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Inequality, the Fed and Karl Marx

John Rowland

Posted on April 6, 2019 12:35

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Incredibly, some still view central bank monopolies as infallible, benevolent keepers of the economy.

As presently constructed, a central bank like the Federal Reserve has an effective monopoly over the issuance of currency and credit.

Thorsten Polleit of the Ludwig von Mises Institute has compellingly demonstrated that "Central Banks Enrich a Select Few at the Expense of Many."

Instead of providing for the "greater good," central banks engage in "inflationary schemes," plundering the people on a "grand scale" through massive redistribution -- grossly distorting society's "income and wealth distribution"; compounding the widening gap between the rich and the poor.

Polleit even shows that with respect to the economic concepts of interest rates and time preference, central banks are socially destructive; adversely affecting peoples’ valuation of things like "education, family and manners."  

About 30 years ago, the top 1% owned 34% of the net worth while the bottom 90% also possessed 34%. Today, the 1% has 40% of the net worth; the bottom 90% has only 20%. This is artificial wealth redistribution engineered by the central bank monopoly.

Witness our economic "recovery" over the last 11 years; the enrichment of Wall Street -- the vanquishing of Main Street, courtesy of the central bank:

  • Financial equity indicators such as the Nasdaq 100: up 200% -- in real terms.
  • Labor Hours - a true measure of employment: up a lousy 6%.
  • Industrial production: up a measly 2%.
  • Median real family income? Try 0%.
  • Manufacturing: -3%.

So the central bank -- that "redistributive organization" -- has inflated Wall Street financial assets through essentially free money -- made initially available only to a select few.

And some of central banks' biggest fans?

Anyone ever heard of Karl Marx?

Polleit explains "Why Marx Loved Central Banks." In his “Manifesto of the Communist Party” (1848), Marx (and Friedrich Engels) called for "measures" to attack "the rights of property."

This was to be accomplished with the “centralisation of credit" in the hands of a bank with an "exclusive monopoly” -- a central bank.

Monopoly tyrants claim that because money is so vital to an economy, this justifies a scheme like a central banking syndicate.

Nonsense.

Its importance is precisely why money, what Mises called the most marketable commodity, should function in a free and open market; unbound from the murderous and monopolistic urges of the central planners.

You wouldn't want just one monopolistic brand of cola available; automobile; airline; grocery store, credit card, etc. You name it.

Same principle with money. Simple.

So to all the good people who despise economic inequality -- the increasing gap between rich and poor -- stop blaming/hating mere pikers like Trump, Pelosi or any other politician du jour.

Focus and register your indignation over economic injustice on the money-changer rats in central banking. Call out these totalitarian forces of mass murder, characterized by some as: all wars are bankers' wars.

These central bank monopolists and their greedy-sick enablers try to hide behind their claimed need for "independence." Don't be fooled -- don't buy it.

"Independence" is simply an ugly euphemism for the bank clinging to its monopoly . . . its stranglehold monopoly over you!

John Rowland

Posted on April 6, 2019 12:35

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Source: FOX Business
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The Federal Reserve is close to hitting its targets for full employment and 2 percent inflation.

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