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Almost a century ago, C.H.Douglas revealed to a disbelieving world the simple truth that Banks create money out of nothing. Further, the banks require that this money be repaid to them with interest. It is a matter of simple arithmetic that if all the money in circulation originates as a debt to the bank, society cannot repay it with interest, unless someone, somewhere, borrows more money from the banks, so increasing the total indebtedness of the Nation!
Description
It was this "glimpse of reality," as he called it, which Douglas gave to the world. Douglas' discovery was not entirely original. Others had seen that there was something wrong with the money system. Social Credit is the culmination of a long process of radical and reformist thinking and action. What was unique in Douglas' "glimpse of reality," were the solutions he proposed. Debt is really a measure of increased productivity. This increased productivity is Social, and it ought not to be a debit against society, but a Credit; to be shared by everyone through a birthright income or Dividend, and by Discounted prices. It was not Douglas' analysis of the monetary system which aroused opposition so much as his proposal that the new money to balance the new productivity should be created, debt and interest free, to provide a private income for everyone. Such a proposal, if put into effect, would bring to an end the Banking system's Monopoly of Credit; together with all the power and privilege of those who control it!
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