Central Banking

[juliusaugustus]

Hello Folks I am new to this forum. Anyways If you think about it Central banking/fractional reserve banking is proof positive that capitalism can't work. Simply put the vast amounts of wealth that bankers can steal from the general populace leads to them owning and controlling everything. Central Banking puts ultimate monopoly power into the hands of a few individuals. It simply takes gaining power in economic and then buying out the government.

[tuwix]

From the point of view of Marxist a central bank should be a common property of all citizens which means people. The Federal reserve is a property of banks. It is an exception in the world but the issue of property regarding to central banks in capitalism is irrelevant. Despite of being a state property in the majority of countries, they are controlled by the bank bourgeoisie.

From the Marxist, perspective people should control the money to accelerate the transition period from capitalism to communism. And who is to control the central bank and what is purpose of that, it differentiate a Marxists from Neoliberalists in terms of central banking.

[Zealot]

Lenin pointed this out long ago. You may want to read his short work Imperialism: The Highest Stage of Capitalism.

[cyu]

Like companies or governments, banks come down to how control is exercised. A central bank might be controlled by a dictator, in which case you know decisions won't be opposed by the dictator. A central bank might be controlled by an aristocracy or some class of plutocrats, in which case you know decisions won't be opposed by that class. A central bank might also be democratically controlled.

Of course, there's also the issue of centralization vs decentralization. Instead of one central bank, you might have many banks. Each bank can still be controlled either by a dictator (warlordism), a local aristocracy or plutocracy, or a local democracy.

Total atomization would mean each person controls his own bank, if he so wishes - it's interesting that at this level of decentralization, dictatorship / aristocracy / democracy are all merged into one (at least with respect to that one institution - not necessarily in relation to things controlled by other people...)