Science of the Social Credit Measured in Terms of Human Satisfaction
Christian based service movement warning about threats to rights and freedom irrespective of the label, 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

Science of the Social Credit Measured in Terms of Human Satisfaction
August 29 1975. Thought for the Week: "The essence of parliamentary government is that it is responsible. The member is responsible to his constituency; the Minister is responsible to the Cabinet; the Cabinet is responsible to the House, and the House is responsible to the country. The danger of all bureaucracy is that it is irresponsible and anonymous. Nobody knows who drafted a Departmental regulation which may affect the property, the convenience, or even the liberty of millions..."
Dr. K. C. Allen, English authority on Constitutionalism.


By Eric D. Butler
The famous Chinese philosopher Confucius observed that it is no use running harder if you are already on the wrong road. Although Federal Treasurer Hayden would have us believe that he is not running down the inflation road at the same rate at which Dr. Jim Cairns was travelling, coming events will demonstrate that the Hayden Budget will neither reverse inflation significantly, nor will it halt the mounting economic and social disintegration moving Australia towards an open revolutionary situation.
Growing violence in industrial disputes indicate the shape of things to come - unless inflationary financial policies are reversed.

In spite of Mr. Hayden's attempted sleight-of-hand concerning alleged tax concessions, the Budget was as warned by Prime Minister Whitlam on July 27th in his weekly Queensland broadcast. Mr. Whitlam predicted that the Budget would be "tough". "I can't promise a popular Budget, but I can promise a sound and responsible Budget", he said. He also warned that he would have no patience with "knockers and whingers" who attacked the Budget. Mr. Whitlam was obviously anticipating that many Labor voters would see through the trick of giving some of them a little relief from income tax while at the same time imposing even higher taxation in the form of indirect taxes.

Under Mr. Hayden's new tax scales, the Government will forfeit revenue growth of $205 million a year. But smokers and drinkers alone will contribute more than half as much again with an extra $311 million. Motorists will find part - possibly the major part - of the $280 million that the Taxation Monopoly will gain from the new petroleum levy. As the Federal Budget eliminates the Commonwealth's contribution to the Health Education Council's anti-smoking campaign, there is no suggestion that the heavier tax on tobacco is designed to curtail smoking. The idea is that most smokers are so addicted that they can be relied upon to continue smoking and thus provide increased tax revenue.

The most significant feature of the Hayden-Treasury Budget is that it is based upon the estimate that wages will increase by at least another 20-22 per cent, over the coming twelve months. These increased wages must be financed, either directly or indirectly, out of new financial credits, created and loaned by the banking system at the current high interests charges. According to the Canberra "experts", high interest charges contribute towards controlling inflation. But businessmen know that high interest rates must be recovered, if possible, through increased prices. Increased wage costs will also have to be recovered through further price increases.

The estimated Hayden deficit of $2,600 million, which will almost certainly be greater than this figure, will also assist to maintain the inflationary pressures. Increasing inflation is a matter of arithmetical certainty, not mere opinion. Mr. Hayden may have scored a minor propaganda point with his claim that he has relieved 500 thousand from paying any in-come tax. But the 500 thousand will also be affected by increased prices. Many are beer drinkers. Even those who do not own motorcars will have to pay the increased transport charges that must inevitably result from increased petrol prices. They will also have to pay the astronomical increase in postal and telephone charges.

The abolition of income tax for the lower income earners does not start until January, but the increased indirect taxation and new postal and telephone charges start immediately. The Hayden Budget means that Australians must brace themselves for further convulsions as they move down the disaster road. The further Australians move down this road, the closer they move towards chaos and revolution. The Communists are delighted.

But there could be a reversal if a financial policy similar to the "Petersen Plan" were implemented. It is certain that the Labor-Socialists will not implement such a policy. Which leaves the question still unanswered about what the Opposition proposes to do. Mr. Malcolm Fraser has recently said in letters that he feels that there is considerable merit in the "Petersen Plan." If his Party would come out and formally adopt it, this could be a major turning point in Australian history.


The National weekend is the major annual event in the League of Rights' annual calendar. "The New Times" Annual Dinner, on Friday. September 19th is open only to eligible supporters and their families. As a feature of this year's Dinner will be a Memorial Address concerning the founder of the Dinner, the late W. J. Carruthers we are holding a limited number of seats for older supporters who have not yet booked, but who will no doubt wish to be present. Another feature will be the presence of Mr. Don Martin, National Director of The British League of Rights. All "New Times" Dinner bookings must be accompanied by a $6.50 donation. The League's National Seminar will be conducted by the Christian Institute of Individual Freedom on Saturday, September 20th. It is open to the public. Theme: "Christianity and The Social Order". Three outstanding speakers: First paper 2 p.m. Donation $2.00. $3.00 for married couple. There will be filmstrips and other interesting features. The all-day National Action Seminar will take place on Sunday. September 21st open only to actionists. Bookings must be made in advance.


The following letter appeared in the columns of the Letters to the Editor, in The Herald (Melbourne) August 20th. The Editor gave it the title - "Economic Mess." The letter runs:
"With unemployment now at 4.8%, it is obvious the economists as Government advisers, have no solution to the economic mess. Basically, the situation is one in which prices run higher than consumers' incomes. Employees seek more pay to fill the gap, but if they get a rise, it must go into prices as another cost, and so the gap remains. Employers urge restraint, but without adequate consumer demand, business will decline, and so we get the rash of bankruptcies now present. The Reserve Bank restricts the supply of money, but without enough money the economy cannot function and develop. And so we get recession and unemployment.
"The true purpose of an economy is to supply a community's needs. And to ensure that commonsense objective, consumers must have enough money to pay the price industry must ask. But do consumers have enough money to do this? They do not. Industry distributes wages, salaries and dividends to individuals but at the same time, it has other costs, 'capital costs', which make prices rise beyond the consumer incomes distributed.
"This is the real problem. These extra "costs", genuine as they are, should be met by a price subsidy, and thus bring prices down to consumer incomes. Some months ago the Government and the Treasury thought along these lines. It was reported they were considering a 'negative sales-tax', under which a percentage of its costs would be recouped by industry from the Government; hence not paid for by the consumer.
"For decades we have been putting money into the economy at the production end alone. Now, because of the great build-up in productivity due to mechanisation also a 'cost' in price, money must go in at the consumption end as a price subsidy, to meet, in effect, that cost. There is no other way.
C.A. Haythorpe, Corhampton Rd., North Balwyn Vic. (North Balwyn is a Melbourne suburb. Mr. Haythorpe is well aware of the Petersen Plan.)


Where does the money come from for the Budget deficits??? Loans, local and overseas; Government bonds: Treasury Bills and Notes. The Treasury, for example, had an outstanding $1,964 million in Treasury Notes up until a few days ago. During the week before that it issued $3.2 million in 13-week notes, and $5 million in 26-week notes. Interest rates were unchanged. Treasury notes can be thought of as Government I.O.U.s upon which interest is paid to the "buyers". Who are the "buyers"? Trading Banks, Insurance Companies, Merchant Banks, Multinationals, large commercial and industrial enterprises who have a few million not immediately needed, so these are "parked" in 13 or 26 week Treasury Notes. Very handy. But they have to be redeemed, and the capital plus interest come only from one source; the taxpayer. Many Government loans, issues of Treasury Notes, etc., are to redeem previous loans, Treasury Notes. etc. So does the national debt pile up. So do the interest charges cost themselves into future Government services. So do we pay more and more.

As we have predicted, and have made comment (June 13th On Target) the animosities within the member nations of the Common Market will stream to the surface as the economic climate within the Market countries declines. The Common Market has had an itinerant migrant work force, which, it is estimated runs to ten, millions. The Australian (August 21st) carried an article: - "Illegal Work Force Threatens Europe". It says: "And now the skills were in high demand, are now beginning to grate on local populations, who are forming up in dole queues in numbers undreamed of since World War 2." Article 49 of the Treaty of Rome guarantees freedom of movement to workers within the Community. So what? It's only a bit of paper, and doesn't give allowance for social and racial realities, that just won't be swept under the carpet. The "guests" are being "squeezed" out ever so gradually, and they are right to "fear" that they won't be allowed back. Not with the local unemployment queues growing longer.

Insurance policy holders are surrendering them in growing numbers. This is a sign of the inflationary times. People are still buying life insurance protection, as a basis for loans. Building societies won't generally look at a borrower unless he is well protected by life insurance. But as an investment, life insurance is no longer a proposition. Inflation is tearing it to pieces. The new taxation scales won't help the insurance industry either. But then, they are not intended to.

Colac Shire Council (Vic.) is seeking the repeal of the Victorian Government's sweeping fluoridation legislation. This makes it obligatory for all water supplies in the State of Victoria to be fluoridated. The Colac Council's medical officer Dr. Jenkins, thinks that views held by opponents of fluoridation, claiming violations of personal liberty, mass medication etc., etc., are "emotional, rather than technical". And so it goes on. Some men face the darkness; and some men face the light. It is, ever was, and ever will be a mystery. Those who don't like the idea of fluoridation, know that it is a violation of the individual's right of free choice. Those who support fluoridation, in the main don't care about the principle of liberty. To the medical officer, quoted above, and all those who think like him, the technicalities comprise the real and important issues. What he miscalls emotion is in reality, a natural desire of the individual to protect his sovereignty.

According to the Vancouver Sun, Canada (August 11th) intelligence analysts in the U.S.A. believe that Thailand and Malaysia have about 18 months to prepare for major Communist insurgencies. The Communists in South East Asia will launch expansionary campaigns of "liberation" so soon as their grip on Vietnam, Laos, and Cambodia is locked. We have warned many times in these pages that the once-despised Domino Theory is no theory, but the pattern of the Communist plan of conquest. After Malaysia will come Indonesia, and after Indonesia there will be us. How much easier it will be for the Communist thrust South, if there is a powerful Communist naval/military base all ready in East Timor! The "Thought for the Week" from Canadian On Target (August 4th) bears quoting: "Right is Right, even if everyone is against it; and wrong is wrong, even if everyone is for it." Attributed to William Penn. A Communist would think that anyone who believed that was quote mad. But we know it is the truth.

Cancellation of Money

If money is issued to assist consumption, it must be cancelled when this has been achieved, or it could cause imbalance of the opposite kind (refer to comments in previous O.T. Bulletin). If, in addition, the Government were to use Reserve Bank money for all its other spending, this must also in some way be called in and returned to the Government's Reserve Bank account to be cancelled. This would follow the pattern of an overdraft issued to a private borrower by a Trading Bank. He draws credit from the bank; he distributes it by spending it in the course of his business activities; he draws back a larger amount from the community when selling his product, and pays off his overdraft, which cancels that amount out of existence.