Sunday, 23 February 2014

Social Credit Economics -  by Oliver Heydorn Ph.D

A very comprehensive book on the subject of Social Credit economics.  Dr. Heydorn has done an outstanding job combining all of Douglas ideas on the subject of economics in one book.  The book can be purchased at amazon via the following link.


Anonymous said...

Anon says,


Greetings. Hopefully, Dr. Heydorn's book on Social Credit Economics will be widely distributed throughout the English-speaking world.

A few questions of you, if I may:

Despite the trillions of new money created by central banks, economists (so we are told)are amazed at the very low levels of inflation in the industrialised world. Social Credit literature states inflation is in-built into our money system. Therefore, have either yourself or Wally Klink analysed why inflation levels are so low in the English-speaking countries despite all the QE of recent years?

Have you come across the concept of a dual currency for a country? i.e. one for domestic trading, and another (not a foreign currency)for export/import trading. Would such a concept actually work or be viable under either orthodox economic rules or social credit policy?

In communication with small to medium business firms, there is this constant theme: the need for business expansion i.e. "we must kep growing" etc. The primary reason for this demand for business and economic growth is to found in the Douglas A + B theorem? Correct?

Many thanks, Socred. Cheers.

Socred said...

Hi Anon:

Yes, I hope Dr. Heydorn's book receives a wide audience. If you haven't purchased it, I highly recommend that you do.

I have given quite a bit of thought to the question of inflation, and why it seems so low. I believe this is because companies are now choosing to reduce their pack size instead of raising their price.

For instance, if I paid $5 for a 500ml shampoo and the shampoo company changes the pack size to 450ml for the same price, this does not register as inflation according to the way statistics agencies calculate inflation. However, the price per ml of the shampoo did change from $.01/ml to $.011/ml or a 10% increase in the price. In this case, inflation was actually 10% but does not get recorded in CPI calculations - plus they have removed certain items like fuel fro their basket of goods they use to calculate CPI numbers.

I believe that statistical agencies are underestimating real inflation (whether intentional or not).

As far as growth in business goes, it is imperative to keep growing the economy so long as machines are replacing labour in production, and we insist that the only way to derive income is from employment.

If the productivity of labour increases due to technological advancement, we can produce more with the same amount of labour, or the same amount of goods with less labour (or somewhere in between). If we insist on a policy of full-employment, then the only policy any business or government can pursue is "growth".

Take care.

Anonymous said...

Anon says,

Greetings Socred,

Thank you for your reply above. Just to clarify one or two things:

In the industrialised countries (certainly in this part of the world) there is renewed economic growth and considerable financial credit being spent. People are spending like they did a decade ago. This however does not invalidate the Douglas analysis and social credit? Even though people seem happy with their lot in life I presume that so long as we operate in a moneyed economy, the Social Credit analysis and proposals remain valid? Correct?

Economist keep telling us "we" must increase 'productivity' to remain "internationally competitive". Douglas seemed to prefer "co-operation" rather than economic competition -which is just another premise of economic orthodoxy and makes little sense in the realm of economic reality? Am I correct with this one, Socred?

Many thanks.

Anonymous said...

Anon says,


Sorry, forgot to ask:

The mania for economic growth and exporting is just another manifestation of what Douglas described as the deficiency of purchasing power?

In his book The Monopoly of Credit, Douglas gave a number of mathematical equations to back up his argument. Have you validated these mathematical equations as correct either personally or in consultation with a mathematician? Forgive me asking this question, but one can guarantee critics will always go out of their way to try and prove Douglas wrong. Plus I am no expert in mathematical formulae!

Many thanks, Socred. All the best.