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.
Frequently Asked Questions

I have heard of Social Credit, can you tell me what it means?

Simply put, "social credit" means the "community's money". It is a system where the money supply of the nation is owned and controlled by that nation through democratic means.

The basis of all Social Credit policy is its philosophy of the importance of the individual citizen. Systems exist to serve people, not people for systems. We oppose all forms of monopoly, state or corporate.We support private enterprise.We advocate a financial mechanism to make this possible.

By a historical accident, the right to manufacture and own most of our money supply has fallen into the hands of the financial institutions, which forces us continually further into debt.Social Credit would return this right to create our money to the people.

Social Credit promotes a system whereby the money supply is controlled for the benefit of everyone, thus ensuring full enjoyment of the nation's production.It contrasts with the present system, operated to benefit the select few.If required, it could also ensure full employment.

Credit (money), now created by the trading banks as debt to society, would only be created by the Reserve bank and first put into circulation debt-free.Some of this could be used to finance infrastructure and thus reduce taxes and local rates.The present debt system is the main cause of problems in funding health, education and other services, and in allowing full employment of those who want to work.


Currently just over 98% of our money supply has been lent to us to use, for varying periods of time, at high rates of interest, by privately owned banks. All but a few of these banks are overseas owned and controlled.

Just over 1.67% of our nation's money supply consists of notes amp; coins which have been issued to us to use without any interest being charged.

Where are you going to get the money from?

From the same process as today, creation by the banking system. But it will first be issued by the Reserve bank for the benefit of the community, not by private institutions claiming it as their own. Money for essential non profit, national& community projects, such as roads, hospitals, schools, power saving, water and sewage systems, will be funded in the first place with an interest free overdraft from our Reserve Bank. This is the basis of our Community Credit Programme.
Practically all money is now created by the banking system. Notes and coins only represent about two and a half percent of the total. Under Social Credit, new money would be issued by the Reserve bank debt free instead of by the commercial banks as a debt. The amount in circulation will be monitored to ensure the industrial capacity and the ingenuity of the workforce is fully utilized for the benefit of the community as a whole.
The overdraft to be repaid over the expected lifetime of the asset by way of rates or taxes. If one million dollars is borrowed then one million dollars is repaid without the burden of paying for the compounding effects of interest
A small service charge will apply to cover the cost of the overdraft facility;
The project must meet environmental conditions and is also subject to the availability to resources & manpower.

Will the use of an interest free overdraft from the Reserve Bank cause inflation?

No, the use of this overdraft money from the Reserve Bank will replace the use of an overdraft facility or loan previously sourced from a private banking institution.


Present interest rates will be reduced drastically. This cost that contributes significantly to rising prices will have less effect.

Money will only be issued relative to production and labour available.


We will set up an authority free of political control to ensure that the money supply is balanced against available goods and services, so that demand inflation can not occur.


Inflation is not always the simple process of ldquo;too much money chasing too few goodsrdquo;.nbsp;Other factors can push prices up, e.g. a rise in oil prices, or interest rates.nbsp;Les Hunter compared inflation with the volume of money as a proportion of gross production in the seventies which showed clearly that the credit squeeze to reduce the money volume was accompanied by increased inflation.nbsp;As the money supply dropped from over 30 % to below 15%, price rises rose from about 4% to about 15%.nbsp;nbsp; Anyone can verify these figures from official publications.nbsp;It seems the economists never have.

We are encouraging real competition between banks; we will source the nation's need for money, by borrowing from a very efficient and cost effective lender of money.
The pressure on real inflation will be reduced as the lower cost of borrowing will see reduced pressure on taxes & rates.

Why does the Democrats for Social Credit Party always talk about banking, debt, & money?

We talk about banking, debt, and money because these three topics infiltrate are involved in every aspect of our lives.

What is the main topic in any corporate meeting? What does anyone go out to work for or strive to earn?

What do we spend most of our time talking about at meetings? It is important to almost all of our activities. It must be managed for the benefit of the community, not the corporations who have seized monopoly control of it.

It dominates all our lives. The banking system uses debts to control people. "He that pays the piper calls the tune". By eliminating sources of debt we will give people greater freedom to live fuller lives, e.g. reduced need for double incomes to pay for mortgages.

We believe money was first developed as a tool to improve the process of buying and selling, but instead money, the development of our banking system and the associated debt it has created has become our master and not, as it should be, our servant.

Health, education, roads, water reticulation, sewage systems etc should not be limited by access to money but by manpower, resources and environmental considerations.

New Zealand is being flooded with cheap imports. How can we compete?

Currently it is very difficult to compete with countries that pay extremely low wage rates and maintain poor environmental standards.
The exchange rate is also a problem as the rate is influenced by huge movements of money for speculative reasons rather than a true reflection of real trade between nations.
We will charge a variable surcharge on all uptake of foreign currency. Speculative movements of money will be discouraged. The surcharge will significantly reduce any margins made.
This surcharge will be known as the Foreign Transfer Surcharge.
Money collected from this mechanism will be used to reduce internal taxation and a proportion used to progressively pay back our overseas debt.
FTS automatically prevents the country from being swamped by overseas goods and services since the surcharge will rise to compensate any future drift to imbalance in the current account.
Bluntly, we can't compete against low wages and poor working conditions in some countries, but we can prevent excessive transfers of funds to those countries by charging a fee for any currency exchange. This would reduce their cost advantage. It would also discourage speculation in our currency and give greater stability in that field.
Why should we compete? We do many things so well that others can not compete with us in those areas. But if there is a real problem our proposal to make a charge on overseas exchange will help to balance it out.

What is the Guaranteed Basic Income, or National Dividend?

A basic income guaranteed to those that need it at a level where people will live in dignity is part of our policy. As we remove the effects of debt, so that our economy shows a "profit", it will gradually be replaced by a National Dividend.
There are forces in the economy that push prices up beyond the level people can afford to pay. Debt levels currently are so high, that new money created will have to be used at first to fund infrastructure and to replace debt and reduce taxation. As the economy is healed, it will be possible to pay a National Dividend to citizens. As with a commercial concern, the amount paid will depend on the state of the economy in any year.
Over many generations New Zealanders and their forbears, using skills, knowledge and resources, developed over the ages, have built this country and developed its assets.
We believe that everyone living in New Zealand should enjoy a return on those assets as a shareholder in New Zealand. Every New Zealander will receive the dividend.

The return will be in the form of a dividend (a small income) paid into your account, in a New Zealand owned banking organisation.
The current targeted benefit system will be progressively reduced as the National dividend payment reaches the levels necessary for a basic income.

You talk a lot about our debt. How much do we actually owe?

Corporate Overseas (Dec 2015 - excludes overseas debt borrowed by Banks)


Business  $89,990,000,000


Local Government
Student Loans
New Zealand's total debt (As listed)
Population of New Zealand (Forecast)
Average debt per person

(Figures in the above table are as at February 2016 and have been taken from the websites for the Reserve Bank of NZ, 

the NZ Treasury, and Statistics NZ)

Social Credit, isn’t that the “funny money party”?

Yes, in earlier times our forward thinking policies were given such a label, but as time has gone on many now believe there is something funny going on with our current money system. This is a fabrication coined by the orthodox economists to discredit our basic tenets. We questioned the banking system's methods and asked why money came into circulation as a debt. We pointed out debt is continually increasing and asked why. Rather than answering truthfully, they questioned our right to ask the question.

There just has to be a reason why, despite our best efforts, our: District Health Boards; Education facilities; Local & Regional Government; Students; Household; Mortgage and Corporate debts keep growing unabated. Even our Government debt continues to be a burden on tax payer's shoulders, despite the sale of many publicly owned assets.

And what could be "funnier" than the present outdated and dishonest money system?

Have you noticed how people with no real answers have to resort to ridicule?

In March 1988 our money supply "M3" was $43,101,000,000.
In September 2010 our money supply "M3" was $208,382,000,000.
Somebody sure has been "printing" a lot of money.
The money supply was increased by a small group of privately owned banks, for the benefit their shareholders, not ours.
$165,281,000,000 was created at little or no cost, and then lent to us to use, charging us a high interest rate in the process.

So will the Democrats for Social Credit Party just print money and spend it?

Notes and coins will continue to be minted and issued into the economy as they do now without any debt attached.
There may well be a further limited amount of new money issued into the economy, without a debt attached. This will be done by the Government spending it in areas such as health and education.
We will do nothing more than the present financial system does except that money will first enter circulation debt free. Government infrastructure projects will not depend on expensive loans at commercial rates that require their repayment several times over.
No. Within the limits of a sound economy, we will issue some new money as required. And effectively, you will spend it.
There is no way we would just print and spend as others claim. We just want to change the way it is brought into circulation.

What will happen to the banking system?

The banks will simply lose the monopoly to create our money. We will ensure that they have adequate funds to carry out their functions for industry, and we will do nothing to alter the valuable relations they have with their customers and the services they provide.
They will be discouraged from funding purely speculative operations and will gradually be precluded from financing the public sector. This last requirement should allow more funds to be channeled into legitimate industrial development.

Are you going to reduce our taxes?

Yes, in two ways.
Firstly we will replace the narrow based Goods & Services Tax (GST) with a Financial Transactions Tax (FTT) which has a far wider tax base and thus can be set at a low rate. No GST: that means more money in taxpayers' pockets.
Secondly, the use of near interest free loans from the Reserve Bank will relieve the debt servicing costs currently paid by Government and thus reduce the ever increasing pressure on our tax dollars. Without the need to pay interest on loans, it will cost less to do more.
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