The Debt Bomb
There is a dark shadow over today’s university students. Their student debt – on average $50,000 plus – is just at the starting point of their career. With the pressure of so few quality jobs and so many aspiring candidates, the success rate is hauntingly low. For the majority of highly educated students this means that serving behind the counter or delivering fast food may be the only option for long-term employment they will ever achieve. The industry of higher education – like John Perkins who wrote Economic Hitman available in PDF from our online website library – alludes to utopia at the end of the education period. In reality nothing of the sort is achieved.
Today’s NEWS speaks of Greece and the IMF austerity program imposed upon them. This same darkness is over that entire nation.
Compounding this precarious situation for our students, is the thought of a $600,000 – average Sydney mortgage – future. During the last global financial crisis, USA mortgagees were described as swimmingly in debt. Likewise, our students have no chance of ever getting out of debt. Their enslavement (financial) is assured.
All industry operates on lines of credit. Financially this means that they must achieve sufficient income from returning prices to cover all the costs of industry, plus the repayment of credit with interest, noting that the interest component is not part of new credit creation. This particular phenomena (bank interest never issued) of the financial system ensures there is always an insufficiency of available money in circulation to repay the credit loan with interest.
The more important phenomena for industry is the fact that salaries wages and dividends are insufficient to purchase what that industry produces. This phenomena is the same for every industry.
In social credit terms this is identified as “the gap”. Douglas referred to this extensively in his writings of the “A plus B Theorem”.
Being a highly trained engineer, he understood the importance of formulas, observation and testing in the real world. In the construction of modern high-rise buildings, concrete is often tested to destruction to substantiate the strength of the components. No doubt, other industries test critical components to destruction to also substantiate their life-cycle.
A Theorem must be placed into a measurable, observable and repeatable environment in order to be substantiated – proved or disproved. Douglas inspected the financial books of over 100 different companies in order to come to the hypothesis of the “A plus B Theorem”.
In our own life experiences we can observe individuals vying for a shortage of employment positions. We can also observe companies vying for a shortage of customers to purchase their products. We can also observe nations vying for a shortage of markets for their exports. Each observed phenomena shows a distinct inability to liquidate prices (clear their debts). In the end this leads ultimately from economic war to physical war.
Greece, Ireland, Portugal, Italy lost the war to giant German banks. The same fate awaits every nation, every community, every person. Debt is irredeemable under current financial orthodoxy.
Our national debt (currently 5 times GDP), of which every nation has, and of which every nation continues to rise, means that every newborn child is indebted to the financial system. That there ‘on birth’ debt will never ever be paid off. They will be slaves to a fraudulent financial system.
Douglas Social Credit is the only financial/economic proposal on the table that offers light at the end of this debt tunnel. The national dividend and consumer price discount proposal, issued equally to all, produces a measurable financial equilibrium between production and consumption by ensuring a sufficiency of purchasing power (distribution) to individuals in community – the rightful inheritors of the modern technological machine age in conjunction with the economic reserves of the nation. This democratises the economy.
Instead of experiencing as we currently do, a financial tyranny – the modern day equivalent of the tyrants of old – the dividend and consumer price discount places financial voting power at the feet of the individual. They receive their inheritance now, when it is produced and needed, not some distant, utopian abstract time.
100 years ago C.H.Douglas produced his first major work “Economic Democracy”. Douglas’s writing style is quite condensed. Every sentence must be read and reread in order to garnish his deeper meanings – available in PDF from our ALOR online library, or through our online bookshop veritasbooks.com.au .