Programme for the Third World War

by C.H. Douglas

Our guest contributor is renowned Scottish engineer Major C.H. Douglas (1879-1952), who founded the modern monetary reform movement known as Social Credit. Douglas pointed out that modern industry can readily produce enough goods to meet the needs of everyone in society, but that the reason we sink further into debt while at the same time being driven to produce more and more, is because of the nature of industrial production combined with the monopoly on money-creation held by the banking system. As he explained, "The method by which the banker makes money is ingenious, and consists very largely of bookkeeping. . . Every bank loan creates a deposit, the repayment of every bank loan destroys a deposit; the purchase of a security by a bank creates a deposit and the sale of a security by a bank destroys a deposit. There you have . . . a quite undeniable statement of where money comes from: all but 0.7 of one per cent (or over 99 per cent).

60 pages, Paperback

Published January 1, 1943

About the author

Major Clifford Hugh Douglas was a British engineer and pioneer of the social credit economic reform movement.