INFLATION VIS-À-VIS THE NATIONAL DIVIDEND

by Anthony Cooney:
Following on from last week's "Modern Commercial Credit" and Diane Boucher's Social Credit discussions, we offer Anthony Cooney's input. He develops the subject further.
He writes: "As the question of Inflation vis-a-vis the National Dividend has come up, I offer a few suggestions. First: I regard the definition, "Inflation is too much money, chasing too few goods," as the "Romantic Theory of Inflation." It supposes either a degree of intelligence exchange between retailers which simply does not happen, or alternatively a uniform reaction of retailers to a measurable increase in public spending power; which is to suppose a great deal indeed! This Romantic Theory of Inflation was a staple of U.K. Ministry of Information propaganda throughout the last war.
Dior's 'New Look' exploded the fallacy
There was even a cartoon character who, observing two people looking at the same article in his otherwise empty shop window, hastened to change the price tag to a higher one. "Too much money chasing too few goods" became a mantra which is evidently still causing us problems. Oddly enough nobody could find the "too few goods"; shop windows and counters remained reasonably full and I have never met anyone who considers that they have too much money!
In fact the fallacy was exploded in 1948 when Dior introduced the "New Look" in women's fashions. The ready-made clothing industry was faced with disaster, for, as quickly became manifest, not merely the Department Stores, but also the Warehouses, were stacked with clothing, withheld from the consumer by rationing, and not by "too much money." Clothing coupons were abolished, literally overnight, by announcement on the B.B.C. and the Department Stores launched mammoth sales to get rid of obsolescent stock.

So, what is the Douglas definition of Inflation?
It is "An increase in the supply of money accompanied by an equal increase in prices." That is not a Romantic Theory, it is a mathematical theorem which can be demonstrated by the A+B Theorem which shows that all costs (including taxation) must be recovered in prices. Increases in costs result in increases in prices as cause to effect.
Either Douglas was right, or Douglas was wrong. If Douglas was wrong that does not mean that either Keynes or Friedman were right. The results of implementing their theories argue strongly that they too were wrong. It might be that everyone is wrong, which leaves us with the Copernican/Lockian theory that money is a natural phenomenon, subject to the Laws of Nature as much as are the wind and tides. In which case there is nothing anyone can do about it except endure The Tragedy of Human Effort. Is there anyone who still seriously propounds the Copernican/Lockian theory?

We might here consider what is the object of the National Discount? Now I don't think it is what we all assume it to be--namely to reduce prices--that is an effect of the Discount. Its forgotten object is to eliminate the detritus of past costs (the "costs" of dead labour) from current prices, thus achieving "The Just Price," that is the cost of all the consumption incurred in production. Let us remember that Social Credit has a political theory as well as a monetary theory. Any "method" of implementing Social Credit should be measured against the political axioms, and the first of these is:
"The Administration must not have access to the National Credit, save by the consent of the Commons in Parliament/Congress who accept, or reject the Administration's 'Bill'."

Put another way, the Administration's revenue ought to come entirely from approved and accepted taxation--preferably directly of the banking system, as I have suggested in the Abolition of Income Tax.
Apropos that the New Zealand Democratic Party for Social Credit have announced a very similar policy: Financial Transaction Tax (FTT)
Our policy will:
· Replace GST (VAT) income and company tax with a financial transactions tax.
· Set the level of transactions tax at a low percentage.
· Relieve businesses of compliance costs when GST is phased out.
· Collect the tax through data bank facilities on every bank transaction.
· Make the total amount of revenue raised available for Government spending as there will be no collection cost, just bank transfer.
· Automatically increase everyone's spending power as the GST level is far higher than any transactions tax need be.
Further details from www.democrats.org.nz

TRADE FACTS

U.S. Australia Free Trade Agreement
The following is a brief summary of what the Office of the United States Trade Representative, Washington, DC, thought of the Australia-America Free Trade Agreement, as posted on their website February 8, 2004:
"'Two-way annual Goods and services Trade with Australia is about $28 billion, and the U.S. has a $9 billion trade surplus with Australia. Australia is America's 9th largest goods export market.'

An FTA for America's Manufacturing Sector
More than 99 percent of U.S. manufactured exports to Australia will become duty-free immediately upon entry into force of the Agreement. This is the most significant immediate reduction of industrial tariffs ever achieved in a U.S. FTA, and will provide benefits for America's manufacturing workers and companies; U.S. manufacturers estimate that the elimination of tariffs could result in $2 billion per year in increased U.S. exports of manufactured goods. There will be significant benefits for such key U.S. manufacturing sectors as autos and auto parts; chemicals, plastics and soda ash; information technology products; electrical equipment and appliances; non-electrical machinery; fabricated metal products; construction equipment; paper and wood products; furniture and fixtures; and medical and scientific equipment.

New Opportunities for U.S. Farmers
All U.S. agricultural exports to Australia, totalling more that $400 million, will receive immediate duty-free access. Key agricultural products that will benefit from immediate tariff elimination include processed foods, soups and bakery products, fruits and vegetables, dried onions, fruit and vegetable juices, dried plums, potatoes, almonds, tomatoes, cherries, raisins, olives, fresh grapes, sweet corn, frozen strawberries, and walnuts. Food inspection procedures that have posed barriers in the past will be addressed, benefiting sectors such as pork, citrus, apples and stone fruit.

Sensitive to Agricultural Concerns
The FTA is sensitive to concerns that have been expressed by Congress and U.S. beef and dairy farmers, and the agreement uses tariff-rates quotas (TRQ) to respond to these concerns while increasing trade.

Beef
U.S. above-quota duties will be phased out over an 18-year period, and initial increased imports from Australia under the TRQ quota will amount to about 0.17% of annual U.S. beef production, and 1.6% of annual U.S. beef imports. The quota increases will take effect when U.S. beef exports return to their 2003 (pre-BSE) levels, or three years after effective date of the agreement, whichever comes first. Safeguards will be available, including a price-based safe guard after the transition period.

Dairy
There will be no change in the U.S. MFN above-quota tariff on dairy products subject to quotas, and initial increases in imports from Australia under the TRQ quota will amount to about 0.17% of the value annual U.S. dairy production, and about 2% of the value of total U.S. dairy imports.

Access to Services and Investment
Australia will accord substantial market access across its entire services regime, offering access in sectors such as telecommunications, express delivery, computer and related services, tourism, energy, construction and engineering, financial services, insurance, audio/visual and entertainment, professional, environmental, education and training, and other services sectors. In broadcasting and audiovisual services, the FTA contains important and unprecedented provisions to improve market access for U.S. films and television programs over a variety of media including cable, satellite, and the Internet. Most U.S. investments would be exempted from screening by the Australian Foreign Investment Review Board.

Recognizing the Importance of innovative Pharmaceuticals
The U.S. and Australia note the importance of ongoing research and development; of recognizing and appropriately valuing the therapeutic benefit of innovative drugs; and of transparent, expeditious, and accountable procedures. In implementing these principles, Australia will make a number of improvements in its Pharmaceuticals Benefits Scheme (PBS) procedures that will enhance transparency and accountability in the operation of the PBS, including establishment of an independent process to review determinations of product listings. The FTA establishes a Medicines Working Group to further promote the agreement's public health principles through an ongoing dialogue between the United States and Australia. In addition, the U.S. Food and Drug Administration and the Australia Therapeutic Goods Administration will work together to make innovative medical products available more quickly.

Open and Fair Government Procurement
U.S. suppliers are granted non-discriminatory rights to bid on contracts from 80 Australian central government entities, including key ministries and government enterprises. These commitments are particularly significant and commercially important, because Australia is one of the only developed countries that is not a party to the WTO Agreement on Government Procurement. Both countries are also committed to extending coverage of the agreement to sub-central entities, and will be working with their respective states to refine the extent of the coverage in the next few weeks. Australia will eliminate its central government industry development programs, under which suppliers have had to provide various types of offsets as a condition of their contracts.

A Trade Agreement for the Digital Age
U.S. and Australian authors, performers, inventors, and other producers of creative material will benefit from the higher and extended standards the FTA requires for protecting intellectual property rights such as copyrights, patents, trademarks, and trade secrets and enhanced means for enforcing those rights. The agreement calls for each government to adopt state-of-the-art protection for digital products such as software, music, text, and videos, and encourages adoption of measures to promote trade through electronic commerce.
Strong Protections for Worker Rights and the Environment: Ensures effective enforcement of labor and environment laws and establishes labor and environmental cooperative mechanisms.

Increased Transparency
The agreement's dispute settlement mechanisms call for open public hearings, public access to documents, and the opportunity for third parties to submit views. Transparency in customs operations will aid express delivery shipments and will require open and public processes for customs rulings and administration."

AN APPEAL FOR ERNST ZUNDEL

The following appeal from Mr. Paul Fromm, Director of the Canadian Association for Free Expression touched a nerve. Ernst Zundel is, in truth, a political prisoner.
"But", you say, "that could only happen under such regimes as the former U.S.S.R.- that Communist dictatorship." Really? Are you aware Mr. Zundel is in prison because he dares to express his views on matters considered by the ruling regime to be 'politically incorrect'? We may not agree with Mr. Zundel's views, but if we don't fight for his right to express them, then the time will come when we also could be treated in the same way. In 'politically correct' jargon, it is known as a 'crime of expression'.

In an earlier communiqué Paul Fromm wrote of :-
A Norwegian citizen, who was so outraged when he read on the Internet what the thought police in Canada were doing to Zundel, complained to the Canadian Embassy in his own country. "The Embassy official was angry", he related, "denying that Canada kept political prisoners or violated human rights." The Norwegian citizen downloaded from the Internet a stack of news' reports from mainline Canadian sources and was about to head into Oslo to confront the Embassy official and show him he was wrong.

Paul Fromm reminded us: "The Canadian Establishment preens itself on its human rights record. It sees Canada's role in the world as that of an unselfish do-gooder. (Here in Australia, we call them 'do-gooders'. They are going to 'do good to you', whether you want it done to you or not…ed) Bwana Chretien announces another billion dollars in foreign aid to Africa. Old socialist Stephen Lewis bangs the drums for more funding for AIDS in Africa. The Canadian government, unable to adequately defend our vast seacoast with sparse and wildly obsolete equipment, still signs up for every UN peacekeeping mission that comes down the pike.
The point is, throwing political dissidents into solitary confinement is something that's supposed to happen in other countries. (You mean just like what the Americans are doing to the inmates of Guantanamo Bay?…ed)

The Canadian Establishment is uncomfortable doing these things and especially does not want foreigners to notice. If you live outside Canada, you can help Ernst Zundel by NOTICING. Complain to the Canadian Embassy or nearest Canadian consulate. Ask that political prisoner Ernst Zundel be freed and demand a response."
Editor's comment: "Guantanamo: What the World Should Know," by Michael Ratner & Ellen Ray is a must read for all thinking Australians.
Michael Ratner, although writing primarily for an American audience, reminds us all, we should take notice of how our governments treat any of our citizens. What they are doing to Ernst Zundel, David Hicks, et al today (John Howard take note!) is what they could do to one or many of us tomorrow! "Guantanamo" authors insist: "The president does not have the right, nor the constitutional powers, to act unilaterally. We are a country of laws where the people cannot be imprisoned at the whim of the chief executive."

Paul Fromm continues writing about Ernst Zundel's plight:
Dear Free Speech Supporter: Mr. Justice Pierre Blais has a pet phrase " but we're not there yet." The Sixth Circuit Court of Appeals Judgement, discussed in the Knoxville News article below is a victory but not the final victory. The Court of Appeals has ruled that the German-born publisher's rights were violated and that he was not allowed to pursue an habeas corpus petition prior to being deported and banned from the U.S. for 20 years.
* Habeas Corpus: A writ ordering a prisoner to be brought before a judge. The right to obtain a writ of habeas corpus as protection against illegal imprisonment.
The Court judgement said: "On remand, Mr. Zundel may pursue his habeas corpus petition insofar as he challenges his deportation order and insofar as that order has continuing collateral consequences (e.g. the alleged 20 year ban on re-entry). ... For the foregoing reasons, we vacate the district court's denial of preliminary relief."
Lawyer Peter Lindsay told me Sunday that the ruling may be helpful down the line, but that more legal petitioning time and money will end up being spent in the U.S. to actually get Mr. Zundel permitted back into the country so that he can argue against his deportation.
As Judge Blais might say, "It's good, but we're not there yet."
Huge expenses have been incurred this summer and we face 13 days more of court in July (27), August (11, 30, 31) and September (1,2, 14, and 16). We urgently need your help and pledge of support today. Please mail us your contribution to CAFE (Zundel Defence Fund), Box 332, Rexdale, ON., M9W 5L3, Canada. Send a cheque or your VISA number and expiry date. You can also e-mail your contribution by VISA.

HOLOCAUST DENIER GETS COURT REPRIEVE

by Jamie Satterfield, Knoxville News:
Sevier resident, being held in Canada, should be able to fight deportation - 12th August 2004:
"A Holocaust denier booted from his Sevier County home - and the country - should get a shot at arguing against his deportation, a federal appellate court has ruled. Whether Ernst Zundel, 65, will actually be allowed to appear in U.S. District Court in Knoxville remains unclear, however. Zundel is in solitary confinement in a detention centre in Toronto, Canada, where he is accused of being a threat to that country's national security.
Zundel is a German-born graphic artist and publisher whose 1980 pamphlet "Did Six Million Really Die?" rocketed him to infamy as a Holocaust denier and - as some allege - a neo-Nazi. He lived in Canada for decades, but had long been denied citizenship. In 2000, Zundel entered the United States on a temporary visa. He then married Ingrid A. Rimland, a native of the Soviet Union who had become a U.S. citizen.
The couple moved to Wears Valley and opened an art gallery.
In February 2003, the INS arrested Zundel on a charge that he had overstayed his visa and failed to follow through on his attempts to attain permanent residence status here. Zundel and his wife cried foul, claiming the Holocaust revisionist was being persecuted for his views. Sevierville attorney Boyd Venable III filed a petition in federal court here to try to stop his deportation, but Senior Federal Judge James Jarvis refused to hear it, writing that there was "no legal basis" for his intervention.
Zundel was eventually deported to Canada, where officials are trying to send him back to Germany. He faces hate crime charges there in connection with his writings, which include the book "The Hitler We Loved and Why," and his Web site, www.zundelsite.org.
In an opinion released late last week, the 6th U.S. Circuit Court of Appeals ruled Zundel is entitled to a hearing challenging his deportation.
"These claims require consideration by the district court," the opinion stated.
The U.S. Department of Justice argued that Zundel has already been deported, rendering his petition for relief as moot. The Justice Department also contends that the federal court here lacks any jurisdiction. But the appellate court countered that those issues should be aired in Knoxville's federal courtroom. "Whether, as the government argues, (federal law) strips the federal courts of jurisdiction to hear the remaining claims is a matter for the district court to take up," the opinion states. "So is the question whether Zundel waived his right to contest removal because it remains unclear whether Zundel most recently entered the country under the visa waiver pilot program."
There are many things about Zundel's swift trip back to Canada that the appellate court states it found "unclear."
"The precise nature of the events that resulted in Ernst Zundel's deportation to Canada casts more shadows than light on this appeal," the opinion states. The court also finds fuzzy the reason for Zundel's continued imprisonment in Canada, where he is not charged with any crime but has been labelled a security threat. "Canadian officials apparently took Zundel into custody and continue to detain him for reasons not revealed by this sparse record," the opinion states.
Zundel's wife still lives in Sevier County and maintains his Web site, where she posts updates on his case.

In an official response to the 6th Circuit ruling, Ingrid Zundel wrote:
"There are dimensions to this important ruling I can't discuss at this point. It means, however, that now we can begin discovery - a process where we can ask questions and demand documents on court directives that are going to expose the depth of deceit and political interference of this deportation that was, in fact, a well-coordinated political kidnapping."
Zundel's imprisonment in Canada has sparked several protests by groups such as the Canadian Association for Free Expression. Those events have drawn counter-protests from antiracism groups."

NADER AND ANTI-DEFAMATION LEAGUE 'LOCK HORNS'

GOVERNMENT AUTHORITY RECEIVES FUNDS FROM SUPPLIERS

BASIC FUND

THE SYDNEY FORUM IS COMING UP

NATIONAL WEEKEND COMING UP

BOOKS, BOOKS, BOOKS

"Howard's War" by Alison Broinowski. Why did John Howard lead Australia into a highly unpopular war with Iraq? The war has cost Australians more than $700 million, so far, but has predictably made Iraq and its neighbours more unstable - and hasn't delivered any of the results our leaders 'promised'. How could it have been 'in Australia's interests' when it has made us a target for terrorism and put us at odds with our Asian neighbours? John Howard mightn't have revealed his real reasons for going to war but this book does. Price: $23.95 posted.

"Guantanamo: What the World Should Know" by Michael Ratner and Ellen Ray. David Hicks' Australian lawyer Stephen Kenny has written as Introduction to the book. "Make no mistake, Guantanamo is a prison where cruel and inhuman and degrading treatment - even torture as we know - is practised, and it is utterly illegal," writes Michael Ratner. He warns his readers, "Alarm bells should be ringing throughout the West. Liberty, democracy and the right of dissent are at stake. The recently deceased former president Ronald Reagan called the Soviet Union -- "The Evil Empire". Is America turning into a fascist state? It is just incredible the way human beings can justify their own barbaric actions! This is a must read. Price: $30.00 posted.

"Not Happy, John" by Margo Kingston. In the triumphant first-flush of toppling Saddam Hussein, John Howard invited George Bush the President of the United States to visit our shores and speak on the matter which had so bitterly divided the nation. She writes on that presidential visit: "…what I experienced on 23 and 24 October last year made me fear for our democracy's future. I saw a Parliament on its collective knees before a condescending Imperial Caesar, led by a lame provincial governor of a Prime Minister so blind to the duties of his own democratic office, so unmoved by the issues still rending his own people, that he turned what might have been a healing thank-you visit into just another vehicle for his own ambitions. I saw him do so at the expense of Westminster traditions and norms of civilised behaviour that I'd thought were above partisan politics. I saw elected politicians - elected by us, the Australian people - shouted down, physically manhandled and viciously abused."
That day, John Howard, 'conservative imposter disguised in ill-fitting Menzies hand-me-downs' kow-towing to the Imperial Caesar, "had left the public service in ruins -- reduced to mere caterers, lackies, careerists and political stooges." She saw, "The castrated press gallery was largely oblivious to what was happening to our democracy before their very eyes on their own professional beat". $30 posted.