We are reading The Communist Manifesto in one of my classes. Shocking, I know.
Marx lays down ten measures that he believes will revolutionize the capitalist mode of production. His fifth is especially relevant: “Centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.”
Scott Horton in his interview with Peter Schiff points out that this is how socialism will/has come to America. In essentially buying out AIG, a failing insurance company, the government has set a dangerous precedent. That the company is failing is beside the point; the fact is the government decided the company needed to be bought out and therefore they bought the company out. Because it has the legal power to create credit out of thin air, this precedent allows the Federal Reserve to essentially “buy” the country if it wants.
Marx never intended agrarian countries like Russia and China to lead the Communist Revolution, but rather he thought industrialized nations like America and Great Britain would lead the way.