The Two Socialisms

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While contemplating the approaching debate (or should I call it a rapprochement?) between the two statists tonight, a vague memory stirred of Lenin’s discussion of “two socialisms.” In my meanderings to refresh that recollection, I found Gary North’s stirring prediction of ten years ago, under the same heading — “The Two Socialisms” — of all things:

“At that point, the lie of fractional reserve banking will be exposed all over the world. Not everyone can get his money out. His money is already out: in the illiquid projects of borrowers. The central bank can print money, though not enough to replace all bank deposits. It can create credit, though not enough to stem the tide of an international sell-off of credit-based assets. The guarantor cannot guarantee everything. Yet in a worldwide panic, it must if the system is to go on.

8:58 am on October 15, 2008