Textbooks generally distinguish the three powers that belong to the Government: the legislative, executive, and judiciary powers.
The legitimate and sovereign government of any free country must possess the power to make laws, to regulate relationships between citizens and established bodies, without having to ask permission from a foreign authority. This is simply the exercise of legislative power.
Likewise, the government of a sovereign country must be able to administer to the nation in conformity with its laws and constitution without having to submit its actions to a foreign government for approval. This is the exercise of executive power.
Finally, the government of a sovereign country must possess the right to enforce the laws of the country, to prosecute and condemn those who transgress them, to pass judgment on the litigation’s between citizens throughout that country without having to request the authority to do so from a foreign government. This is the exercise of judiciary power.
If these three powers — legislative, executive, and judiciary — are the constituted powers of any sovereign government, there is another power, not labelled as such but which exceeds and dominates governments themselves.
This superpower, which did not receive authority from any constitution and which does not concern itself with it any more than a thief would, is the monetary power.
The monetary power is not the money that you may have in your wallet. It is not the stocks or bonds that you may have in your portfolio. It is not what taxes take from you continuously, through the three levels of government; local, provincial and federal. It is not the pay raises that trade unions complain about and pronounce strikes for. It is not even the industrial dividends that some socialists would like to take away from capitalists and see distributed to wage-earners, without calculating the insignificant amount that each would receive. Monetary power is not inflation or a rise in the standard of living, while governments and trade unions contribute to inflation as much as they can; the former by their ever-increasing taxes, the latter by demands for wage or salary increases.
No, this is small compared to the stature and power of the monetary dictatorship that we are denouncing, this power that makes our lives “hard, cruel, and relentless,” in the words of Pope Pius XI in his Encyclical Letter Quadragesimo Anno:
“This power becomes particularly irresistible when exercised by those who, because they hold and control money, are able also to govern credit and determine its allotment, for that reason supplying, so to speak, the lifeblood to the entire economic body, and grasping, as it were, in their hands the very soul of production, so that no one dare breathe against their will.”
These strong words may look excessive to those who are unaware of the role of money and credit in economic life or of the control of which money and credit are subjected, but the Pope did not exaggerate.
Let us recall that financial credit has the same value as cash in economic life. One buys materials, services, work, and products as much with cheques — which simply transfer figures from one account to another in bank ledgers — as with coins or paper money, which go from a client to the local retailer at the corner store. It is the money of figures (cheques) that activates economic life and that is responsible for more than 80 percent of the total financial operations of our nation’s commerce and industry. The generic term “money” can therefore refer to both forms of payment.
Having said this, let’s see if money has an important role in economic life, and if the control of money really has the power that the Pope attributes to it.
Whatever may have been the conditions of economic life in past centuries, it is undeniable that today money (or credit) is indispensable for maintaining a multiple-source production of the activity, called for by the private or public needs of the population. It is indispensable for allowing the production to reach the needs of the people.
Without money to pay for materials and labour, even the best entrepreneur must stop producing and the suppliers must reduce their production. The employees will suffer, the needs will not be met and producers will be left with unsold products. And the circle continues. It is widely known that entire populations have suffered from this very fact.
The same applies to public bodies. The needs of the public can be very urgent, well expressed and understood by public administration. But if this public administration does not have any money or lacks a sufficient amount, the plans must be set aside.
What is lacking in this case? Materials, manpower or competence? Nothing of the kind. The only thing lacking is money and financial credit, the “lifeblood of the economic body.” Let the blood flow and the economic body will function once again. If it takes too much time, businessmen will lose their concerns, owners their properties, families their daily bread, health or even the lives of their children and often peace in their homes.
But what can we do? Isn’t this an inevitable situation that we must simply endure? — Not at all. If blood is lacking in the economic body, it is because it was removed. And if it comes back, it is because it was re-injected.
Extraction and injection of blood are not spontaneous operations. It is the controllers of money and credit who can “determine its allotment... thus supplying the lifeblood to the entire economic body.” One needs their consent to live; Pius XI was right.
In his Encyclical Letter, the Pope did not explain the mechanism of the extraction and injection of blood nor did he define concrete ways to remove the economic body from the control of these malicious surgeons. This was not his role. His role was to denounce and condemn a dictatorship which is a source of incalculable woes for society, families and people, not only in a material sense but also because of the unwarranted difficulties for each soul in the pursuit of a destiny which must be his own for all eternity. The Pope spoke out and said what he had to say. Alas! Too few heeded his words and the dictatorship has since consolidated its position more and more. The alleviation that the Pope’s words would have allowed, was endorsed only to maintain power of which the effects have become so obvious that they are hard to conceal.
In fact, a sudden return of a blood flow in an economic body, which had been entirely deprived of it for many years, could only impress even those who did not understand it. This occurred in September of 1939. The day before, a bloodless economic body paralyzed developed countries. The declaration of war, in which these same countries were to participate, suddenly brought back all the blood, money and financial credit, which these nations would need during the six-year war. It called into play all the human and material resources.
Monetary power consists in issuing the nation’s money and credit; the power of conditioning the distribution of money and credit into circulation; of determining the length of time for the circulation of this credit; of demanding the return of money at the risk of the confiscation of goods; of bringing governments into subjection and fixing for them the conditions of release and return, of demanding the guarantee of the right that all governments have of taxing their citizens.
Now, this financial credit or money is the permission to make use of the production capacity, not by those who are controlling the world but by the country’s population. The controllers of money and credit do not cause a single stalk of wheat to grow, do not produce one pair of shoes, do not manufacture one single brick or dig a mine shaft, they do not pave one square inch of road. It is the country’s population that carries out these projects. It is therefore its own real credit. But to be able to use it, one needs the approval of the controllers of money or financial credit, which is nothing more than figures written in a bank ledger, representing the value of the nation’s real credit.
The banker’s pen gives or refuses individuals, corporations and governments the right to mobilize the skill of professionals, the nation’s natural resources. That pen commands, grants or refuses; it sets conditions on the financial permits that it gives; it puts into debt the individuals or governments to whom it grants permits. The banker’s pen has the power of a sceptre in the hands of a superpower — the monetary power.
We endured ten years of economic paralysis and not one government thought it had the power to put an end to it. A declaration of war came and the financial permissions to produce, draft, destroy and kill suddenly appeared overnight.
Ten parliamentary sessions in Ottawa — each lasting several months — were unable to find a solution to the unnatural crisis, which was starving and depriving entire families in front of unsold production and the possibilities of abundance.
But a (so-called) urgent six-day session that lasted from September 7-13, 1939, was enough for them to decide to enter into a war which was to cost billions of dollars. A quick and unanimous decision was made. A minister from Mackenzie King’s Cabinet, J. H. Harris, spoke with all the eloquence he could muster: “Canada,” he said, “has its eyes glued on this House. Therefore, are we not obliged to see to it that there is within this House a unity of action and thought? The reason is evident; Christianity, democracy, and personal freedom are at stake.”
Christianity and personal freedom had not seemed to him to have been at stake, not any more than to the Government to which he belonged. All the years that Canadian families were destroyed by hunger; when the youth were taking refuge in concentration camps — also called work camps — in order to get a meagre ration in return for complete servitude; when men buried themselves in the bush; when unemployed, able-bodied men roamed from one town to the next and others sought shelter in shacks that they had constructed out of pieces of sheet metal or tar paper, salvaged from the dumping grounds of the city of Montreal...
And what did Christianity and personal freedom gain from a war which split up Germany, putting it and ten entirely Christian countries under the yoke of the bloodthirsty Communist, Stalin?
But Harris and the others knew that going to war was the condition for bringing the blood controlled by the monetary superpower back into the economic domain.
There is not a worse tyranny than that of monetary power: a tyranny which makes itself felt in all homes, institutions, public administrations and governments.
And from whom does this superpower obtain its authority? The other three governmental powers obtain their authority from their country’s Constitution. But what constitution was able to give to a superpower the right to hold entire governments under its thumb?
The fact that this same state of affairs exists in all developed countries does not justify this monstrosity. It only goes to show that the superpower of money and credit holds all of the civilized world in its tentacles. This makes it even more diabolical.
Yes, it is a diabolical power that took on a sacred aura, to such an extent that one looked for the cause of our economic and social woes everywhere, except in the operation of the money and credit system. It is permitted to look somewhere else but in the monetary system is not permitted, not even for sovereign governments.
It took the light of Social Credit, coming from a genius named C. H. Douglas, to break up this sacred aura and to unmask a tyranny which has not any characteristic of sacredness. And it took Social Credit apostles to spread this light. But how many souls, who should be able to understand, to distinguish between a system of domination and a body of service, have chosen to close their ears or eyes for reasons of pride or private interests!
The implementation of Social Credit — which we will not explain here, the MICHAEL Journal having explained it many times before — would kill this superpower, this scourge of humanity.
What is needed is a monetary power established by constitution or law, in order to make of the monetary organism an institution at the service of the community, as are the other three services mentioned above.
What is needed is a monetary power exercised by an organism similar to the judiciary system, staffed with qualified accountants, instead of judges. These accountants would, like judges, fulfill their duties independently of the powers that be. They would base their operations — addition, subtractions, or rules of three — on statistics which do not depend upon them but on the statements of the production and consumption of the country, resulting from the activities of free producers to respond to the orders freely expressed by consumers.
This means that money and credit would only be the faithful reflection, the expression in figures, of economic realities.
It is the constitutive law of a monetary power such as this that would set down the goals for this established organism. This organism would supply the necessary financial credits to the population so that it could order the goods it needs from the country’s production capacity. As it is the individuals and the families themselves know best what they need, so the monetary organism would be obligated by its very constitution, to supply to each individual and family the necessary income for them to be able to order at least the basic necessities of life for a decent standard of living. This is what Social Credit calls a dividend given to each citizen, regardless of his status of employment or unemployment in production.
Then, the same monetary organism would supply to the producers the required financial credits to make use of the country’s production capacity, in response to orders expressed by consumers. It would do so for public needs as well as private.
If the pen of the usurped superpower can create or refuse financial credit according to its will, then what is based on the nation’s real credit, i.e., the pen from a constitutional monetary power, would be as effective to issue the financial credit at the service of the population and to all members of society. This goal would be specified in the law.
There would no longer be solely financial problems. Getting into debt because of foreign bankers for things that we can produce in our own country would not exist. When production becomes easier and more plentiful, prices would remain stable — inconsistency would cease to exist in a monetary body that was obligated by law to make the financial aspects of the economy the exact reflection of reality. The search for new jobs when machines create products instead of utilizing only human labour would be relegated to past history. The astronomical waste due to production of useless items, in order to simply create jobs, would be banned as a lack of responsibility to future generations.
Thousands of situations would ensue with the establishment of a monetary power at the service of man and with a removal of the unbearable dictatorship that links income solely to employment. The first effect of progress should be to free man from economic tasks in order to allow him to devote himself to activities which are not materialistic and to move towards the fruitfulness and freedom of his personality.