Marxism Unmasked from Delusion to Destruction.pdf 7471KB

MONEY. INTEaEST. AND THE SUflNESS CYCLE
p))eiioinmon of die nuricet, which rrflecti the tact due futurr goods arc
traded at a dtfcount as comfurrd with pnncnt goods. >%r must ask
otirsdvrs. "What » the tmme cffhc proem which, after the initial drop
of the interett rale due to ciedtt expannoa, finally brm^ about tfep b\- step
a return of the race of tnceirM to thai levd which irfiecti market condi-
0()m and the ^meral «aie of tSxaxV Thai is. if the rate of inteirst is a
general category oi hunun action, and ^ if an incrrated supply of money
and hank credit cu\ bring about a tetnporar>- drop in the rate o^ incerrsi.
hov^' does the mteresf rale mum once motr to the rate that rrflects the
di)^ ouni a( hiiurr goods cMtt pcrsem gocKk'
In amwering this quetoon. wr air aho annMrnng a question clui has
occupied people for decades, even crmunes in some countries thai hasr
had central banks and a s>*siem of credit empamion This n (he problem of
the trade cycle—the regular return vA prriods at ecocKNnu depmsKHi In
Grrac Uriuin fnwn the end tA the oghteenth < eniurs- on. and bier in th€>se
COtinirtes of' the «stme realized what was uusing this irists—it was the
American (.'isnl War and the stoppage ol Uiipmrnts i»f itMion ti» |-.un»pe
\Vr do not deal ssith such crises due to a definite identifuMr situation
\Vc deal vsith a genuine crisis in all branches of busines»— althctugh it is
titmetimes worse in some brancho than in cjthers— a crius lor which
people couldn^ see uts special reason
From the beginning oi the mneteenth cenrur\ on, people hc^n to
I ofuider these peruxhc crises as one of the nytMi impunant pn»blcms of
lonomtc research In the IK.UK and 1H44H British etonomius ansssrred
tm question b>' saying. "What %kr ha\r to s(ud> is not the economic
Icpmuon. Thu deptvwion u alwav's the comequeiKe of' a preceding
Noom. Wr must ask ouneKes not "What is the cause of the crius?'
Nve must ask *What » the cause of the preceding bcxjm?' And we must
isk ourselves what is the reason wh>' the unquesuonable and certain
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