In his book Credit-Power and Democracy, C.H. Douglas introduced the A+B theorem as follows:

"A factory or other productive organization has, besides its economic function as a producer of goods, a financial aspect – it may...

One of the key aspects, if not the key aspect, of the Social Credit analysis of financial and hence economic dysfunction has to do with the chronic and underlying deficiency in consumer purchasing power

Latest Articles

  • Acids, Bases, and Balance: A Chemical Analogy for C.H. Douglas’s Social Credit
    Geofrrey Dobbs’ chemical metaphor casts a brilliant light on Douglas’s Social Credit, revealing that the debt-money system is, in conjunction with an unbalanced price system, an acidic force—corrosive, unstable, and conflict-inducing. Social Credit, by contrast, provides the base money that neutralizes this acidity, infusing the economy with debt-free purchasing power (OH⁻) to balance the H⁺ of debt-laden prices. The National Credit Authority, as the economy’s alchemist, orchestrates this equilibrium, ensuring financial flows mirror real production.
    Written on Tuesday, 09 September 2025 13:53 Read more...
  • Solutions to Banker Rule: Key Monetary Conferences Slated for Fall 2025 in Canada, Chicago
    Mark Anderson Reports on Two Up-coming Conferences involving Douglas Social Credit in whole or in part: https://www.thetruthhound.com/solutions-to-banker-rule-key-monetary-conferences-slated-for-fall-2025-in-canada-chicago/
    Written on Tuesday, 19 August 2025 08:27
  • Douglas’ 2nd Proof for the A+B Theorem (The Misalignment of Accountancy Cycles)
    In The Monopoly of Credit (1931), C.H. Douglas presents his second proof for the A+B theorem, arguing that the two core accountancy cycles of an industrial economy: the creation and destruction of money (Cycle 1) and the creation and liquidation of costs (Cycle 2) are misaligned, resulting in a systemic deficiency in purchasing power. The money cycle (Cycle 1) operates at a faster pace than the cost creation and liquidation cycle (Cycle 2), creating a gap between prices and purchasing power that widens with greater dyssynchrony and narrows with greater synchrony. Indeed, if the cycles were perfectly aligned, money creation/spending and cost creation/liquidation would occur simultaneously, eliminating the gap entirely. [1] C.H. Douglas, The Monopoly of Credit 4th edition (Sudbury, England: Bloomfield Books, 1979), 46-50.
    Written on Tuesday, 13 May 2025 09:39 Read more...