Macroeconomic models take the present economic system as an indisputable given. Their studies, their conclusions, their thoughts remain uncritical; the predominant attitude of the profession is that there is no credible alternative to our system of capitalism. ...For American social science it is a scandal that it remains silent on so great an issue.” Orthodox economic thinking stops Americans short of seriously reconsidering the merits of maintaining a system that has privatized their sovereign economic power. Our economic liberty has been shackled to the privately owned Federal Reserve System.In departing from my usual policy of posting only current articles, I offer this one which is relatively timeless and insightful. I have great appreciation for this institute and the book they have published called, The Lost Science of Money by Stephen Zarlenga. It is a bit rough in the earlier chapters, but the author really hits his stride by chapter nine. He bases his observations on considerable research into this widely obscured subject.
However, I think that they hold the view that if the Fed were abolished and money issued by the US Treasury solely as a medium of exchange and not based on debt as under the Fed, that the capitalist system would work just fine. To be sure, the Fed does act as huge parasite on the economy, but it is only the logical extension of an economy that is based on private ownership of socially productive activity--capitalism.
Everything under capitalism has a tendency to become a commodity. Thus, money has been turned into a commodity whose control is in private hands under the Fed. Yes, I know that there is some government participation in this arrangement, but it is very superficial and clearly designed to hide the reality of private control.