Central banking is not "capitalism"

published Nov 15, 2021

"Centralization of Credit in the Hands of the State, by Means of a National Bank with State Capital and an Exclusive Monopoly." — The Communist Manifesto, Karl Marx

It is tragic that central banking is often referred to as a feature of "capitalism".

In fact, it's the furthest thing from capitalism.

Central banking is a literal plank of the Communist manifesto.  Communists are not capitalist — they are its enemies.

A coercive monopoly of money printing and price (interest rate) setting is the opposite of the central values of capitalism, namely voluntary free trade and strong private property.

This confusion is toxic.  Central bankers derive power from this false belief, because it causes people who like capitalism to erroneously support central banking, thereby perpetuating the system central bankers profit from.  The broader enemies of capitalism also derive a benefit, because central banking fundamentally distorts and undermines voluntary free trade and private property at a very basic level— and this destruction is aligned with their interests.

Capitalists should be aware that central banking is one of their enemies.