Quote Originally Posted by Elspeth View Post
Really? I thought central banks-like the Bank of England-were created to aid capitalism. Central banks are private entities, not state-owned. Wouldn't a Marxist banking system have a state owned bank?
I know of no arguing for Central banks in any classical Capitalist theory by Adam Smith or Bastiat, or any pure capitalist economist

http://laissez-fairerepublic.com/TenPlanks.html

Centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.

The Federal Reserve System, created by the Federal Reserve Act of Congress in 1913, is indeed such a "national bank" and it politically manipulates interest rates and holds a monopoly on legal counterfeiting in the United States. This is exactly what Marx had in mind and completely fulfills this plank, another major socialist objective. Yet, most Americans naively believe the U.S. of A. is far from a Marxist or socialist nation.
If the Fed is really a "private" bank in a capitalist system then it wouldn't have a "monopoly" and instead would be one of other competing factors for currency.

What Tecate said..