BankSith on Nostr: How #CentralBanking is a #Communist Concept 😳 ✊ A central bank is an institution ...
How #CentralBanking is a #Communist Concept 😳 ✊
A central bank is an institution that has the monopoly over the issuance and regulation of money in a country. It can control the supply of money, the interest rates, and the exchange rates. It can also act as a lender of last resort to commercial banks and the government.
Central banks are supposed to maintain price stability, support economic growth, and ensure financial stability. However, they also have enormous power and influence over the economy and society, and they are often subject to political pressures and conflicts of interest.
What did Marx say about Central Banking?
In his Manifesto of the Communist Party, published in 1848, Marx listed 10 measures that he considered necessary to bring about socialism-communism. The fifth measure was:
> Centralisation of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly. ¹
Marx understood that money is the lifeblood of the economy, and that by controlling money, the state could control everything else. He also wanted to replace gold and silver, which are scarce and independent forms of money, with paper money, which can be created and manipulated by the state. Marx was not a fan of the gold standard, the national debt, or the stock market. He saw them as tools of exploitation and oppression by the capitalist class. He wanted to abolish them and replace them with a central bank that would create money for the benefit of the workers and the state.
How does Central Banking undermine the Free Market and Individual Liberty?
Central banking is a communist concept because it violates the principles of the free market and individual liberty. Here are some of the ways it does so:
- It creates inflation. By increasing the supply of money, central banks reduce the purchasing power of money and erode the value of savings. Inflation is a hidden tax that benefits the government and the debtors at the expense of the savers and the creditors. It also distorts the price signals and creates artificial booms and busts in the economy.
- It enables deficit spending. By buying government bonds, central banks finance the government's spending and debt. This allows the government to spend beyond its means and avoid fiscal discipline. It also crowds out private investment and transfers wealth from the productive sector to the public sector.
- It manipulates interest rates. By setting the benchmark interest rate, central banks influence the cost of borrowing and lending in the economy. They can lower the interest rate to stimulate the economy or raise it to cool it down. However, this interferes with the natural rate of interest that reflects the time preferences and the supply and demand of loanable funds in the market. It also creates moral hazard and encourages excessive risk-taking and speculation.
- It undermines financial stability. By acting as a lender of last resort, central banks provide a safety net for commercial banks and other financial institutions. This creates moral hazard and encourages excessive leverage and risk-taking. It also creates systemic risk and contagion, as the failure of one institution can trigger a domino effect on others. Central banks can also bail out insolvent institutions and create moral hazard and zombie banks.
- It reduces individual freedom. By controlling money, central banks control the economy and society. They can influence the allocation of resources, the distribution of income, and the direction of development. They can also impose capital controls, negative interest rates, bail-ins, and other coercive measures to maintain their monopoly and power. They can also monitor and track the financial transactions and activities of individuals and businesses, and violate their privacy and property rights.
☟
Central banking is a communist concept that contradicts the ideals of capitalism and democracy. It is a system that benefits the state and the elites at the expense of the people and the market. It is a system that creates inflation, debt, instability, and tyranny. It is a system that needs to be exposed, challenged, and abolished.
---
¹: Karl Marx and Friedrich Engels, Manifesto of the Communist Party, Chapter II: Proletarians and Communists, ⁴.
²: Karl Marx, Capital: A Critique of Political Economy, Volume I, Part VIII: The So-called Primitive Accumulation, Chapter 31: Genesis of the Industrial Capitalist, ².
Source:
(1) Why Marx Loved Central Banks | Mises Wire. https://mises.org/wire/why-marx-loved-central-banks.
(2) Karl Marx – The Godfather of Central Banking? - Liberty Nation. https://www.libertynation.com/karl-marx-the-godfather-of-central-banking/.
(3) The Communist Manifesto - Wikipedia. https://en.wikipedia.org/wiki/The_Communist_Manifesto.
(4) Is Central Banking a Capitalist or Communist Concept?. https://www.theepochtimes.com/article/is-central-banking-a-capitalist-or-communist-concept-2-2219456.
(5) Financial System: Definition, Types, and Market Components - Investopedia. https://www.investopedia.com/terms/f/financial-system.asp.
(6) Global financial system - Wikipedia. https://en.wikipedia.org/wiki/Global_financial_system.
(7) Financial System - Overview, Components, Example. https://corporatefinanceinstitute.com/resources/wealth-management/financial-system/.
(8) Economies in the Financial Spotlight in 2021 - IMF. https://www.imf.org/en/Blogs/Articles/2021/05/06/economies-in-the-financial-spotlight-in-2021.
(9) A Brief History of Central Banks - Federal Reserve Bank of Cleveland. https://www.clevelandfed.org/publications/economic-commentary/2007/ec-20071201-a-brief-history-of-central-banks.
(10) Is Central Banking a Capitalist or Communist Concept?. https://thewillcountynews.com/install/index.php/2019/10/14/is-central-banking-a-capitalist-or-communist-concept/.
(11) The Cold War for Kids: Communism - Ducksters. https://www.ducksters.com/history/cold_war/com
Picture: Patrick Schüffel via Linkedin
Reject #cbdc
Learn #bitcoin
Stack #gold and #silver coins
Use #nostr
#einundzwanzig 🧡
A central bank is an institution that has the monopoly over the issuance and regulation of money in a country. It can control the supply of money, the interest rates, and the exchange rates. It can also act as a lender of last resort to commercial banks and the government.
Central banks are supposed to maintain price stability, support economic growth, and ensure financial stability. However, they also have enormous power and influence over the economy and society, and they are often subject to political pressures and conflicts of interest.
What did Marx say about Central Banking?
In his Manifesto of the Communist Party, published in 1848, Marx listed 10 measures that he considered necessary to bring about socialism-communism. The fifth measure was:
> Centralisation of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly. ¹
Marx understood that money is the lifeblood of the economy, and that by controlling money, the state could control everything else. He also wanted to replace gold and silver, which are scarce and independent forms of money, with paper money, which can be created and manipulated by the state. Marx was not a fan of the gold standard, the national debt, or the stock market. He saw them as tools of exploitation and oppression by the capitalist class. He wanted to abolish them and replace them with a central bank that would create money for the benefit of the workers and the state.
How does Central Banking undermine the Free Market and Individual Liberty?
Central banking is a communist concept because it violates the principles of the free market and individual liberty. Here are some of the ways it does so:
- It creates inflation. By increasing the supply of money, central banks reduce the purchasing power of money and erode the value of savings. Inflation is a hidden tax that benefits the government and the debtors at the expense of the savers and the creditors. It also distorts the price signals and creates artificial booms and busts in the economy.
- It enables deficit spending. By buying government bonds, central banks finance the government's spending and debt. This allows the government to spend beyond its means and avoid fiscal discipline. It also crowds out private investment and transfers wealth from the productive sector to the public sector.
- It manipulates interest rates. By setting the benchmark interest rate, central banks influence the cost of borrowing and lending in the economy. They can lower the interest rate to stimulate the economy or raise it to cool it down. However, this interferes with the natural rate of interest that reflects the time preferences and the supply and demand of loanable funds in the market. It also creates moral hazard and encourages excessive risk-taking and speculation.
- It undermines financial stability. By acting as a lender of last resort, central banks provide a safety net for commercial banks and other financial institutions. This creates moral hazard and encourages excessive leverage and risk-taking. It also creates systemic risk and contagion, as the failure of one institution can trigger a domino effect on others. Central banks can also bail out insolvent institutions and create moral hazard and zombie banks.
- It reduces individual freedom. By controlling money, central banks control the economy and society. They can influence the allocation of resources, the distribution of income, and the direction of development. They can also impose capital controls, negative interest rates, bail-ins, and other coercive measures to maintain their monopoly and power. They can also monitor and track the financial transactions and activities of individuals and businesses, and violate their privacy and property rights.
☟
Central banking is a communist concept that contradicts the ideals of capitalism and democracy. It is a system that benefits the state and the elites at the expense of the people and the market. It is a system that creates inflation, debt, instability, and tyranny. It is a system that needs to be exposed, challenged, and abolished.
---
¹: Karl Marx and Friedrich Engels, Manifesto of the Communist Party, Chapter II: Proletarians and Communists, ⁴.
²: Karl Marx, Capital: A Critique of Political Economy, Volume I, Part VIII: The So-called Primitive Accumulation, Chapter 31: Genesis of the Industrial Capitalist, ².
Source:
(1) Why Marx Loved Central Banks | Mises Wire. https://mises.org/wire/why-marx-loved-central-banks.
(2) Karl Marx – The Godfather of Central Banking? - Liberty Nation. https://www.libertynation.com/karl-marx-the-godfather-of-central-banking/.
(3) The Communist Manifesto - Wikipedia. https://en.wikipedia.org/wiki/The_Communist_Manifesto.
(4) Is Central Banking a Capitalist or Communist Concept?. https://www.theepochtimes.com/article/is-central-banking-a-capitalist-or-communist-concept-2-2219456.
(5) Financial System: Definition, Types, and Market Components - Investopedia. https://www.investopedia.com/terms/f/financial-system.asp.
(6) Global financial system - Wikipedia. https://en.wikipedia.org/wiki/Global_financial_system.
(7) Financial System - Overview, Components, Example. https://corporatefinanceinstitute.com/resources/wealth-management/financial-system/.
(8) Economies in the Financial Spotlight in 2021 - IMF. https://www.imf.org/en/Blogs/Articles/2021/05/06/economies-in-the-financial-spotlight-in-2021.
(9) A Brief History of Central Banks - Federal Reserve Bank of Cleveland. https://www.clevelandfed.org/publications/economic-commentary/2007/ec-20071201-a-brief-history-of-central-banks.
(10) Is Central Banking a Capitalist or Communist Concept?. https://thewillcountynews.com/install/index.php/2019/10/14/is-central-banking-a-capitalist-or-communist-concept/.
(11) The Cold War for Kids: Communism - Ducksters. https://www.ducksters.com/history/cold_war/com
Picture: Patrick Schüffel via Linkedin
Reject #cbdc
Learn #bitcoin
Stack #gold and #silver coins
Use #nostr
#einundzwanzig 🧡