The Origins of Social Credit
Development of modern banking has resulted in nations losing the power to issue most of their own money. The financial system, worldwide, is based on debt.

A political imperative

The great political and economic disaster affecting mostly the middle and bottom layers of our society is the now 30 year old neoliberal economic philosophy which reduces many of us to being denizens of what Professor Guy Standing calls ‘The Precariat’.


The gradual decline in job availability, job security, income (in inflation adjusted terms), career prospect, and consequently quality of life makes the daily grind for many people stressful, exhausting, and outright damaging to psyche and physical health. Obvious symptoms are homelessness, increasing lines at food banks and soup kitchens, and of course the horrifying youth suicide rates in the more impoverished parts of the country.


The ruling political establishment seems oblivious to this and carries on with policies that are not unlike Marie-Antoinette's recommendation that starving French peasants are given cake to alleviate the shortage of bread. Hopefully the guillotines of that era will remain in the museums. It is strongly recommended that our politicians wake up soon.


A now increasingly vocal, worldwide movement is clamouring for a re-distribution of both income and wealth. An Unconditional Universal Basic Income is called for, in New Zealand by Basic Income New Zealand (BINZ). Look into the enormous amount of information on the topic available on the Internet.


In our country the previous Prime Minister called the idea ‘stark raving mad’ or something similar, Labour (the erstwhile defenders of the common man but now ‘National light’) and the Greens have sniffed at UBI but put it in the too hard basket.


A new upstart party is in favour of UBI and proposes to get the ball rolling by giving all 18 to 23 year olds $200 per week. It is not enough but certainly puts the concept in full vision of the electorate. The only party of long standing, with a fully implemented UBI proposal, is the Democrats for Social Credit Party. This Party not only proposes to lift the exploited and downtrodden ordinary New Zealander out of the economic quagmire with UBI, it also has workable proposals to finance Government and Infrastructure renewal and expansion from funds generated by the publicly owned Reserve Bank, rather than from commercial banks. These institutions actually just create such loan funds by the old ‘double entry trick’, out of nowhere, pocketing the consequential substantial interest payments.


Consider the enormous savings to the taxpayer when public buildings, roads, all other infrastructure are built with interest free loans. Of course the present political establishment is not in favour of such a system. They, or their families and friends, profit hugely from the present system.


To conclude, give the future of our country, our children, and our grandchildren some serious thought. 


Vote for a much more Egalitarian, Humanist, society!


Karl Matthys

Candidate Napier electorate

NZ Democrats for Social Credit Party

Member HSNZ and Basic Income New Zealand


Published: July 2017

NZ Democrats for Social Credit Party Conference on 16/17 June at Quality Hotel Elms in Christchurch
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