The Money Myth

1. Shipwreck Survivors

Ile1aAn explosion had blown their ship apart. Each one grasped the first bit of wreckage that came to hand. And when it was over, there were five left, five huddled on a raft which the waves carried along at their will. As for the other victims of the disaster, there was no sign of them.

Hour after long hour their eyes searched the horizon. Would some passing ship sight them? Would their make-shift raft finds its way to some friendly shore?

Suddenly a cry rang out:  “Land! Look! Over there, in the direction the waves are carrying us!”

And as the vague silhouette proved itself to be, in fact, the outline of a shore, the figures on the raft danced with joy.

They were five. There was Frank, the carpenter, big and energetic. It was he who had first cried, “Land!”.

Then Paul, a farmer. You can see him, front and left in the picture, on his knees, one hand against the floor, the other gripping the mast of the raft.

Next is Jim, an animal breeder; he’s the one in the striped pants, kneeling and gazing in the direction of land.

Then there is Harry, an agriculturist, a little on the stout side, seated on a trunk salvaged from the wreck.

And finally Tom, a prospector and a mineralogist; he is the merry fellow standing in the rear of the picture with his hand on the carpenter’s shoulder.

2. A providential island

ile2aTo our five men, setting foot on land was like returning to life from the grave.

When they had dried and warmed themselves their first impulse was to explore this little island on to which they had been cast, far from civilization.

A quick survey was sufficient to raise their spirit. The island was not a barren rock. True enough, they were the only men on it at the moment. But judging from the herds of semi-domesticated animals they encountered, there must have been men here at some time before them. Jim, the animal breeder, was sure he could completely domesticate them and put them to good service.

vache011Paul found the island’s soil, for the most part, to be quite suitable for cultivation.

Harry discovered some fruit trees which, if properly tended, would give good harvests.

Most important were the large stands of timber embracing many types of wood. Frank, without too much difficulty, would be able to build houses for the little community.

As for Tom, the prospector, well, the rock formations of the island showed signs of rich mineral deposits. Lacking the tools, Tom still felt his ingenuity and initiative could produce metals from the ores.

So each could serve the common good with his special talent. All agreed to call the place Salvation Island. All gave thanks to Providence for the reasonably happy ending to what could have been stark tragedy.

3. True wealth

ile3aHere are the men at work.

The carpenter builds houses and makes furniture. At first they find their food where they can. But soon the fields are tilled and seeded, and the farmer has his crops.

As season followed season this island, this heritage of the five men, Salvation Island, became richer and richer.

Its wealth was not that of gold or of paper bank notes, but one of true value; a wealth of food and clothing and shelter, of all the things to meet human needs.

Each man worked at his own trade. Whatever surpluses he might have of his own produce, he exchanged for the surplus products of the others.

Life wasn’t always as smooth and complete as they could have wished it to be. They lacked many of the things to which they had been accustomed in civilization. But their lot could have been a great deal worse.

Besides, all had experienced the depression in Canada. They still remembered the empty bellies side by side with stores crammed with food.

At least, on Salvation Island, they weren’t forced to see the things they needed rot before their eyes. Taxes were unknown here. Nor did they go in constant fear of seizure by the bailiff. They worked hard but at least they could enjoy the fruits of their toil.

So they developed the island, thanking God and hoping for the day of reunion with their families, still in possession of life and health, those two greatest of blessings.

4. A serious inconvenience

ile4aOur men often got together to talk over their affairs.

Under the simple economic system which had developed, one thing was beginning to bother then more and more; they had no form of money. Barter, the direct exchange of goods for goods, had its drawbacks. The products to be exchanged were not always at hand when a trade was discussed. For example, wood delivered to the farmer in winter could not be paid for in potatoes until six months later.

Sometimes one man might have an article of considerable size which he wished to exchange for a number of smaller articles produced by different men at different times.

All this complicated business and laid a heavy burden on the memory. With a monetary system, however, each one could sell his products to the others for money. With this money he could buy from the others the things he wanted, when he wished and when they were available.

It was agreed that a system of money would indeed be very convenient. But none of them knew how to set up such a system. They knew how to produce true wealth – goods. But how to produce money, the symbol of this wealth, was something quite beyond them. They were ignorant of the origin of money, and needing it they didn’t know how to produce it. Certainly, many men of education would have been in the same boat; all our governments were in that predicament during the ten years prior to the war. The only thing the country lacked at that time was money, and the governments apparently didn’t know what to do to get it.

5. Arrival of a refugee

ile5aOne evening, when our boys were sitting on the beach going over their problem for the hundredth time, they suddenly saw approaching a small boat with a solitary man at the oars.

They learned that he was the only survivor of a wreck. His name: Oliver.

Delighted to have a new companion, they provided him with the best that they had, and they took him on an inspection tour of the colony.

“Even though we’re lost and cut off from the rest of the world,” they told him, “we haven’t too much to complain about. The earth and the forest are good to us. We lack only one thing — money. That would make it easier for us to exchange our products.”

“Well, you can thank Providence,” replied Oliver, “because I am a banker, and in no time at all, I’ll set up a system of money guaranteed to satisfy you. Then you’ll have everything that people in civilization have.”

A banker!… A BANKER!… An angel coming down out of the clouds couldn’t have inspired more reverence and respect in our men. For, after all, are we not accustomed, we people in civilization, to genuflect before bankers, those men who control the lifeblood of finance?

6. Civilization’s god

ile6a“Mr. Oliver, as our banker, your only occupation on this island will be to look after our money; no manual labour.”

“I shall, like every other banker, carry out to complete satisfaction my task of forging the community’s prosperity.”

“Mr. Oliver, we’re going to build you a house that will be in keeping with your dignity as a banker. But in the meantime, do you mind if we lodge you in the building that we use for our get-togethers?”

“That will suit me, my friends. But first of all, unload the boat. There’s paper and a printing press, complete with ink and type, and there’s a little barrel which I exhort you to treat with the greatest care.”

They unloaded everything. The small barrel aroused intense curiosity in our good fellows.

“This barrel,” Oliver announced, “contains a treasure beyond dreams. It is full of… gold!”

Full of gold! The five all but swooned. The god of civilization here on Salvation Island! The yellow god, always hidden, yet terrible in its power, whose presence or absence or slightest caprice could decide the very fate of all the civilized nations!

“Gold! Mr. Oliver, you are indeed a great banker!”

“Oh august majesty! Oh honorable Oliver! Great high priest of the god, gold! Accept our humble homage, and receive our oaths of fidelity!”

“Yes, my friends, gold enough for a continent. But gold is not for circulation. Gold must be hidden. Gold is the soul of healthy money, and the soul is always invisible. But I’ll explain all that when you receive your first supply of money.”

7. The secret burial

ile7aBefore they went their separate ways for the night, Oliver asked them one last question.

“How much money will you need to begin with in order to facilitate trading?”

They looked at one another, then deferentially towards the banker. After a bit of calculation, and with the advice of the kindly financier, they decided that $200 each would do.

The men parted, exchanging enthusiastic comments. And in spite of the late hour, they spent most of the night lying awake, their imaginations excited by the picture of gold. It was morning before they slept.

As for Oliver, he wasted not a moment. Fatigue was forgotten in the interests of his future as a banker. By dawn’s first light, he dug a pit into which he rolled the creusebarrel. He then filled it in, transplanting a small shrub to the spot about which he carefully arranged sod. It was well hidden.

Then he went to work with his little press to turn out a thousand $1 bills. Watching the clean new banknotes come from his press, the refugee turned banker thought to himself:

“My! How simple it is to make money. All its value comes from the products it will buy. Without produce, these bills are worthless. My five naive customers don’t realize that. They actually think that this new money derives its value from gold! Their very ignorance makes me their master.”

And as evening drew on, the five came to Oliver — on the run.

8. Who owns the new money?

ile8aFive bundles of new banknotes were sitting on the table.

“Before distributing the money,” said the banker, “I would like your attention.

“Now, the basis of all money is gold. And the gold stored away in the vault of my bank is my gold. Consequently, the money is my money. Oh! Don’t look so discouraged. I’m going to lend you this money, and you’re going to use it as you see fit. However, you’ll have to pay interest. Considering that money is scarce here, I don’t think 8% is unreasonable.”

“Oh, that’s quite reasonable, Mr. Oliver.”

“One last point, my friends. Business is business, even between pals. Before you get the money, each of you is going to sign a paper. By it you will bind yourselves to pay both interest and capital under penalty of confiscation of property by me. Oh! This is a mere formality. Your property is of no interest to me. I’m satisfied with money. And I feel sure that I’ll get my money, and that you’ll keep your property.”

“That makes sense, Mr. Oliver. We’re going to work harder than ever in order to pay you back.”

“That’s the spirit. And any time you have a problem, you come and see me. Your banker is your best friend. Now here’s two hundred dollars for each one of you.”

And our five brave fellows went away, their hands full of dollar bills, their heads swimming with the ecstasy of having money.

9. A problem in arithmetic

ile9aAnd so Oliver’s money went into circulation on the island. Trade, simplified by money, doubled. Everybody was happy.

And the banker was always greeted with unfailing respect and gratitude.

But now, let’s see… Why does Tom, the prospector, look so grave as he sits busily figuring with a pencil and paper? It is because Tom, like the others, has signed an agreement to repay Oliver, in one year’s time, the $200 plus $16 interest. But Tom has only a few dollars in his pocket, and the date of payment is near.

For a long time he had wrestled with this problem from his own personal point of view, without success. Finally, he looked at it from the angle of the little community as a whole.

“Taking into consideration everyone on the island as a whole,” he mused, “are we capable of meeting our obligations? Oliver turned out a total of $1000. He’s asking in return $1080. But even if we bring him every dollar bill on the island, we’ll still be $80 short. Nobody made the extra $80. We turn out produce, not dollar bills. So Oliver can take over the entire island, since all the inhabitants together can’t pay him back the total amount of the capital and the interest.

“Even if a few, without any thought for the others, were able to do so, those others would fall. And the turn of the first spared would come eventually. The banker will have everything. We’d better hold a meeting right away and decide what to do about it.”

Tom, with his figures in his hand, had no difficulty in proving the situation. All agreed that they had been duped by the kindly banker. They decided upon a meeting at Oliver’s.

10. The benevolent banker

ile10aOliver guessed what was on their minds, but he put on his best front. While he listened, the impetuous Frank stated the case for the group.

“How can we pay you $1080 when there is only $1000 on the entire island?”

“That’s the interest, my friends. Has not your rate of production increased?”

“Sure, but the money hasn’t. And it’s money you’re asking for, not our products. You are the only one who can make money. You’ve made only $1000, and yet you ask $1080. That’s an impossibility!”

“Now listen, fellows. Bankers, for the greater good of the community, always adapt themselves to the conditions of the times. I’m going to require only the interest. Only $80. You will go on holding the capital.”

“Bless you, Mr. Oliver! Are you going to cancel the $200 each of us owes you?”

“Oh no! I’m sorry, but a banker never cancels a debt. You still owe me all the money you borrowed. But you’ll pay me, each year, only the interest. If you meet the interest payments faithfully each year, I won’t push you for the capital. Maybe some won’t be able to repay even the interest because of the money changing hands among you. Well, organize yourselves like a nation. Set up a system of money contributions, what we call taxes. Those who have more money will be taxed more; the poor will pay less. See to it that you bring me, in one lump sum, the total of the amount of interest, and I’ll be satisfied. And your little nation will thrive.”

So our boys left, somewhat pacified, but still dubious.

11. Oliver exults

ile11aOliver is alone. He is deep in reflection. His thoughts run thus:

“Business is good. These boys are good workers, but stupid. Their ignorance and naivety is my strength. They ask for money, and I give them the chains of bondage. They give me flowers, and I pick their pockets.

“True enough, they could mutiny and throw me into the sea. But pshaw! I have their signatures. They’re honest. They’ll honor their pledges. Honest, hardworking people were put into this world to serve the Financiers.

“Oh great Mammon! I feel your banking genius coursing through my entire being! Oh, illustrious master! How right you were when you said: `Give me control of a nation’s money, and I won’t mind who makes its laws.’ I am the master of Salvation Island because I control its money.

“My soul is drunk with enthusiasm and ambition. I feel I could rule the universe. What I, Oliver, have done here, I can do throughout the entire world. Oh! If only I could get off this island! I know how I could govern the world without wearing a crown.

“My supreme delight would be to instill my philosophy in the minds of those who lead society: bankers, industrialists, politicians, reformers, teachers, journalists — all would be my servants. The masses are content to live in slavery when the elite from among them are constituted to be their overseers.”

12. The cost of living unbearable

ile12aMeanwhile, things went from bad to worse on Salvation Island. Production was up, and bartering had dropped to a minimum. Oliver collected his interest regularly. The others had to think of setting money aside for him. Thus, money tended to clot instead of circulating freely.

Those who paid the most in taxes complained against those who paid less. They raised the prices of their goods to compensate for this loss. The unfortunate poor who paid no taxes lamented the high cost of living, and bought less.

If one took a salaried job with another, he was continually demanding increases in salary in order to meet the mounting cost of living.

Morale was low. The joy went out of living. No one took an interest in his work. Why should he? Produce sold poorly. When they would make a sale, they had to pay taxes to Oliver. They went without things. It was a real crisis. And they accused one another of wanting in charity, and of being the cause of the high cost of living.

One day, Harry, sitting in his orchard, pondered over the situation. He finally arrived at the conclusion that this “progress”, born of a refugee’s monetary system, had spoiled everything on the island. Unquestionably, all five had their faults, but Oliver’s system seemed to have been specifically designed to bring out the worst in human nature.

Harry decided to demonstrate this to his friends and to unite them for action. He started with Jim, who was not hard to convince. “I’m no genius,” he said, “but for a long time now there’s been a bad smell about this banker’s system.”

One by one they came to the same conclusion, and they ended up by deciding to have another conference with Oliver.

13. Enslaved by Oliver

ile13aA veritable tempest burst about the ears of the banker.

“Money’s scarce on the island, fellow, because you take it away from us! We pay you and pay you, and still we owe you as much as at the beginning. We work our heads off! We’ve the finest land possible, and yet we’re worse off than before the day of your arrival. Debts! Debts! Up to our necks in debts!”

“Oh! Now boys, be reasonable! Your affairs are booming, and it’s thanks to me. A good banking system is a country’s best asset. But if it is to work beneficially, you must have faith in the banker. Come to me as you would to a father… Is it more money that you want? Very well. My barrel of gold is good for many thousands of dollars more. See, I’m going to mortgage your latest acquisitions, and lend you another thousand dollars right now.”

“So! Now our debt goes up to $2000! We are going to have twice as much interest to pay for the rest of our lives!”

“Well, yes — but I’ll lend you more whenever the value of your property increases. And you’ll never pay anything but the interest. You’ll lump all your debts into one — what we call a consolidated debt. And you can add to the debt, year after year.”

“And raise the taxes, year after year?”

“Obviously. But your revenues also increase every year.”

“So then, the more the country develops each year because of our labor, the more the public debt increases!”

“Why, of course! Just as in your country – or in any other part of the civilized world for that matter. The degree of a country’s civilization is always gauged by the size of its debt to the bankers.”

14. The wolf devours the lambs

ile14a“And that’s a healthy monetary system, Mr. Oliver?”

“Gentlemen, all sound money is based on gold, and it comes from the banks in the form of debts. The national debt is a good thing. It keeps men from becoming too satisfied. It subjugates governments to the supreme and ultimate wisdom, that which is incarnate in bankers. As a banker, I am the torch of civilization here on your little island. I will dictate your politics and regulate your standard of living.”

“Mr. Oliver, we’re simply uneducated folks, but we don’t want that kind of civilization here. We’ll not borrow another cent off of you. Sound money or not, we don’t want any further transactions with you.”

“Gentlemen, I deeply regret this very ill-advised decision of yours. But if you break with me, remember, I have your signatures. Repay me everything at once — capital and interest.”

“But that’s impossible, sir. Even if we give you all the money on the island, we still won’t be square with you.”

“I can’t help that. Did you or did you not sign? Yes? Very well.

“By virtue of the sanctity of contracts, I hereby seize your mortgaged property which was what you agreed to at the time you were so happy to have my help. If you don’t want to serve willingly the supreme authority of money, then you’ll obey by force. You’ll continue to exploit the island, but in my interests and under my conditions. Now, get out! You’ll get your orders from me tomorrow.”

15. Control the press

ile15aOliver knew that whoever controlled the nation’s money, controlled the nation. But he knew also that to maintain that control, it was necessary to keep the people in a state of ignorance, and to distract them by a variety of means.

Oliver had observed that of the five islanders, two were conservatives and three were liberals. That much had evolved from their evening conversations, especially after they had fallen into slavery. And between the conservatives and those who were liberals, there was a constant friction.

On occasions, Harry, the most neutral of the five, considering that all had the same needs and aspirations, had suggested the union of the people to put pressure on the authorities. Such a union, Oliver could not tolerate; it would mean the end of his rule. No dictator, financial or otherwise, could stand before a people united and educated.

Consequently, Oliver set himself to foment, as much as possible, political strife between them.

The refugee put his press to work, turning out two weekly newspapers, “The Sun”, for the Liberals, and “The Star”, for the Conservatives.

The general tenor of “The Sun” was: “If you are no longer master, it is because of those traitorous Conservatives who have sold out to big business.”

That of “The Star”: “The ruinous state of business and the national debt can be traced directly to the political responsibility of those unmentionable Liberals.”

16. A priceless bit of floatsam

ile16aOne day, Tom, the prospector, found on a small beach, hidden by tall grass at one end of the island, a lifeboat, empty except for a trunk in good condition lying in the bottom of it.

He opened the trunk. Among the articles within, a sort of album caught his eye: “The First Year of Social Credit”. Between the covers he found the first of a Social Credit publication.

Curious, Tom sat down and began to read the volume. His interest grew; his face lit up.

“Well, just look at this!” he cried out loud. “This is something we should have known a long time ago.”

“Money gets its value, not from gold, but from the products which that money buys.

“Simply put, money should be a sort of accountancy, credits passing from one account to another according to purchases and sales. The sum total of money will depend upon the sum total of production.

“Each time production increases, there is a corresponding increase in the amount of money. Never at any time should interest be paid on new money. Progress is marked, not by an increase in the public debt, but by the issuance of an equal dividend to each individual… Prices are adjusted to the general purchasing power by a coefficient of prices. Social Credit…”

But Tom could no longer contain himself. He got up and set off at a run, the book in his hands, to share this glorious discovery with his four comrades.

17. Money — elementary accounting

ile17So Tom became the teacher. He taught the others what he had learned from that God-sent Social Credit publication.

“This,” he said, “is what we can do without waiting for a banker and his keg of gold, nor without underwriting a debt.

“I open an account in the name of each one of you. In the right hand column are the credits which increase your account; to the left are the debits which subtract from your account.

“Each wants $200 to begin with. Very well. We write $200 to the credit of each. Each immediately has $200.

“Frank buys some goods from Paul for $10. I deduct $10 from Frank, leaving him $190. I add $10 to Paul, and he now has $210.

“Jim buys from Paul to the amount of $8. I deduct from Jim $8, leaving him $192. Paul now has $218.

“Paul buys wood from Frank for $15. I deduct $15 from Paul, leaving $203. I add $15 to Frank’s account, and it goes back to $205.

“And so we continue; from one account to another, in the same fashion that paper banknotes go from one man’s pocket to another’s.

“If someone needs money to expand production, we issue him the necessary amount of new credit. Once he has sold his products, he repays the sum to the credit fund. The same with public works; paid for by new credits.

“Likewise, each one’s account is periodically increased, but without taking credits from anyone, in order that all may benefit from the progress society makes. That’s the national dividend. In this fashion, money becomes an instrument of service.”

18. The banker's despair

ile18Everyone understood. The members of this little community became Social Creditors. The following day, Oliver, the banker, received a letter signed by the five:

“Dear sir! Without the slightest necessity you have plunged us into debt and exploited us. We don’t need you anymore to run our money system. From now on, we’ll have all the money we need without gold, debts, nor thieves. We are establishing, at once, the system of Social Credit on the island. The national dividend is going to replace the national debt.

“If you insist on being repaid, we can repay you all the money you gave us. But not a cent more. You cannot lay claim to that which you have not made.”

Oliver was in despair. His empire was crumbling. His dreams shattered. What could he do? Arguments would be futile. The five were now Social Crediters: money and credit were now not more mysterious to them than they were to Oliver.

“Oh!” said Oliver. “These men have been won to Social Credit! Their doctrine will spread far more quickly than mine. Should I beg forgiveness? Become one of them? I, a financier and a banker? Never! Rather, I shall try and put as much distance between them and me as I can!”

19. The fraud unmasked

ile19aTo protect themselves against any future claim by Oliver, our five men decided to make him sign a document attesting that he again possessed all he had when he first arrived on the island.

An inventory was taken; the boat, the oars, the little press, and the famous barrel of gold.

Oliver had to reveal where he had hidden the gold. Our boys hoisted it from the hole with considerably less respect than the day they had unloaded it from the boat. Social Credit had taught them to despise gold.

The prospector, who was helping to lift the barrel, found it surprisingly light for gold. If the barrel was full, he told the others, there was something in it besides gold.

The impetuous Frank didn’t waste a moment; a blow of the axe, and the contents of the barrel was exposed.

Gold? Not so much as a grain of it! Just rocks — plain, worthless rocks! Our men couldn’t get over the shock.

“Don’t tell us that he could bamboozle us to this extent!”

“Were we such mutton heads as to go into raptures over the mere mention of gold?”

“Did we mortgage all of our possessions for a few pieces of paper based on a few pounds of rocks? It’s a robbery, compounded with lies!”

“To think that we sulked and almost hated one another all because of such a fraud! That devil!”

Furious, Frank raised his axe. In great haste, the banker has already taken flight towards the forest.

20. Farewell to Salvation Island

ile20After the opening of the barrel, and the revelation of his duplicity, nothing further was heard of Oliver.

Shortly after, a ship, cruising off the normal navigation route, noticed signs of life on this uncharted island, and cast anchor a short distance offshore.

The men learned that the ship was en route to America. So they decided to take with them what they could carry, and return to the United States.

Above all, they made sure to take back with them the album, “The First Year of Social Credit”, which had proven to be their salvation from the hands of the financier, Oliver, and which had illumined their minds with an inextinguishable light.

All five solemnly promised to get in touch with the management of this paper, once back in America, and to become devoted and zealous apostles of the Cause of Social Credit in their country.

From parable to reality A debt-money system

 

Louis Even
louisevenThe debt-money system introduced by Oliver into the Salvation Island made the little community sink into financial debt in proportion as it developed and enriched the island by its own work.

This is exactly what happens in our civilized countries, is it not?

Canada of today is certainly richer, in real wealth, than it was 50, 100 years ago, or in the pioneers’ age. But compare the national debt, the sum of all public debts of Canada today with this sum 50, 100 years, three centuries ago!

Yet the Canadians themselves produced this enrichment by their labour and their know-how. Then why should they be collectively indebted for the result of their own activities?

For example, consider the schools, the municipal aqueducts, the bridges, roads and other fabrics of public character. Who build them all? Builders of the country. Who supply them with the needed materials? Manufacturers of the country. And how come they can be employed in public works ? Because there are other kinds of workers who produce food, clothes, shoes, who supply all the things and services required for the wants of the constructors and manufacturers.

Thus the whole population of Canada by its work of different kinds, produce all those developments. If we must obtain goods from abroad, we send other goods abroad in counterpart of them.

Now, what do you see? Everywhere the citizens are taxed to pay those schools, those hospitals, those bridges, roads and other public works. The Canadians, as a collectivity, are thus compelled to pay what they produce as a collectivity.

You pay much more than the double price

And this is not all. The population is made to pay more than the price of what it produced. Their own production — a real enrichment — has become for the Canadians a debt burdened with interest. When years add to years, the sum of the interests can equal or even exceed the amount of the debt imposed by the system.

It happens that the population may have to pay two, three times the cost of what its members produced.

In addition to the public debts, there are industrial debts, also loaded with interests. They compel the manufacturers and contractors to increase their prices beyond the cost of production, in order to reimburse the capital and the interests; otherwise they would become insolvent, bankrupt.

Both public and industrial debts are paid, plus interest, by the Canadian population, to the financial system. We pay taxes for the public debts, and a surplus of price for the industrial debts. Prices are swelling while the purse is flattened by taxes.

A tyrannical system

These and many other facts are indicative of a money system, a financial system which controls instead of being a servant; a system to dominate the people — as Oliver dominated the fellows of the Island before they rebelled.

And if the money masters refuse to lend, or if they make their conditions unbearable for the public bodies or for the manufacturers, what happens? It happens that the public bodies give up many projects, no matter how urgent; and the manufacturers give up development or production plans that would answer to real needs of Canadians. This is a cause of unemployment. And those who still have something, or who earn a salary, must be taxed to prevent the unemployed from starving completely.

Can you imagine a more tyrannical system, with so baneful effects on every Canadian?

A bar to distribution

And this is not all. Not only the money system indebts the producers, or paralyzes the production it refuses to finance, but it is a wretched financial tool for the distribution of the goods.

Notwithstanding the fact that stores, shops and warehouses are full, and that everything is at hand for an even greater production, the distribution of the goods already produced is stinted.

You can obtain only what you can pay. In face of an abundant production, there should be an abundance of purchasing power, of money in the wallets of the people. Such is not the fact. The price of the finished goods is always higher than the amount of money distributed as purchasing power in the course of their production. This is inherent to the accountancy of the present system of finance which has no mechanism to fill the gap.

The capacity to pay is not made to equal the capacity to produce. Finance and reality do not work at the same rate. Reality means an abundance of goods easy to produce. Finance means a lacking money hard to obtain.

To correct what is wicked

Thus the present money system is truly an oppressive one, when it should be a system of service.

This does not mean that we must do away with it, but we must correct it. The application of the financial principles known as Social Credit would make this correction magnificently. (Do not confound Social Credit with the political party which usurps that name while pursuing other ends and practising an adverse policy.)

The principles of Social Credit, when applied, would make the money system a servant instead of a master. They were discovered and enunciated by a genius, C. H. Douglas (deceased in 1952). His first writings on this subject were published in 1918.

Not a Political Party

The first idea that comes to the mind of too many people living in Canada, when they hear the words Social Credit, is the idea of a political party. But no. Social Credit is not a party, although there was a party by that name. Social Credit is no more a party than Christianity is a party, even if, in some countries you find political parties with such names as Christian Democrats, Christian Party, Christian Center, etc. A political party exists purposely to seek power, to be or strive to be the group that rules the country.

Social Credit works in the very opposite way. Social Credit will set the individual free; it will place the individual in a situation where he can himself be the ruler of his own life. Social Credit will thus distribute power to individuals not the power to boss their neighbours, but the power to order the goods they want from the potential production of their country.

Social Credit. Exact. Logical. Humane

Social Credit considers realities. It refuses to be hypnotized by the halo with which finance has been surrounded.

The economic realities are, on one hand, the production; not only the existing production, but the production immediately possible, the production capacity; and they are, on the other hand, the human needs.

Social Credit gives priority to the realities over the financial signs that are not realities, that must simply represent, and faithfully represent, the realities.

Real credit and financial credit

This is why Social Credit makes a distinction between real credit (a reality) and financial credit (a representation).

The word “credit” comes from the Latin word “credere” and bears the idea of confidence. Even in everyday language, to give credit to someone, is it not to indicate that we have confidence in him?

Social Credit calls real credit of a country what really gives confidence in that country, confidence that one can live there without too much difficulty. The real credit of a country is its production capacity. It is its degree of possibility to produce and deliver the goods to the needs.

And Social Credit affirms that financial credit must be the exact representation of the real credit.

It is therefore the production capacity that must determine the movement of finance. It is absolutely not for finance to command, paralyze or limit the production capacity.

This is why Social Credit demands the establishment of a credit office that would keep an account of national (or provincial) credit. Any production, those of consumption goods and those of capital goods, would then be entered as an increase of wealth. And all consumptions (or destruction, or depreciation) would then be entered as a decrease of wealth. The net increase in wealth would be production minus consumption.

With very few and passing exceptions where a country would live at the expense of another, the production of a country surpasses its consumption. The country is becoming richer. It is therefore absurd to say that it is going into debt. The public debt is an absurdity.

And when a country is getting richer, its citizens must certainly draw advantage of it. This is what Social Credit recognizes, when speaking of a dividend to all, instead of debts and taxes on everyone.

Money without inflation

The present system is subject to inflation. Inflation means rising prices.

When money cannot begin without, as today, creating a debt, it is necessary that ways be found to draw from the public more money than there was put into circulation, so as to refund the debt plus the interest of the debt. Whence taxes, that are added to prices or that diminish the purchasing power before the prices. Whence also increases of prices by industrials, who must draw from the public only the money to pay for the products, but also for the financial charges, the interests on the industrial loans.

Social Credit would suppress this cancer, this tumor upon the prices, since the production would be an increase of wealth, and not an indebtedness.

And, Social Credit would lower the prices to be paid by the buyers, since it would have the community pay only what it consumes, and not all what it produces.

If, as an example, in the whole country, the consumption was only equal to three quarters of the production, the buyers would only pay, on any article bought by them, only three quarters of the accounting price. The Credit Office would take care of compensating the retailer so that he may recuperate all of his accounting price.

This means that the amounts of money included in the prices, but not having reached the hands of the public, or directed towards saving or investment, are not applied to the purchase of the production, would be by the organism of credit replaced to the benefit of those who are in need of the products. This would prevent the accumulation of products in the face of needs. And the mechanism to do it would have the advantage of operating with a decrease in prices, therefore in eliminating all possible inflation.

A dividend to everyone

The periodic dividend to everyone, recommended by Social Credit, is also in conformity with the economic realities.

The modern production, in fact, is more and more the result of applied science, of inventions, of improvements in production techniques, and of all these things that constitute a common good: an heritage transmitted and increased from one generation to the other. The modern production is less and less the result of individual labour.

Hoping to distribute the production only through the reward of human labour, is therefore contrary to the facts. It is at the same time impossible, for the money distributed as recompense for work can never buy the production that contains other elements in its prices.

Seeking salary increases with decreases in human labour, is also to change the meaning of the word salary. It is no more a recompense for work; it is the inclusion in the salary of the hired persons of what should be a dividend for all, since it is the fruit of progress and not of labour. This deviation is a hindrance to the desired goal, since in becoming a salary instead of remaining a dividend, these additional amounts go into the prices.

Social Credit would distribute the dividend to everyone, directly, without charging it to industry. It would truly raise everyone’s purchasing power.

Besides being the recognition of a very productive community capital, this social dividend would at the same time be an excellent way of satisfying the primitive destination of the earthly goods. “Earth and its riches were created for all men” (Pius XII). This is totally ignored by the present economic regime in its financial technique of distribution.

Social Credit would thus directly establish an adequate repartition of the goods of nature and of industry, instead of leaving the task to the surgery of taxation, that amputates and grafts continually, without ever healing the disease.

A share to each and everyone, guaranteed by the dividend to each and everyone from birth till death; and this share should be sufficient to at least insure what is necessary for life.

Louis EVEN
“The Money Myth Exploded” was one of the first articles of Louis Even, and remains one of the most popular to explain how money is created as a debt by private banks. It is available in the form of an 8-page leaflet (tabloid format) that you can order from the “Michael” office, in several languages: English, French, Spanish, Italian, German, Polish, Portuguese.

You like what you have just read? It’s important to make it known to others! You can order copies of this 8-page leaflet “The Money Myth Exploded”, or even better, you can subscribe to the “Michael” Journal, from which this article is taken, to get the latest news about the developments of our Movement.

0 Comments

Leave a reply

  1. Shipwreck survivors

An explosion had blown their ship apart. Each one grasped the first bit of wreckage that came to hand. And when it was over, there were five left, five huddled on a raft which the waves carried along at their will. As for the other victims of the disaster, there was no sign of them.

Hour after long hour their eyes searched the horizon. Would some passing ship sight them? Would their make-shift raft finds its way to some friendly shore?

Suddenly a cry rang out:  “Land! Look! Over there, in the direction the waves are carrying us!”

And as the vague silhouette proved itself to be, in fact, the outline of a shore, the figures on the raft danced with joy.

They were five. There was Frank, the carpenter, big and energetic. It was he who had first cried, “Land!”.

Then Paul, a farmer. You can see him, front and left in the picture, on his knees, one hand against the floor, the other gripping the mast of the raft.

Next is Jim, an animal breeder; he’s the one in the striped pants, kneeling and gazing in the direction of land.

Then there is Harry, an agriculturist, a little on the stout side, seated on a trunk salvaged from the wreck.

And finally Tom, a prospector and a mineralogist; he is the merry fellow standing in the rear of the picture with his hand on the carpenter’s shoulder.

  1. A providential island

To our five men, setting foot on land was like returning to life from the grave.

When they had dried and warmed themselves their first impulse was to explore this little island on to which they had been cast, far from civilization.

A quick survey was sufficient to raise their spirit. The island was not a barren rock. True enough, they were the only men on it at the moment. But judging from the herds of semi-domesticated animals they encountered, there must have been men here at some time before them. Jim, the animal breeder, was sure he could completely domesticate them and put them to good service.

Paul found the island’s soil, for the most part, to be quite suitable for cultivation.

Harry discovered some fruit trees which, if properly tended, would give good harvests.

Most important were the large stands of timber embracing many types of wood. Frank, without too much difficulty, would be able to build houses for the little community.

As for Tom, the prospector, well, the rock formations of the island showed signs of rich mineral deposits. Lacking the tools, Tom still felt his ingenuity and initiative could produce metals from the ores.

So each could serve the common good with his special talent. All agreed to call the place Salvation Island. All gave thanks to Providence for the reasonably happy ending to what could have been stark tragedy.

  1. True wealth

Here are the men at work.

The carpenter builds houses and makes furniture. At first they find their food where they can. But soon the fields are tilled and seeded, and the farmer has his crops.

As season followed season this island, this heritage of the five men, Salvation Island, became richer and richer.

Its wealth was not that of gold or of paper bank notes, but one of true value; a wealth of food and clothing and shelter, of all the things to meet human needs.

Each man worked at his own trade. Whatever surpluses he might have of his own produce, he exchanged for the surplus products of the others.

Life wasn’t always as smooth and complete as they could have wished it to be. They lacked many of the things to which they had been accustomed in civilization. But their lot could have been a great deal worse.

Besides, all had experienced the depression in Canada. They still remembered the empty bellies side by side with stores crammed with food.

At least, on Salvation Island, they weren’t forced to see the things they needed rot before their eyes. Taxes were unknown here. Nor did they go in constant fear of seizure by the bailiff. They worked hard but at least they could enjoy the fruits of their toil.

So they developed the island, thanking God and hoping for the day of reunion with their families, still in possession of life and health, those two greatest of blessings.

  1. A serious inconvenience

Our men often got together to talk over their affairs.

Under the simple economic system which had developed, one thing was beginning to bother then more and more; they had no form of money. Barter, the direct exchange of goods for goods, had its drawbacks. The products to be exchanged were not always at hand when a trade was discussed. For example, wood delivered to the farmer in winter could not be paid for in potatoes until six months later.

Sometimes one man might have an article of considerable size which he wished to exchange for a number of smaller articles produced by different men at different times.

All this complicated business and laid a heavy burden on the memory. With a monetary system, however, each one could sell his products to the others for money. With this money he could buy from the others the things he wanted, when he wished and when they were available.

It was agreed that a system of money would indeed be very convenient. But none of them knew how to set up such a system. They knew how to produce true wealth – goods. But how to produce money, the symbol of this wealth, was something quite beyond them. They were ignorant of the origin of money, and needing it they didn’t know how to produce it. Certainly, many men of education would have been in the same boat; all our governments were in that predicament during the ten years prior to the war. The only thing the country lacked at that time was money, and the governments apparently didn’t know what to do to get it.

  1. Arrival of a refugee

One evening, when our boys were sitting on the beach going over their problem for the hundredth time, they suddenly saw approaching a small boat with a solitary man at the oars.

They learned that he was the only survivor of a wreck. His name: Oliver.

Delighted to have a new companion, they provided him with the best that they had, and they took him on an inspection tour of the colony.

“Even though we’re lost and cut off from the rest of the world,” they told him, “we haven’t too much to complain about. The earth and the forest are good to us. We lack only one thing — money. That would make it easier for us to exchange our products.”

“Well, you can thank Providence,” replied Oliver, “because I am a banker, and in no time at all, I’ll set up a system of money guaranteed to satisfy you. Then you’ll have everything that people in civilization have.”

A banker!… A BANKER!… An angel coming down out of the clouds couldn’t have inspired more reverence and respect in our men. For, after all, are we not accustomed, we people in civilization, to genuflect before bankers, those men who control the lifeblood of finance?

  1. Civilization’s god

“Mr. Oliver, as our banker, your only occupation on this island will be to look after our money; no manual labour.”

“I shall, like every other banker, carry out to complete satisfaction my task of forging the community’s prosperity.”

“Mr. Oliver, we’re going to build you a house that will be in keeping with your dignity as a banker. But in the meantime, do you mind if we lodge you in the building that we use for our get-togethers?”

“That will suit me, my friends. But first of all, unload the boat. There’s paper and a printing press, complete with ink and type, and there’s a little barrel which I exhort you to treat with the greatest care.”

They unloaded everything. The small barrel aroused intense curiosity in our good fellows.

“This barrel,” Oliver announced, “contains a treasure beyond dreams. It is full of… gold!”

Full of gold! The five all but swooned. The god of civilization here on Salvation Island! The yellow god, always hidden, yet terrible in its power, whose presence or absence or slightest caprice could decide the very fate of all the civilized nations!

“Gold! Mr. Oliver, you are indeed a great banker!”

“Oh august majesty! Oh honorable Oliver! Great high priest of the god, gold! Accept our humble homage, and receive our oaths of fidelity!”

“Yes, my friends, gold enough for a continent. But gold is not for circulation. Gold must be hidden. Gold is the soul of healthy money, and the soul is always invisible. But I’ll explain all that when you receive your first supply of money.”

  1. The secret burial

Before they went their separate ways for the night, Oliver asked them one last question.

“How much money will you need to begin with in order to facilitate trading?”

They looked at one another, then deferentially towards the banker. After a bit of calculation, and with the advice of the kindly financier, they decided that $200 each would do.

The men parted, exchanging enthusiastic comments. And in spite of the late hour, they spent most of the night lying awake, their imaginations excited by the picture of gold. It was morning before they slept.

As for Oliver, he wasted not a moment. Fatigue was forgotten in the interests of his future as a banker. By dawn’s first light, he dug a pit into which he rolled the barrel. He then filled it in, transplanting a small shrub to the spot about which he carefully arranged sod. It was well hidden.

Then he went to work with his little press to turn out a thousand $1 bills. Watching the clean new banknotes come from his press, the refugee turned banker thought to himself:

“My! How simple it is to make money. All its value comes from the products it will buy. Without produce, these bills are worthless. My five naive customers don’t realize that. They actually think that this new money derives its value from gold! Their very ignorance makes me their master.”

And as evening drew on, the five came to Oliver — on the run.

  1. Who owns the new money?

Five bundles of new banknotes were sitting on the table.

“Before distributing the money,” said the banker, “I would like your attention.

“Now, the basis of all money is gold. And the gold stored away in the vault of my bank is my gold. Consequently, the money is my money. Oh! Don’t look so discouraged. I’m going to lend you this money, and you’re going to use it as you see fit. However, you’ll have to pay interest. Considering that money is scarce here, I don’t think 8% is unreasonable.”

“Oh, that’s quite reasonable, Mr. Oliver.”

“One last point, my friends. Business is business, even between pals. Before you get the money, each of you is going to sign a paper. By it you will bind yourselves to pay both interest and capital under penalty of confiscation of property by me. Oh! This is a mere formality. Your property is of no interest to me. I’m satisfied with money. And I feel sure that I’ll get my money, and that you’ll keep your property.”

“That makes sense, Mr. Oliver. We’re going to work harder than ever in order to pay you back.”

“That’s the spirit. And any time you have a problem, you come and see me. Your banker is your best friend. Now here’s two hundred dollars for each one of you.”

And our five brave fellows went away, their hands full of dollar bills, their heads swimming with the ecstasy of having money.

  1. A problem in arithmetic

And so Oliver’s money went into circulation on the island. Trade, simplified by money, doubled. Everybody was happy.

And the banker was always greeted with unfailing respect and gratitude.

But now, let’s see… Why does Tom, the prospector, look so grave as he sits busily figuring with a pencil and paper? It is because Tom, like the others, has signed an agreement to repay Oliver, in one year’s time, the $200 plus $16 interest. But Tom has only a few dollars in his pocket, and the date of payment is near.

For a long time he had wrestled with this problem from his own personal point of view, without success. Finally, he looked at it from the angle of the little community as a whole.

“Taking into consideration everyone on the island as a whole,” he mused, “are we capable of meeting our obligations? Oliver turned out a total of $1000. He’s asking in return $1080. But even if we bring him every dollar bill on the island, we’ll still be $80 short. Nobody made the extra $80. We turn out produce, not dollar bills. So Oliver can take over the entire island, since all the inhabitants together can’t pay him back the total amount of the capital and the interest.

“Even if a few, without any thought for the others, were able to do so, those others would fall. And the turn of the first spared would come eventually. The banker will have everything. We’d better hold a meeting right away and decide what to do about it.”

Tom, with his figures in his hand, had no difficulty in proving the situation. All agreed that they had been duped by the kindly banker. They decided upon a meeting at Oliver’s.

 

(continued from first page)

10. The benevolent banker

Oliver guessed what was on their minds, but he put on his best front. While he listened, the impetuous Frank stated the case for the group.

“How can we pay you $1080 when there is only $1000 on the entire island?”

“That’s the interest, my friends. Has not your rate of production increased?”

“Sure, but the money hasn’t. And it’s money you’re asking for, not our products. You are the only one who can make money. You’ve made only $1000, and yet you ask $1080. That’s an impossibility!”

“Now listen, fellows. Bankers, for the greater good of the community, always adapt themselves to the conditions of the times. I’m going to require only the interest. Only $80. You will go on holding the capital.”

“Bless you, Mr. Oliver! Are you going to cancel the $200 each of us owes you?”

“Oh no! I’m sorry, but a banker never cancels a debt. You still owe me all the money you borrowed. But you’ll pay me, each year, only the interest. If you meet the interest payments faithfully each year, I won’t push you for the capital. Maybe some won’t be able to repay even the interest because of the money changing hands among you. Well, organize yourselves like a nation. Set up a system of money contributions, what we call taxes. Those who have more money will be taxed more; the poor will pay less. See to it that you bring me, in one lump sum, the total of the amount of interest, and I’ll be satisfied. And your little nation will thrive.”

So our boys left, somewhat pacified, but still dubious.

11. Oliver exults

Oliver is alone. He is deep in reflection. His thoughts run thus:

“Business is good. These boys are good workers, but stupid. Their ignorance and naivety is my strength. They ask for money, and I give them the chains of bondage. They give me flowers, and I pick their pockets.

“True enough, they could mutiny and throw me into the sea. But pshaw! I have their signatures. They’re honest. They’ll honor their pledges. Honest, hardworking people were put into this world to serve the Financiers.

“Oh great Mammon! I feel your banking genius coursing through my entire being! Oh, illustrious master! How right you were when you said: `Give me control of a nation’s money, and I won’t mind who makes its laws.’ I am the master of Salvation Island because I control its money.

“My soul is drunk with enthusiasm and ambition. I feel I could rule the universe. What I, Oliver, have done here, I can do throughout the entire world. Oh! If only I could get off this island! I know how I could govern the world without wearing a crown.

“My supreme delight would be to instill my philosophy in the minds of those who lead society: bankers, industrialists, politicians, reformers, teachers, journalists — all would be my servants. The masses are content to live in slavery when the elite from among them are constituted to be their overseers.”

12. The cost of living unbearable

Meanwhile, things went from bad to worse on Salvation Island. Production was up, and bartering had dropped to a minimum. Oliver collected his interest regularly. The others had to think of setting money aside for him. Thus, money tended to clot instead of circulating freely.

Those who paid the most in taxes complained against those who paid less. They raised the prices of their goods to compensate for this loss. The unfortunate poor who paid no taxes lamented the high cost of living, and bought less.

If one took a salaried job with another, he was continually demanding increases in salary in order to meet the mounting cost of living.

Morale was low. The joy went out of living. No one took an interest in his work. Why should he? Produce sold poorly. When they would make a sale, they had to pay taxes to Oliver. They went without things. It was a real crisis. And they accused one another of wanting in charity, and of being the cause of the high cost of living.

One day, Harry, sitting in his orchard, pondered over the situation. He finally arrived at the conclusion that this “progress”, born of a refugee’s monetary system, had spoiled everything on the island. Unquestionably, all five had their faults, but Oliver’s system seemed to have been specifically designed to bring out the worst in human nature.

Harry decided to demonstrate this to his friends and to unite them for action. He started with Jim, who was not hard to convince. “I’m no genius,” he said, “but for a long time now there’s been a bad smell about this banker’s system.”

One by one they came to the same conclusion, and they ended up by deciding to have another conference with Oliver.

13. Enslaved by Oliver

A veritable tempest burst about the ears of the banker.

“Money’s scarce on the island, fellow, because you take it away from us! We pay you and pay you, and still we owe you as much as at the beginning. We work our heads off! We’ve the finest land possible, and yet we’re worse off than before the day of your arrival. Debts! Debts! Up to our necks in debts!”

“Oh! Now boys, be reasonable! Your affairs are booming, and it’s thanks to me. A good banking system is a country’s best asset. But if it is to work beneficially, you must have faith in the banker. Come to me as you would to a father… Is it more money that you want? Very well. My barrel of gold is good for many thousands of dollars more. See, I’m going to mortgage your latest acquisitions, and lend you another thousand dollars right now.”

“So! Now our debt goes up to $2000! We are going to have twice as much interest to pay for the rest of our lives!”

“Well, yes — but I’ll lend you more whenever the value of your property increases. And you’ll never pay anything but the interest. You’ll lump all your debts into one — what we call a consolidated debt. And you can add to the debt, year after year.”

“And raise the taxes, year after year?”

“Obviously. But your revenues also increase every year.”

“So then, the more the country develops each year because of our labor, the more the public debt increases!”

“Why, of course! Just as in your country – or in any other part of the civilized world for that matter. The degree of a country’s civilization is always gauged by the size of its debt to the bankers.”

14. The wolf devours the lambs

“And that’s a healthy monetary system, Mr. Oliver?”

“Gentlemen, all sound money is based on gold, and it comes from the banks in the form of debts. The national debt is a good thing. It keeps men from becoming too satisfied. It subjugates governments to the supreme and ultimate wisdom, that which is incarnate in bankers. As a banker, I am the torch of civilization here on your little island. I will dictate your politics and regulate your standard of living.”

“Mr. Oliver, we’re simply uneducated folks, but we don’t want that kind of civilization here. We’ll not borrow another cent off of you. Sound money or not, we don’t want any further transactions with you.”

“Gentlemen, I deeply regret this very ill-advised decision of yours. But if you break with me, remember, I have your signatures. Repay me everything at once — capital and interest.”

“But that’s impossible, sir. Even if we give you all the money on the island, we still won’t be square with you.”

“I can’t help that. Did you or did you not sign? Yes? Very well.

“By virtue of the sanctity of contracts, I hereby seize your mortgaged property which was what you agreed to at the time you were so happy to have my help. If you don’t want to serve willingly the supreme authority of money, then you’ll obey by force. You’ll continue to exploit the island, but in my interests and under my conditions. Now, get out! You’ll get your orders from me tomorrow.”

15. Control of the press

Oliver knew that whoever controlled the nation’s money, controlled the nation. But he knew also that to maintain that control, it was necessary to keep the people in a state of ignorance, and to distract them by a variety of means.

Oliver had observed that of the five islanders, two were conservatives and three were liberals. That much had evolved from their evening conversations, especially after they had fallen into slavery. And between the conservatives and those who were liberals, there was a constant friction.

On occasions, Harry, the most neutral of the five, considering that all had the same needs and aspirations, had suggested the union of the people to put pressure on the authorities. Such a union, Oliver could not tolerate; it would mean the end of his rule. No dictator, financial or otherwise, could stand before a people united and educated.

Consequently, Oliver set himself to foment, as much as possible, political strife between them.

The refugee put his press to work, turning out two weekly newspapers, “The Sun”, for the Liberals, and “The Star”, for the Conservatives.

The general tenor of “The Sun” was: “If you are no longer master, it is because of those traitorous Conservatives who have sold out to big business.”

That of “The Star”: “The ruinous state of business and the national debt can be traced directly to the political responsibility of those unmentionable Liberals.”

16. A priceless bit of floatsam

One day, Tom, the prospector, found on a small beach, hidden by tall grass at one end of the island, a lifeboat, empty except for a trunk in good condition lying in the bottom of it.

He opened the trunk. Among the articles within, a sort of album caught his eye: “The First Year of Social Credit”. Between the covers he found the first of a Social Credit publication.

Curious, Tom sat down and began to read the volume. His interest grew; his face lit up.

“Well, just look at this!” he cried out loud. “This is something we should have known a long time ago.”

“Money gets its value, not from gold, but from the products which that money buys.

“Simply put, money should be a sort of accountancy, credits passing from one account to another according to purchases and sales. The sum total of money will depend upon the sum total of production.

“Each time production increases, there is a corresponding increase in the amount of money. Never at any time should interest be paid on new money. Progress is marked, not by an increase in the public debt, but by the issuance of an equal dividend to each individual… Prices are adjusted to the general purchasing power by a coefficient of prices. Social Credit…”

But Tom could no longer contain himself. He got up and set off at a run, the book in his hands, to share this glorious discovery with his four comrades.

17. Money — elementary accounting

So Tom became the teacher. He taught the others what he had learned from that God-sent Social Credit publication.

“This,” he said, “is what we can do without waiting for a banker and his keg of gold, nor without underwriting a debt.

“I open an account in the name of each one of you. In the right hand column are the credits which increase your account; to the left are the debits which subtract from your account.

“Each wants $200 to begin with. Very well. We write $200 to the credit of each. Each immediately has $200.

“Frank buys some goods from Paul for $10. I deduct $10 from Frank, leaving him $190. I add $10 to Paul, and he now has $210.

“Jim buys from Paul to the amount of $8. I deduct from Jim $8, leaving him $192. Paul now has $218.

“Paul buys wood from Frank for $15. I deduct $15 from Paul, leaving $203. I add $15 to Frank’s account, and it goes back to $205.

“And so we continue; from one account to another, in the same fashion that paper banknotes go from one man’s pocket to another’s.

“If someone needs money to expand production, we issue him the necessary amount of new credit. Once he has sold his products, he repays the sum to the credit fund. The same with public works; paid for by new credits.

“Likewise, each one’s account is periodically increased, but without taking credits from anyone, in order that all may benefit from the progress society makes. That’s the national dividend. In this fashion, money becomes an instrument of service.”

18. The banker’s despair

Everyone understood. The members of this little community became Social Crediters. The following day, Oliver, the banker, received a letter signed by the five:

“Dear sir! Without the slightest necessity you have plunged us into debt and exploited us. We don’t need you anymore to run our money system. From now on, we’ll have all the money we need without gold, debts, nor thieves. We are establishing, at once, the system of Social Credit on the island. The national dividend is going to replace the national debt.

“If you insist on being repaid, we can repay you all the money you gave us. But not a cent more. You cannot lay claim to that which you have not made.”

Oliver was in despair. His empire was crumbling. His dreams shattered. What could he do? Arguments would be futile. The five were now Social Crediters: money and credit were now not more mysterious to them than they were to Oliver.

“Oh!” said Oliver. “These men have been won to Social Credit! Their doctrine will spread far more quickly than mine. Should I beg forgiveness? Become one of them? I, a financier and a banker? Never! Rather, I shall try and put as much distance between them and me as I can!”

19. The fraud unmasked

To protect themselves against any future claim by Oliver, our five men decided to make him sign a document attesting that he again possessed all he had when he first arrived on the island.

An inventory was taken; the boat, the oars, the little press, and the famous barrel of gold.

Oliver had to reveal where he had hidden the gold. Our boys hoisted it from the hole with considerably less respect than the day they had unloaded it from the boat. Social Credit had taught them to despise gold.

The prospector, who was helping to lift the barrel, found it surprisingly light for gold. If the barrel was full, he told the others, there was something in it besides gold.

The impetuous Frank didn’t waste a moment; a blow of the axe, and the contents of the barrel was exposed.

Gold? Not so much as a grain of it! Just rocks — plain, worthless rocks! Our men couldn’t get over the shock.

“Don’t tell us that he could bamboozle us to this extent!”

“Were we such muttonheads as to go into raptures over the mere mention of gold?”

“Did we mortgage all of our possessions for a few pieces of paper based on a few pounds of rocks? It’s a robbery, compounded with lies!”

“To think that we sulked and almost hated one another all because of such a fraud! That devil!”

Furious, Frank raised his axe. In great haste, the banker has already taken flight towards the forest.

20. Farewell to Salvation Island

After the opening of the barrel, and the revelation of his duplicity, nothing further was heard of Oliver.

Shortly after, a ship, crusing off the normal navigation route, noticed signs of life on this uncharted island, and cast anchor a short distance offshore.

The men learned that the ship was en route to America. So they decided to take with them what they could carry, and return to the United States.

Above all, they made sure to take back with them the album, “The First Year of Social Credit”, which had proven to be their salvation from the hands of the financier, Oliver, and which had illumined their minds with an inextinguishable light.

All five solemnly promised to get in touch with the management of this paper, once back in America, and to become devoted and zealous apostles of the Cause of Social Credit in their country.

From parable to reality

A debt-money system

Louis Even

The debt-money system introduced by Oliver into the Salvation Island made the little community sink into financial debt in proportion as it developed and enriched the island by its own work.

This is exactly what happens in our civilized countries, is it not?

Canada of today is certainly richer, in real wealth, than it was 50, 100 years ago, or in the pioneers’ age. But compare the national debt, the sum of all public debts of Canada today with this sum 50, 100 years, three centuries ago!

Yet the Canadians themselves produced this enrichment by their labour and their know-how. Then why should they be collectively indebted for the result of their own activities?

For example, consider the schools, the municipal aqueducts, the bridges, roads and other fabrics of public character. Who build them all? Builders of the country. Who supply them with the needed materials? Manufacturers of the country. And how come they can be employed in public works ? Because there are other kinds of workers who produce food, clothes, shoes, who supply all the things and services required for the wants of the constructors and manufacturers.

Thus the whole population of Canada by its work of different kinds, produce all those developments. If we must obtain goods from abroad, we send other goods abroad in counterpart of them.

Now, what do you see? Everywhere the citizens are taxed to pay those schools, those hospitals, those bridges, roads and other public works. The Canadians, as a collectivity, are thus compelled to pay what they produce as a collectivity.

You pay much more than the double price

And this is not all. The population is made to pay more than the price of what it produced. Their own production — a real enrichment — has become for the Canadians a debt burdened with interest. When years add to years, the sum of the interests can equal or even exceed the amount of the debt imposed by the system.

It happens that the population may have to pay two, three times the cost of what its members produced.

In addition to the public debts, there are industrial debts, also loaded with interests. They compel the manufacturers and contractors to increase their prices beyond the cost of production, in order to reimburse the capital and the interests; otherwise they would become insolvent, bankrupt.

Both public and industrial debts are paid, plus interest, by the Canadian population, to the financial system. We pay taxes for the public debts, and a surplus of price for the industrial debts. Prices are swelling while the purse is flattened by taxes.

A tyrannical system

These and many other facts are indicative of a money system, a financial system which controls instead of being a servant; a system to dominate the people — as Oliver dominated the fellows of the Island before they rebelled.

And if the money masters refuse to lend, or if they make their conditions unbearable for the public bodies or for the manufacturers, what happens? It happens that the public bodies give up many projects, no matter how urgent; and the manufacturers give up development or production plans that would answer to real needs of Canadians. This is a cause of unemployment. And those who still have something, or who earn a salary, must be taxed to prevent the unemployed from starving completely.

Can you imagine a more tyrannical system, with so baneful effects on every Canadian?

A bar to distribution

And this is not all. Not only the money system indebts the producers, or paralyzes the production it refuses to finance, but it is a wretched financial tool for the distribution of the goods.

Notwithstanding the fact that stores, shops and warehouses are full, and that everything is at hand for an even greater production, the distribution of the goods already produced is stinted.

You can obtain only what you can pay. In face of an abundant production, there should be an abundance of purchasing power, of money in the wallets of the people. Such is not the fact. The price of the finished goods is always higher than the amount of money distributed as purchasing power in the course of their production. This is inherent to the accountancy of the present system of finance which has no mechanism to fill the gap.

The capacity to pay is not made to equal the capacity to produce. Finance and reality do not work at the same rate. Reality means an abundance of goods easy to produce. Finance means a lacking money hard to obtain.

To correct what is wicked

Thus the present money system is truly an oppressive one, when it should be a system of service.

This does not mean that we must do away with it, but we must correct it. The application of the financial principles known as Social Credit would make this correction magnificently. (Do not confound Social Credit with the political party which usurps that name while pursuing other ends and practising an adverse policy.)

The principles of Social Credit, when applied, would make the money system a servant instead of a master. They were discovered and enunciated by a genius, C. H. Douglas (deceased in 1952). His first writings on this subject were published in 1918.

Not a Political Party

The first idea that comes to the mind of too many people living in Canada, when they hear the words Social Credit, is the idea of a political party. But no. Social Credit is not a party, although there was a party by that name. Social Credit is no more a party than Christianity is a party, even if, in some countries you find political parties with such names as Christian Democrats, Christian Party, Christian Center, etc. A political party exists purposely to seek power, to be or strive to be the group that rules the country.

Social Credit works in the very opposite way. Social Credit will set the individual free; it will place the individual in a situation where he can himself be the ruler of his own life. Social Credit will thus distribute power to individuals not the power to boss their neighbours, but the power to order the goods they want from the potential production of their country.

Social Credit. Exact. Logical. Humane

Social Credit considers realities. It refuses to be hypnotized by the halo with which finance has been surrounded.

The economic realities are, on one hand, the production; not only the existing production, but the production immediately possible, the production capacity; and they are, on the other hand, the human needs.

Social Credit gives priority to the realities over the financial signs that are not realities, that must simply represent, and faithfully represent, the realities.

Real credit and financial credit

This is why Social Credit makes a distinction between real credit (a reality) and financial credit (a representation).

The word “credit” comes from the Latin word “credere” and bears the idea of confidence. Even in everyday language, to give credit to someone, is it not to indicate that we have confidence in him?

Social Credit calls real credit of a country what really gives confidence in that country, confidence that one can live there without too much difficulty. The real credit of a country is its production capacity. It is its degree of possibility to produce and deliver the goods to the needs.

And Social Credit affirms that financial credit must be the exact representation of the real credit.

It is therefore the production capacity that must determine the movement of finance. It is absolutely not for finance to command, paralyze or limit the production capacity.

This is why Social Credit demands the establishment of a credit office that would keep an account of national (or provincial) credit. Any production, those of consumption goods and those of capital goods, would then be entered as an increase of wealth. And all consumptions (or destruction, or depreciation) would then be entered as a decrease of wealth. The net increase in wealth would be production minus consumption.

With very few and passing exceptions where a country would live at the expense of another, the production of a country surpasses its consumption. The country is becoming richer. It is therefore absurd to say that it is going into debt. The public debt is an absurdity.

And when a country is getting richer, its citizens must certainly draw advantage of it. This is what Social Credit recognizes, when speaking of a dividend to all, instead of debts and taxes on everyone.

Money without inflation

The present system is subject to inflation. Inflation means rising prices.

When money cannot begin without, as today, creating a debt, it is necessary that ways be found to draw from the public more money than there was put into circulation, so as to refund the debt plus the interest of the debt. Whence taxes, that are added to prices or that diminish the purchasing power before the prices. Whence also increases of prices by industrials, who must draw from the public only the money to pay for the products, but also for the financial charges, the interests on the industrial loans.

Social Credit would suppress this cancer, this tumor upon the prices, since the production would be an increase of wealth, and not an indebtedness.

And, Social Credit would lower the prices to be paid by the buyers, since it would have the community pay only what it consumes, and not all what it produces.

If, as an example, in the whole country, the consumption was only equal to three quarters of the production, the buyers would only pay, on any article bought by them, only three quarters of the accounting price. The Credit Office would take care of compensating the retailer so that he may recuperate all of his accounting price.

This means that the amounts of money included in the prices, but not having reached the hands of the public, or directed towards saving or investment, are not applied to the purchase of the production, would be by the organism of credit replaced to the benefit of those who are in need of the products. This would prevent the accumulation of products in the face of needs. And the mechanism to do it would have the advantage of operating with a decrease in prices, therefore in eliminating all possible inflation.

A dividend to everyone

The periodic dividend to everyone, recommended by Social Credit, is also in conformity with the economic realities.

The modern production, in fact, is more and more the result of applied science, of inventions, of improvements in production techniques, and of all these things that constitute a common good: an heritage transmitted and increased from one generation to the other. The modern production is less and less the result of individual labour.

Hoping to distribute the production only through the reward of human labour, is therefore contrary to the facts. It is at the same time impossible, for the money distributed as recompense for work can never buy the production that contains other elements in its prices.

Seeking salary increases with decreases in human labour, is also to change the meaning of the word salary. It is no more a recompense for work; it is the inclusion in the salary of the hired persons of what should be a dividend for all, since it is the fruit of progress and not of labour. This deviation is a hindrance to the desired goal, since in becoming a salary instead of remaining a dividend, these additional amounts go into the prices.

Social Credit would distribute the dividend to everyone, directly, without charging it to industry. It would truly raise everyone’s purchasing power.

Besides being the recognition of a very productive community capital, this social dividend would at the same time be an excellent way of satisfying the primitive destination of the earthly goods. “Earth and its riches were created for all men” (Pius XII). This is totally ignored by the present economic regime in its financial technique of distribution.

Social Credit would thus directly establish an adequate repartition of the goods of nature and of industry, instead of leaving the task to the surgery of taxation, that amputates and grafts continually, without ever healing the disease.

A share to each and everyone, guaranteed by the dividend to each and everyone from birth till death; and this share should be sufficient to at least insure what is necessary for life.

Louis EVEN
“The Money Myth Exploded” was one of the first articles of Louis Even, and remains one of the most popular to explain how money is created as a debt by private banks. It is available in the form of an 8-page leaflet (tabloid format) that you can order from the “Michael” office, in several languages: English, French, Spanish, Italian, German, Polish, Portuguese.

You like what you have just read? It’s important to make it known to others! You can order copies of this 8-page leaflet “The Money Myth Exploded”, or even better, you can subscribe to the “Michael” Journal, from which this article is taken, to get the latest news about the developments of our Movement.

 

0 Comments

Leave a reply

Please complete the required fields.
Please select your image(s) to upload.

Keep up to date and contribute on the settlement between our member Niggalodeon and the STATE OF FLORIDA. Chip in give help suggestions and necessary documentation!

22 Comments
  1. Profile photo of niggalodeon
    niggalodeon 5 years ago

    welcome to all colleagues of mine join me on this journey to be free from government imposed harm todays date is 10-9-11 at this point in time NIGGALODEON is in the process of obtaining the names that will go into commercial lien against the FPDA (florida public defenders association)as well as the STATE OF FLORIDA FOR EMPLOYING SUCH FRAUDULENT DISPLAY OF CORRUPT LAW PRACTICES.NOW THAT I KNOW THAT IM UP AND RUNNING I WILL POST ALL NECESSARY INFORMATION WHICH IS IMPORTANT TO EXPOSE SUCH TYRANNY.CONTRIBUTIONS ARE ACCEPTED AT THIS POINT IN THE FORM OF PRESS COVERAGE AS WELL AS ANYINFORMATION PERTAINING TO COMMERCIAL LIENS

    • Profile photo of Jamo
      Jamo 3 years ago

      Hello, new member living in Fort Lauderdale. I am a jounalist, email me for journalistic support here:
      approductions5@gmail. My name is Jamo Lorswal.
      All corporate government is corrupted but Florida.. wheehee!! off the charts! I have only been here since April 2013 and I am forced to seek FOIA Requests against Oakland Park (City of) and Broward County Sheriff’s Department who chased me first onto the grounds of a church, then off using an unmarked car and a non-uniformed officer! This because I found the Fire Department of Oakland Park photographing me while I passed the station reading a newspaper I worked for! When I followed the “skater” photographer on a hunch (I am a reporter after all) a Fire Truck picked him up! yelling “Come on man!” and dropped him off at the ambulance only entrance of Holy Cross Hospital. My feelings is these infiltrators of the FAP are masons.

  2. Profile photo of niggalodeon
    niggalodeon 5 years ago

    HERES A FEW LINKS TO START WITH ONE IS OF MY PUBLIC DEFENDER REFUSING TO LOOK AT MY PREPARED DEFENSE THE OTHER IS HIM REFUSING ME A COPY OF HIS OATH TO OFFICE. http://youtu.be/TcUpRpa7iAY VIDEO 2 http://youtu.be/gqhp-631Tuk THOSE ARE JUST BRIEF FOOTAGE FOR COURT PURPOSE HOWEVER I WILL BE UPLOADING THE UNCUT VERSION WHERE HE ACTUALLY TELLS ME TO GET MY GEAR AND LEAVE HIS OFFICE BECAUSE I COMPLAIN OF HIM NOT RETURNING MY CALLS

  3. Profile photo of niggalodeon
    niggalodeon 5 years ago

    now a word from our sponsors follow here for our custom product::http://youtu.be/PmqKf-wMRAA

    http://youtu.be/jHGqqaJb2eA

  4. Profile photo of niggalodeon
    niggalodeon 5 years ago

    NIGGALODEON CONTACT INFO:(941)706-5099 HARDINTHEPAINTCUSTOMS@GMAIL.COM
    MILLITINT@GMAIL.

    PLEASE FEEL FREE TO JOIN THE FIGHT AGAINST FLORIDA
    SEEKING PRESS COVERAGE!!!!!!

  5. Profile photo of niggalodeon
    niggalodeon 5 years ago

    court in the morning just trying to see what im entitled to as far as if that evidence should be suppressed

  6. Profile photo of niggalodeon
    niggalodeon 5 years ago

    IN AND FOR THE TWELFTH JUDICIAL CIRCUIT COURT
    IN AND FOR SARASOTA COUNTY,FLORIDA

    STATE OF FLORIDA
    V. CASE NO: 2011-CF009920
    CHARLES ARMSTRONG

    MOTION IN REBUTTAL OF THE APPOINTMENT OF EXPERTS TO
    PROCEED IN EVALUATION OF THE ACCUSED COMPETENCY
    TO PROCEED

    I, CHARLES ARMSTRONG; THE ACCUSED IN THE ABOVE MENTIONED CRIMINAL CASE, AND UNDER PENALTY OF PERJURY HEREBY MAKE NOTICE THAT :

    1.IAM PERFECTLY COMPETENT TO STAND TRIAL.

    2. Mr. THOMAS BEACH s’ (ass. Pub. Def.) certificate of good faith couldn’t have possibly been made in good faith,being as though I (Charles Armstrong) raised a valid claim against him 0ct. 6, 2011 court room 4a HON.DONNA BERLIN; in reference to him: (a) failing to submit defense alibi or defense witnesses within alloted time pursuant to fl. Stat. 3.220. (b) refusing to review any material I took time to prepare in my defense. This information was mailed to his office certified mail,signature upon receipt.(c)failing to contact client to disclose any time frames if I was planning on participating in discovery process as well as not returning any of his clients phone calls or being reachable.

    3.Mr Beach was questioned in regards to above allegations by judge HON. DONNA BERLIN;
    in which he stated; on digital court record, that he had “nothing to say” in defense to his clients allegations.

    4.Mr Beach was ordered by HON. Judge DONNA BERLIN; upon her continuing the case until the following week (OCT. 13, 2011) in lieu of presiding Judge HON.BECKY TITUS’ return; to answer to each of his clients claims presented in dissent of Mr.Beachs’ conduct of unprofessionalism and failure to submit any form of defense for his client.

    5.The grounds for Mr. THOMAS BEACHS’ claims of alleged incompetency to proceed
    could not possibly have been obtained by one 15 minute visit to his office ,in which he refused to have read or even to read in the future any prepared defense in regards to my case. At the time of this meeting I complained to him that he wasn’t acting in my best interest he didnt like this and kicked me out of his office. He later called me stating he could no longer locate the paperwork I sent him.

    6.This is a continued conflict of interest from a prior case (2008 CF 021151 NC a 2010 v.o.p) in which I made note to the public defenders office upon him being placed on this case. At this time he was said to have been taken off of the case, however,he ended up being back on the case even after I signed paper work for LORI HUSKISSEN ass .pub. def. To be placed on the case. I NEVER SIGNED ANYTHING PERMITTING HIM TO MAKE ANY DECISIONS IN REGARDS TO REPRESENTING ME. I MADE IT CLEAR TO THE PUBLIC DEFENDERS OFFICE THAT THERE WAS A CONFLICT OF INTEREST WITH HIM.

    7. Based upon the conduct MR THOMAS BEACH has displayed through his past dealings with me, as well as the courts, I raise rebuttal to all of his claim(s) and or suggestion(s) he has made to the court in regards to my competence,and also to bring to the immediate attention of the court that I have pivitol issues in this matter that need to be discussed in reference to the validity of MR BEACHS’ claim that Im imcompetent to stand trial. If I’m competent enough to realize he failed to properly follow time frames allotted by fl .stat.3.220. Then I’m competent to stand trial permitted the full nature and cause of which I am to be tried is fully disclosed to me. This appears to be an attempt by MR BEACH .to discredit any future claim I may raise against him or to silence the truth about his misconduct.

    THIS 17TH DAY OCTOBER 2011

    Charles R. Armstrong,

    • Profile photo of

      Well written Charles. You may want to think about having 2 people that have know you for a long period of time to sign affidavits stating that I have known___________________ for ___________ and he has always shown clarity of consciousness and is sound of mind etc… Thus in this way you have long standing proof of from individuals that have no correlation or interest in the case that you are mentally competent.

  7. Profile photo of niggalodeon
    niggalodeon 5 years ago

    ahhh yes the fruits of study pays off again.i go to eval today they say yes this is a court ordered eval sign this paper.i look on the paper and it says that nothing i say in the report is secret or confidential?the whole court gets a copy?wtf…..so you just stated that anything i say can be used against me in a court of law!!! i read further more it says that during the INTERVIEW they can use psychological testing,and evaluation tactics just sgn here where it says i VOLUTARILY AND KNOWINGLY CONSENT TO BE EVALUATED TO THE ABOVE OH YEAH YOU HAVE A RIGHT TO CONSULT WITH YOUR ATTORNEY IN REGARDS TO THIS EVAL. OK FIRST OFF GET THAT SORRY PIECE OF SHIT YOU FORCED ON MY CASE IN HERE TO ANSWER SOME QUESTIONS OH YOU CANT FIND HIM WELL I CANT CONSENT TO THESE STIPULATIONS WITHOUT COUNSEL.SHE SAYS ITS A COURT ORDER I SAY GO GET THE ORDER SH E BRINGS IT BACK I LOOK AT IT LMAO LOOK LADY THIS ORDER IS THE COURT ORDERING YOU TO PROCEED IF AND WHEN I CONSENT TO THIS FORM HERE.IT GIVES YOU INSTRUCTIONS.NO WHERE DOES IT SAY IM ORDERED TO UNER GO PSYCH. EVAL I WAS ORDERED TO COME HERE THATS IT IM HERE I ACCEPT IT AS VALUE AND DIDNT DISHONOR YOUR ORDER..NOW PUT IN YOUR REPORT THAT IM HERE YOU TRIED TO CALL MY LAWYER YOU COULDNT REACH HIM ILL ANSWER YOUR QUESTIONS IN REFERENCE TO COURT MATERIAL ONLY AND MY LEVEL OF INTELLIGENCE IN REGARDS TO IT.SHE STOPPED BULLSHITTIN SAID YES YOUR RIGHT YOU DONT HAVE TO SIGN THAT,IT IS AN ORDER FOR ME NOW DO YOU KNOW WHAT A PLEA IS DO YOU KNOW THE ROLE OF A JUDDGE A ATTORNEY A PROSECUTER,AFTER BREAKING THE SYSTEM DOWN TO HER SHE DECLARED ME COMPETENT.I WALKED OUT VICTORIOUS MIND IN TACT DEFENDING THE TAMPERING OF MY SOUL ONLY TO FIND OUT MY BIKE WAS STOLEN DIABOLLICAL SONS OF BITCHES THE WAR WAGES ON….. A COLD WAR….WITH LOTS OF WIND AND LITTLE CLOTHES DRESSED PREPARED FOR FLORI DUH HEAT I WAS ENCOUNTERED WITH THE AFTERMATH OF ALL THE FALL RAIN…….COLD FRONT……..COMING SOON COURT RECORD NIGGALODEON SLAMMING THE PUBLIC DEFENDER THE RAT SCURRYS HE TRYS TO HIDE BUT THE JUDGE PICKS HIM UP BY THE TAIL AND HANDS HIM TO ME YOULL HEAR ME AND THE JUDGE TAG TEAM A SAP SUCKERS PROFESSIONALISM AND VALIDITY,NIGGALODEON BRAINWASHES JUDGE BERLIN IN COURT PROCEEDING STATE ATTORNEY SIDES FOR THE DEFENS????WTF JUDGE ORDERS PUBLIC DEFENDER TO ANSWER TO JUDGE TITUS UPON HER RETURN TO EACH OF MY CLAIMS AND ALLEGATIONS HE SAID HE HAD NO DEFENSE FOR LOL THE ACCUSED STEPS IN COURT AND MAKES THE ENTIRE COURT TRIP UP LIKE MOSES PARTING THE RED SEA.MOVE ASIDE HONKEYS NIGGALODEON IS IN THE COURTHOUSE……..UNTIL THE NEXT EPISODE……………NIG NIG NIG NIG NIG NIG NIG NIG NIGGAAA LOO DEE ONNNN……

  8. Profile photo of niggalodeon
    niggalodeon 5 years ago

    http://youtu.be/rqKsR1HGHZY battling with police once again

    • Profile photo of

      Well handled, but if it were us we would remember these things. One our personal names can not be copy-written, but the business name can be as we operate in that name. We would have said something to the sort when asked for a name: We assume that you are asking for the name of the transmitting utility Charles Armstrong correct? It is spelled as such….

      Under equity and fair play as well as the clean hands doctrine we must inform you that the trade name is trademarked and infringement holds penalty under a self executing contract which we hold here. Would you like to review the contract as we believe you may infringe upon it by your current actions?

      All information if given to you is given under duress not freely of our own will. We are not agreeing, have no intent to contract, and currently feel that we are being harassed. Can you please state for me the Law that we have broken? If not are we free to leave? (You will want to convert most of this to first person).

      Since there is no agreement or meeting of the minds and all correspondence here is under duress no contract can be made with you open or implied. I do not Consent, are we done here?

  9. Profile photo of niggalodeon
    niggalodeon 5 years ago

    http://youtu.be/8doIsdhFPGo seargeant perez didnt write my name on any document and let me go my memory ran out of storage couldnt get all of it too fit on my phone

  10. Profile photo of Jessica
    Jessica 5 years ago

    Wow, this is intense. Thanks for sharing and much success to you. 🙂

  11. Profile photo of niggalodeon
    niggalodeon 5 years ago

    FEB 22 2012

    WHILE COMING HOME FROM MIKES MINI MART LOCATED IN ONECO FL FIXED ON THE CORNER OF 57TH AVE E AND 15TH ST I REALIZED I NEEDED SOMETHING TO CARRY MY BELONGINGS IN BECAUSE I HAD TOO MANY ITEMS BOUGHT FROM THE STORE PLUS MY LAPTOP AS WELL AS MY BACK PACK FILLED WITH CDS.I WAS CURRENTLY UTILIZING A BIKE FOR TRAVEL WHICH WASNT EQUIPPED WITH ANY LIGHTS FOR NITE RIDING AND I DIDNT FEEL LIKE GOING THROUGH THE WHOLE ORDEAL OF BEING STOPPED FOR NO LIGHT ON MY BIKE BY THE LOCAL DEPUTY FOR A ALLEDGED “BIKE VIOLATION” SO I WOULD HAVE TO WALK THE BIKE WITH ALL THE MERCHANDISE AND ITEMS AS WELL.SO AS USUAL I ASKED THE STORE CLERK IF I COULD USE A DAIRY CASE FROM OUT OF THE BACK OF THE STORE,I EXPLAINED MY PURPOSE FOR USING IT AND HE DINDT OBLIGE AND ALLOWED ME TO USE THE CRATE AND TOLD ME TO BRING IT BACK THE NEXT DAY.I LEFT MY LAPTOP AT THE STORE WHICH I COULDNT MANAGE TO CARRY DUE TO LACK OF SPACE.
    I TRAVEL WESTBOUND DOWN 57TH AVE.E ON FOOT PUSHING MY BIKE AT APROX 900 PM.AND ARRIVE AT MY DESTINATION WITH THE FIRST LOAD OF MY BELONGINGS.I DROP OFF MY BELONGINGS AND WALK BACK TO THE STORE TO RETRIEVE MY LAPTOP,STILL WALKING THE BIKE FOR IT HAS NO LIGHTS I NOTICE A MANATEE COUNTY DEPUTY TRAILING ME WITH HIS HEADLIGHTS OFF(VIOLATING TRAFFIC LAWS AND MAKING AN ENDANGERMENT TO OTHER DRIVERS) HES FOLLOWING ME FOR WHAT SEEMS TO BE ABOUT A HALF A BLOCK WHEN HE SIGNALS HIS OVERHEAD LIGHTS.THE OFFICER EXITS HIS VEHICLE,APROACHES ME AND ASKS ME TO PRODUCE AN IDENTIFICATION.IM CONFUSED AS TO WHY IM BEING MADE TO STOP WHEN IM KIND OF IN A HURRY SO I ASK THE OFFICER THE NATURE OF HIS STOP HAVE I DONE SOMETHING WRONG ,AM I BEING DETAINED?,OR DOES SOMETHING ABOUT ME GIVE RISE TO SOME TYPE OF REASONABLE SUSPICION OR PROBABLE CAUSE THAT A CRIME IS ABOUT TO TAKE PLACE OR IS CURRENTLY UNDERWAY.HE(JASON FARRIER) STATES HE DOESNT NEED TO TELL ME AND THAT HE NEEDS TO SEE MY ID AND THAT THE MILK CRATE ON THE FRONT OF MY BIKE SAID DEAN FOODS ON IT (THIS WAS CONFIRMED AFTER HE WALKED UP ASKING TO SEE ID INCIDENT TO INITITIATING A STOP WITH HIS OVERHEAD)I TELL THE OFFICER THAT IT WOULD BE RATHER HARD FOR HIM TO USE THIS TO JUSTIFY HIS STOP DUE TO THE FACT THAT HE APROACHED ME FROM BEHIND IN A CRUISER THAT DID NOT HAVE ITS HEADLIGHTS ON,AND I ALSO RAISED THE FACT THAT HE HAD TO SEARCH FOR A NAME WITH A FLASH LIGHT UPON APROACHING ME TO CONFIRM THAT YES IT DID SAY “DEAN FOODS”. {WHICH WAS VIOLATION OF 4TH AMENDMENT}(ILLEGAL SEARCH AND SEIZURE).I ASK THE OFFICER IF HE HAS A SWORN COMPLAINT OR A THIRD PARTY CLAIMING I STOLE THE MILK CRATE?HE STATES HE DOESNT NEED ONE.LONG STORY SHORT HE RUNS MY NAME IT COMES BACK NO WARRANTS BUT IT SHOWS A STATUS OF ME BEING ON FELONY PROBATION.AT THIS TIME THE OFFICER STATES THAT IM IN VIOLATION OF MY PROBATION BECAUSE HE WAS PLACING ME UNDER ARREST FOR ILLEGAL POSSESION OF A SHOPPING CART.I LAUGH AND TRY TO INFORM THE OFFICER THAT THE STORE LET ME USE THE MILK CRATE NOT TOO LONG AGO AND I WAS ON MY WAY BACK TO THE STORE WHICH WAS ONLY ABOUT A BLOCK AWAY AND THE OFFICER COULD TAKE ME TO THE STORE TO CONFIRM MY STORY (BY THIS TIME I WAS HANDCUFFED IN THE BACK OF THE SQUAD CAR.)HE( JASON FARRIER) STATED THAT HE DIDNT THINK THE STORE WOULD SAY THAT I ASKED TO SPEAK TO HIS SUPERVISOR IN CHARGE AS WELL AS HIS WATCH COMMANDER WHO AT MY REQUEST DID SHOW UP ON THE SCENE I TOLD HIM THE SAME THING I TOLD HIS DEPUTY THAT THERE WAS A MISTAKE AND THAT IF THEY WOULD BE SO KIND AS TO FINISH THEIR INVESTIGATORY STOP AND FURTHER INVESTIGATE TO SEE IF THE SUSPECT IS TELLING THE TRUTH Y DRIVING ME TO THE STORE AND ASK THE CLERK WHO WOULD CONFIRM MY STORY.HE SAID “TAKE HIM IN”.I WAS TAKEN TO A POLICE SUB STATION AND WAS ASKED QUESTIONS PERTAINING TO THE SOVEREIGN CITIZEN MOVEMENT I TOLD HIM THERE WAS NO SUCH THING AND THAT IF SOVEREIGN MEANT SELF GOVERNMENT AND CITIZENS WERE SUBJECTS TO MUNICIPAL CODES AND STATUTES HOW COULD THERE POSSIBLY BE ANY SUCH THING.WHICH AT THIS TIME THEY LABELED ME A SOVEREIGN CITIZEN BECAUSE I WAS STANDING UP FOR MY RIGHTS AND BECAUSE I WAS TALKING ABOUT THE LAW.THEY RIDICULED ME JOKED POKED FUN OF THE SITUATION AND BLATENTLY MADE A LAUGHING STOCK OUT OF THERE VULGAR DISPLAY OF POWER.TEAMING UP TO CORRABORATE THEIR ARREST REPORT.
    I WAS TRANSFERRED TO PORT MANATEE COUNTY JAIL TO AWAIT FIRST APEARANCE
    I WAS HELD WITH NO BOND DUE TO THE VIOLATION OF PROBATION.I WAS BOOKED IN WITHOUT INCIDENT NOR INJURY.AT FIRST APEARANCE A PROBABLE CAUSE argument WAS RAISED BY THE JUDGE CHALLENGING THE VALIDITY OF THE ARREST AND PROBABLE CAUSE WAS NOT FOUND!!I WAS RELEASED ON MY OWN RECOGNIZANCE FOR THE POSS.OF ILLEGAL SHOPPING CART,AND I WAS RELEASED ON THE FELONY VOP AGAINST THE STATES argument OF ME BEING A VIOLENT FELONY OFFENDER OF SPECIAL CONCERN. FEBRUARY 23 2012:
    UPON BEING RELEASED I REPORTED TO PROBATION AS DIRECTED BY MY PROBATION ORDER IN WHICH MY OFFICER JUDY GENEWICK DRUG TESTED ME AND SENT IT TO THE LAB IN LIEU OF RESULTS DUE TO IT APPEARING POSITIVE…..
    THE FOLLOWING WEEK : I REPORT FOR RESULTS OF MY URINALYSIS WHICH WERE NEGATIVE.AT THIS TIME SHE STATED SHE HAD TO VIOLATE MY PROBATION DUE TO THE NEW LAW VIOLATION OF ILLEGAL POSS. OF SHOPPING CART.
    WORRIED ABOUT THE OUTCOME OF THE VIOLATION I CONSULTED WITH P.A COLLEEN GLENN WHO ADVISED ME OF MY BEST OPTION WOULD BE TO RETAIN COUNCIL FOR THE PURPOSE OF GETTING THE CHARGE WHICH VIOLATED MY PROBATION THROWN OUT SO THAT IT WOULDNT AFFECT ME WHEN I WENT TO FACE THE WARRANT FOR THE VIOLATION IN SARASOTA COUNTY. I REALLY DIDNT SEE THIS BEING NECESARRY AND WAS GONNA WAIT TO SEE WHAT HAPPENED AT ARRAIGNMENT.
    THE DAY OF ARRAIGNMENT I GO TO MIKES MINI MART AND SPEAK TO THE STORE CLERK ABOUT GETTING SOME TYPE OF LETTER FROM HIM OR ANOTHER AGENT OF THE STORE THAT WOULD LET THE COURT KNOW THAT I WAS ACTUALLY GIVEN PERMISSION TO USE THE CRATE SO THAT WAY WE WOULDNT HAVE TO WASTE ANY MORE OF THE COURTS VALUABLE TIIME OR ANY MORE OF THE TAXPAYERS VALUABLE MONEY.BUT THEY TOLD ME WE HAD TO GO TO TRIAL AND ALL THIS C RAZY THINGS WHICH WOULD OF TAKEN MONTHS BEFORE MY NAME would have been CLEARED UP.SO I WAS FORCED TO HIRE COUNCIL.I WHO ON THE SPOT DREW UP THE NECESSARY MOTIONS AND DEMANDS TO THE STATE ,GOT HER PERSONAL INVESTIGATOR TO GO GET WITNESS STATEMENTS, AND THE CASE WAS DISMISSED NOLLE PROSEQUI WITHIN DAYS OF THE STATEMENTS FROM THE STORE[SEE ATTACHED]

    MEAN WHILE IN SARASOTA COUNTY AN EVIL FELONY WARRANT AWAITS ME.BUT LETS FIRST TAKE INTO ACCOUNT THE FACT THAT THE MONEY SPENT WAS MONEY THAT WAS SUPOSE TO BE GIVEN TO MR BART MY RENT MAN AKA LAND LORD NOT TO MENTION IM A BUSINESS OWNER AND I WAS WORKING ON A PROJECT THAT a)HAD A DEADLI NE.AND b) I HAD MY OWN PERSONAL MONEY INVESTED INTO AS WELL AS VALUABLE TIME FOR LABOR.UPON BEING ARRESTED I WAS NOT ABLE TO COMPLETE THE ORDER ON THE AGREED TIME AND WAS FOUND TO BE LIABLE TO THE PARTIES I CONTRACTED WITH[SEE ATTACHED]
    SO I WAS FLAT BROKE AND FORCED TO BE PLACED INTO THIS SITUATION BY THE VERY HANDS OF THOSE PLACED INTO POSITIONS TO PROTECT ME. BUT AT LEAST MY FREEDOM WAS SECURE UNTIL……..

    I CHECK INTO PROBATION A WEEK LATER AND IM ARRESTED ON A WARRANT THAT COULD OF POSSIBLY BEEN QUASHED HA D MY PROBABTION OFFICER MADE MORE DILIGENT ATTEMPT TO GET TO THE BOTTOM OF THINGS.LONG STORY SHORT IM ARRESTED FOR VOP.IM HELD IN THE PORT MANATEE AGAIN WITH NO BOND UNTIL SARASOTA COUNTY COMES AND GETS ME.IM ONLY HELD IN MANATEE COUNTY FOR ONE MORE DAY UNTIL 2AM WHEN THEY PULL ME OUT TO BE TRANSFERRED TO SARASOTA BUT LEAVE ME SITTING IN A HOLDING CELL UNTIL 5 AM AND THEN NOT FEED ME BREAKFAST WHEN THEY FED ALL THE OTHER INMATES [SEE ATTACHED COMPLAINT]OFFICER KING JUSTIFIED HIS ACTIONS BY NOT HAVING TIME TO FEED US TRANSFERS.ULTIMATLEY I WAS RELEASED WHEN I GOT TO SARASOTA FIRST APPEARANCE BUT THAT WASNT EASY NEITHER BEING AS THOUGH I WAS NOT ALLOWED TO BRING MY LEGAL WORK I PAID $1000 TO GET SO I COULD BRING INTO COURT AND GET THE CASE RESOLVED BY OFFICER BERNALLY HOWEVER I WAS RELEASED FROM ALL CHARGES AS THEY WERE FOUND TO BE BOGUS….

  12. Profile photo of Emiel
    Emiel 5 years ago

    how is all this going now? Im on Vop from nov 24th. they didnt return my conditional A4v. THEY denied my motions challenging jurisdiction. I have a evidentiary hearing trying to shape up.. I understand that if i dont settle the charge then i can be locked up.. SO how can one accept a charge for value and or a violation charge too with out doin any time?

  13. Profile photo of Jackie Ray Clark Jr
    Jackie Ray Clark Jr 4 years ago

    I live in Sarasota County and had the misfortune of having Thomas Beach as a court appointed attorney. I feel I was wronged by him and I would like to discuss this further. Please contact me on this site if you would be willing to speak with me. Thank You. Jackie Clark

  14. Profile photo of Non Combatant
    Non Combatant 3 years ago

    Good Morning!

    Non of the videos are available… Is there a way to get them thru other source! This sounds very interesting. I will love to review them!

    Thanks!

    • Profile photo of SFS Author
      SFS 3 years ago

      We are working on them. Please report which ones you are attempting to view and we will happily fix any nonworking videos. Sorry for the inconvenience.

  15. Profile photo of Anthorious
    Anthorious 1 year ago

    thought I’d take a look at this page, though all of the videos are not working that were posted?

  16. Profile photo of SFS Author
    SFS 1 year ago

    These are older. They may stop working eventually and will be deprecated. It was a users story from a while back. Start your own so others can learn from your trials and tribulations.

Leave a reply

X
- Enter Your Location -
- or -

Log in with your credentials

Forgot your details?

Skip to toolbar