Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Thomas Cook COLLAPSE! 300,000 Passengers Stranded, Flights Cancelled, Planes Grounded - 23rd Sep 19
Massive Stock Market Price Reversion May Be Days or Weeks Away - 22nd Sep 19
How Russia Seized Control of the Uranium Market - 22nd Sep 19
Dow Stock Market Trend Forecast Update - 21st Sep 19
Is Stock Market Price Revaluation Event About To Happen? - 21st Sep 19
Gold Leads, Will the Rest Follow? - 21st Sep 19
Are Cowboys Really Dreaming of... Electric Trucks? - 21st Sep 19
Gold among Negative-Yielding Bonds - 20th Sep 19
Panicky Fed Flooding Overnight Markets with Cash - 20th Sep 19
Uber Stock Price Will Crash on November 6 - 20th Sep 19
Semiconductor Stocks Sector Market & Economic Leader - 20th Sep 19
Learning Artificial Intelligence - What is a Neural Network? - 20th Sep 19
Precious Metals Setting Up Another Momentum Base/Bottom - 20th Sep 19
Small Marketing Budget? No Problem! - 20th Sep 19
The Many Forex Trading Opportunities the Fed Day Has Dealt Us - 19th Sep 19
Fed Cuts Interest Rates and Gold Drops. Again - 19th Sep 19
Silver Still Cheap Relative to Gold, Trend Forecast Update Video - 19th Sep 19
Baby Boomers Are the Worst Investors in the World - 19th Sep 19
Your $1,229 FREE Tticket to Elliott Market Analysis & Trading Set-ups - 19th Sep 19
Is The Stock Market Other Shoe About To Drop With Fed News? - 19th Sep 19
Bitcoin Price 2019 Trend Current State - 18th Sep 19
No More Realtors… These Start-ups Will Buy Your House in Less than 20 Days - 18th Sep 19
Gold Bugs And Manipulation Theorists Unite – Another “Manipulation” Indictment - 18th Sep 19
Central Bankers' Desperate Grab for Power - 18th Sep 19
Oil Shock! Will War Drums, Inflation Fears Ignite Gold and Silver Markets? - 18th Sep 19
Importance Of Internal Rate Of Return For A Business - 18th Sep 19
Gold Bull Market Ultimate Upside Target - 17th Sep 19
Gold Spikes on the Saudi Oil Attacks: Can It Last? - 17th Sep 19
Stock Market VIX To Begin A New Uptrend and What it Means - 17th Sep 19
Philippines, China and US: Joint Exploration Vs Rearmament and Nuclear Weapons - 17th Sep 19
What Are The Real Upside Targets For Crude Oil Price Post Drone Attack? - 17th Sep 19
Curse of Technology Weapons - 17th Sep 19
Media Hypes Recession Whilst Trump Proposes a Tax on Savings - 17th Sep 19
Understanding Ways To Stretch Your Investments Further - 17th Sep 19
Trading Natural Gas As The Season Changes - 16th Sep 19
Cameco Crash, Uranium Sector Won’t Catch a break - 16th Sep 19
These Indicators Point to an Early 2020 Economic Downturn - 16th Sep 19
Gold When Global Insanity Prevails - 16th Sep 19
Stock Market Looking Toppy - 16th Sep 19
Is the Stocks Bull Market Nearing an End? - 16th Sep 19
US Stock Market Indexes Continue to Rally Within A Defined Range - 16th Sep 19
What If Gold Is NOT In A New Bull Market? - 16th Sep 19
A History Lesson For Pundits Who Don’t Believe Stocks Are Overvalued - 16th Sep 19
The Disconnect Between Millennials and Real Estate - 16th Sep 19
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Anti-Gold:Usura Socialism

Politics / Fiat Currency Jan 02, 2009 - 06:53 AM GMT

By: Christopher_Quigley


Best Financial Markets Analysis ArticleTurning and turning in the widening gyre;
The Falcon cannot hear the falconer;
Things fall apart: the centre cannot hold;

Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.

"The Second Coming" William Butler Yeats Irish Poet & Nobel Laureate

The financial equivalent of all services rendered in the production of an article, forms the cost of that article, and conversely, nobody will furnish any services in connection with the article which are not represented by cost, and therefore go into price. The old fable of the Fairy Gold which disappeared as it was grasped can thus be seen in its every-day embodiment; and the result of these creations of credit granted to producers only, instead of to consumers, IS TO PRODUCE A RISE OF PRICE, WHICH NULLIFIES THE ADDITIONAL PURCHASING-POWER THUS CREATED.

By an accounting method of analysis, the conclusion is reached that the value, at the current retail price-level, of goods produced far exceeds the flow of purchasing-power from permanent sources. In other words, recurring periods of business depression are shown to be the result of present financial and business policies.

Major C. H. Douglas "Social Credit"

As William Butler Yeats foresaw in the early 1900's the centre was not holding then and it is surely falling apart now. We appear to be entering a "greater depression" less than eighty years since the last one and unless the elite sort out the crisis soon the world could well witness the "blood-dimmed tide" being loosed. People will not stand by for very long witnessing such open corruption and incompetence if it means their children, en-mass, go hungry and their beloved country becomes a sub-urban ghetto. Political "certainties" vacillate under such circumstances. Peaceful righteous civil action is the court of final appeal when government ceases to function in "civitas": for the greater good.

It is clear to anyone who studies the financial history of the America that the trend towards socialism really commenced with the birth of the Federal Reserve (the instrument of the New Deal) in 1913. The elites main lever was the social engineering tool of monetary economics and usury-debt, which is why I call it "Usura Socialism". This form of political philosophy operated under the guise of capitalism and through brilliant media presentation, it was allowed to function because its medium of operation was banking and fiat scrip issuance. Very few, except the initiated, associate banking with socialism. But one can only judge the tree by its fruit. Ergo, as Hegel insists, one must perceive reality through the facts of experience and not wishful naivety.

From my humble position of relative ignorance I fervently believe that the most pressing revolution needed in human affairs is in the realm of accounting and economics. These arenas may seem boring and non-descript but unfortunately their importance is centre stage to solving the current hegemony of world socialism and repeated industrial wars. If more people understood the basic realities of the functioning of the "professional banking" world, the political elite would not be in such positions of exploitation. Therefore the path of change demands that folk raise their consciousness and awareness.

Leaders must start thinking outside the box. For example very few Americans realize that Henry Ford completely redefined "classical" economics through the policies undertaken by the Ford Motor Company in the 1920's. Under "normal" theory it was assumed that a corporation could maximise profits by increasing price and limiting supply. Ford did the opposite because he had a more holistic view of the role of the corporation in society. He doubled the wages of his workers, decreased the price of the Model T and remade America. How did this happen. It was axiomatic. With Ford's workers now able to make a good living, their financial anxiety ceased and staff turnover dropped by a multiple of five in one year. This dramatically decreased management expense and increased efficiency.

Workers finally had peace of mind. With the increased disposable income in the Detroit area the economy boomed. All classes of economic sectors expanded. As a result more workers, new business owners, company managers, insurance brokers, real estate brokers, bankers, salesmen, craftsmen, delivery men, builders, farmers and retailers could afford Ford cars. Demand for the model T doubled and with increased buying powers and efficiencies the profits of the Ford Company dramatically increased as a result of the innovative policy.

Ford understood economics and he understood the issue of PURCHASING POWER. HE REASLIZED THAT WITHOUT THE MONEY TO PURCHASE HIS CAR DEMAND COULD NOT materialize. THEREFORE HE REDISTRIBUTED DIVIDENDS FROM THE OWNERS TO THE WORKERS. THIS BRILLIANT INSIGHT MADE THE FUTURE FOR THE COMPANY. It built up the economy of Detroit and it helped define America as a country where a factory worker was respected and well paid, not exploited. It was the American dream being made manifest not through political fantasy but through the laws of accounting and finance and production.

Power and machinery, money and goods, are useful only as they set us
free to live. They are but means to an end. For instance, I do not
consider the machines which bear my name simply as machines. If that was
all there was to it I would do something else. I take them as concrete
evidence of the working out of a theory of business, which I hope is
something more than a theory of business—a theory that looks toward
making this world a better place in which to live. The fact that the
commercial success of the Ford Motor Company has been most unusual is
important only because it serves to demonstrate, in a way which no one
can fail to understand, that the theory to date is right. Considered
solely in this light I can criticize the prevailing system of industry
and the organization of money and society from the standpoint of one who
has not been beaten by them. As things are now organized, I could, were
I thinking only selfishly, ask for no change. If I merely want money the
present system is all right; it gives money in plenty to me. But I am
thinking of service. The present system does not permit of the best
service because it encourages every kind of waste—it keeps many men
from getting the full return from service. And it is going nowhere. It
is all a matter of better planning and adjustment.

Henry Ford "My Life and Work"

Compare for one moment the circumstances in Detroit in the 1920's and mainstream America today. The exact opposite is occurring. Wages are being destroyed and with them associated buying power. The system cannot hold. Society is being destroyed. Folks do not understand what is happening due to "dumbed down" educational policies. The gap between goods available for purchase and actual purchase capability is "managed" through the availability of banking credit rather than through real jobs and free disposable money. This credit substitute is an unstable arrangement because the debt is very expensive and is non-liquidating other than through bankruptcy or lotto wins or death. This is no way to run a civilization. It creates constant anxiety and eventual depression among citizens. It is inherently unstable. This planned model is immoral and it is a model, be under no illusion my friends.

Thus in essence the "problem" in America and in Europe, for that matter, is enlightened redistribution of purchasing power. Currently too much power over redistribution is controlled by banks and associate entities. This money centralization is stagnating the system and the fact that this arrangement failed to regulate itself, and caused a credit collapse, has accentuated the speed of failure by multiples. It is time to change. Society must move on. The intellectual framework to achieve this has been known for over 80 years. Its implementation will bring a renaissance to American and world commerce and culture.

With regard to the accounting theory writers such as E.C. Riegel, Buckminster Fuller, C.H. Douglas and Ezra Pound all saw that an unstable inflating dollar made a mockery of standard accounting practices. Why the accounting bodies in America are allowed get away with this travesty is a mystery to me.

E.C. Riegel put it most succinctly:

"An unnatural monetary system begets unnatural economic manifestations. How can a free economy work with the monetary system socialized? Rampant inflation makes a mockery of any true accounting for any true contract. When the future businessman discovers that his pride in cash was delusion and a snare; that his cash reserves which he meant to freeze has melted and evaporated; that his balances might have been preserved if they had been cast into materials; that his bonds and money claims on others have shrunken and that he might have profited had he known enough to get into debt; that his tax refunds are far less in power than those paid in; that he must pay capital gain taxes on what are actually losses; then that businessman will realize that the whole contemporary inflationary accounting picture is a delusion. Thus we must realize that ideally the monetary unit that is the unit of account, if it is to be of value, must be stable".

The cure for this conundrum is the use of a new unit of accounting that begets stability; and a new understanding of purchasing power re-distribution that fosters real exchange potential, not simply debt creation controlled by an "usura" elite.

Major C.H. Douglas continues in "Social Credit":

"The business of dealing in money as a commodity is, as has been pointed out, advantaged by anything which accentuates the scarcity of money, so that any form of attack on the business system, the constructive effect of which is to support increased taxation, can and does, receive support from the inner circles of high finance. Since the greater part of the real purchasing-power of the world is in potential form which is not represented by any figures anywhere, but can be materialized by those in possession of the process, as and when required, taxation of visible purchasing-power is exactly what is most valuable in maintaining the power and supremacy - the power to reward and punish - of the money makers."

For at least forty years the doctrine of Sabotage, i.e. the conscious restriction of output, has permeated all sections of Society and is a logically, and in a restricted sense, a perfectly proper method of obtaining the best results for the individual under the rules by which business and Society is at present conducted. Not to admit that, is to shirk facts. And not to see that this restriction of output (using the phrase in its broadest sense, to include all descriptions of unspecified activity at present widely outside the range of economics), is nothing but social suicide, is equally to shirk facts. The test of a natural law is that it is automatic and inexorable, and the proof of the contention which is advanced in this book, that as soon as Society ceases to serve the interests of the individual, then the individual will break up Society, is proved by the course of events at this time; and those persons who wish to preserve Society can do no worse service to their cause, than to depict their idol as an unchangeable organization whose claims are to be regarded as superior to those of the human spirit.

The stage is set for a change of mechanism; in place of a Society based on restraint, a Society based on the conception of assistance, of co-operation, is overdue. Let us be clear that the only assistance which is tolerable or acceptable is that which can be declined if it is not wanted."
This situation would be almost immediately destructive to the working of the business system, if the financial technique did not provide a source of purchasing-power, or new Money, in the form of bank loans and credit instruments, which does not arise out of wages, salaries, or dividends, paid for past production. By the exercise of this technique, however, industry becomes mortgaged to the banking system.

While the power of creating effective money has, up to the present time, enabled banks to mask a good many of the defects of the financial system, it has, particularly in the last few years, failed definitely to remedy some of the more vital of them. The financial mechanism has acquired a considerable control over the rate and the manner of issue of money and purchasing- power, and to a large extent, this power has become unified and centralized so that it forms an international organization of the most stupendous power."

How can change be brought about? Nothing can happen without education and awareness and the courage to act. Through a gradual understanding of the natural laws of credit, re-distribution of usury benefits could be institutionalised and globalized. Such a re-distribution, based on non-inflationary productive principles, will do for America and the world what Henry Ford did for Detroit in the 1920's. All that is required is the intelligence, the understanding and the will. Politics will not lead it; it must be peacefully directed through the power of "smarts". Nothing succeeds like proof. (You may download Ford's life story for free on for more complete insight into his principles).




If the system allows the brains to be released through the motivation of allocated purchasing power, a knowledge/resource application and exchange will occur that will bring the world to a new "trans-industrial" zeitgeist. This new "spirit of the age" with the use of global communication, the internet and computing power would make the mercantilist-capitalist revolution look like a feudal fair.

The history of the Western Tradition is the story of a civilization that learnt through circumstance how to change. We now need to re-embrace the historical civil genius that once stared at the "dark-age" abyss and choose to learn to fly through knowledge, co-operation and re-invention rather than flounder under the weight of ignorant self interest. Such a change would equate for the West what perestroika encompassed for the Sino-Soviet east in 1989. Hopefully we have not left it too late. The concepts are there. The historic proof of successful operation is there. The world yearns for contemporary heroic dissemination and application.

Reference Thread:

"The Cantos"
Ezra Pound
New Directions Paperback

"The Collected Poems of W.B. Yeats"
W.B. Yeats
MacMillan Co., New York

"Critical Path"
R. Buckminster Fuller
St. Martins Press. New York

"Social Credit"
Major Clifford Hugh Douglas
Mondo Politico.Com

"Flight from Inflation"
The Heather Foundation,
Los Angeles.

"My Life and Work"
Henry Ford
In Collaboration with
Samuel Crowther

By Christopher M. Quigley
B.Sc., M.M.I.I. Grad., M.A.

Mr. Quigley is 46 years of age and holds a Batchelor Degree in Management from Trinity College/College of Commerce, Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the Stock Market in San Francisco, California where he lived for 6 years. Now based in Dublin, Mr. Quigley actively trades utilising the principles set out in the modules above. This Wealthbuilder course has been developed over the last 9 years as a result of research, study, experience and successful application.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Christopher M. Quigley Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules