Marxism Unmasked from Delusion to Destruction.pdf 7471KB

MONEY INTEREST. AND THE BUSINESS CYCLE
It u tnte that die older gowemmenc decrees fixing maxunum rates of
iiitemt were abohshed in die age of liberahsm and capitalism. But ihc\-
wcte aboliflied only because govrmmems ihou{dit che>' had discovered a
nrw means of making civdtc cheaper, i.e.. duough credit expansion by the
banks. In the pfoce«i. pnvace bankers dtsappeaied completeK' from this
buttnev. Governments gave pnv ilcy* to govrmmenial banks that had the
monopoly of the nsuance of Bduciary medu It was not easy for them to
di) this, because there %vas some rrstftaiKe Tv^nce m the Umied Sutes. the
efforts to esubbsh a United Sutes bank of mue urrr thwarted b>' the
mjjonty of the population
What the govemmencs did was to intnwiuce a srry «krak "middle o(
the road" procedure for deahng wuh the problem A comment supponer
0( this system of credit exparmon nMMild hasr taid."lf >xhi - should yxm not finalK- abttltih ii
altogether ind iiukr the rale of tnieresi disappear and gisr csxrvKxh-
lojtu without charging them uiy rate of iiMetrsi M allMhu UTniUi be a
lolucion CO die social problem of povrny^ ^mi could give to esxrv-body
Why not?" But the govrmmencs did not believe ihe>' could aK>hih the
latrs of interest altogether
There wi% a lamous eiu hange a4 leif rrs brfiAren the Itrtu h uh u1i«i
Picrre-Joseph l»n»udhudhon wa%
Hi opponent tt( Ba%iiai Proudhon nuintained that if iat ruabltihcd uuh
rrrdit-iMuing banks, then iat could make the rate til mtrrru divippear
inpletely Basiut disagrred. but he didn'k find prrcncly the correct
pounon; he endorsed » "middle of the mad" toluticMi. nainciv thai inierru
rates should be allcmrd in go up to certaui points but thai iho diould not
be "too high" lhi% middle -of- the -n»ad position brtamc later the
generally accepted dcKtrinc o( the y^v»tUi Ibcne who uiU nuintained that
it was possible to create riches for all b> credit measure% atiited at luumng
or ehminating interest rates altogether ssrre tailed "tnunetar> cranks"
There was no reason to call them monetarv- cranks. the\' urtr only iiHJre
consistent than thcne who ad\ad
policy. Some ot the ad\'
11838-1922). a Belgian who w» successfiU at a buunesutun and as a
chemist, but who believrd that it vkras poMible to make all people happs' by
establishing (ompt^ltsme mvm/ |compaobilism| In Clanada. there \s'as the
Alberta Expenmeni. the pitogram of an En(dishman. Major CIlifTord H.
Douglas (1879-1952|. Douglas called it "social credit
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