I\’m not entirely convinced that it\’s this one.
But what does the banking system do that we actually need? In the present system, banks perform a number of functional requirements. Commercial banks operate as a clearing house for bills of exchange, thus reducing the costs of circulation and ensuring the quality of those bills as a measure of value.
Banks can do that, certainly. It\’s even possible that some of them do, occasionally, deal with bills of exchange (although that particular function is more likely to be found in an invoice factoring company these days). But to describe it as a core function or competence of 21 st century banking would be more than a little odd.
It would be as if the writer\’s knowledge of how banking works were cribbed from some 19th century explanatory or polemical tome….oh, wait, yes, I do see the problem.
It would require taking as much of the economy out of the market as possible and placing it under direct popular control. It would require, in short, a sustained popular challenge to capitalist power,
It just never ceases to amaze me how people continue to get this wrong. Capital, capitalism, and markets are simply entirely different things. Different axes. One can have a non-capitalist system which contains markets just as one can have a capitalist system without them. And of the two it is vastly more important that we continue to have markets than that any form of capitalism survives.
I really just don\’t get why people continually confuse the two.