JAPAN AND GERMANY BREAK THE SHACKLE OF INTEREST – AND PAY THE PRICE
“It is a war of financiers and fools, though most people, do not yet see very clearly how financiers come into it.” Hasting W.S. Russell, Duke of Bedford. Circa 1939
Germany and Japan have been heavily stigmatized for the aggressions of WW2, but there are two sides to every story. In the 1930s both countries funded their economies with interest free national credit rather than borrowing from international banks. Thus freed from the debt trap, they became economic powerhouses. They were not members of the British Commonwealth (like Australia, Canada and NZ), so more was needed then just the visit from the Mafia boss(City of London) to bring them around……….
It was not just Canada and New Zealand that were influenced by Major C.H. Douglas’ Social Credit Theory, an innovative approach to finance. The Japanese also took to his logical mathematical theories.
They used these insights however in a slightly different way.
Douglas’ economic theory advocated the transfer of the money creation process from private banks, which create money out of nothing as an interest bearing debt, to the state.
According to Douglas’ Social Credit theory this government created money called social credit, should be given as a basic income or national dividend to each citizen to cover the gap in purchasing power to purchased the goods produced. The gap in purchasing power arose when the economy routinely produce more goods and services than the consumers have the money to buy, because the workers collectively do not get paid enough to cover the costs of the things they make. And yet they are the market! –more on this later.
The Japanese application of Social Credit was slightly different. Yes they transferred money creation to the State but instead of paying citizens a basic income they subsidized exports for sale much below ‘western costs” (which include the private bankers interest!) and make up the difference for the manufacturers out of the national credit. (As currently being done by China, and Korea, and Taiwan, but not by the colonial loyalist nations of Asia).
Once the shackles of private banking have been removed, sustained improvement took place in the Japanese economy. During the 1931-1941 period manufacturing output and industrial production increased by 140% and 136% respectively while national income and GNP were up by 241% and 259% respectively. These remarkable increases exceeded by a wide margin the economic growth of the rest of the industrialized world. Unemployment dived in Japan’s labor market. Japan became a leading economic power in East Asia and its exports were steadily replacing those of America and England.
Coming soon: Venezuela – When the late Hugo Chavez ( the nationally revered renegade Venezuelan President ) nationalized private banks, and implemented national legislations to direct private banks’ lending for the public good.
An Islamic Monetary Reformist’s Take cum Edited Excerpts from Ellen Brown’s From Austerity to Prosperity- The Public Bank Solution
Islamic Monetary Reformist
Muhammad Zahid Abdul Aziz
Note: The Islamic solution will be bespoke with its required parameters.