Marxism Unmasked from Delusion to Destruction.pdf 7471KB

If the insriturion of credit expansion and ocbcr types of goivemment
inflation had been invented m the se\'enteenth centurv- the history of die
strug^e of the Stuarts >\ith the Bntish Pariiament >^x>uld ha\r been verv'
different. Charles I (1600-1649) \vouldn't ha\r had am- problems m getting
the money he needed if he could simply ha\T ordered the Bank of
England, which didn't exist m his Dme, to grant him credit. He ^%\>uki then
have been in a position to organize an arrm* of the King and to defeat
Parliament. This is only one aspect.
The second aspect— I don't behexr that this country could stand
psychologically a recurrence of a crisis like that of 1929. And the onK- wzy
to avoid such a crisis is b> pre\mting the boom. We arr alread>- \Trv' far
along in this boom, but ur could snll stop it m nme Ho\%r\rr. there is a
great danger. While capital goods are hmited m amount and air scarce and
would, therefore, limit those projects which can be executed and make
many projects appear impossible for the nme being, credit expansion can
hide by the illusion of an increase in the capital reported in dollars on the
books. Credit expansion creates the illusion ol* j\'atlable capital, while in
fact there is not.
The tundamental prx>blem ot the nineteenth centurv* was that pcof4c
didn't realize these things As j result, capitalism was vrrv much dnctrdited,
tor people bcliesTd that the alimvu periiHlic tKiurrrtKe ol depmnoiM
was J phrnotncnon ot capitalism Marx and his toUosisrrs expeited the
depressions to get pn^gressisrlv s%x»rse. An*i Stalin still sj>-s openl>- esTty day:
"We ha\T only ti> wait Iherr will be a vTr>- bad cmn in the capitalist
countries" If \se want ti> thwart these plain s*r mmt realize thai UHind
credit policies acknowledge the fait that there is a scarvirv- o( tapiul gi>ods.
that capital cannot simplv be iiureased b\ vtrdii expansMMi Th»
come tt> be reci>gni/ed b> tnir businessmen antl politKians
(Additional ^ommrnt} hy .\/i(r> dunng thf ^utUum-tind-iimiUTt pmad.l
What hapiH-iicd in the pa\t with itedit expansion has been, by and
large. al>M>rlH'd aiul adjusted to In the nurket I s%\>uld sa>-. take as "given"
the cniuliiioii\ aN thc^ hasr hapj>ened in the pau. uvA ia\ only that for
the tiitiirc there \hoiiKl In- m.' »»i4»fr .rrJi/ fxpjnMim In the future no
additional bankiu>teA should be is\ued. n^y additional credit should be
entered on a bank atiount subject to cheik. uhWm thnr t% 100 pmrnt
4i>irrtJvv iM monc)' This is the l«">-penent plan With respect to todays
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