HERE is a succinct statement as to why “free market” Capitalism as we know it leads necessarily to Communist-style big government. From an article by Arindam Basu:

The debt­-finance system, by generating a chronic insufficiency of purchasing power, thereby requiring increased borrowing (in lieu of large trade surpluses) if economic activity is not to grind to a halt, causes the State ­ with its great, almost unlimited capacity to borrow, thanks to its power to tax (i.e. creditors are eager to lend to it in the knowledge that it will always have a means to pay them back), to expand its role in the economy.

Thus, as society finds its purchasing power increasingly insufficient to satisfy its requirements, the State steps in, with its role becoming larger and larger as it fills the growing gap. Caught unawares by these developments, which they were utterly incapable of anticipating, economists scrambled to come up with theories explaining ­ and indeed, justifying ­ such extensive government intervention.

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Helena writes:

What we must do is solve the problem of insufficient purchasing power at its root. We need more money, but that does not mean that we need taxation in order to get it. We can be liberated from public debts and freed from the problems of being taxed nearly to death by having a sound financial system.

Money is a social instrument and medium of exchange that should be managed by society in the public interest. Clifford Hugh Douglas argued that issuing a National Dividend (a type of Universal Basic Income, in modern parlance) to each person sufficient to enable a decent living was justified based on the legacy each of us inherits at birth. His argument was that the earth, with its abundant natural resources, and the accrued know-how of technological advancements made since the discovery of the wheel rightly belongs to each of us.  We have a tremendous legacy that forms the natural foundation of wealth. In a just financial system, money, or Financial Credit, would simply reflect this foundation, this Real Credit, as he called it.

Governments, as trustees of society, would exercise their authority to create money for the common good. Purchasing power would be issued as credit for the common good by society instead of being issued as debt for the benefit of our present-day overlords, private banks.

With financial reform, we could monetize natural wealth. Society could directly fund infrastructure, issue loans to business and industry AND fund a Dividend to each citizen.

There is no need to take from Peter to give to Paul.    Not one penny of anyone’s income needs to be sacrificed to enable each person to sustain themselves.  There is enough for everyone to have purchasing power under a corrected financial system as advocated by Douglas Social Credit. Without such financial reform, we face bedlam.

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