Central bank

Topics: Central bank, Monetary policy, Federal Reserve System Pages: 3 (901 words) Published: November 23, 2013
Do we really need central bank?
The financial crisis of not long ago has not surprisingly generated a great deal of anguish within the electorate. Americans were and continue to be a skeptical lot when it comes to the competence of the various federal bureaucracies which dot the Washington, DC landscape. Despite their skepticism about the competence of regulators, they were still disappointed when those empowered to oversee our financial system were seemingly caught unware by a banking collapse central banking has been neither necessary nor sufficient for the development of a modern economy and financial system

It's primary function is to defraud the population for the benefit of the government, and the government's pet favourites, such as the military/industrial complex, the bankers themselves and whoever the government thinks it can bribe for votes. It's literally that corrupt. The reason it can go on under our very noses is because most people don't understand it.

What a central bank does is inflate the supply of money or money substitutes, in other words, it dilutes the existing stock of money by printing more pieces of paper and calling it money. This causes a number of serious negative side-effects.

The first one is that it causes a drop in the value of money. Your money is worth less. That's why the dollar has lost 94 percent of its value since the Federal Reserve was started in 1913. Considering one of the main purposes of the federal reserve is to stabilise prices, we must conclude that it has been a complete failure, compared to the absence of a central bank.

The second negative effect is that inflation is government's main means of funding wars which apart from being supremely immoral, are also extremely destructive of wealth. The USA has become a nation of perpetual war in case you haven't noticed.

The third negative effect is that all the central bank is doing is re-distributing wealth. It's not creating wealth - if it was, we...
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