The role of commercial banks in money creation is made more clear by the fact the Fed is primarily interested in creating demand deposits rather than cash. This creates a larger foundation on which commercial banks can pyramid a multiple creation of bank deposits, or "checkbook money."
The rebels' overriding grievance was against the tax farmers and tax officials: "It is they who have forced [the peasants] to take up arms, changing their ploughshares for swords, in order to ask Your Majesty for justice or else to die like men."
It would be instructive to see how many banks would survive if the massive governmental props were finally taken away.
Karl Marx portrayed a horrifying and violent state of society which is allegedly necessary "to reduce all to a common level."
Mises in 1926: Public opinion always wants "easy money," that is, low interest rates. But it is the very function of the note-issuing bank to resist such demands, protecting its own solvency.
Bentham began as a devoted Smithian, but over time he became more and more statist.
The Communist Manifesto pushed a heavily progressive income tax as one of ten key ways to undermine the market order. Unfortunately, the idea didn't die with Marx.
Murray N. Rothbard slices his way through ten of the most common value-based calumnies against the market economy. An excerpt from Man, Economy, and State, with Power and Market.
According to Galiani, interest equalizes present and future money. It is a means to compensate for the palpitations of the heart that a creditor must endure until the money is returned.
The whole system of priorities, allocations, quotas, and licenses causes endless delays, keeps efficient concerns from expanding, and keeps inefficient concerns in business.
