The Sage of St. Claire 'Social Credit'
Daniel S. Krynicki St. Clair Shores, Michigan
What libertarians identify as "force to make all people equal" misrepresents what social crediters offer. Social Crediters propose that all receive an equal National Credit Dividend as the only means to establish a money supply fairly. No one shall be forced to receive it; and we are certain that a money supply that is not established through a debt/usury system can benefit the nation. By contrast, Ron Paul's system of money creation through gold-backed loans only perpetuates the debt/usury cycle. Except for a few injections of publicly created money into the currency stream, almost all of the existing money in the world has for 417 years been created by privately owned cartels.
Now here is the crux of what the social creditors observe. Privately created money has always resulted in high-handed manipulation of the money supply. Better economists than myself predict there will continue to be a chronic shortage of currency under a Ron Paul administration. It will be the same as when Herbert Hoover and FDR were presidents. Money was very scarce during the 1930s because the international bankers made it so.
The “liberty” to privately create money that libertarians speak of will only continue to allow Rothschilds, Rockefellers, Morgans and Melons to withdraw their gold from being deposited at banks. Available credit will be curtailed greatly, because the liberty they desired gave the money creators (capitalists) the power to stifle commercial activity. We have all been eyewitnesses to the symptoms of chronic shortage of money for three years running now. It should not be necessary to cite our speckled past of all the panics, recessions and depressions mirroring these past three years. These all have been orchestrated by the money creators, so they can take a spoil from the assets others have worked for all their lives. The Austrian Schoolers will only continue what already has been accomplished by the private creation of money for centuries, most of which was accomplished under the guise of being backed by gold.
It is good to hear Mr. Paul debate on a broad spectrum of issues. But in economics he is woefully inadequate - not properly relating historic data to how he perceives gold as being an acceptable form of backing for money. He and the Austrian Schoolers are flat-out wrong. Fiat money of a realm has already replaced gold as a standard since 1974. It works for commerce and it works for taxes because it bears the imprint of the United States Government. His arguments against fiat money do not even tread water: it is the usury obtained during its creation that causes the destruction.
Our Constitution by Unanimous Order of the Convention on September 17th, 1787 gave Congress the authority to 'coin money and regulate the value thereof'. This authority is much misunderstood by the People. As our understanding evolved of how a monetary system operates in practice, some of us who are the honest enough sorts came to see how opportunities emerged for the capital creators to abuse the good will of the people and their economic welfare.
The most apparent pitfall, one not even contemplated by almost everyone, is inherent in the private creation of money through debt/usury. When gold purportedly is used as collateral to back the money certificates private banks issue, two sets of money exist simultaneously: (1) the gold that the issuer never cedes his ownership to and (2) the paper representation (and it is fiat) that enters the currency stream. The moneylenders require it to be paid back with compound interest, and they never give up possession of their gold. But the interest doesn't even exist yet. Where will it come from if it isn't even created yet? Yes, more must be borrowed in order to pay the interest, because this is the only way money can be created under the present system.
Also, in this system we have private issuers of currency who always - as proven time after time throughout this 417-year history - rig the system for personal gain. Public utilities as well as defense manufacturers and contractors are now owned by institutional shell corporations tracing back to the banking-cartel families. These represent the assets over which they have obtained control during this named 417-period of history. Let us call it the "International Bankers' Epoch". Additionally, they fund almost all of the foundations and the campaign war chests in Washington DC.
I have never heard Ron Paul speak out against the money powers. In fact his Austrian School solutions would only entrench the cartels even more, because they own most of the world’s gold. I have read estimates of between 60% and 80%. We should be asking, 'Who is Ron Paul actually working for?'
All of us have to put on our thinking caps. If the Republicans win in 2012 and the national rally cry is austerity, live within one’s means, spend less - and nothing is done to change the system back to public control as the Constitution mandates - then the banking cartels will jump for joy and dry up the money supply even further. And a depression even greater than in the 1930s will ensue.
Social credit takes this power to create money away from the banking cartels and makes a capitalist out of every American citizen through a National Credit Dividend. With this system, there will be an adequate money supply for commercial activity and full employment, because the power laid at the feet of Congress through the Constitution could be used to do what is right.
But it won't happen that way, because the sheeple will listen to Ron Paul and his morally bankrupt Austrian School. And the rest will be led to slaughter by the morally depraved Republicans and Democrats alike.
Daniel S. Krynicki
St. Clair Shores, Michigan