Explanation of the “American National Credit” — or “Social Credit” — Money System

The Solution to the Money Problem: American National Credit (historically called, “Social Credit” in other countries; use Social Credit if you are doing a Google search.)

This monetary system, American National Credit (or Social Credit, if you want to google more information) will bring the issue of money by the United States, or any nation, up to date. The current system run by the Federal Reserve Board and its allied international banks is at least 100 years out of date.

It began to be obsolete as a monetary system once Henry Ford introduced the system of mass production of material goods. Since that time, machines, technology, computers, and now robots, have increased production efficiency, and progressively reduced the need for human labor.

In addition, the idea that the United States, or any nation, should pay interest to a private group, or to any group, for issuing its own money is more than ridiculous and worse than criminal.

Money, if issued from a trusted source, is a ticket for goods and services.

A nation should issue money to about equal (as nearly as possible) the goods and services available to be purchased in that nation. If there is a lot more money than the goods and services available – then inflation results. If there is a lot less money in circulation than the goods and services available to be purchased — then deflation results, and everyone is needlessly struggling. 

The idea that the younger generation is 60 trillion million zillion dollars in debt, and can never get out of debt, is preposterous. That would only be true if we let the coalition of the FED, Goldman-Sachs, and other international banksters keep running the nation’s and world’s money.

Important Resources:

The Money Myth Exploded – Article, free online, appx 8 pgs


This Age of Plenty – Book, free online


Social Credit in Ten Lessons – Book, free online


The Meaning of Social Credit – by Maurice Colbourne – free online (book)

Intro to Money:

Scroll down past this essay if you would like to go straight to the videos.

Dear Fellow Americans, and Friends in all countries,

Most people are mentally trapped between two false alternatives: Vulture Capitalism (defended by FOX Cable News)in which the people of the USA and the world are now trapped) on the one hand, and Socialism/Communism (defended as far as they dare by CNN and MSNBC) on the other.

The solution is American National Credit (or Social Credit), which is the system that would issue money scientifically, serve the people, and bring back Free Enterprise with an even playing field, as envisioned by the Founding Fathers.

IF one wanted to impute total good will to those running the Federal Reserve Board, we are still 100 years out of date on how we are issuing money. We are more out of date every year as technology, computers, machines, and now robots develop to ever increasing efficiency in serving the needs of mankind.

We now live in an Age of Plenty. We must update our money system. We must issue money scientifically so that the monetary system reflects reality.

Money is given its values by real goods and real services. Money, if issued by a trusted source, is a ticket for these goods and services.

We are, thankfully, not in a food famine, or computer famine, or a housing famine. But we are in an artificial CASH FAMINE, imposed on us by the Financial Vultures at the FED, Goldman Sachs, and other organizations run by today’s International Banksters.

The FED must be replaced by a National Monetary Office, under Congress. Unlike the Fed, the National Monetary Office would operate in the open. Unlike the FED, the National Monetary Office would issue money interest free directly to the people when the amount of goods and services available demanded that a Dividend be issued.

There is a gap today, and it’s not the clothing store chain. It’s the Gap between our Gross National Product (GNP) and the cash in the pockets of the people. The Gap is now about $6 trillion per year. To fill this gap, a monthly dividend must be issued to every man and woman 25 years old and older. This money would be issued interested free, and every man and women would spend it however they wished, with no central planning or intrusion from the central government.

As far as I can tell, all other monetary systems which purport to correct the current money system avoid the question of HOW money should be issued, and HOW much money should be issued at any given period of time.


The first draft of this “Intro to Money” was more conciliatory, but, in the interest of sparking vigorous and needed discussion, I decided to make it more “confrontational” for those who follow the school of Austrian Economics, I hope in a friendly spirit.

There is no getting around the fact that there are two clashing schools of thought on money right now in the patriotic movement in America.

One system, the “hard money” or Austrian Economics system, is represented, as I understand their positions, by national leader, Ron Paul, and such authors and film makers as Dr. Edwin Vieira, G. Edward Griffin, and Michael Maloney. (If I am misinformed on the position of these men, please let me know, there is no intention to misrepresent.) One position of this school is that only gold and silver constitute money, whereas paper money is only an I.O.U. for gold and silver.

The other system, referred to years ago and in some places today as Social Credit, and now referred to by some in the United States as “American National Credit”, is represented by the late C.H. Douglas, the late Louis Even, Alan Pilote, Liam Allone, and Dick Eastman.  Author and film maker, Bill Still, and authors, Ellen Brown and Stephen Zarlenga, represent ideas on the nature of money similar in some ways similar to the “Social Credit” school, without agreeing in all details.

Both positions are given a place on this page, so the person trying to decide their own position can hear and weigh both sides.


I believe I will present here a key question that the Austrian school of economics does not address, and which is the key to being able to replace the out-of-date system, exploitive system of “the FED” with a new system that will serve mankind.

The great inventor, Thomas Edison, said that the young man who can teach the world about how to issue money properly — would do a greater service for mankind than all the military Generals in the history of the world. (This page is an effort to reach that young man, who will finally accomplish this.)

And it was King Louis IX of France (1226-1270), made a Saint by the Catholic Church, who reportedly said that the first responsibility of the King is to issue money properly and justly.

We intend to link a page with comments and essays agreeing or disagreeing with the thesis of this page, so that the issues around money can be aired fully.

What is money? There are two major and competing lines of thought on this question.

On this website, we propose a way to incorporate the best aspects of both systems into a program that will throw off the usurious international banksters such as those at the FED, the IMF, and Goldman-Sachs, — and then institute honest money systems that will serve, rather than exploit, mankind.

We Live in an Age of Plenty

Louis Even has written a book which is free online: “This Age of Plenty” — found here: http://www.michaeljournal.org/plenty.htm

He talks about “this age of plenty” where we have unprecedented ability to produce goods and services. The years since Henry Ford brought effective mass production to the world (circa 1904) have constituted the “golden age” of physical prosperity that all the generations of mankind before the 20th century had dreamed of. This prosperity increased exponentially around the 1950s with the advent of television and many other inventions and improvements on inventions, — AND the ability of businesses to deliver these improvements to the middle class. And then, with the advent of the wide use of computers and eventually the internet – things have jumped exponentially again.

But the entities issuing money for the nations — if we are going to be as charitable as possible — are using methods that are outdated by at least 100 years. (I think informed people know that these organizations, such as the privately owned FED, the IMF and Goldman Sachs, are deliberately exploiting mankind in many ways, rather than serving mankind.)

We have goods in abundance in the stores, and factories lying idle, and plenty of natural resources, and millions of people who want to work that can’t find jobs — yet there isn’t enough purchasing power in the hands of the people to purchase what is available.

In the 1930s during the Great Depression, the great Fr. Coughlin said that we had not a goods famine, but “a cash famine.” Of course, that “cash famine” was imposed on America by the Banksters of the FED who were delegated the power to issue our nation’s money in 1913.

What is Money?

The Social Credit / American National Credit school of thought says that money is a ticket for goods and services issued by a trusted source. So, in other words, the paper money (not backed by gold or silver) issued by the Federal Reserve Board (FED) since 1913 is money (of course, no one in Social Credit likes the FED, nor does anyone want it to continue issuing our nation’s money). The Fed paper money has functioned as money because it has been a ticket for real goods and services issued by what is perceived to be a trusted source, i.e., the US government. (Most people think the FED is part of the US government, even though it is not. It has, however unwisely, been delegated the authority to issue money by Congress. That happened in 1913 and continues to this day.)

I have a friend who says that the “dollar is toilet paper”. Well, not yet. As long as we can buy food, gas, clothing, computers, and automobiles for reasonable prices, then the 2015 dollar in the USA is still functioning as money. Even though the USA was taken off the Gold Standard by President Richard M. Nixon in 1971 — the dollar has still continued to function as money down to this day.

Social Credit / American National Credit says that money is a ticket for goods and services, issued by a trusted source; that ALL the goods and services give the money its value, not just gold and silver. Furthermore, this school of thought insists that to tie the issuance of money to whatever gold and silver is available, instead of to available goods and services, is fundamentally wrong, and is unworkable — leading to a mentality of scarcity in the midst of plenty.

In contrast, the Austrian School of Economics says that only gold and silver are real money, and that the paper “money” is only an I.O.U. for the gold and silver. Now, it is true that when paper currencies crash (by accident or by design) that the paper is then worthless, while gold and silver continue to be of real value. (True, but, by the way, land and eggs, buildings, and a million other physical products, also continue to be of real value when paper currencies fail).

It is also true that even the advocates of Social Credit / American National Credit whom I know, who can afford to do so, own gold and silver today against the possibility that the FED will some day issue paper money in a runaway fashion so as to cause hyper inflation, and thus ruin the dollar.

And it is also true that the US Constitution still requires that states use only gold and silver as tender for debts (whether the Constitution requires the Federal government to do the same, I’m not sure).

No one should object to paper money being redeemable in gold and silver. However, how much such a policy would be in touch with reality, and how much of such a policy would be simply a “feel good” measure — I’m not sure at the moment. (For instance, is there enough gold and silver to go around if everyone wanted to redeem his paper money at once? – or is this just a fiction?)

A Question for the Advocates of Austrian Economics: How Much Money Should be Issued in any given year?

I have not heard nor seen where Austrian Economics, or any other school of economics, addresses this question clearly. Social Credit / American National Credit addresses this question and answers it with precise clarity: money should be issued each year to equal, as far as possible (it will never be exact), the goods and services available in the country together with the goods and services that can be brought into being in the near future.

The Gap — and We’re Not Talking About the Clothing Store!

I’m told by those with expertise in Social Credit / American National Credit — that various government agencies, such as the Government Accounting Office (GOA) already measure what is needed to issue money scientifically. For instance, in 2012, I am told the GNP of the United States was $15 trillion dollars. On the other hand, all the money issued in the form of wages, social security checks, welfare, and unemployment constituted about $9 trillion dollars. This left a GAP of about $6 trillion dollars between what was produced vs. the purchasing power in the pockets of the American people to buy what was produced. As long as that GAP remains unfilled, then we will continue to have the current array of economic problems.

How to fill that gap — and get the right amount of purchasing power into the hands of the people?

The recognition that wages alone in the modern age can never put enough purchasing power into the hands of the people — is what caused C.H. Douglas in 1917 to come forth with the principles of Social Credit. But Douglas was not for continuing the centuries-old policy which essentially prescribed that all new money descend to the everyday people from the top banks (i.e., such as the FED, Goldman Sachs) to the local banks (i.e., such as Wells Fargo, PNC Bank) to the businesses to the wage earners. Douglas proposed that a Dividend be paid directly to the citizens to fill the “Gap”. This Dividend would be issued directly to the people after which everyone could spend his/her Dividend the way that he/she wanted to. This, Douglas said, would be true Economic Democracy.

To explain, if the GAP is $6 trillion then that amount is divided by the number of men and women in the USA. That is the dividend.

I am told that, under current circumstances, every man and woman over 25 would get a Dividend check every month for about $1600 — and that would fill the gap. That would put into the pockets of the American people the spending power that is now lacking to buy the goods and services that were available in that year.

To compound our current problems, the top bank, in our case the FED, are issuing money into circulation WITH INTEREST.

(By the way, the Dividend would put an end to welfare, social security, and unemployment.)

Is the Dividend Free Money?

Many people hear of the Dividend and conclude that it is Socialism, or “Free Money”. In fact, the Dividend is not Socialism because there is no central planning — no one is told how to spend his or her Dividend. Also, it is not “free money” — it is money issued against the goods and services that can now be produced by the inventions and ingenuity of all the previous generations, and of our own generation. These goods and services can now be produced with a fraction of the work force — thanks to all these inventions and all this galloping technology. Countless inventions over the centuries (including the printing press by Johannes Gutenberg circa 1450, which allowed people of ideas to communicate on a large scale with other people of ideas), Mass production of physical goods (established by Henry Ford, circa 1904), all kinds of automated machinery in the 20th century, computers circa the 1950s (and introduced to millions of homes in the 1980s), the internet (in 1969, brought to the public in 1996), cell phones for communication for individuals on the move on a large scale (circa 2000), and on and on.

Recent announcements that are furthering the age of leisure by relieving mankind of tasks which require constant repetition and drudgery: ATM machines which allow people to withdrawals, and now make deposits, as well as do other banking business without human tellers; robotics of all kinds — it is now said that robots will be replacing humans in making hamburgers at McDonalds and Wendy’s by the year 2024.

Some say we only need 1/3rd of the work force in 2015. Certainly this computerized technology — and now, as stated above, even robots — are taking jobs away from human beings that will never come back, barring a complete societal breakdown.

Is this good or bad? It has to be good, if it frees mankind up to pursue his higher nature, both intellectually, spiritually, in reviving all types of artisanship for those with the talent to work with their hands, in providing leisure time for inventors create new things, as well as to develop even more improvements to current inventions etc. etc. etc.

Again, the Dividend is issued against all the goods and services available to the nation, in an era when far less human beings are needed to produce these goods and services.

So is the Dividend free money? The answer is no, but those of us in later generations are benefiting from the blood, sweat and tears of our industrious ancestors.

If you were told tomorrow that you had a relative, whom you had never heard of, but who was very successful in business, — and that this rich relative had left you an inheritance of $1600 a month for the rest of your life, — would that be free money? For you, yes — but it had already been earned by your successful relative.

Our “rich uncle” is Henry Ford, Thomas Edison, Nicholas Tesla, Steve Jobs, and all the MILLIONS of people who have made innovations over the years, decades and centuries.

In exactly this way, the $1600 Dividend per month per adult in the USA — which some say would fill the cash GAP in the USA in 2015, would be free money to us of this generation, but would have been earned by our ancestors in all previous generations.

New Measurement of Money vs. Goods and Services — Every Year

Each year the measurement of the GNP vs. purchasing power issued would have to evaluated. In some years, money may need to be withdrawn and the Dividend would go down. But Social Credit / American National Credit proposes a SCIENTIFIC system to issue money into circulation — something I have not seen in Austrian economics, or any other economic system. If anyone can enlighten us on this point, from Austrian economics or any other economic system, then we will post it, with discussion, on a page linked to this page.

Serious Auditing of a Transparent National Monetary Office

Unlike the current FED, which has always operated largely in the dark, the entity that would replace it, perhaps The National Monetary Office, would be constituted under the authority of Congress as the Constitution requires, and would operate in the open, with total transparency. It would be audited by at least 6 agencies, three within the government, like the GAO (Government Accounting Office) — and three private accounting firms from outside the government. Those caught deliberately and systematically falsifying numbers would face jail terms of at least 20 years, and those who caught and proved such fraud would be heavily rewarded, such as with a million dollar bonus.


I had long heard the proposition that if we print more money, then inflation would necessarily result because there would be more money chasing the same amount of goods and services. HOWEVER, there is a fallacy in this reasoning. For we do NOT have a static supply of goods and services. We have an increasing availability of goods and services. Too much printed money (over the available goods and services) would result in inflation, and too little would result in deflation. Thus, Social Credit / American National Credit proposes that the amount of money be issued scientifically — to reflect reality, i.e., to reflect the actual supply of goods and services available in the country at any given time.

By the way, Banksters Kill Presidents who oppose them

Why are we in the USA letting a private company, the FED, empowered by the US Congress, to issue OUR nation’s money AT INTEREST to our own nation?

Real – but suppressed – history, reveals that these Banksters have killed almost every President who has talked about taking action, or actually had taken action – to remove the money-issuing power from these same Banksters. These Presidents were Lincoln, Garfield, McKinley, and Kennedy. We said “almost” above because the banksters tried to assassinate President Andrew Jackson in 1837, but that attempt failed. There is a famous cartoon of this attempted assassination which can be found online.

One may ask: Who was trying to assassinate these Presidents before the Federal Reserve Board came into existence in 1913? In fact, the international Banksters which in the last 160 or so years have been allied with the Rothschilds, the Warburgs, the Rockefellers, and JP Morgan – have been running international finance since the founding of the Bank of England circa 1696. These Banksters have tenaciously fought to establish themselves as the money-issuers in every nation. After many back-and-forth struggles, the United States fell in 1913 when Congress delegated the money-issuing power to the FED, and Russia fell in 1917 when the Banksters police-arm at that time, the Communists, took over that country.

(More will be added to the above essay in the near future.)

For now, here are some articles, books, and videos from both sides of this controversy about the nature of money. On the top will be some articles, books and videos favoring the Social Credit / American National Credit side, and after that will be some books and videos favoring the Austrian Economics side.

Info Favoring Social Credit / American National Credit

– The Money Myth Exploded – an article by Louis Even (free online)

This is a cartoon parable followed by three essays explaining the parable.

This Age of Plenty – a book by Louis Even (free online)

Social Credit in Ten Lessons – a book by Alan Pilote (free online