubt on the story of six million Jews being gassed. All that Mr. Keegstra would see at Auschwitz is what the Communists have prepared for people to see. And even that insults the commonsense. As does the "Jewish News" report that the man offering to fly Mr. Keegstra to Auschwitz allegedly spent almost five years in the camp, during which time it is claimed that up to four million were gassed. How, then, did a man who was in the camp for nearly five years manage to survive? If the Germans were as thorough as claimed, then why are there inmates of Auschwitz constantly coming forward to say how they were in the camp for years?

After months of speculation, the Reagan Administration has reappointed Mr. Paul Volcker for another term as Chairman of the Federal Reserve Board. The appointment has been warmly welcomed by the International Bankers who in fact dominate the Federal Reserve. But the labor federation AFL-CIO is not so enthusiastic. By severely curbing the rate of credit money creation, the Federal Reserve has reduced inflation to 4 percent, but has presided over the longest depression since the Great Depression of the thirties. If Mr. Volcker and his supporters continue with their policies, the much-publicised American recovery is not going to materialise. And what will Prime Minister Hawke do then?

What do the new Australian Broadcasting Corporation appointments mean? That the new board will make even less effort than their predecessors to curb the pro-Marxists who dominate in public affairs programmes. We anticipate even more blatantly radical programmes. If the new Chairman, Mr. Ken Myer, has his way, there will be less time devoted to British entertainment and "Anglo-Saxon sport". With great respect to Mr. Myer, whose second wife is Japanese, we point out that Australia is a Western European nation, whose institutions and culture are predominantly Anglo-Saxon, and that a policy of concentrating upon Asian and Pacific programmes would be rejected by the overwhelming majority of Australians.

An Adelaide actionist had an excellent letter published in "The Stock Journal" recently:
"I would like to respond to your editorial of the May 26 issue about the proposed compulsory levy to fund the National Farmers' Federation. "Policies of the N.F.F. are not always in accord with farmer's wishes. Personally, I admire some of their work but I find in many cases their actions are aimed more at effects rather than causes of problems. For example, what is the sense of criticising unionists who seek to maintain purchasing power, or keep up with inflation by asking for a wage rise? Such criticism seems inherent in all groups similar to the N.F.F. and is typical of their superficial attitude. When will they realise that the unionist is also the consumer we need to buy our meat and milk, etc.? Of course, the trade union stand is equally superficial. We oppose each other at every chance rather than recognise our common enemy - government policy.
"Let us for a moment forget the almighty dollar and talk in what the economists call 'real terms'. The actual cost of production in latter years has fallen dramatically. This fact is borne out by figures which show a massive increase in production with diminishing input, e.g. where three farmers once produced, say, 1500 tons of grain, today this amount and more is achieved by one farmer from the same acreage. As machines replace human effort, the 'easier' production should be reflected in lower prices.
"If we now recall the almighty dollar we find that the increased efficiency has been falsely reflected as higher prices. Therefore, past and present Federal Governments, which are responsible for the Nation's financial policy, have not provided us with a system where physical reality is accurately reflected in financial terms.
"Components imposed by the Government which increase prices are the numerous taxes clearly outlined by the 'Modest Farmer' (Stock Journal May 26). Sales tax adds 20% - 30% to many price tags - surely the first tax we need to eliminate.
"Generally we need huge cuts in the total tax collected, and before readers start up the chorus, 'Where will the Government get its money?' let me point to the numerous Royal Commissions and enquiries which state that the Reserve Bank can issue the finance required by the Government. It can even be issued as a credit rather than as an interest bearing debt. "Part of this credit could be used to offset revenue lost through tax cuts and a portion could be used to reduce prices of basic commodities such as food, clothing, and shelter through consumer subsidies as applied in the 1940s. This scheme reduces prices without the producer suffering a loss; e.g. meat selling for $5 per kg could be sold by the butcher for $3.50 per kg. and for every kg sold the butcher would qualify for a payment of $1.50 from the Government fund. It would operate like sales tax in reverse. Consumers would receive an immediate increase in purchasing power - and remember we are all consumers. This benefit would destroy the need for a wage rise.
"Why does the N.F.F. not advocate a repeat of the 1940s policy which brought the only period free from inflation?
"I presume the N.F.F. stands for free enterprise, and for it to plan a compulsory levy on all producers must be sheer hypocrisy and cuts right across the philosophy of the farming community.
"Should the N.F.F. adopt sound policies concerning major causes of problems, the minor effect problems would disappear promptly. The farming sector and others would be so appreciative of the N.F.F. that a voluntary whip around would provide them with adequate funds."