PRIMARY OBSTACLE IS METAPHYSICAL, NOT MATERIAL

by Wallace Klinck, Canada
The headlines read: “British economists send apology to Queen,” July 27, 2009.
Sorry Ma'am - we just didn't see it coming. A British newspaper has reported that a group of eminent economists have apologised to Queen Elizabeth II for failing to predict the financial crisis.

The Observer newspaper reported that a letter has been sent to the Queen after she demanded, during a visit to the London School of Economics last November, to know why nobody had anticipated the credit crunch.
According to the newspaper, the letter says that "financial wizards" who believed that their plans to manage risky debts and protect the financial system were infallible were guilty of "wishful thinking combined with hubris". Signatories to the three-page letter include Tim Besley, a member of the Bank of England's monetary policy committee and historian Peter Hennessy.

The newspaper said the content was discussed during a seminar with a group of leading economists in June, including Nick MacPherson, a permanent secretary at Britain's Treasury, and Goldman Sachs chief economist Jim O'Neill.
"In summary, your majesty, the failure to foresee the timing, extent and severity of the crisis and to head it off, while it had many causes, was principally a failure of the collective imagination of many bright people, both in this country and internationally, to understand the risks to the system as a whole," the newspaper quoted the letter as saying.

Buckingham Palace declined to comment on the correspondence, but said the Queen often discusses current issues with experts. In March, Mervyn King became the first Bank of England governor to be invited for private talks at the palace. "The Queen always displays an interest in current issues and is kept abreast of current issues. Obviously the recession is very topical," Buckingham Palace said in a statement.
Luis Garicano, a professor at the London School of Economics, said he had discussed the origins of the crisis with the Queen during her visit. He said she had asked: "Why did nobody notice it?" The London School of Economics was not immediately available for comment, or to provide a copy of the letter.”

We should be deluging both them and the Queen: |
‘These "economists”’, wrote one contributor, ‘should be issued hoes and taught to look after the gardens of the London School of Economics, so as to be able to say that they have done something useful for a change’ was one comment during the online social credit discussion.

Perhaps these so-called "expert" economists should also be apologizing to the general populace. I think the point is that we should be deluging both them and the Queen with proper information and urgent requests that the appropriate changes be made forthwith. Demands have to come from the people! The essential problem is that the whole financial system is based upon an unsound policy of creating rather than minimizing "work" and the anti-Christian philosophy from which that policy is derived.

No doubt that some of these "experts" are brilliant enough. They just start out on the wrong philosophical footing and spin all sorts of nonsensical theories and policies as a consequence of not first getting their heads straight about the real, rather than imagined, nature and purpose of human life. If they could overcome the work fetish things might much more easily fall into place. The primary obstacle is metaphysical. It is certainly not material.  

ALWAYS BE THERE? GREAT MYTH OF SUPERANNUATION

by James Reed
I remember some years ago seeing a full-page ad in a newspaper “We Will Always Be There”, from a leading superannuation company. Sure, I thought, words like that usually come back to bit one.

The Henry tax review has recently considered the sustainability of superannuation. An article in The Australian (9/6/09), “Share Crash Forces Super Reform” begins: “Up to 90% of recent retirees are unlikely to ever meet their expected investment returns after the market crash of the past year, with many likely to run out of savings and wind up dependent on the aged pension”.

Australians have 80% of their assets in share or mutual funds, while most countries have 10% or less. Market downturns can gobble up superannuation savings, leaving the retirees’ savings exhausted. Beyond all else, this is a good argument for the need for a social credit dividend to provide a safety net against the savagery of the global financial market system.

THE TRUE, BRUTAL FACE OF CHINA: BE VERY AFRAID

by James Reed
The Stern Hu arrest saga, in a nutshell, shows the future face of China. Contrary to the Asia-worshipers, China is a fanatical and aggressive power, hell bent on world domination. At this early stage of its rise to power, China is already punishing Australia over the Chinalco bid for Rio and the defence white paper, which politely sees China as a future potential threat. China is so confident in its economic power now that it can humiliate the Rudd government, itself little more than a puppet government for the Chinese communist party, by forcing Australian officials to wait another month for a second visit to Stern Hu (The Australian, 13/7/09, p.1).

An article by Rowan Callick (The Australian, 14/7/09, p.9) has a caption to two photographs, one of Australians mining iron ore and the other of Chinese ship building: “Narrow perceptions: Politicians in both countries frequently laud the complimentary nature of the relationship: Australia digs it up and sends it off; China transforms it into manufactures and sends it back”. This spells the death of Australia: manufacturing dies, the nation deskills and loses its industrial base and becomes a hole in the ground. Worse yet, China wants to control even the digging up process so that in the end, Australia is nothing.

The ultimate consequence of this is that Australia disappears as a nation, which is of course the goal of the globalist elites. China, as the new weapon of financial capitalism, has shown, with its recent brutal treatment of the ethnic Muslim Uighurs, and its threat of death to any such rioter, what the future in the Chinese new world order will be like.

AGEING IS MORE DANGEROUS THAN CLIMATE CHANGE

by James Reed
If you think that global warming is a problem (I don’t), think again. The National Seniors Group has warned that an ageing population is a “greater threat than climate change” that could bankrupt the country without a major overhaul of the pension.

Yes, you guessed it: more emphasis on superannuation and keeping older workers, the “work 'til you drop” mentality. The age that people become eligible for the pension will also be raised, the Group proposes. In short, goodbye ‘Welfare’ State.
Social Credit is the logical answer to the problem of financing an ageing population that seems insoluble within the framework of orthodox economics and finance.

REFLECTIONS ON MAJOR DOUGLAS A + B THEOREM

by James Reed
Let us cut to the chase. C.H. Douglas had already worked out the essence of the famous A+B theorem in 1919, but in Monopoly of Credit, Douglas gave expression to his theorem as follows:

“In any manufacturing undertaking the payments made may be divided into two groups: Group A – payments made to individuals as wages, salaries and dividends, and Group B – payments made to other organisations for raw materials, bank charges and other external costs. The rate of distribution of purchasing power to individuals is represented by A, but since all payments go into prices, the rate of generation of prices cannot be less than A plus B. Since A will not purchase A plus B, a proportion of the product at least equivalent to B must be distributed by a form of purchasing power which is not comprised in the description grouped under A”.

Hence no given industry pays out sufficient purchasing power to buy all of the goods it produces, and by generalisation to the entire economy, society as a whole cannot purchase all of the goods and services for sale. Hence there is a fundamental contradiction at the heart of orthodox finance, which Douglas’ A+B theorem exposes.

The purchasing power distributed to people over a given time period cannot purchase all of the goods available at that same time period. In the advanced societies, both during the Great Depression and during today’s ‘economic meltdown’ there is no shortage of production and things to buy but there is a lack of purchasing power: consider my pitiful existence for example. I can’t even afford to run a car.

Douglas, in a letter to a correspondent in The New Age, September 4, 1930, commented on this fundamental defect in the present financial system:
“…The fundamental defect in the existing financial system is due to the fact that effective demand, i.e., Money, can only reach the consumer as a loan. If you will realise that money and goods are bound to be on opposite sides of a double-entry book keeping system, it is quite obvious that the correct ownership of credit must originate with the consumer and pass over to the producer in exchange for his goods. It cannot possible originate from and return to a third party any more than it can originate with the producer, who would then have both the money and the goods.”

Social credit holds that the physical cost to a community of its total production over a given time period is equal to the total consumption over that period. From that proposition it is proposed that financial credit should be cancelled at the same rate that real physical credit is consumed or otherwise exhausted.

At the Conference of the Social Credit Movement at Hope, 10th January 1924, Douglas contrasted social credit with orthodox economics. Few people can complain about clarity of expression in this magnificent paragraph:

“…What are these contrasting sets of premises? That of the orthodox economists that the economic industrial system is contingent on the working of certain arrangements with regard to finance and employment. That is to say, that it is quite a sufficient reason that work should not be done or goods distributed if and when the financial arrangements do not permit. You cannot build a house if you have not got the money. You cannot distribute goods if people have not the money to pay for them; and they cannot get the money without the methods hallowed by precedent.
In other words, the present system revolves around finance as a pivot. In opposition we take up the attitude that the money system is merely a ticket system, a method by which all goods can be distributed in a natural and systematic manner according to the actual requirements of the population.
We say that the pivot on which the financial system ought to work is actual demand taken in conjunction with the possibility of supply and the tickets do not make of that real demand effective demand to its limit, you have to change the financial system. That is all that needs concern the person who wants to know if we are on the right track. They may say that there are many other things besides the question of meeting real demand backed by effective demand.
There is the question of whether the people are worthy to get the goods. But if they have any such reservations, then they do not agree with us that money is purely a voluntary arrangement for the distribution of goods and services which the modern system can supply.”

The present financial crisis is essentially a realisation of these fundamental contradictions of orthodox financial capitalism. The system is patched-up for a time, like some old rusty car, but ultimately it starts falling apart. Wallace Klinck in his article “Current Madness” (The Social Crediter, vol.85, 2009, p.14) puts his finger right on the problem when he says:

“The so-called financial ‘crisis’ derives from a faulty financial price system which generates consumer prices more rapidly than it distributes incomes – forcing consumers to rely increasingly on creation of new money issued as re-payable debt in the form of bank loans.
When liquidity becomes eroded to the point where borrowing can no longer be sustainable, the whole financial edifice collapses like a deck of cards. Mass foreclosure which ensues, reveals the confiscatory nature of the financial system, manifesting a tragedy of human effect…what is needed is enhancement of consumer income to balance aggregate purchasing power with aggregate prices in each cycle of production. This would place consumers in a position to determine the viability of producers. The physical cost of production is fully met as production progresses. There should be no aggregate need for consumer debt whatsoever.”

Emancipating the Individual:
A truly wonderful way of emancipating the individual. But the outstanding problem we face is dealing with the money power who have caused wars, both physical and cultural, to allow their tyrannical power and domination to continue. What we need for the social credit movement to go forward and realise its historical destiny, is a strategy of dealing with this evil entity.

THE ANTI-RACISM MANIA

by James Reed
I was interested to see an article “Police Racist, Says Arrested Scholar”, (The Australian, 22/7/09, p.9). The article reports that radical black (multiculturalist) Henry Louis Gates “has accused police of racism after they demanded that he should prove his identity in his own home near Harvard University”. Gates runs Harvard’s African-American research centre and knows a racist when he sees one! He was arrested for “exhibiting loud and tumultuous behaviour”.

Gates had accidentally locked himself out of his own home and had had to break in. He was reported by a woman who saw a man trying to break into the home. The police arrived but the professor was already inside. The police asked for identification but according to the police report Gates refused and said “This is what happens to black men in America”. Gates claims he did show ID but the police, being racists, handcuffed him and took him into custody. Sure.

Fascinated now, I turned to Google and read the Boston Globe report. Gates, according to the police, said that they had “no idea who [they] were messing with” and that he was a victim and targeted because “I’m a black man in America”. The article says that Gates, according to police, was yelling at the investigating officer on the street and was then arrested.

The Lawrence Auster website View from the Right has the full police report as a link. Gates’ behaviour would have gotten a white professor arrested. He was, from what evidence I can see, yelling on the street. I have seen plenty of white people arrested for that. But the incident is being used to play the race card, even though America has a black president, and Gates’ position is proof itself that America is far from “racist”, Gates after all did break into a house and he should have calmly explained the situation instead of shouting “racism”.

The View from the Right website has a number of recent articles about black crime such as “Baltimore’s Black Youth Intifada”, which quotes a leading anthropologist as saying “Nowhere in the world had I witnessed as much savagery, brutality, crime and cruelty as I did on the streets of the capital city of the United States”. In Baltimore, roving gangs of youths attack residents at random. The gangs are primarily black and the attacks were, and still are, primarily against whites. The authorities however deny that this crime wave constitutes a hate crime. Of course; racially motivated attacks only matter if the attackers are white.

A debate occurred more recently at the View from the Right site on the question “Why Anti- Racism is Anti-Civilisation”. Lawrance Auster discussed the case of an incident which impressed him in the DVD, A Conversation About Race. A young, pretty white girl is asked to give an example of racism as she sees racism “everywhere”. The example is that sometimes when she is around black people who are being loud (remember Professor Gates) she thinks to herself that black people are loud. But this objection to “loudness” is just a construct of white racist culture.
As Auster points out (and there is debate at the site about this) what is being said is that the criteria of normality, being white constructs, are intrinsically racist. In other words, white culture is intrinsically racist and must be dismantled.

Auster concludes by saying that perhaps “the only value that white liberals now have for our civilisations is their genes.” I doubt that even that is true.

ELITES ARE RACISTS PREYING ON POOR ASIAN STUDENTS!

by James Reed
Three headlines sum up the great Australian immigration scam: “Agents Prey on Foreign Students”, “Paper Marriage a Ticket to Australia in Punjab” and “Industry a Study in Shams and Scams” (The Australian, 14/7/09, p.4). While racial nationalists like myself typically focus upon the demographic dilatation effects of Asian migration, there is also another side to this dark story.

Unscrupulous education and migration agents in India, offer false promises to families that work will be obtained in Australia. Indian families have often sold land and taken out crippling loans in the hope that their children could do well in Australia – only to find unemployment in Australia.

The universities treat Asian students as cash cows, to be cruelly milked, given sub-standard educational assistance and then award them a dollar degree at the end of their ordeal. In 2008 fifty-one foreign students committed suicide – a disgraceful statistic.

Both Australians and foreigners would be better off from the end of the great education-market scam. The elites who run this system treat both Australians and foreign students as mechanisms to be manipulated for financial gain. Neither nation benefits.
How much better it would be if Australia closed down its conventional universities, sacking academic parasites in the arts, social sciences etc. (saving much more money than earnt by the dollar degrees scam) and Asian students stayed home to help their own society? Poaching students to meet some “Critical Skills Shortage” is just an exploitative form of real racism. I bet our “friends” were surprised to read that!

THE EVIL COLOMBO PLAN REMEMBERED

by Peter West
James Cook University Vice-Chancellor Sandra Harding has called for a “resurrection” of the 1950’s Colombo plan (The Australian, 8/7/09, p.29). That plan brought Asian students to Australia to study and as I see it, was done by the elites to begin to breakdown the White Australia Policy. Now Harding wants “scholarships worth scores of millions of dollars” to be given to overseas students! All this is suggested while our own Anglo-Australians struggle to have a place in our own universities.

I suggest that James Cook University could perhaps be the first Australian university to be closed down and replaced by new vocation skills training centres. There is no justification for the high salaries that vice chancellors receive and these positions could be easily eliminated. So much money could be saved that poor Third World countries could receive foreign aid to build up their own education institutions!

As I see it, the Colombo Plan Mark II is just another migration program that would ultimately poach the best and brightest from Third World countries that need their people back home. In the name of international humanitarian effort, will VC Harding give up her post first?

THE FABRIC OF A CORRUPT SOCIETY IS BREAKING DOWN

by James Reed
Charlie Brooker (The Guardian, 13/7/09) expresses alarm at the breakdown of the “very fabric of society”. The political system and the media are corrupt, he laments. It is looking like there is nothing left to believe in. I suppose the decadent still have B. Hussein Obama, but once the Obama bubble bursts, then liberal people will probably worship insects. To them, those who have rejected God and embraced decadent materialism, it makes as much sense as anything else in the modern multicultural mess.

Those in the Social Credit movement do not lament about the signs of social breakdown. This society is run by our enemy; institutions such as the universities, the brain of the beast, bubble and burp with the stench of racial treason, vile corruption, lies and deceit. Rejoice that Their Order is breaking down. Now is the time to dream big and plan for the time when the wheels of history turn and crush our enemies.

WHY SLEEPING ROUGH NEED NOT BE TOUGH

by John Steele
The news of economist Steve Keen, predicting an ultimate Australian housing market crash (The Australian, 8/7/09, p.5) has not been lost on me. Keen has sold his apartment in Surry Hills. I also have sold my rundown hovel. I will not be the only one.
Homelessness is surging across Australia: according to the study Counting the Homeless by the Australian Institute of Health and Welfare, there was a 17% increase in the number of families homeless between 2001 and 2006. According to the Australian Bureau of Statistics 105,000 Australians are homeless – surely an underestimation.

I looked with interest at the two lads photographed on the front page of The Australian (7/7/09) the lads have sleeping bags and tarps. That is a good start. For me, I no longer live in a house. I went and got a two-man tent for less than $50 from the army disposals. I got a swag for $250 and a good synthetic sleeping bag from the op shop. Each night I get to some scrub area on the outskirts of town and set up camp. Cold winters have been fun.

Who needs a home, a family, a wife and all the creature comforts of modern living? My point is that you don’t have to be a slave to the wage system. Homelessness – no, never ! Wherever I lay my swag, that’s my home.

IS HE TAKING TIME OUT FROM SAVING THE WORLD TO PERVE?

James Reed
As readers will know, we run a pretty tight moral ship at this movement. Why then should we comment upon the photo taken of Barack Hussein Obama perving over the “bum” of a 17-year old girl while French President Sarkozy looks on in admiration?

For one thing, Phillip Adams quoting Paul Keating (The Weekend Australian Magazine 11-12/07/09, p.34) says that Obama has “poise”.
Sure – poise from a man who can barely deliver a speech without a teleprompter. And poise from a leader who ‘perves’ over a young girl’s “bum”. The liberal defenders of Hussein Obama said that he was merely “checking his footing”. I am sure that his aggressive wife believed that one.