thefed

Central banks, the Fed – they all perform a vital role in our economies. True or false? And why?

Our answer:
(source: www.simplify123.com)

Managing the money you print whenever you need to… is a dirty job but somebody’s got to do it! Not long after the invention of banking, different banks needed to streamline their operations with other banks. Soon after that, bankers started clamoring for supremacy and control over their competition. In the US, central banks have been tried at least twice before the current Federal Reserve, and each time with disastrous consequences. Three times lucky? Well, if you consider a 98% devaluation of your currency in a mere 100 years a good thing, then yes. Lucky it’s not 100%. Other than that – we’re looking at another total flop. So, have central banks, American or otherwise, ever proven themselves to be the source of economic stability?

  1. Ludwig von Mises in his writings, including his Magum Opus “Human Action”, provided unquestionable proof that central banks – banks with undue power over the economic and political developments of the countries they operate in – are not merely contributing to economic problems – they’re directly causing them. And he won a Nobel prize for that clearly-explained insight.
  2. In 1913 the US government has abrogated its constitutional right to coin its own money, in favor of a private banking cartel (albeit government-controlled). The Federal Reserve – as well as all other central banks around the world – has only a minimal usefulness to the entire banking process but it is, instead, an extremely useful tool for its own shareholders as well as the governments they serve.
  3. Imagining that a small group of men can successfully and fairly control a massive market of millions – even billions – of people, is the height of arrogance. Central planning doesn’t work in politics and economy – and it sure as heck doesn’t work in banking, no matter what they tell you.

The answer to this question is a categorical NO. The opposite is true. Even though there are certain coordinatory functions which central banks perform and they can be seen as “generally useful”, that’s a HUGE price to pay for the damage, corruption and worldwide conflict they cause.

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