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Forthcoming
Book: The Other Road to Serfdom, A
history of the abuse of money
This
book is the most comprehensive history yet of the private banking
sector and its misuse of M0, the nation’s currency comprised of
notes and coins; our legal tender money which is issued interest
free, on the back of which it creates 90% of the nation’s total
money-supply burdened with interest payments and escalating debt. It
details not only the major events in our troubled history of
economic cycles of boom and bust, but shows clearly what lay behind
them as well as how the causes were explained away by economists
hired to uphold a system designed to contain us in perpetual
slavery.
As
with previous generations, our children are not being educated, but
conditioned to accept the unacceptable. The questions they are
asked, and the answers they are allowed to submit, are based on
classical nonsenses and false assumptions which have purposely been
employed for the past 300 years to maintain the financial status
quo.
We
and our children are taught to accept, as a proven fact, that:
“Economics is about the management of scarce resources.”
Students, however, are not told that the resources in question are
kept artificially scarce, and so fail to realise that the reason for
farmers being paid for the non-production of food is linked to the
same reason why bankers keep money in short supply – in order to
maintain an artificial scarcity value.
Arthur
Swan, the author of this in-depth study of money and monetary policy
wrote this book in response to Professor Hayek’s book The Road to
Serfdom. At the time, Hayek’s writings seemed to skilfully
demonstrate that Marxism – via socialism – was the only road to
serfdom and in the eyes of the majority of those living in the
relative freedom of a democratic state the vast prison camp of
Soviet Russia and its subjected iron curtain countries seemed to
confirm his analysis. In The Road to Serfdom, Hayek makes quite
clear his conviction that nationalisation and any form of planning,
economic or social, would destroy our democratic freedoms.
What
this book The Other Road to Serfdom attempts to show is that
unregulated capitalism is also a road to servitude. In a different
way, and probably more so, George Orwell’s Animal Farm and 1984
alerted the free world to the horrors of the Marxist state, but with
an all important difference. He did not claim that the forces of the
free market would prevent this sort of catastrophe from curtailing
the freedom of people here, and was deeply concerned that Hayek’s
beliefs would lead to a return to the conditions of slump and
unemployment in which the seeds of communism could germinate.
With
close to three million unemployed and millions more kept above the
poverty line by a costly social security system in Britain and a
similar story in most developed industrial countries, the Left is as
convinced as ever of the ‘evil of capitalism’. Most of us, as
did Orwell, feel concern to a lesser or greater degree about the
plight of the unemployed and the poor, but it does not make us
Marxist-Socialist, far from it.
The
tragedy, therefore, of 20th century politics, and more so
since the end of the second world war has been the incalculable
damage inflicted upon economic activities both nationally and
internationally by the partisan interpretation of the meaning of
‘capitalism’. Most men, whether they are drawn to the teachings
of Karl Marx or to the faith of the free play of market-forces are,
no doubt, sincere in their beliefs that their way is the rod to
social justice, not the road to serfdom.
However,
these opposing beliefs fail to convince the broad mass of the
electorate as they instinctively feel that both these forces should
be kept under control for the well-being of the nation. This long
drawn out struggle between the ‘haves’ and the ‘have-nots’
has now entered a far more dangerous stage than the great monetary
and economic disaster of the 1930’s , and the forces that bedevil
man’s attempts to evolve a fair and just society are actually
monetary, not economic.
Arthur
Swan started his investigation into the causes of inflation and
unemployment in the 30’s and observed that every economic crisis
in the last century followed a period of heavy lending. The flaw in
the world’s economic thinking is the desire of all nations to have
a favourable balance of trade. It is a general, though false,
assumption that foreign investment in itself is desirable. However,
foreign investment means – in real terms – the export of real
wealth (i.e., raw materials and manufactured goods) on credit; with
the certainty that a large proportion of that exported wealth will
be lost to the exporting nation, and that the receipt of payment of
the balance must disorganise the trade of both the creditor and
debtor nation.
There
is no point in a country increasing its means of production if the
producers of this increased wealth cannot consume it or export a
portion of it to another country in exchange for the goods and raw
materials they require, but cannot produce locally. this is the
pivotal point of all economics and when we lost sight of this and
allowed the credit-creators to gain control of the levers of power
it was inevitable that instead of increased prosperity that our
technical and mechanical means should have bestowed upon the nation
at large, we have with us a problem of unemployment and its
attendant erosion of the moral fibre, increasing poverty, bad
housing, the problem of increasing old-age and an over-stretched
social security service. We lost sight of this cardinal principle
when the nation allowed itself to be fooled into believing that to
export was good business, and from the acceptance of this fallacy
and on to the present day, in spite of slumps and booms and economic
disasters, we are still urged to ‘export or die’.
It
is one of the incredible conundrums as to how this fallacy remains a
tenet of faith when the sheer simplicity of what happens when a
country exports on credit is understood. For if we state the case
shorn of all the technical jargon of the economists and bankers the
proposition we have is simply this: The nation produces real wealth,
i.e. ships, planes, machinery of all sorts, raw materials and
finished goods of great variety; the great proportion of which it
consumes itself, the remainder of which is exported in exchange for
raw materials and finished goods which should mean the real increase
of wealth to the nation, but this is not so, simply because we cling
to the myth that to export on credit is national Wealth when in fact
what actually happens is we send real wealth – a steel-works say
– to the Argentine, in exchange for bonds or securities subscribed
to by the British investor, in other words the British public have
supplied the money to produce the steel mill for the Argentine and
the attraction held out for the investor is a high rate of interest.
But, here lies the nub of the fallacy of exporting on credit, in
that the interest can only be paid by taking from the Argentine, in
the main, wheat and meat which must be sold in Britain to the
detriment of British farming.
This
system has been put in place and consolidated on a global scale, and
even the Sovereignty of Parliament is not allowed to question the
monetary policy of the Treasury and the Bank of England. It is
still, and always has been, a closed book.
The
Other Road to Serfdom was Arthur Swan’s life-long work and saw its
conclusion over half a century after it had begun, when Arthur Swan
in discussions with Islamic Party leader David Musa Pidcock
discovered the Islamic alternative and incorporated it into his
opus. Sadly, he died before he could see the fruit of his tireless
effort, but David Pidcock continued to get the book ready for
publication, adding a comprehensive index which will make it a most
valuable work of reference for any student of economics. The book is
scheduled to be published later this year.
Author: Islamic
Party of Britain
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Date Published:
Winter
1998 |
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