INFLATION GOES ON FOR EVER

by Eric D. Butler
The poet Tennyson wrote of the brook, which, while men come and go, went on forever. The same can be said about inflation. The politicians come and go, but inflation keeps on growing. Those who have taken the trouble to study how the present finance economic system works, know that under present policies it does not matter which government is in office: growing debt, higher taxes and inflation are mathematically certain. There are periods when the rate of inflation is reduced, this taking place when depression conditions are imposed. The inflation rate was drastically reduced during the Great Depression years of the thirties. But there was a drastic price: mass unemployment, large-scale bankruptcies, massive social dislocation that helped to fuel the Marxist and similar revolutionary movements.

The current worldwide recession, the one that Prime Minister Keating said, "we had to have", has once again demonstrated that a horrendous price must be paid to reduce inflation under orthodox financial rules. It is important to note that inflation has not been abolished, that its destructive influences continue. But as regular readers of this journal know, even the relatively lower rate of inflation cannot be continued indefinitely. And so it was not surprising to read the headlines in last weekend's media:

INFLATION ROCKS WALL STREET

A report from New York reads, "Although the US. has had very favourable wholesale and retail inflation figures recently, the fear now is that inflation will be fueled by a general rise in commodity prices as the US economy continues to grow and European countries show increasing signs of economic improvement. Any improvement in the economy can only be the result of an increase in the rate of credit creation by the banking system. This means an increase in debt expansion. One result of this development is an increase in interest rates.
Over recent weeks Australians have been conditioned to accept a rise in interest rates as "inevitable". Some of these rates, particularly for small businesses and for farmers, have remained relatively high during the current recession.

The reality of the present situation is that while present debt financial policies are continued, there is no way out of a deepening crisis. Prime Minister Keating and his "advisers" may believe that they have mastered the classical "boom-bust cycle", that they can "control" inflation. But as demonstrated time and time again in the past, no permanent economic or social stability is possible under debt finance.

The only way to avoid still greater disasters than those of the past is the injection of some debt free new financial credits directly into the hands of consumers. A start could be made by using such new debt-free credits to finance an adequate living allowance free of means testing for all those mothers who would prefer to leave the work force and stay home full time and look after their homes and families. This could lead to a major step towards making constructive employment available for all those young Australians currently being destroyed by the unemployment system.

WE RECEIVE ASTONISHING LETTER

Following the publication of a book by a Jewish author on the heavy involvement of Jews in the anti-Vietnam War movement, the League of Rights obtained from the author, Mr. Phillip Mendes, a small supply of his work and offered it for sale. Mr. Mendes' book merely confirmed what we already knew. There was no secret about the leading role played by Jewish leaders in the U.S.A. concerning opposition to the Vietnam War. The embattled President Johnson at one stage called a special meeting with American Jewish leaders. Upon his return to Australia, the late Sir Reginald Sholl, who had served as Australian Consul in New York, gave an address to Australian doctors in which he commented on the leading role of American Jews opposing the Vietnam War.

We offered the Mendes book primarily as a service to students of Australian politics. But we were astonished to receive a letter from Mr. Mendes complaining about the League selling his book, suggesting that we had obtained supplies by subterfuge methods. Mr. Mendes received payment for the consignment to the Melbourne Heritage Bookshop on a League of Rights cheque, which he banked. Mr. Mendes made the remarkable request that we stop selling his book, and that if we refused to do this he would take some unspecified action against us. Clearly someone had applied the blowtorch methods to him.

Mr. Eric Butler was given his letter for a response, in which he made it clear that the League was not going to be intimidated, suggesting that he meet with Mr. Mendes to discuss the matter. Mr. Butler said that the League was quite happy to tell the readers of League journals that there was no suggestion of any connection between Mr. Mendes' book and League, but suggested that upon reflection, Mr. Mendes might consider this rather silly. Mr. Mendes now says that he will leave the matter if we make this clear.

We are astonished that anyone should think that because we sold Mr. Mendes' book he is in some way associated with the League. The League has in the past sold The Communist Manifesto, but we have no recollection of any Marxists protesting that some people might therefore think that there was some relationship between the League of Rights and Communism!

THE CAMPAIGN FOR HONEST MONEY (U.K.)

In a newsletter first issued by the above organisation, over the signature of Mr. Eric de Mare (Autumn 1992), came the intelligence of the formation of the "C.H.M." and its purpose. Eric de Mare writes in part: "The cure for world depression is known and is explained in the attached essay (the title of this essay is 'An Uninhibited Look At Money). "Its main message is that the global mess is a madness caused almost entirely by the abuse of money. Because money is not a commodity but a man made convenience that has no value in itself and is only a token of wealth, what is physically possible must be financially possible.

It's childish to say, for example, that we have no money for social betterment when we have the skill, plant and materials to accomplish that betterment. "I therefore propose the formation of a CAMPAIGN FOR HONEST MONEY to press for the establishment of a NATIONAL CREDIT OFFICE under the Crown to regulate the country's money supply. Its first job will be to calculate the size of the existing GAP between incomes and prices caused by our fraudulent monetary system.

Its second job will be to pay retailers state created sums to enable them to sell their goods below cost by means of SCIENTIFIC PRICE ADJUSTMENTS - V.A.T. in reverse, as it were. The GAP will thereby be precisely filled without the need for debts and taxes, prices will fall, inflation will be eliminated for good, and people will have enough purchasing power to buy all that has been produced. (National Dividends can come later). Until these simple adjustments are made, nothing in our affairs will go right, whatever political party is in government."

Mr. de Mare asked all his contacts in the U.K. for moral and financial support to launch his campaign (we have no information, yet, about its success), and to send material to contractors, industrialists, businessmen, etc., etc. League Bookshops have copies of A Matter of Life and Debt by Eric de Mare ($10.00 posted). We must conclude this item with the opening paragraph of Eric de Mare's essay, "An Uninhibited Look At Money":

"Individuals, industries and nations are deep in debt. We cannot all be in debt to one another. To whom then are these astronomical sums owed? And why should they exist? Since only the world's banks can create money, how can the debts ever be fully repaid - except by the creation of more debts? To liquidate them under the prevailing system is mathematically impossible…"

The address of the CAMPAIGN FOR HONEST MONEY (U.K.) is P.O. Box 47, Cirencester, Glos., GL7 6YA.

BRIEF COMMENTS

The Kennett Government has hit the Victorian taxpayers again, this time with increased water rates for the majority of water uses. Under the guise of introducing a user pays system, the total revenue of Melbourne Water will be substantially increased. Melbourne Water indicates that the extra $20 million generated by the rise will be used to cut its debt, currently costing $400 million a year to service. Over 60 cents in every dollar of revenue is used to service debt. There is little doubt that the way is being prepared for the privatisation of Melbourne Water. With the increased taxes, gas, water, electricity and the $100 home tax, the average Victorian family is now at least $1,500 a year worse off than previously. Needless to say, Premier Kennett blames the previous Labor Government for his savage assault on all Victorians. He is helped by the fact that the Labor Opposition offers no genuine alternatives.

We have no objection to young Australians receiving a better education concerning the Federal Constitution, but we fear a most distorted presentation if Paul Keating has anything to do with it. Once again the Prime Minister has demonstrated that he is prepared to distort history to serve his own political ends. He has made the absurd statement that the Federal Constitution "was designed by the British Foreign Office". The truth is that the Federal Constitution was designed by Australians and adopted by Australians. One of the main purposes of the Constitution was to limit the powers of the Federal Government and to preserve State Governments. But Paul Keating does not like to admit this basic fact.

The Downer led Federal Opposition has agreed to support in principle the race vilification legislation proposed by the Keating Government under pressure from the Zionist-Jewish lobby. Opposition members keep insisting that the legislation must be balanced against the necessity to protect freedom of speech. There is no need for any such legislation and a genuine Opposition would bluntly say this and oppose the proposed legislation. But the Opposition, particularly the Liberals, do not want to upset the Zionist-Jewish lobby more than necessary.

Liberal leader Downer's admission that the Opposition had lost the support of the Asian communities and that he was now taking steps to repair any electoral damage, highlights once again the impact of multiculturalism on Australian politics.

TIME TO SPEAK OUT

from Herald-Sun (Melbourne), June 16th
How dare Mr. Keating state categorically that Australia will become a republic. The populace must have some say in this raging debate. "So far all I've read in the print media and heard on both radio and TV is what he will do! No mention of what the people who are proud to call themselves Australians want, or indeed need. "One of my ancestors got a free ride from England to Botany Bay in 1788. "The rest of them are a mixture of Russian, German, Spanish, Cornish, Welsh and a very young Irish convict. "There is no English blood in my veins, but in my advanced years my loyalty to the crowned head of Great Britain is even stronger than it was in my young years.

"Is it about time that those of us who disagree most vehemently with Mr. Keating's wild ideas spoke up, instead of grumbling about his sheer audacity in stating in France what will happen. "My version of what Mr. Keating wants is not so much a republic but himself as the head of a group of servile people. No way! "Politicians are our servants, not our masters." (M. Evans, Echuca, Vic.)

THE CONSTITUTION ACCORDING TO PAUL

being editorial comment from Herald-Sun (Melbourne), June 17th
Paul Keating has again tried to rewrite Australia's history. "Some time ago the Prime Minister was accused of distorting history when he said the British deserted Australia in World War II. Then he was roundly attacked for claiming Australian troops in World War I fought under the British flag. "Now Mr. Keating, on the republican trail, is keen to give the young a politically correct view of the Constitution. He dismisses the document as having been 'designed by the British Foreign Office to look over the Australian Government's shoulder'. "Historians paint a different picture.

Australians marched into the 20th Century beneath a flag bearing the Southern Cross. Our Constitution was modeled partially on the Canadian and United States models, but was very much an Australian document. It was drafted by Australians and passed by a referendum among Australians. "We should remember ours is one of the world's most robust democracies. Our freedoms have been guarded for nearly a century by the document our forefathers drew up in a ferment of nationalism. "That is our real history."

Note
The Editor of Herald-Sun (Melbourne) deserves a good pat on the back for this fine piece of truth telling, with its timely rebuttal of the blather of Paul Keating. Regrettably, the editor does not mention that "our freedoms" since at least the Koowarta judgment of the High Court in 1982 (validation of the Racial Discrimination Act, 4 to 3) via the (ab)use of the External Affairs Power of the Australian Constitution, have been increasingly whittled away. This process will continue (Racial Vilification Bill coming up) until some truly conservative, and truly patriotic politicians, call "enough".
We won't really be safe from the social ravages of the United Nations/Socialist Government High Court "internal machine" until we have C.I.R., when rank and file Australians will have the mechanism to halt them. The coming Racial Vilification Bill could be something of a "litmus test" for the Socialist ideologues. Messrs. Keating and Lavarch don't realise, we are sure, what social ferocity they could unleash against themselves, and others. Messrs. Downer and Costello will need be most nimble to avoid catastrophe for themselves.

KEEP QUEEN AS HEAD

from Herald-Sun (Melbourne), June 16th
The Prime Minister's claim that having the Queen as Australia's head of state alienates this country from its Asian neighbours is unfounded, if not absurd. "As a person who was born and raised in a South-East Asian country, I can claim that I have a better understanding of the region than Mr. Keating. "Firstly, Australia is, in the eyes of most people in Asia, the 'Little Europe'. The description is neither derogatory nor untrue. "Australia is indisputably a fundamentally European society, if not downright Anglo-Saxon. "Therefore, I doubt that becoming a republic will assist Australia to 'integrate' socially and economically with Asia.

Mr. Keating is out of touch with the majority of Australians. "Most Australians do not wish their country to become part of Asia. "Why? Because the people of Australia are proud of their own country continent. "Nonetheless, the Prime Minister still tries to impose his ideals upon the country in a most undemocratic way. "If the Prime Minister desires to establish a closer relationship with Asia, then I suggest he consider promoting racial harmony between the Caucasians and the non-Caucasians of Australia before even contemplating new Asian links, instead of venting his republican pretensions." (Johannes Nugroho, Altona, Victoria)