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6 August 2010- Thought for the Week:

· "Capitalism," might be defined as production for profit. Including in this definition is administrative relations between employers and employed… these relationships have nothing to do with production for profit.
· What is it that the capitalistic system really claims to do? Broadly, it is a system which enables people to combine together under a suitable organisation, so that together they can achieve results which the same number of people acting separately could not achieve.
· In technical language, the capitalistic system is a system of organisation designed to use real capital, that is, tools, land, scientific knowledge, administrative ability, and many other things, so as to produce something which we call "the unearned increment of association."
· Socialists made a colossal mistake in arguing about the distribution of what they have called the "product of labour." The product of labour has become increasingly unimportant as compared with the unearned increment of association, that is, the product of the machine.
· It is this unearned increment of association out of which profits, not merely to the capitalist, but to so-called ''labour'' are paid.
· Before tinkering with the production system, you ought to make quite sure that other aspects, such as exchange and distribution, are equally successful.
· The money system is an accounting system, and if properly operated is of great value as an indication of what is going on in the industrial and productive systems.
· The type of mind which is attracted to banking and finance is not suited to deal with the highly technical organisation of the modern world.
· The proposals put forward seem to be unable to get away from the idea, that it is the function of the barometer to control the weather. The first step is to force those in charge of the finance system to reconsider their position in the scheme of things.
· In the higher realms of financial circles the financier regards himself as the vice-regent of God upon earth.
· The question of taxation is interwoven with this idea of moral government by finance, and I am strongly of opinion that the whole system of taxation, as at present understood, will eventually, if not immediately, become obsolete. It is altogether too suggestive of allowing the policeman to make the law and pocket the fine.
· It is a short step to the organisation of this country into a co-operative commonwealth, which will not in the least mean anything like the nationalisation of industry - while at the same time organising the country in such a way that every citizen shall draw a dividend from the activities of the community as a whole -- as his or her inheritance.

- - Taken from an Address by Major C. H. Douglas, M.I., Mech.E. delivered at the City Hall, Newcastle-on-Tyne, October 7th, 1932.

For full article go to Library/The Nature of the Present Crtisis and Its Solution.


Politicians make "promises" but don’t necessarily keep them. As electors we need to send a clear message to them on this issue. Print clearly in an empty space on your ballot papers 'REDUCE IMMIGRATION'. It is quite legal to do so.….
- - - Don Auchterlonie. 


by Betty Luks
How well I remember the year of 1975; it was brought to my remembrance again just recently. I remember the withdrawal of Gough Whitlam’s commission to form government and the highly-charged political climate before Australians went again to the polls. I also remember League supporters, who were Liberal voters, ringing to complain Eric Butler and the Australian League of Rights were not giving Malcolm Fraser a ‘fair go’ by criticising him and the Liberal’s financial policies. Why we hadn’t given him a chance to prove himself, I was told!

The ‘offending’ article was by Eric D. Butler in Vol.11 No. 42, 21 November 1975 and headed “Will Someone Please Tell Mr. Fraser”. It reads:
“The dramatic manner of Gough Whitlam's removal has, ironically, provided him with a situation in which he has already recovered a lot of lost electoral ground. The former Prime Minister is a formidable political performer and a decisive Fraser victory will require a constructive anti-inflation financial policy which can readily be grasped by electors and which, immediately after the elections, can start to be applied, thus defusing the revolutionary situation the Communists and their allies contemplate.

Mr. Fraser's gloomy review of the economy, and a prediction of three years for a recovery, must be music to the ears of the revolutionaries. Mr. Fraser should be stressing that there is nothing basically wrong with the free-enterprise economy and that freed from financial problems it will immediately overcome any production problems. The depressed plight of the rural community, for example, is not because of any breakdown in production. The latest victims of the rural collapse, the dairy farmers, are, like others, suffering because they cannot sell their adequate production at a profitable price. Their biggest basic problem is rising financial costs.

If Mr. Fraser cannot advance a policy for reducing increasing financial costs, then he is doomed, even if managing to win the elections. However desirable it may be to reduce Federal Government spending, this of itself will not reverse inflation. Promises of tax indexation, while better than the present taxation policy, implies that wages are still going to move upwards. Increased wage costs must be reflected in higher prices. Mr. Fraser and his Treasurer Mr. Lynch cannot defy simple arithmetic. While industry is subjected to increasing financial costs, progressive Sales Tax being a glaring example, it must attempt to recover those costs through higher prices. Higher prices result in higher wages, wage indexation merely assuring that the increases are automatic. Higher wages require an increased money supply to finance. The increased money supply carries the prevailing high interest rates. This is a further financial cost, which the unfortunate employer must attempt to recover through prices.

As Mr. Fraser has been reported as saying that he had, while at Oxford University, been an admirer of John Maynard Keynes one would hope that he understands that Keynes did admit that the finance-economic system will not work without constant injections of new money. But Keynes suggested that the only way to achieve this result was through Deficit Budgets knowing that this would help foster progressive inflation. What Mr. Fraser should be doing is to recommend that the new money required for a Government Deficit be applied to abolishing Sales Tax at least on all items used to adjust wages, thus resulting in a falling price level, and that system of Consumer Discounts be applied on all basic items in the economy.

I can only hope that someone will explain to Mr. Fraser that unless he adopts a financial policy for drastically reducing costs, it is as certain as the sunrise that he cannot do anything serious about inflation. And if he does nothing about reversing inflation constructively, a major Australian explosion is inevitable. Mr. Fraser deserves better than to preside over such an explosion…”

Why do I refer to that article just now? Because nothing has changed – except that our situation is horribly worse than in 1975. I can remember a modest 3-bedroom solid brick home cost around $15,000, but thirty five years later would now cost around $400,000!

Tell me if Eric Butler’s assessment and prediction about inflation was correct or not! The Liberals have learned nothing in all that time. We now have another election coming up and – once again - we are being led to believe we must vote for either Tweedle Dum or Tweedle Dumber.

Granted the Liberals have said they will reduce immigration by half, that is a beginning, but they must go further than that. They must deal with the financial situation or Australia is doomed. Now read James Reed’s important review of Frances Hutchinson’s new book.  

(To provide some balance in this election campaign, readers should look at 'Julie Baby' dancing with other feminists from Emily's List. Source; http://blogs.news.com.au/heraldsun/andrewbolt/)


by James Reed
A brief review such as this one cannot do justice to a truly magnificent book such as Frances Hutchinson’s “Understanding the Financial System: Social Credit Rediscovered” (Jon Carpenter Publishing, Charlbury 2010). Frances Hutchinson is a leading social credit theorist who not merely writes for the, sadly, small-circulation journals, but who has the distinction of publishing sound academic treatises with major mainstream publishers.
Thus, in 1997 she published “The Political Economy of Social Credit and Guild Socialism”, co-written with Brian Burkitt, followed by “What Everybody Really Wants to Know About Money” (1998 Jon Carpenter Publishing). She has also co-written with Mary Mellor and Wendy Olsen (2002), “The Politics of Money: Towards Sustainability and Economic Democracy”, published by Pluto Press, London, primarily a press of the Left.

Frances Hutchinson’s work though, like Social Credit itself, transcends narrow categories such as Left/Right. There is an environmental focus that runs through her works, one which recognises that the modern world is in crisis and in need of re-localisation and the establishment of human social scale institutions. Control of Finance will be essential for humanity to regain freedom and establish genuine democracies.

“Understanding the Financial System” consists of nine chapters, an Introduction and a Conclusion which in highly readable prose deals with almost every subject in the social credit canon. This then is the definitive introduction to Social Credit, readable for the beginner, but jam-packed with insights for the experienced scholar.
Beginning at the “beginning”, Hutchinson starts her treatise with an account of the evolution of urban society. This discussion is not a dry history lesson, but rather is one which opens with an understanding of humans as “spiritual beings”. From the earliest of times, humans have exhibited religious behaviour which cannot be reductively analysed in purely utilitarian terms. Ancient tales, Hutchinson argues, give a much stronger and wholesome role to women than given by modern feminism: “In the ages-old village community women had to be of strong character to maintain life from generation to generation. Women were very much involved in the observance of the seasonal celebrations and the preservation of consciousness of the spiritual significance of birth and death.” (p.24)

Even when mankind turned to agriculture women still had a spiritually important role in the community as “queen-Mother or priestess”. Thus, “Where the real work of sharing, caring and provisioning was undertaken by co-operative networks of women, the males could be left to develop their personal prestige in activities like hunting and warfare, giving rise to stories of heroism and self-sacrifice”. (p.25)

Urbanisation, and especially the enclosure movement, led to “predation, acquisition of material possessions and emulative consumerism” (p.26) rising to dominance. The enclosures meant that land was to be used for profit, wool, grain and meat and as a result, the wisdom of subsistence farmers was lost. The process is in the final stages today as peasant communities are destroyed so that cash crops can be shipped to affluent customers in the first world.

Evidence of banking and financial transactions exist wherever urbanisation and modernisation have occurred, as credit is the lubricant of an economic system geared for profit rather than subsistence. Thus Financial transactions, such as loans, deposits, currency exchange and validation of coinage occurred in ancient Greece in the fifth century BC – older perhaps than philosophy. There credit dealings appeared to occur, where money-lenders would write credit notes for a customer who has made a deposit and where the credit note could be cashed in another city, avoiding the need to carry cash on long journeys.
Rome further developed Greek financial practices, with interest charges for a loan and payment of interest on deposits. When Christianity was accepted as the official religion of the Roman Empire there were restrictions upon the charging of interest. Banking fell, when the fall of Rome occurred and did not reappear in Europe until the time of the Crusades. (p.27)

Although Christianity disapproved of usury, the Medici and bankers of the Italian Renaissance City/States got around this ban in various ways “such as disguising transactions as ‘international’ currency exchanges between independent States.” (p.33) The Lombard bankers further eroded the ban on usury. These early bankers were capitalists who got their initial wealth from hiring people to work for them. From that initial wealth, they expanded by banking activities.
Thus in 1694, a group of six individuals formed the Bank of England to grant a loan to William III for war. The security was the legal right of Parliament to impose taxes. As Hutchinson remarks: “Governments have been in debt to bankers ever since”. (p.34)
This sets the historical scene as “debt-finance came to dominate policy decisions, not only in matters of preparation for war but also in determining forms of financially profitable production. Military and industrial enterprises waited on the availability of finance for authorisation to proceed, and increasingly such availability of finance was debt-based”. (p.35)

An important role in the development of modern banking was contributed by the house of Rothschild and other Jewish banking families. Hutchinson gives us a good overview discussion of this topic and refers us to the Jewish Encyclopedia (1906) which is now online at https://www.jewishencyclopedia.com/

People have thus been transferred from community-based peasants with a rich cultural life into “property-less, debt-owing, wage/salary-earning proletariat”. (p.47) Control was “exercised through enlisting the willing co-operation of the populace”, through “emulative consumerism, in conjunction with patriotism and war”. (p.47) Control is also secured by controlling “the story” through the media and education institutions. This has occurred with Social Credit as Hutchinson details in the bulk of her book.
Chapters 3 and 4 of “Understanding the Financial System” cover well-known ground outlining the theory and practice of Social Credit, as well as the English origins. Here we have explained very clearly topics such as the national dividend and the A+B theorem. There are also some excellent quotations explaining the philosophy of social credit cited by Hutchinson.

Thus L.D. Byrne said:
“It was inherent in Douglas’ writings that he viewed society as something partaking of the nature of an organism which could have ‘life and life abundant’ to the extent it was God-centred and obedient to His Canon. Within this organism the sovereignty of ‘God the Creator of all things visible and invisible’ being absolute, there must be full recognition of the sanctity of human personality and, therefore, of the individual person as free to live his life, and within the body social, to enter into or contract out of such associations as, with the responsibility to his Creator, he may choose… This concept, reflecting the ideal of Christendom as the integration of Church and Society which was the inspiration of European civilisation for centuries, involves an adherence to a policy in every sphere of social life, economic, political and cultural. This is the policy which Douglas termed ‘Social Credit’.” (p.85)

Social Credit was tried in Alberta Canada in the 1930s and destroyed by the power of international finance. Hutchinson devotes two very soundly written chapters to this sorry story. Stated simply, a democratically elected Social Credit Government, which aimed to move beyond the “defective system of bank-loan accountancy” was frustrated at every turn; the financiers feared that if social credit succeeded in Alberta, there would be a snow-ball effect and other suffering communities would adopt these policies. How this was done was quite complex and Hutchinson details the events in her book, blow-by-blow, as it was. Legal and propaganda methods were used.

It was a long process but “After World War II the leading Social Credit politicians in Alberta became ardent Zionists. By 1948 they had ‘purged’ the Social Credit Party of its non-Zionists (Ernest Manning had converted the original initiative into a conventional political party) and Douglas Social Credit faded from the West”. (p.163) In Canada, Louis Even and the Roman Catholic Social Crediters of Rougemont, Quebec, continued the noble fight. Writing in her concluding paragraph Hutchinson says: “An academic world run according to the pecuniary rules of ‘sound finance’ could scarcely have been expected to accommodate an open minded approach to study across the spectrum of the arts and sciences. Whether the challenge will be met or not, only the future will tell. If not, all that will remain of humanity will be miles of empty tarmac and millions of lost golf balls”. (p.266)

The major problem of fighting international finance and the corporate control of the world remains with us. Our first act of resistance is to at least understand the historical roots of the problem and Frances Hutchinson’s “Understanding the Financial System” is an enormous contribution to this task.  


by Betty Luks
Mark Steyn in “America Alone: The End of the World as We know it” (Regnery, 2006) is well aware of the threat that radical Islam poses to the West. “America Alone” sees Europe falling and America standing “alone” – an optimistic scenario that ignores the racial reality that America will have a white minority well before 2050. Nevertheless Steyn is right in observing:
“In 2003, Tony Blair spoke to the US Congress. “As Britain knows,” he said, “and, of course, the pre-eminent power of the age derives its political character from 18th century British subjects who took English ideas a little further than the mother country was willing to go. As for the allegedly inevitable superpower of the coming century, if China ever does achieve that status, it will be because the people’s republic learned more from British Hong Kong than Hong Kong ever did from the Little Red Book. John Cowperthwaite, the colony’s transformative financial secretary in the 1960s, can stake a better claim as the father of modern China than Chairman Mao, and, if Beijing weren’t so twitchy about these things his would be the face they’d plaster over all the banners in Tianamen Square. Britain was never an unrivalled colossus, even at its zenith. Yet today, in language, law, politics, business and the wider culture, there is simply nothing comparable in scale or endurance to the Britannic inheritance”.

“Britain exported its language, law and institutions around the world to the point where today there are dozens of countries whose political and legal cultures derive principally from London. On islands from the Caribbean to the South Pacific, you can find miniature Westminsters proudly displaying their maces and Hansards. But if England is the mother of parliaments, the US’s is a wealthy spinster with no urge to start dating. Of all the new nations that have come to independence since 1945, not one has adopted the American system of republican decentralised federalism – even though it’s arguably the most successful ever invented. The US has zero interest in empire, for obvious reasons.
For one thing, it is already as big as an empire, and most countries that controlled that big land mass would probably run it in imperial fashion. Instead, the US took a federation designed for a baker’s dozen of ethnically homogenous east coast colonies and successively applied it across the continent and halfway over the Pacific. It’s not strictly true that the sun never sets on the American Republic, but it takes up an awful lot of the time”.  


by James Reed
I have no health qualifications and cannot offer anyone any advice and do not – but I have been having a small amount of Edam cheese on toast for breakfast after trying to read: G.C. Gast (et.al.), “A High Menaquinone Reduces the Incidence of coronary Heart Disease in Women”, Nutr Metab Cardiovasc Dis. Jan 27, 2009. In a nutshell there are two types of vitamin K2, Menaquinone – 7 (MK-7) found in Edam cheese and the Japanese soy product natto, and menaquinone – 4 (MK-4). MK-4 is found in Western diets but does not seem to reduce vascular calcification and coronary heart disease. MK-7, according to the Dutch study, does help and one does not need much to do so. A website by Dr Jim Howenstine “Arteriosclerosis can be Reversed”, (July 24, 2008 at https://www.newswithviews.com), explains how vitamin K2 removes calcium from the arteries and deposits it on the bones where it belongs. Probably, if I had not had my Australian Edam cheese for breakfast, I would have been long dead. Worse yet, I could have become one of the “living dead”, like our ex-PMs, existing only in the dusty pages of Hansard.  


by James Reed
Reported at www.jihadwatch.org, a Malayalam professor at Newman College, Thodupuzha, India was suspended for preparing a “defamatory” question for an exam paper – presumably “defamatory” of Islam. A gang of five jihadists got him after he left church and cut his hands off!

Then we have the story or President B. Hussein Obama, who recently said that Israelis are suspicious of him because his middle name is “Hussein”! Well, no, it has to do with his over-the-top sympathies for the Muslim world, especially his infamous Cairo speech. The irony is that American liberal Jews strongly supported him, while more traditional religious Jews were highly suspicious of him. Indeed, in saying that an entire people, who have a high degree of intelligence, are suspicious of him merely because of his middle name, shows the staggering egoism and arrogance of this man. Not only is he America’s most radical president, he is also its most arrogant, making J.F. Kennedy look like a shrinking violet.  


by Peter Ewer
Asia News International (July 9, 2010) reports that about 60 members of a Hindu community in Karichi’s Memon Goth area were forced to abandon their homes after a young Hindu boy had a drink of water at a water cooler outside a mosque. He was beaten by local Muslim tribesmen, then 150 angry Muslims attacked the local Hindus. They had to abandon their houses and shelter in a filthy cattle pen as they were afraid of going home. Another 400 Hindu families are being threatened to leave their homes: police have done nothing. That in a nutshell, is the end result, the logical conclusion of the multicultural, multiracial society.  


by Ian Wilson LL.B.
Stanley Fish is a radical US professor of law who writes essays such as: “There’s No Such Thing as Free Speech, and It’s a Good Thing, Too”. Or, to try another one: “Liberalism Doesn’t Exist”. Thus he “argues” that “Free Speech”, is “just the name we give to verbal behaviour that serves the substantive agendas we wish to advance”. Free speech, he continues, is “not an independent value but a political prize, and if that prize has been captured by a politics opposed to yours, it can no longer be invoked in ways that further your purposes”. In a sense this is correct because there is a political dimension to most social concepts and a concept as essentially contested as “free speech” is no exception. Fish exemplifies an approach to law and philosophy which wallows in a “culture of critique”: everything of the social order not painted by leftist values is problematic, open to criticism and deconstruction: call this postmodernism.

There are no givens – but that means politically correct values cannot be taken to be “true”. The values of criticism and deconstruction are also up for grabs as well as the idea floating in critical race theory of the superior virtues of minorities, women and people of colour. If everything is relative and a social construction, then so is their work. And if having a political dimension means that something doesn’t exist, then there is no such thing as Stanley Fish. And it’s a good thing too


by Brian Simpson
Trust Me I’m a Doctor Series: Naughty, naughty, caught in the act! Giant pharmaceutical company Wyeth has been caught using ghostwriters to prepare at least 40 “peer reviewed” articles. The articles were to sing the praises of hormone replacement therapy drugs such as Premarin and Prempro, which were widely used in the 1990’s, giving US$2 Billion for Wyeth. Then the dam broke and a study in 2002 showed that these drugs significantly increased the risk of women having breast cancer, heart disease and stroke. Now a US District Court judge in Arkansas has ordered the ghost writing documents unsealed. It seems that various communications firms hunted out doctors, who for sums of money like US$25,000, were only too willing to put their names to articles. Ghostwriting articles seems to be common practice in the US, where doctors will do anything for a fast buck. Yes, trust me, “I’m a doctor”! (Source: www.nytimes.com) www.naturalnews.com)  


by Peter Ewer
Bob Hawke has been dusted off and is out and about, beaming with joy, as a new book celebrates his reign as emperor of Australia. Written by his partner Blanche D’Alpuget, “Hawke: Prime Minister”, we hear how Nelson Mandela told Bob that he was “here today” because of him. It seems Bob thought up the idea of fighting apartheid through getting the global banks to attack the economy. I don’t believe this story, that Hawke did this all by his wee self. I mean to say – aren’t the global banksters intelligent and haven’t they brought down all the governments that have been brought down in the known universe? Blanche, I am not convinced and want some proof please! What a pity the Boers in South Africa did not turn to social credit to create a self-reliant economy and “stick it up” the anti-white world. But they had leaders like ours who had feet of clay.  

Political comment authorised by Donald Auchterlonie, 145 Russell Street, Melbourne Victoria.



Readers will get a better understanding of why there are continuous attacks on the Commonwealth Constitution of Australia by looking for the ‘pedigree of ideas’ now being pushed by both sides of politics. The writings of Eric D. Butler are absolutely essential for this understanding and most of his booklets – some written fifty years ago - have been placed on the website to freely download. They are in the Library section on our website. Go to >www.alor.org/library< The latest push to bring about change of the Commonwealth Constitution needs to be studied in the light of past history. First ‘connect some of the historical dots’ by downloading Eric’s booklet “Constitutional Barriers to Serfdom” – and then we encourage readers to make submissions to the Senate Committee. Eric D. Butler’s booklet “The Fabian Socialist Contribution to the Communist Advance” has proved ‘a winner’ – his other works will prove the same. For those who would prefer a hard copy the booklets are $4.50 plus postage from Heritage Book Services.   Select Committee on ‘Reform of Australian Federation’ Under the heading Select Committee on ‘Reform of Australian Federation’ the advert reads: “The Senate has set up a Committee to explore a possible agenda for national reform and to consider ways it can best be implemented in relation to, but not exclusively, the following matters:
(i) the distribution of constitutional powers and responsibilities between the Commonwealth and the states (including territories),
(ii) financial relations between federal, state and local governments,
(iii) possible constitutional amendment, including the recognition of local government, (iv) processes, including the Council of Australian Governments, and the referral of powers and procedures for enhancing co-operation between the various levels of Australian government, and
(v) strategies for strengthening Australia's regions and the delivery of services through regional development committees and regional grant programs.

Submissions should be received by 20 August 2010. The reporting date is 17 November 2010
One submission has been received so far for a Republican Constitution.

Important points to make:
• no recognition of Local Government in the Constitution, Local Government was in eistence long before Canberra!
• de-centralisation of control,
• no duplication of responsibilities e.g. education, health give these powers back to the States.
• Make Local Government LOCAL again.

Full details are at https://www.aph.gov.au/Senate/committee/reffed_ette/reffed/info.htm” Written submissions may be sent to Committee Secretary, Select Committee on the Reform of the Australian Federation, PO Box 6100, Parliament House, Canberra ACT 2600.  

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