Page 10 - Michael 2024 January

u any desire to rectify the situation, the organised tive of the people. Both can easily be done by existing
force of the money powers stands before them. What governmental agencies.
can they do, unless they have that other all-powerful We have seen that the first necessity is to restore
force, enlightened public opinion, on their side?) to the nation its constitutional right to control our own
The monopoly of credit can no longer continue to money system. The government must exercise its
issue money only as debt. The time for the change has sovereign power to control the money supply of the
come... Social Credit meets this challenge. The Doug- nation. This includes credit as well as currency. This
las solution to this, the greatest problem of our day, action is the first requirement for permanent business
provides a scientific money system by basing the sup- recovery.
ply of credit directly upon the supply of goods. Doug- Second, the government must gather together the
las has defined Social Credit as “the ability to monetize facts and figures of our ability to produce and deliver
our existing real wealth for the benefit of society.” So- useful wanted goods for consump tion. As we have
cial Credit gives us a definite practical plan for the use seen, our Real Credit rests upon this solid foundation.
of this money system, designed specifically to over-
come the chronic shortage of buying power. Once the nation regains constitutional control of
In Major Douglas’ own words, “The business of its own money system, the immediate practical step
a modern and ef fective financial system is to issue proposed by Social Credit is to appoint a non-political
credit to the consumer, up to the limit of the product- National Credit Commission. As its primary duty this
ive capacity of the producer, so that either the con- Commission would take a national inventory of our
sumer’s real demand is satiated, or the producer’s actual produc tive capacity for wanted goods. Based
capacity is exhausted, whichever happens first.” on this capacity to produce wealth, a National Credit
Sufficient money must be available to express Account would be established in the Department of
Finance of the nation (in the USA, for example, the
accurate ly the demand for wanted goods. Money, be- United States Treasury).
ing the bridge between de sire and goods, must de-
pend upon our Real Credit; that is to say, the rate at A rough example in round numbers (see below)
which we as a nation can deliver the goods and servi- will illustrate in a general way how the National Credit
ces we require to live. Account provides the facts necessary to mone tize our
What must be done Real Wealth. In terms of this example, based on the
Real Credit of the United States, the Treasury could
Two things are necessary to make the money sys- issue 25 Billion dollars in CREDIT money, thus trans-
tem reflect our Real Credit. Both must be done by the forming this Real Credit into Financial Credit available
government of the nation, acting as the representa- to consumers for shopping. v

At quarterly intervals, the Federal Credit Commission would submit the following statement of Real
Credit to the U.S. Treasury — NATIONAL CREDIT ACCOUNT (figures in billions of dollars).

Credit (Additions to Real Wealth) Debit (Substractions from Real Wealth)

1. PRODUCTION 1. CONSUMPTION ................................... 60
(a) Shoppers goods ............................ 70 (Shopper’s goods at retail
(b) Capital goods ............................... 25 including National Dividends spent)
2. Imports .................................................... 3 2. Exports ................................................. 6
(Real Wealth received) (Real Wealth sent abroad)
3. Appreciation ......................................... 2 3. Depreciation ....................................... 9
(Increase in commercial capitalized (Wear and tear on plants,
value of operating assets) business equipment, etc.)
4. Payments on Foreign Debts .................. ? 4. Payments on National Debt ................ ?
(Received from other nations) (Spent to retire bonds held by
banks, reduce taxation, etc.)
Total ADDITION to Real Wealth .................. 100 Total SUBSTRACTION from Real Wealth ...... 75
(Enrichment) (Impoverishment)

REAL CREDIT BALANCE ............................. 25 } Available to finance additionnal consumption.
(Surplus Net Enrichment of Real Wealth) (By means of a Discount and Dividend)
(These figures are merely illustrative, not factual.)

10 MICHAEL January/February 2024 www.michaeljournal.org