Saturday, July 16, 2011

The economic causes of the war

In 1929, Major Clifford Hughes Douglas toured Japan. He was an economist , founder of 'social credit theory' who thought that central private banks ought to be scrapped (horrors!) and replaced with a state owned bank that issued credit and currency without interest obligations- the state would have its own money, and not be enslaved to loans that it had to pay double (interest) on. All of Douglas's pamphlets were translated into Japanese, and sold like hotcakes.

Also in 1929, capitalism collapsed worldwide.

By 1932, Japan had begun to implement the Douglas plan; they started a national, usury free bank. Also, each citizen received a dividend from industry and state enterprises, which helped consumption supply and demand, thus neutralizing any potential harmful inflationary pressures. The economy of Imperial Japan took off like a rocket...Britain and America languished, beat out by the nationalist Japanese. Soon Japan would be joined in economic recovery with Germany, which experienced a peace time economic miracle in just two short years under Nazi rule (by the end of 1935..before re-armament).

Before the reforms, Japanese private banks created money out of thin air, as a interest bearing debt, to be paid off by the innocent and un-responsible people (sound familiar ?). Once the government took control of the printing presses and started issuing interest free credit to the people, industrial production soared. From 1931 -1941, manufacturing increased 140%... During the same time period, GNP rose 259%...unemployment went from 5.3% in 1930 to 3.0% by 1938.

Britain, France, and the United States became fearful of being totally eclipsed by the success of Japan and Germany-Imperial Japan, unshackled by usury, soared.


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