Karl Marx on Credit

Karl Marx may have been wrong when he predicted the imminent demise of Capitalism – in the mid 19th century. His obervations on the banking system and credit, however, still ring true today:

“Talk about centralisation! The credit system, which has its focus in the so-called national banks and the big money-lenders and usurers surrounding them, constitutes enormous centralisation, and gives the class of parasites the fabulous power, not only to periodically despoil industrial capitalists, but also to interfere in actual production in a most dangerous manner – and this gang knows nothing about production and has nothing to do with it.

Simultaneously, precisely this can incidentally provide a very profitable business for manufactures and others. Returns become wholly deceptive as a result of the loan system…”.
A high rate of interest can also indicate, as it did in 1857, that the country is undermined by the roving cavaliers of credit who can afford to pay a high interest because they pay it out of other people’s pockets (whereby, howver, they help to determine the rate of interest for all), and meanwhile they live in grand style of anticipated profits.” (Link)

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~ by eboro on February 11, 2009.

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