/lit/ - Literature

>>19808178
>Henry Liu adds an interesting comment regarding communist China by way of comparison. It is instructive for us today in that Marxism has failed historically as an alternative to capitalism — as both Spengler and Eckart pointed out — especially with its inability to address the world financial system upon which monopoly capitalism is predicated. Liu writes:

>"After two and a half decades of economic reform toward neo-liberal market economy, China is still unable to accomplish in economic reconstruction what Nazi Germany managed in four years after coming to power, i.e., full employment with a vibrant economy financed with sovereign credit without the need to export, which would challenge that of Britain, the then superpower. This is because China made the mistake of relying on foreign investment instead of using its own sovereign credit."

>De Colonna writes that, “[in Nazi Germany the] result was a decision by the government to issue and assume control of currency and credit.” One million marks of state credit were issued to finance public works including state housing. “The bankers prophesied speedy bankruptcy. Those prophecies proved utterly wrong . . .” Newly created state banks issued state credit. “The new money backed by the credit of the nation was gradually absorbed by the open money market.” This in turn brought a big increase in state revenue without the need for increasing taxation. Private banks were placed under state supervision and “the rate of interest was limited by law.”

>De Colonna pointed out that the state money was in no way inflationary (a frequent objection against such schemes by orthodox economists). The issue of credit and new money “is based upon the actual production of real wealth;” through greater industrial output. De Colonna stated that after five years of pursuing this policy it had proven its worth in keeping money in constant circulation; “after all that is the only use of money – to circulate and exchange the wealth produced by the nation.”[17]

The Nazis were more of a Marxist state than USSR was. I guess that's why Werner Sombart, whom Engels called the only scholar to truly understand Marx in Germany, went from being a leading Marxist intellectual to a leading National Socialist intellectual.