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Social Credit

What is Social Credit
In a nut shell Social Credit is a process that allows the wealth of a nation be shared among its people. This wealth  can be presented by the creation of new money and dividends (on the basis of real wealth, not debt) Much of the world’s debt has been attributed from the fraudulent process the banks use today. This type of debt can never be paid back, it has caused so much poverty. This poverty is far greater in the third world nations, where hunger and starvation is common. We can reverse this debt by using  Social Credit.
 
All money created by the banks is created as debt. This has put us in an impossible position as the ability to pay both debt and interest is just not possible. There is never enough money in the world to cover the combined debt with interest as the banks did not create the interest part. This leads to spiral debt. Economies around the world continue to borrow further to cover this missing sum of money over and over again. If they did not borrow more, the money supply would simply run out.
see link  The Cycle of debt
 
 Social Credit will release us from this bondage of everlasting debt. Using social credit, a country may create debt-free money on the basis of its real physical wealth such as oil, minerals and land, and on its ability to create new physical wealth in areas such as farming, building, and industry. Social credit then, when used wisely, can turn a debt-ridden nation into a vibrant wealthy nation free of debt. It is an essential tool of any nation.
 
 
How the banks create money
Before we go further it is important that you understand how the banks create money. Most people believe that every single dollar the banks lend comes from money deposited in their bank as savings. This is most definitely not the case. The banks use a fraudulent process called Fractional Reserve Banking to create this money. Governments throughout the world make it legal by allowing them to operate this way. See link below
http://en.wikipedia.org/wiki/Fractional-reserve_banking
 
Central Banks apart from creating new money as debt (or credit very rarely) control the ratio of deposits the Commercial banks can lend. This ratio is called fractional reserve banking. This practice allows banks to lend very large sums of money they do not have. Fractional reserve banking allows banks to keep only a fraction of deposits in reserve and lend out the remainder. Over Ninety percent of new money is created this way
 
 For example if the reserve was set to twenty percent, $800 of a $1,000 deposit could be used to lend out to borrowers as $200 must be kept in reserve. This $800 lent out will then become a deposit in another bank. This other bank that receives this can lend out $640 of this $800 deposit as 20% is reserved. This process will continue until it reaches its maximum. The maximum amount of total deposits that can be created this way at 20 percent is $5,000 and the maximum increase in the money supply is $4,000. At this rate the banks have fraudulently created $4,000 out of thin air using a $1,000 deposit. Obviously lower reserve rates give the banks the ability to create much more.
 
 See link below
http://www.bleedingindebt.com/how-the-banks-create-money.html

 
The banks have indebted the world to such a degree that they now control the money markets of the world. By simply reducing the supply of money or selling incredibly large sums of stocks they can bring on a recession to any country of the world. By reducing the money supply to the world, they can cause a global depression; how severe or how long it goes for is entirely in their hands. It is with this power over finance that the banks can influence the decisions of any government in the world. It is very clear that the economic hardships brought on by debt, have the potential to create wars between nations, and the ability to enforce poverty and hunger.
 
 
How Social Credit works

The role of money
The real wealth in this world is in the land and what we make of it such as farming, building and Industry. To distribute this wealth we need a medium of exchange. The role of money is to provide and easy medium to buy and sell things. This money must be produced in correct quantities without cost.
 
Credit Creation
The production of modern times is vastly different from early times. We have now leaped ahead with giant steps in mass production. We have massively increased our capacity to build, grow and manufacture things with an increasingly lower work force required. This progress is passed on from one generation to another and It is a heritage we should all benefit from. Unfortunately this is not the case.
 
A Dividend to Everyone
Because production is no longer the result of labour only, it is a farce to believe that production can be distributed only through the reward of labour.  It is the fruit of progress and not labour which is providing these great achievements. There for we must look at this in a different light.  As new production methods expand, less labour is required  resulting in a rising number of permanently unemployed people. It would also be true that working hours of the work force as a whole is reducing. If people only got paid by the hours they worked their wages would fall. To recognise this progress as a national heratage for everyone, a dividend could be used to supplement these lost wages. This heratage should be shared and not lost in the hands of a few. A Dividend could also be issued to the whole population when the money supply needs increasing.
 
 
Money will no longer be created to the nation as debt
Presently when a nation needs to increase its money supply, it will usually get this from the commercial banks as debt. The Central Bank will inject new money first (usually as debt to the nation) which commercial banks will then multiply through fractional reserve banking. The nature of lending this way means the country will always have a growing need for money to pay its debts, including compound interest.  As explained above in how the banks create money.
 
With true Social Credit running, the ability to create new money as credit to the nation is now possible. Money from now on is created on the basis of its real wealth. ( this is a primary goal all nations should practice) The money supply should always be kept in check and in line with production of goods and services. A National Credit Office would be set up to ensure a correct money supply in the economy, by issuing or withdrawing of moneyin accordance with the country's production capacity and demand. A national dividend to the population could also be used to expand the money supply, very much like stimulus packages used lately to stimulate economies. The richer the country is in real wealth the less taxes if would require and the more buying power each person has in its currency.
 
Note; Australia used Social Credit to create its own money in the early nineteen hundreds through its own bank the Commonwealth Bank (The People’s Bank) This money was created almost debt-free for the use of Australia’s needs. Major projects such as the Indian Pacific Railway System were funded this way.
 
See link below
http://www.webofdebt.com/articles/commonwealth_bank_aus.php
 
Social Credit is certainly a possibility to stabilizing the Global Recession we are now experiencing. It is important that nations around the world look at this model for real possibilities in ending the cycle of debt. The poorest nations of the world are in dire straits. If we do not take an effective action against this type of debt, nation after nation will go under. We cannot keep borrowing forever without going bankrupt, it’s a situation we must all get out from. The Governments of the world need to take action against this practice of fractional reserve banking. The fictional reserves are not there and it is the basis of so much  instability.