Marxism Unmasked from Delusion to Destruction.pdf 7471KB

this type was not very critical, not verv' dangerous, because it >**as done b\
individual bankers who had a good standing ui the cirs' and their notev
could be taken b\' people, or they could be refused. You could go to the
banker and receive from him a loan made up completeK' of additional
banknotes, fiduciarv* media, made up completed of credit expansion. But
then the question was, would >x)ur customers and yxHir creditors realK* be
ready to accept as payment the banknotes issued b\' this banker? We iruv
assume that a creditor who has a questionable deal u
a check on credit expansion, and there couldn't be crrdif expansion of am
considerable extent.
But verv' soi>n gmrrnmenrs imaded this field of action. Thc>' imadcvl
it under the erroneous idea that bv issuing cirvubtion vrrdit. Additioiul
credit. fiduciar\- media. b\ issuing nH>rr nuwrv than ihe\ had meiSTvl
from the public, the banks vsrre m a piniiion. prrciscly on account olthix
credit expansion, to reduce the height of the rale ol'intcrru
I pointed out before that a great mistake concerning intrmt was
inherited fn>m earlier age% it was a ci»rrrct Jev.ripr% And a* a rriult t>f thi*. the idea prrsailcd thai a high
interest rate was bad. IVople urre not prrparrd lo accepi ihe rate o4'inlrrr%i
.is a market phciu>menon that could luH be mtluerued K ihe gmrrnmeni
riu-v consulcrcd the interrM rate inerrlv a* tn obstacle lo economic
development and pn>grrv% Main e\rn beliesrd thai the rale ol inierrsi was
something panluccd bs the greed t>t *elfi\h moiK-s -lenders and thai il was
the duty n\ the gmrrnment to fighl agaimi il The dorlopmcm of
modern capitalism \sas due ti> the lad thai gtnrrnmcnts. alter centuries
mk\ centuries ot making mistaken, fmallv abamloncd the idea that the>
should intertcre with nurket prur*. wage ratet. and w» on Capitalism
wouldn't h.ivc developed it gtATrnment inierterrrKe with ptKes and wages
had not been abandtMied in the eighteenth ceniurv This drsrlopfncnt Laid
the way tor the ecotu>mic impnnrments of our age Hos»r\rr. il did not
succeed completely with regarvl to the rale t>t intrrrst